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In today’s briefing:
- Cathay Pacific (293 HK, BUY, TP:HKD):
- Silergy (6415.TT): Trial-Run with Vanguard, and Recent Stock Drops Represent an Entry Opportunity.
- Vanguard (5347.TT): The Utilization to Improve over 70% in 3Q24.
- China Consumption Weekly (8 Jul 2024): BYD, Seres, Tesla, Microsoft, XHS, Mixue
- Mongolia Mining Corp (975 HK): Play on Coking Coal Price With Growth Optionality
- Card Factory (CARD) – Sunday, Apr 7, 2024
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Cathay Pacific (293 HK, BUY, TP:HKD):
- Operations are on track with earlier guidance given during FY23 results, loads and yields are healthy, with UK and North American performing better than expected
- Will buyback and cancel remaining 97.7m preference shares for a sum of HKD10b by end of July 2024. Shareholder dilution has been avoided
- Cathay Pacific is a value BUY, our target price of HK$9.90 (+24% UPSIDE) implies 10x FY2024 PE, parity multiple against its arch-rival Singapore Airlines (SIA SP)
Silergy (6415.TT): Trial-Run with Vanguard, and Recent Stock Drops Represent an Entry Opportunity.
- We are surprised that Silergy Corp (6415 TT) is using Vanguard Intl Semiconductor (5347 TT) to trial-run products.
- The outlook for 2024 remains unchanged at over 20% YoY, and we still see a path to recovery ahead.
- We consider the recent drop from NTD$526 on June 14th to NTD$429 on July 5th as an opportunity to consider entering the stock.
Vanguard (5347.TT): The Utilization to Improve over 70% in 3Q24.
- We expect Vanguard’s utilization to improve from around 65% in 2Q24 to over 70% in 3Q24.
- Qualcomm Inc (QCOM US) and Monolithic Power Systems, Inc (MPWR US) are gradually increasing demand volume in 2Q24 and 3Q24.
- Currently, Vanguard is experiencing a correction from above NTD$142 on July 2nd.
China Consumption Weekly (8 Jul 2024): BYD, Seres, Tesla, Microsoft, XHS, Mixue
- BYD’s sales volume increased by 35% YoY in June and by 39% YoY in 2Q24.
- Tesla’s Model Y is on the state-owned corporation procurement catalogs.
- Microsoft plans to close its franchised store chain in China due to the weak demand for Surface.
Mongolia Mining Corp (975 HK): Play on Coking Coal Price With Growth Optionality
- Following our piece, Fushan Energy (639 HK): Coking Coal Prices To Strengthen With Anglo Accident, we highlight Mongolian Mining (975 HK) as another play with growth potential.
- With a market capitalization of 1.1 bn USD, it trades at 5.3x PE, trailing, and with the sale of 20% of its subsidiary KEX, it is net cash.
- Potential catalysts include the payment of a first dividend once it has redeemed the perpetual notes and the commencement of its highly accretive gold project in 2025 in Mongolia.
Card Factory (CARD) – Sunday, Apr 7, 2024
- CARD is a UK microcap retailer with impressive qualities despite appearing unattractive at first glance
- The company has shown consistent growth and gains market share each year in a stagnant market
- With a strong balance sheet, high return on capital employed, and efficient CEO, CARD presents a compelling investment opportunity at a low valuation
This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.