Equity Bottom-Up

• ASICS has demonstrated exceptional brand rejuvenation and profitability improvements, with an ambitious 2026 plan that capitalizes on high-growth lifestyle categories
• However, the pivot toward fashion and luxury markets introduces heightened execution risk.
• While the upgraded MTP targets are commendable, much of the good news appears to be priced in.

• The stock has risen by 38% since our last buy rate.
• The 3Q24 results are still healthy – both growth rate and operating margin.
• We set a downside of 19% for the end of 2025.

• Amid Samsung Electronics announcing a huge buyback of 10 trillion won, one of the issues that has resurfaced is the potential sale of Samsung Electronics by Samsung Life Insurance.
• The total amount of Samsung Electronics that could be sold by Samsung Life Insurance and Samsung F&M Insurance is 25.6 trillion won (at current prices). 
• We remain Positive on Samsung Electronics. The 10 trillion won buyback program is a positive sign on the company’s willingness to provide higher shareholder returns.

• EFCI Ltd (EFCIL IN) is one of few companies in the Flex Space Operator Business present in the entire value chain providing an unbeatable edge in Cost competitiveness.
• Management target is to double revenue in FY25 capitalising on sector tailwinds driving exponential growth in all business verticals.
• Completed Backward Integration through manufacturing furniture which will help increase margins as furniture comprise  40-50% of total fitout cost.

• It has been a relatively quiet week.
• Bitcoin has outperformed much of the market, resulting in an increase in its dominance, as highlighted in Thursday’s Crypto Moves #52.
• This was most likely driven by the intense buying pressure from MicroStrategy over the past week.

• Spotify Technology S.A. delivered a mixed set of results for the third quarter of 2024, showcasing both achievements and continued challenges as the company navigates through its business strategy.
• On one hand, it marked a milestone by delivering strong growth metrics in both subscribers (net addition of 6 million to reach a total of 252 million) and monthly active users (MAU, rising by 14 million to 640 million).
• These metrics exceeded Spotify’s guidance and reflect its dual focus on product innovation and marketing efficiency.

• NVIDIA, the undisputed leader in AI-driven GPUs, is currently navigating turbulent waters with its latest Blackwell architecture chips.
• While the company has been riding high on record-breaking revenues and a surging demand for AI compute power, reports of overheating issues in Blackwell chips have cast a shadow over its otherwise stellar growth trajectory.
• According to recent disclosures, these state-of-the-art GPUs face severe thermal management challenges when configured in server racks holding up to 72 units.

• The Walt Disney Company’s recent fourth-quarter and full-year 2024 financial results provided a comprehensive overview of both the progress and challenges faced by the company.
• CEO Bob Iger highlighted the company’s strategic positioning for growth, emphasizing their momentum as a result of specific strategies across various business segments.
• However, the commentary also reveals nuances in their operational dynamics and future outlook.

• CJ Cheiljedang announced that it is considering on potentially selling its bio business for about 5-6 trillion won which could be more than its market cap. 
• CJ Cheiljedang’s bio business is expected to have more than 4 trillion won in sales and about 700 billion won in EBITDA in 2024.
• We are positive on the company’s efforts to sell its Bio Business and reinvest it in its food business.

• The recent earnings call for Domino’s Pizza highlighted several key aspects of its financial performance, strategic initiatives, and market dynamics, revealing both promising areas and challenges.
• The company’s Hungry for MORE strategy appears to be yielding positive results domestically, but international markets face significant hurdles.
• Domestically, Domino’s Pizza has successfully leveraged its value-focused Hungry for MORE strategy.

• Mamaearth’s journey to the stock market has been marred by allegations of channel stuffing, inventory mismanagement, and inconsistent communication from management. 
• The company’s struggles in Q2 FY25 have raised concerns about their financial health and transparency. 
• The forensic analysis is a deeper look into the allegations, redflags and bigger problems that require investor’s attention

• Our 2024 High Conviction, the stock of Meituan has risen by 87% in one year.
• We believe the market ignores TME because of its flat revenue.
• However, we expect TME will significantly benefit from its dominant position in the Chinese music market.

• Korea Exchange (KRX) plans to make special changes to the Korea Value-Up Index constituents on 20 December.
• We believe that following five stocks are likely inclusions in the Korea Value Up index rebalance on 20 December (KB Financial, Hana Financial, SK Telecom, KT Corp, and LG Electronics).
• The new companies that will be included in the Korea Value-Up Index include companies that provide detailed corporate value up plans by 6 December.

