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Smartkarma Daily Briefs

Mar 23
0

Daily Brief Financials: Ethereum, Shui On Land, Compass, LXI REIT , StoneCo , Triple Point Social Housing REIT and more

By | Daily Briefs, Financials

In today’s briefing:

  • Crypto Moves #20 – Ethereum Will Never Be the Same
  • Shui On Land – Earnings Flash – FY 2023 Results – Lucror Analytics
  • Compass Inc (COMP) – Friday, Dec 22, 2023
  • LXi REIT – Termination of coverage
  • StoneCo Ltd.: Is The Banking Sector Growth Likely To Last For Them? – Major Drivers
  • Triple Point Social Housing REIT – Financial and operational progress

Crypto Moves #20 – Ethereum Will Never Be the Same

By Mads Eberhardt

  • Last Wednesday, on March 13th, Ethereum launched its biggest upgrade in the past 18 months, marking a significant milestone since the Ethereum Merge on September 15, 2022.
  • Dubbed Dencun or Cancun-Deneb, this upgrade introduced the eagerly awaited Proto-Danksharding feature, aimed at dramatically enhancing the scalability of Ethereum’s Layer 2, also known as rollups, and slashing the costs associated with rollup transactions, while making them less volatile.
  • Proto-Danksharding brought to the table so-called ‘blobs’.

Shui On Land – Earnings Flash – FY 2023 Results – Lucror Analytics

By Leonard Law, CFA

Shui On Land’s (SOL) FY 2023 results were slightly weak, in our view. Positively, the company’s rental income increased moderately, supported by contributions from new commercial assets and China’s re-opening from the pandemic. Recurring operating income from rentals and property management covered 0.8x of interest expense. In addition, the gross margin remained very strong, even as revenue from the property development segment was halved on account of lower sales and deliveries.

Negatively, SOL’s net debt climbed 14% from FYE 2022, owing to lower cash collections and its acquisition of a Shanghai project in April 2023. Moreover, the company’s increased asset encumbrance would reduce its financial flexibility. Liquidity is weak, considering the thin unrestricted cash balance and substantial refinancing needs over the next 12 months. That said, the company might be able to pledge or dispose of more assets to raise cash.

Compass Inc (COMP) – Friday, Dec 22, 2023

By Value Investors Club

  • COMP is a residential real estate brokerage firm with a market cap of around $1.7B founded to disrupt the low-tech residential market.
  • Despite a decline in share value due to high mortgage rates, COMP has shifted focus to profitability and cost-cutting measures.
  • With interest rates expected to decrease and potential for a rebound in the residential market, COMP is well-positioned for growth and has potential for significant upside in share price.

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.

LXi REIT – Termination of coverage

By Edison Investment Research

Edison Investment Research is terminating coverage on LXi REIT (LXI). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our website.

StoneCo Ltd.: Is The Banking Sector Growth Likely To Last For Them? – Major Drivers

By Baptista Research

  • StoneCo had a successful year with substantial strategic advancements, impressive financial performance, as well as strategic milestones that bolstered the company’s market position while paving the way for future growth.
  • The year saw the implementation of strategic adjustments that aimed to better position the business for the future.
  • As such, the company reorganized itself to effectively deliver solutions across different client segments, from micro to medium businesses.

Triple Point Social Housing REIT – Financial and operational progress

By Edison Investment Research

Triple Point Social Housing REIT (SOHO) reported a robust FY23 financial performance. Benefiting from inflation-linked rental growth and improving rent collection, DPS is once again covered on a run-rate basis, and we expect further progress. Operational initiatives included the roll-out of the new lease clause and launch of the eco-retrofit pilot project.

