![](https://wp-static.smartkarma.com/../assets/uploaded/2023/08/Smartkarma-Insight-Card-Square.png)
In today’s briefing:
- Taste Gourmet (8371 HK): Strong FY24, 6.7x PE, Cash ~23% of Mkt Cap and >8% Dividend Yield
- Sa Sa Intl (178 HK): Every Coin Has Two Sides
- Additional Points Add to Our Recent Bearish View on Takeda.
- TechChain Insights: Call with Elan Micro; AI PC Significant Uptake 4Q24/1H25; Supply Chain Preparing
- CMCDI Update: Warning Shot Fired At AGM Despite Kan’s Successful Re-Election
- Top Glove Corp (TOPG MK): Volume and ASP Growth Achieved in 3QFY24; Sees Higher Global Demand Ahead
- Tech Supply Chain Tracker (21-Jun-2024): TYC Brother Industrial excels in NEVs; US plant ready by 1Q25.
- MIXI Inc. (2121 JP) – At an Inflection Point to Generate Shareholder Value
- Perfect Corp.
- Sharkninja (SN) – Thursday, Mar 21, 2024
![](http://www.smartkarma.com/assets/plugins/a3-lazy-load/assets/images/lazy_placeholder.gif)
Taste Gourmet (8371 HK): Strong FY24, 6.7x PE, Cash ~23% of Mkt Cap and >8% Dividend Yield
- Taste Gourmet (8371 HK) reported revenues up 37% YoY and profits up 29% YoY (lower than our expectation of 39% profit growth) due to a slightly weaker-than-expected Q4.
- Dividends for H2 were 7.4 cents/share (overall FY24:12.9 cents), implying an 8.1% dividend yield. Net cash on the balance sheet was 143 mn HKD (23% of market cap).
- Trading at 6.7x PE FY24 (March end) and with an excellent execution track record, we believe that the company will be able to post more robust numbers in FY25.
Sa Sa Intl (178 HK): Every Coin Has Two Sides
- Despite missing market consensus, Sa Sa International Hldgs (178 HK)‘s FY24 result still have silver linings. Its resumption of dividends with a 70% payout ratio is welcoming.
- Tax credit in 2H23 has distorted comparison. At pre-tax level, 2H24 profit has gone up by 29.5%. Cost management is solid, generating a 0.9pp FY24 operating margin expansion.
- While overall 1Q25 sales have dropped, mainland China sales surged 83.9%. The macro environment should have bottomed and government efforts to attract tourists will pay off.
Additional Points Add to Our Recent Bearish View on Takeda.
- Production problems of Vyvanse generics seem to be largely resolved with nine of the ten suppliers back in stock.
- Safety concerns with Takeda’s approved psoriasis competitor does raise further concerns as they are both TYK-2 inhibitors.
- The company’s $900 m big restructure and cited areas for margin improvement are not “convincing” and lack detail.
TechChain Insights: Call with Elan Micro; AI PC Significant Uptake 4Q24/1H25; Supply Chain Preparing
- We hosted a conference call with Elan Microelectronics management; We view the company as a Structural Long position for the AI PC upgrade cycle.
- From the company’s perspective, significant impact from AI PC demand will come but not until 4Q24E or 1H25E. However, supply chain excess inventory improved and prepping for upcycle.
- An estimated 90% of AI PC models launched at CES 2024 use Elan’s products in their design; Elan well positioned for the upcycle and entrenching its position. Maintain Structural Long.
CMCDI Update: Warning Shot Fired At AGM Despite Kan’s Successful Re-Election
- While Elizabeth Kan barely survived the AGM vote, ASM has effectively mobilized minority shareholders.
- Lazard (owns 15% of CMCDI) probably voted alongside ASM (owns 9%). Other than China Merchants Group and Victor Chu, almost no “outside shareholders” voted in favor of Kan, .
- The next battleground is a vote in November when CMCDI needs to renew its investment management agreement. Intense behind-the-scene negotiations are expected, given the bargaining power ASM now demonstrated.
Top Glove Corp (TOPG MK): Volume and ASP Growth Achieved in 3QFY24; Sees Higher Global Demand Ahead
- Top Glove Corp (TOPG MK) achieved 16% QoQ revenue growth in 3QFY24, on 13% sequential volume increase and higher ASP. 3QFY24 operational loss reduced to RM34M from RM59M in 2QFY24.
- Considering the current demand and supply condition, Top Glove expects the ASP to further increase. The company aims to recover its EBITDA margin to pre-pandemic levels of 15% by FY26.
- With rising import alert and expected tariff increase on Chinese manufacturers, the US demand may shift from China to Malaysia. Top Glove is poised to benefit from potential trade diversion.
Tech Supply Chain Tracker (21-Jun-2024): TYC Brother Industrial excels in NEVs; US plant ready by 1Q25.
- TYC Brother Industrial is set to dominate the NEV market with a US plant scheduled to be operational by the first quarter of 2025.
- Despite sanctions, a Russian company has introduced the MP21 SBC to rival the Raspberry Pi 5, showcasing the competitiveness of the technology market.
- Cerebras and Dell have joined forces to challenge Nvidia in the AI market, highlighting the growth of AI accelerator technology for servers. Taiwan’s carbon market is advancing with new initiatives and regulations, while the UK collaborates with Taiwan to lead in semiconductors at Semi-Impact forum. India is ramping up cobalt supply efforts to meet growing demand.
MIXI Inc. (2121 JP) – At an Inflection Point to Generate Shareholder Value
- Approaching a transformational phase – MIXI Inc. is a digital content company generating earnings from its ‘MONSTER STRIKE’ mobile gaming franchise.
- Operating in a mature domestic gaming market, the company has successfully diversified into lifestyle and sports, but to date has experienced limited earnings contribution.
- We believe this is about to change, driven by the new monetization strategy for the ‘FamilyAlbum’ video and photo- sharing service app in FY3/25.
Perfect Corp.
- Perfect Corp. provides an AI and machine learning based B2B SaaS platform for virtual try on and marketing of beauty and fashion products as well as six mobile apps sold B2C for makeup suggestions, try-on, tutorials, photo and video editing and most recently, Gen AI creation and editing.
- It is expanding its offering to new verticals and has strong IP as well as the largest database for AI training in the industry.
- It has a dominant market share and serves almost all the major beauty brands worldwide.
Sharkninja (SN) – Thursday, Mar 21, 2024
- SharkNinja is a newly listed company with popular consumer brands Shark and Ninja
- Despite challenges in brand-building and international markets, the company achieved a 15% operating margin in 2023
- Analysts project an annualized return of 18-20% based on current earnings yield and expected organic earnings growth
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.