Smartkarma Daily Briefs

• Blended ASP of decline of 1% q/q in the past two quarters in 2H23, better than 3-10% q/q decline during 3Q22-2Q23, resulting in Tesla’s blended ASP decline to decelerate.
• Due to Tesla’s cost cutting efforts with nice inventory control, we calculates profits/EV rebounded nicely by 21% q/q to US$3,490 per EV in 4Q23, much nicer than no profits.
• Good improvement on its FSD Beta version 12.1.2 lately might become a pure profits/EV boost by incremental subscription of US$10,000-15,000 per EV or monthly fee by existing Tesla owners.

• SK Hynix results surpised consensus with a swing to positive operating profit; The company expects industry demand growth to exceed supply growth by a wide margin in 2024E.
• Management suggests optimism not just for 2024E, but also for 2025E. 2025E is when a much larger positive demand impact from AI is expected as AI products will expand substantially.
• SK Hynix comments regarding AI phones imply that consumers will most likely need to upgrade their phones, including iPhones, to take full advantage of AI capabilities

• This is our first report on MicroStrategy, a company at the forefront of enterprise analytics software.
• In the third quarter of 2023, the company revealed notable developments in both its primary software ventures and its strategic Bitcoin investments.
• The overall revenue for this period reached $129.5 million, marking a 3% year-over year increase, with a significant 16% rise in software license revenues, totaling $45 million.

• In our 2023 thematic outlook, we highlighted that on-chain insurance is a DeFi sub-sector that remains underdeveloped.
• Today, DeFi has largely covered the services offered by TradFi, such as payments, lending and exchanges; as well as central, commercial and investment banking services.
• There is also DeFi insurance (or more accurately termed as ‘DeFi cover,’ since the solutions provided are more discretionary than contractual; and may not be regulated), but presently it is not being offered as extensively as traditional insurance

• This is our first report on cruise operator, Norwegian Cruise Line Holdings.
• The company achieved record revenue, meeting or exceeding the guidance on all key metrics.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

• This is our first report on electronics major, Whirlpool Corporation.
• The company delivered a solid third quarter performance in a challenging macro environment, supported by satisfying North American growth and improved cost-management measures.
• The company also successfully achieved $300 million in cost takeout actions, a performance that charts Whirlpool on course to deliver over $800 million of cost takeout actions in 2023.

• This is our first report on clinical diagnostic products manufacturer, Bio-Rad Laboratories.
• The company’s financial results for the third quarter of 2023 show varying performances across segments.
• The call highlighted key issues including the impacts of Bio-pharma and the challenges in the economic conditions in China on the company’s performances.

• The podcast will feature an anonymous source who will be disguised and have their voice altered, similar to investigative shows.
• The guest, known as high yield Harry, runs social media accounts and a newsletter where they chronicle events in the credit markets.
• The discussion will focus on the credit markets, investor demand, the impact of higher interest rates, and the players involved in making loans and deals.

This podcast is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only.

• This is our first report on information solutions and services provider, CACI International.
• The Q1 2024 results from CACI International indicate a strong performance.
• Additionally, free cash flow exceeded expectations, and the company executed a $150 million share repurchase program.

• Coverage launch on Frontier Airlines, JetBlue and Spirit Airlines following the rejection of the JetBlue/Spirit deal by the US.
• High leverage and above-sector cost inflation put each carrier in a difficult competitive position, driving the need for significant structural earnings improvements to achieve financial sustainability
• We are 10% above consensus 2024 EBITDAR for Frontier, narrowly above for JetBlue but 17% below consensus for Spirit.