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Mar 23
0

Daily Brief Consumer: GoTo Gojek Tokopedia Tbk PT, Tesla Motors, Topbuild Corp, C&C International Corp, Games Workshop Group PLC, Lithia Motors Inc Cl A, Texas Roadhouse, Archer Daniels Midland Co, Williams Sonoma, Dick’s Sporting Goods and more

By | Consumer, Daily Briefs

In today’s briefing:

  • GoTo Gojek Tokopedia (GOTO IJ) – Warming Up the New Engines of Growth
  • Tesla Increases Price of Model Y in China in Sign That Price War Is Easing
  • Topbuild Corp (BLD) – Thursday, Dec 21, 2023
  • Special Changes in KOSDAQ 150: Deletion (CanariaBio) + Addition  (C&C International)
  • Games Workshop Group – Steady as she goes
  • Lithia Motors: Initiation Of Coverage – A Story Of UK Market Growth Through The Pendragon Acquisition
  • Texas Roadhouse Inc.: Initiation Of Coverage – Will Its Investments In Digital Technology Pay Off? – Major Drivers
  • Archer-Daniels-Midland Company: Unfolding Competitive Landscape & Financial Prospects! – Major Drivers
  • Williams-Sonoma Inc.: Macro-Economic Uncertainty & 3 Major Challenges In Its Path – Major Drivers
  • DICK’S Sporting Goods: Initiation Of Coverage – Is There Anything Unique About Their Business Strategy? – Major Drivers

GoTo Gojek Tokopedia (GOTO IJ) – Warming Up the New Engines of Growth

By Angus Mackintosh

  • GoTo Gojek Tokopedia (GOTO IJ) 4Q2023 results revealed another sequential increase in GTV and positive adjusted EBITDA for both ODS and e-commerce, despite reduced incentive and marketing spending.
  • GoTo achieved positive top-line growth by expanding its total addressable market through more affordable products and a strong performance from consumer lending in fintech, coupled with great cash cost efficiencies.
  • 2024 will be a transformational year for GoTo without the yoke of Tokopedia promotional spending but with significant cash coming in every quarter that can be used to drive growth.

Tesla Increases Price of Model Y in China in Sign That Price War Is Easing

By Caixin Global

  • Tesla Inc. will increase the price of its popular Model Y crossover by 5,000 yuan ($694) in China, a move that offers rivals a temporary reprieve as a raging price war engulfs the world’s largest auto market.
  • The price rise on China-made Model Y vehicles will start on April 1, Tesla confirmed with Caixin Wednesday. Meanwhile, some of the extras offered by Tesla to its Chinese customers, including an 8,000-yuan insurance subsidy, will expire on March 31.
  • Tesla previously announced a price increase of $1,000 for the Model Y in the United States and 2,000 euros ($2,542) in Europe.

Topbuild Corp (BLD) – Thursday, Dec 21, 2023

By Value Investors Club

  • BLD offers comprehensive services for roofing, including material selection, expert installation, and post-installation service.
  • They are known for their focus on high-quality materials, professional installation, and exceptional customer service.
  • BLD has established itself as a leader in the industry, serving both residential and commercial markets with a commitment to meeting the evolving needs of the construction industry.

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.

Special Changes in KOSDAQ 150: Deletion (CanariaBio) + Addition  (C&C International)

By Douglas Kim

  • On 22 March, the Korea Exchange announced special changes to KOSDAQ 150. CanariaBio will be excluded from KOSDAQ 150 and it will be replaced by C&C International.
  • Canaria Bio was designated as “administrative issue” and “investment attention issue” on 22 March 2024, which resulted in KRX deciding to remove this stock from KOSDAQ 150 on 26 March.
  • We believe that this inclusion of C&C International in KOSDAQ 150 is likely to further positively impact its share price.

Games Workshop Group – Steady as she goes

By Edison Investment Research

Games Workshop Group has reported that trading for the three months to the end of February 2024 is in line with expectations. The fourth dividend of the year has been declared at 105p/share, which takes the year-to-date total to 420p/share, marginally ahead of the 415p/share declared in FY23 at a similar stage. The declared dividend compares with our prior estimate of 425p/share, and we have therefore nudged our estimate down to be consistent with the amounts declared.

Lithia Motors: Initiation Of Coverage – A Story Of UK Market Growth Through The Pendragon Acquisition

By Baptista Research

  • This is our first report on automotive retailer, Lithia Motors.
  • The company had a strong Q4 2023, with revenues growing by 11% from last year to reach $7.7 billion.
  • The company’s revenue increase was primarily driven by robust new vehicle sales, with same-store units increasing by 10% and aftersales revenues growing by 3%.

Texas Roadhouse Inc.: Initiation Of Coverage – Will Its Investments In Digital Technology Pay Off? – Major Drivers

By Baptista Research

  • This is our first report on dining restaurant chain, Texas Roadhouse Inc.
  • The year 2023 proved to be a successful year for the company.
  • Texas Roadhouse generated over $4.6 billion in revenue and saw an increase in average unit volumes to more than $7.6 million.

Archer-Daniels-Midland Company: Unfolding Competitive Landscape & Financial Prospects! – Major Drivers

By Baptista Research

  • According to the Q4 2023 earnings of Archer-Daniels-Midland Company (ADM), the company reported adjusted earnings per share (EPS) of $1.36 for the quarter.
  • For the fiscal year, the company reported adjusted EPS of $6.98.
  • The firm had an adjusted Return on Invested Capital (ROIC) of 12.2%.

Williams-Sonoma Inc.: Macro-Economic Uncertainty & 3 Major Challenges In Its Path – Major Drivers

By Baptista Research

  • In its latest earnings, Williams-Sonoma, Inc.
  • recorded a performance marked by both successes and challenges.
  • In Q4, the company saw a -6.8% comp, -7.4% in the 2-year comp, and a +29.1% in the 4-year comp.

DICK’S Sporting Goods: Initiation Of Coverage – Is There Anything Unique About Their Business Strategy? – Major Drivers

By Baptista Research

  • This is our first report on DICK’S Sporting Goods.
  • The leading sports goods and outdoor retailer is significant in its sales growth, paired with its impressive development project, House of Sport.
  • Full year sales reached $13 billion, marking a notable increase in market share.

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Mar 23
0

Daily Brief Quantitative Analysis: Hong Kong Buybacks Weekly (Mar 22nd): Aia and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • Hong Kong Buybacks Weekly (Mar 22nd): Aia, Swire Pacific, Kuaishou Technology
  • ASX Short Interest Weekly (Mar 15th): CSL, Paladin Energy, Macquarie, Emerald Resource

Hong Kong Buybacks Weekly (Mar 22nd): Aia, Swire Pacific, Kuaishou Technology

By Ke Yan, CFA, FRM

  • We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Mar 22nd based on HKEx daily reports.
  • In the past 7 days, the top 3 companies that repurchased the most shares from the market were AIA (1299 HK), Swire Pacific (19 HK), Kuaishou Technology (1024 HK).
  • In the past 30 days, the top 3 companies that repurchased the most shares from the market were Dongyue (189 HK), AIA (1299 HK), Kuaishou Technology (1024 HK).

ASX Short Interest Weekly (Mar 15th): CSL, Paladin Energy, Macquarie, Emerald Resource

By Ke Yan, CFA, FRM

  • We analyzed the changes in short interest of ASX Stocks as of Mar 15th (reported today) which has an aggregated short interest worth USD19.1bn.
  • We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases & decreases in short value, short as multiple of ADT.
  • We highlight short interest changes in CSL, Paladin Energy, Macquarie, Emerald Resource, IDP Education, BHP, ANZ, Wisetech Global.

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Mar 23
0

Daily Brief Technical Analysis: Bullish Outlook Intact; Downgrading India; Buys in Materials and more

By | Daily Briefs, Technical Analysis

In today’s briefing:

  • Bullish Outlook Intact; Downgrading India; Buys in Materials, Energy, Discretionary, Industrials

Bullish Outlook Intact; Downgrading India; Buys in Materials, Energy, Discretionary, Industrials

By Joe Jasper

  • The bullish outlook for global equities (MSCI ACWI) that we initiated in early November 2023 remains intact; continue to ride this trend higher.
  • Many of the heavily-weighted countries in terms of global market capitalization (U.S., Europe, Japan) are extended; we’d welcome some consolidation, though it may come from higher levels.
  • Ultimately, market dynamics remain healthy, and we would treat pullbacks as buying opportunities. Downgrading India to market weight. Actionable Themes: Global Materials, Energy, Consumer Discretionary, and Industrials

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Mar 23
0

Daily Brief Thematic (Sector/Industry): Japan Weekly | Real Estate Inflates; Nidec Benefits from AI and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Japan Weekly | Real Estate Inflates; Nidec Benefits from AI
  • [Blue Lotus Daily]300274SZ/300750SZ/LI/NIO/1211HK/Huazhu/Atour/XPEV/9926 HK
  • AUCTUS ON FRIDAY – 15/03/2024
  • Tech Talk – WTR Technology Conference – AI and Crypto

Japan Weekly | Real Estate Inflates; Nidec Benefits from AI

By Mark Chadwick

  • The Nikkei and Topix indexes surged by 5.63% and 5.33% reaching all-time highs
  • Real Estate majors were the biggest movers in Japan. Beneficiaries of higher inflation and continuation of easy monetary policy
  • Nidec is reinventing itself again. EV traction motors will remain a core driver, but investors can now get excited by the AI thematic

[Blue Lotus Daily]300274SZ/300750SZ/LI/NIO/1211HK/Huazhu/Atour/XPEV/9926 HK

By Eric Wen

  • 300274SZ/300750SZ/LI/NIO/1211HK: Jan+Feb new energy export data show that wind power is picking up, and inverters has reached inflection point, while lithium batteries and electric vehicles are exchanging prices for volume(+/-/-/-/-)
  • Huazhu/Atour: Huazhu guided conservative RevPAR outlook for 2024, citing weak business travel demand.（-）
  • LI/1211 HK/XPEV/NIO: In 2024’s 11th week, BYD continued to accelerate while fell back, yet the overall acceleration of new energy vehicles bodes well for the whole year (/)

AUCTUS ON FRIDAY – 15/03/2024

By Auctus Advisors

  • ADX Energy (ADX AU) C ; target price of A$1.00 per share: Very high impact exploration well encounters gas and condensate in Austria – The Welchau well (ADX WI: 75%) encountered 115 m of liquids-rich gas shows in the primary target formation (Steinalm Formation) between 1452 m and 1567 m.
  • The deepest gas shows were encountered at a depth of 1645 m.
  • The well has reached TD at 1733 m. The Steinalm Formation intersection in the well is in line with the pre-drill prognosis.

Tech Talk – WTR Technology Conference – AI and Crypto

By Water Tower Research

  • Artificial intelligence (AI) is all the buzz, but for good reason.
  • AI is being used to automate and optimize many tasks previously thought to be beyond computers.
  • WTR will be hosting a hybrid conference on April 10-11 in New York City to discuss how AI can propel the business prospects of smaller companies. 

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Mar 23
0

Daily Brief Credit: Shui On Land – Earnings Flash – FY 2023 Results – Lucror Analytics and more

By | Credit, Daily Briefs

In today’s briefing:

  • Shui On Land – Earnings Flash – FY 2023 Results – Lucror Analytics
  • Sunny Optical – Earnings Flash – FY 2023 Results – Lucror Analytics

Shui On Land – Earnings Flash – FY 2023 Results – Lucror Analytics

By Leonard Law, CFA

Shui On Land’s (SOL) FY 2023 results were slightly weak, in our view. Positively, the company’s rental income increased moderately, supported by contributions from new commercial assets and China’s re-opening from the pandemic. Recurring operating income from rentals and property management covered 0.8x of interest expense. In addition, the gross margin remained very strong, even as revenue from the property development segment was halved on account of lower sales and deliveries.

Negatively, SOL’s net debt climbed 14% from FYE 2022, owing to lower cash collections and its acquisition of a Shanghai project in April 2023. Moreover, the company’s increased asset encumbrance would reduce its financial flexibility. Liquidity is weak, considering the thin unrestricted cash balance and substantial refinancing needs over the next 12 months. That said, the company might be able to pledge or dispose of more assets to raise cash.

Sunny Optical – Earnings Flash – FY 2023 Results – Lucror Analytics

By Trung Nguyen

Sunny Optical has released its FY 2023 numbers, which were weak but in line with expectations. Revenue declined 4.6% y-o-y to CNY 31.7 bn, due to lower shipments of handset-related products. Gross profit tumbled c. 30% to CNY 4.6 bn, with the margin shrinking to 14.5%. OCF plunged 64% to CNY 2.7 bn, while capex decreased slightly. FCF was therefore positive, albeit significantly lower. That said, the financial risk profile and liquidity remain healthy, supported by a large net cash position.

We believe the industry operating environment will stabilise. The company marked seven consecutive months of double-digit shipment volume growth in February 2024, indicating that the recovery in the smartphone market is continuing. We expect shipments to stabilise at this level, which will represent a robust increase from the FY 2023 numbers. We project positive revenue and earnings growth in FY 2024.

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Mar 23
0

Daily Brief Event-Driven: Link Admin (LNK AU): 24th April Shareholder Vote and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Link Admin (LNK AU): 24th April Shareholder Vote
  • HLB Life Science: Impact of Rights Offering Capital Raise of 150 Billion Won
  • Antin/Opdenergy: Squeeze-Out. Who’ll Be Next?
  • Special Changes in KOSDAQ 150: Deletion (CanariaBio) + Addition  (C&C International)

Link Admin (LNK AU): 24th April Shareholder Vote

By David Blennerhassett

  • Back on the 18 December 2023, superannuation service provider Link Administration (LNK AU) entered into a Scheme with Mitsubishi UFJ Financial Group.
  • MUFJ offered Link shareholders A$2.10/share (in cash) plus a A$0.16/share dividend (25% franked), or a 32.9% premium, all-in. 
  • The Scheme Meeting will now take place on the 24th April, with expected implementation on the 16 May. This looks done – and trading accordingly. 

HLB Life Science: Impact of Rights Offering Capital Raise of 150 Billion Won

By Douglas Kim

  • On 21 March, HLB Life Science announced a rights offering capital raise worth 150 billion won. 
  • The expected rights offering price is 13,630 won (32% lower than current price of 19,930 won)  and there are 11 million shares in this rights offering (10% of outstanding shares). 
  • HLB Inc (028300 KS) is the largest controlling shareholder of HLB Life Science (067630 KS) with an 18.7% stake in the company.

Antin/Opdenergy: Squeeze-Out. Who’ll Be Next?

By Jesus Rodriguez Aguilar

  • With acceptances from 99.6%, settlement of the offer for Opdenergy Holdings (OPDE SM)  will happen on 26 March and squeeze-out on 15 April.
  • A done deal since outset, at a fair price. The agreement of Anti with the top shareholders left minorities with virtually no capacity to ask for a sweetening. 
  • Readacross: Ecoener, Grenergy, Audax, Solaria could all be the object of takeover bids (either from private equity or minority buyouts), with Grenergy preferred. See comparables table in the insight.

Special Changes in KOSDAQ 150: Deletion (CanariaBio) + Addition  (C&C International)

By Douglas Kim

  • On 22 March, the Korea Exchange announced special changes to KOSDAQ 150. CanariaBio will be excluded from KOSDAQ 150 and it will be replaced by C&C International.
  • Canaria Bio was designated as “administrative issue” and “investment attention issue” on 22 March 2024, which resulted in KRX deciding to remove this stock from KOSDAQ 150 on 26 March.
  • We believe that this inclusion of C&C International in KOSDAQ 150 is likely to further positively impact its share price.

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Mar 23
0

Daily Brief Equity Bottom-Up: GoTo Gojek Tokopedia (GOTO IJ) – Warming Up the New Engines of Growth and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • GoTo Gojek Tokopedia (GOTO IJ) – Warming Up the New Engines of Growth
  • Memory Monitor: Micron Leapfrogging Into HBM3E for AI; Nanya Lagging Peers But Poised to Benefit
  • Tesla Increases Price of Model Y in China in Sign That Price War Is Easing
  • Ant Group Completes Microloan Business Reshuffle
  • Japan Airlines – Encouraging Lifting of Medium Term Expectations to Narrow Recovery Gap to ANA
  • Adobe Inc.: When Will Its Adoption Of Generative AI Reflect On Its Top-Line? – Major Drivers
  • Jabil Inc.: What Are Its Latest Advancements In AI? – Major Drivers
  • Intel. CHIPS Act Funding Ceremony Overshadowed By Reports Of New Fab Delays
  • Dentsply International (XRAY US): Sombre Growth Outlook and Pricey Valuation
  • [Kuaishou (1024 HK, BUY, TP HK$81) TP Change]: Prime Beneficiary of Playlet Induced Traffic

GoTo Gojek Tokopedia (GOTO IJ) – Warming Up the New Engines of Growth

By Angus Mackintosh

  • GoTo Gojek Tokopedia (GOTO IJ) 4Q2023 results revealed another sequential increase in GTV and positive adjusted EBITDA for both ODS and e-commerce, despite reduced incentive and marketing spending.
  • GoTo achieved positive top-line growth by expanding its total addressable market through more affordable products and a strong performance from consumer lending in fintech, coupled with great cash cost efficiencies.
  • 2024 will be a transformational year for GoTo without the yoke of Tokopedia promotional spending but with significant cash coming in every quarter that can be used to drive growth.

Memory Monitor: Micron Leapfrogging Into HBM3E for AI; Nanya Lagging Peers But Poised to Benefit

By Vincent Fernando, CFA

  • Micron shares have soared after the company reported its latest results with forward margin guidance well above consensus expectations.
  • Micron appears to be successfully leapfrogging into ther HBM memory space, and says that its production for 2024E is sold out and for 2025E is already all ‘allocated’.
  • Taiwan’s Nanya Tech has lagged its peers by a wide margin; Nanya lacks HBM products however HBM market demand is driving supply tightness for all DRAM.

Tesla Increases Price of Model Y in China in Sign That Price War Is Easing

By Caixin Global

  • Tesla Inc. will increase the price of its popular Model Y crossover by 5,000 yuan ($694) in China, a move that offers rivals a temporary reprieve as a raging price war engulfs the world’s largest auto market.
  • The price rise on China-made Model Y vehicles will start on April 1, Tesla confirmed with Caixin Wednesday. Meanwhile, some of the extras offered by Tesla to its Chinese customers, including an 8,000-yuan insurance subsidy, will expire on March 31.
  • Tesla previously announced a price increase of $1,000 for the Model Y in the United States and 2,000 euros ($2,542) in Europe.

Ant Group Completes Microloan Business Reshuffle

By Caixin Global

  • Chinese fintech giant Ant Group Co. Ltd. has completed the reshuffle of its consumer lending businesses Huabei and Jiebei, wrapping up a years-long, government-driven overhaul, a person close to the matter told Caixin.
  • Ant’s two wholly owned small loan business units, the operators of Huabei and Jiebei, have fully exited the businesses during the past year.
  • The two brands have been incorporated into Chongqing Ant Consumer Finance Co. Ltd. (CACF), a subsidiary set up in 2021 that is 50% owned by Ant, according to the person close to CACF.

Japan Airlines – Encouraging Lifting of Medium Term Expectations to Narrow Recovery Gap to ANA

By Neil Glynn

  • JAL finishing FY24 strongly with another guidance upgrade – upgraded FY26 targets more logical in light of existing ANA targets
  • ​Demand momentum particularly helpful as wages rise across Japan and ​cost control to remain impressive over FY25-FY26 as LCC growth set to dilute FSC inflation
  • ​Detailed analysis of JAL’s widening margin gap to ANA suggests revenue solution required – momentum helpful and needs to be watched carefully

Adobe Inc.: When Will Its Adoption Of Generative AI Reflect On Its Top-Line? – Major Drivers

By Baptista Research

  • Adobe Inc.
  • delivered robust financial results for the first quarter of fiscal year 2024, with a revenue of $5.18 billion.
  • This represents a 12% year-over-year growth, demonstrating the significant role of Adobe products in powering the global digital economy.

Jabil Inc.: What Are Its Latest Advancements In AI? – Major Drivers

By Baptista Research

  • The second quarter of fiscal year 2024 saw Jabil Inc.
  • achieve approximately $6.8 billion in revenue.
  • This performance was in line with the guidance for the majority of the company’s businesses.

Intel. CHIPS Act Funding Ceremony Overshadowed By Reports Of New Fab Delays

By William Keating

  • Intel snags $8.5 billion in direct funding through the CHIPS and Science Act to advance its commercial semiconductor projects in Arizona, New Mexico, Ohio and Oregon.
  • Investment Tax Credit (ITC) of up to 25% on > $100 billion in qualified investments and eligibility for federal loans up to $11 billion are also on offer
  • Meanwhile, two separate reports suggest delays of up to two years in Ohio and suppliers in Arizona unable/unwilling to meet previous commitments to establish local supply chains. Ouch!

Dentsply International (XRAY US): Sombre Growth Outlook and Pricey Valuation

By Tina Banerjee

  • Dentsply International (XRAY US) guided for 2024 revenue of $3.96–4.02B, flat to up 1.5% on an organic basis and 12% growth in 2024 EPS at midpoint.
  • The macro environment continues to be challenging. The company anticipates the ongoing softness in imaging will continue in 2024. Cost savings will support the bottom-line growth.
  • In terms of every valuation metrics, Dentsply is overpriced compared to its U.S.-listed peers. Strong balance sheet, accelerating dividend, and buyback do not justify the pricey valuation.

[Kuaishou (1024 HK, BUY, TP HK$81) TP Change]: Prime Beneficiary of Playlet Induced Traffic

By Ying Pan

  • Kuaishou reported C4Q23 revenue, IFRS OP, and IFRS net income in line, 31%, and 51% vs.  our estimates; and in line, 43%, and 67% vs. consensus.
  • The significant profit beat was mainly due to the rich content supply on the platform that led to organic traffic influx, resulted in marketing costs reductions. 
  • We raised our TP by HK$2 to HK$81, implies 20X PE, vs. current trading at 13X PE for 2025.

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Mar 23
0

Daily Brief Crypto: Crypto Moves #20 – Ethereum Will Never Be the Same and more

By | Crypto, Daily Briefs

In today’s briefing:

  • Crypto Moves #20 – Ethereum Will Never Be the Same

Crypto Moves #20 – Ethereum Will Never Be the Same

By Mads Eberhardt

  • Last Wednesday, on March 13th, Ethereum launched its biggest upgrade in the past 18 months, marking a significant milestone since the Ethereum Merge on September 15, 2022.
  • Dubbed Dencun or Cancun-Deneb, this upgrade introduced the eagerly awaited Proto-Danksharding feature, aimed at dramatically enhancing the scalability of Ethereum’s Layer 2, also known as rollups, and slashing the costs associated with rollup transactions, while making them less volatile.
  • Proto-Danksharding brought to the table so-called ‘blobs’.

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Mar 23
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Daily Brief Macro: CX Daily: U.S. Watchdog Fines Three KPMG China Partners for Audit Violations and more

By | Daily Briefs, Macro

In today’s briefing:

  • CX Daily: U.S. Watchdog Fines Three KPMG China Partners for Audit Violations
  • Walker’s Weekly: Dr. Jim’s Summary of Key Global Macro Developments – 22 Mar 2024
  • The Weekly Market Monitor – Global Monetary Policy Easing Has Begun!

CX Daily: U.S. Watchdog Fines Three KPMG China Partners for Audit Violations

By Caixin Global

  • Audit /: U.S. watchdog fines three KPMG China partners for audit violations
  • Law enforcement /: As profit-driven, cross-regional law enforcement grows, scholars suggest fines be turned over to central government
  • China-Ukraine /: Ukraine’s top diplomat says China has ‘big potential’ role to help end war with Russia

Walker’s Weekly: Dr. Jim’s Summary of Key Global Macro Developments – 22 Mar 2024

By Dr. Jim Walker

  • Thailand’s economic outlook appears bleak, with downward revisions in GDP growth forecasts signaling ongoing challenges in investment and export sectors, compounded by political discontent.
  • Vietnam has demonstrated resilience, showcasing a notable recovery in trade and tourism despite corruption scandals, underlining its potential as an emerging market.
  • Hong Kong’s adoption of the national security law has drawn attention, yet its impact on the business landscape may be less significant than anticipated, emphasizing the importance of nuanced perspectives amidst regional developments.

The Weekly Market Monitor – Global Monetary Policy Easing Has Begun!

By Jeroen Blokland

  • Switzerland sparks the start of a global wave of monetary policy easing. And it’s only March!
  • Why are central banks already contemplating rate cuts when inflation levels are significantly above target, and the global economy is at full employment?
  • I explain why investors should pay more attention to the MOVE Index and less to the VIX Index. It comes down to the answer to the question above.

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