• Ionis Pharmaceuticals recently reported their third-quarter financial results for 2024, presenting a comprehensive view of its current position in the biotechnology sector.
• The company’s focal points include imminent product launches, ongoing clinical trials, and strategic pipeline developments—all set within the context of their financial performance and future outlook.
• The company is on the verge of launching its first independently marketed product, Olezarsen, for familial chylomicronemia syndrome (FCS), with an anticipated FDA action next month.

• Nvidia’s Blackwell rack design overheating issues causing potential shipment delays
• AMD leading server market in 3Q24, Intel fighting back in PC market
• Trump’s tariff changes impacting Chinese EV makers, with 4 strategies to navigate the changes. Huawei and Xiaomi dominate China’s AI smartphone market with over 50% market share.

• Celsius Holdings Inc.’s third-quarter 2024 earnings reveal a mixture of growth opportunities and challenges.
• The energy drink company has managed to maintain robust consumer demand and retail sales growth despite a dip in total revenue compared to the previous year.
• The company recorded a modest 7.1% increase in retail sales year-over-year for the quarter, with unit sales rising by 7.3%.

• Fortinet’s third-quarter financial results for 2024 showcase robust performance and a strategic focus on growth markets in the cybersecurity landscape.
• The company’s total revenue grew by 13%, a return to product revenue growth bolstered by strong service revenue expansion.
• Fortinet’s strong execution led to record gross and operating margins, with the latter increasing by 830 basis points to over 36%.

• Secure Energy Services (SES) operates in the waste management and energy services industry, focusing on recurring revenue and pipeline businesses.
• The company has potential for growth through acquisitions, with a strong focus on tuck-in acquisitions in the metals recycling sector.
• Despite potential risks such as safety concerns and regulatory changes, Secure Energy Services has a strong dividend yield, free cash flow yield, and growth prospects, making it an attractive investment opportunity.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Hong Kong market sectors outperforming since the stimulus in September are Consumer Discretionary and Healthcare as Utilities, Telecom and Energy lag.
• CRRC Corp Ltd H (1766 HK) gets BUY recommendations as its results point to continued strength in the rail equipment sector with passenger volume surging.
• Tencent Music Entertainment Group (1698 HK) reported solid results as it shifts to a pay-to-stream subscription model. Xiaomi Corp (1810 HK) had a blowout quarter with EV sales surging.

• TSMC cash dividend has increased by 65% in 2 years or NT$2.75 in 4Q22 to NT$4.50 in 3Q24. It will keep increasing.
• TSMC is spinning cash. 2nm-16A could increase Capex intensity but still we estimate that quarterly dividend can increase to NT$5.50 in 2025 and NT$6.00 in 2026.
• Consensus forecasts similar EPS growth for TSMC and ASML: 30% in 2025, 20% in 2026. TSMC is 50% cheaper than ASML. 2025 PEx: TSMC 18x and ASML 28x.

• TSMC: +16.7% Premium; Further Market Weakness Could Soon Open Up Good Long Level
• UMC: -2.1% Discount; Good Level to Go Long the ADR Spread
• ASE: -0.1% Discount; Premium Completely Broken Down & Local Short Interest Continues to Surge

• Hon Hai, Pegatron, and Quanta Gear Up for Potential U.S. Investment Surge Amid Trump Policy Speculation
• PC Monitor: Asustek & Lenovo Signal Strong PC Growth, AI PC Expansion in Process
• Semiconductor Memory Q324 Revenue Close To Historic Highs Even As Decoupling Intensifies 

• TSMC: more restrictions on export to China. TSMC can’t make 2nm in US before 2028-29. Lawsuit in Arizona.
• Korea: special chips act to give chipmakers subsidies and an exemption from a national cap on working hours. Korean engineers only work 52 hours / week. That’s a problem.
• Amazon more in-house AI chips. Super Micro trying to avoid delisting. Smartphone ASP keep increasing because chip prices are increasing (ie Mediatek, Qualcomm). AI PC reaching 20% in 3Q214. 

• In this insight, we provide some of the main highlights of the book “The Real Anthony Fauci”, which was written by Robert F. Kennedy Jr. (RFK Jr) in 2021.
• We discuss how the appointment of RFK Jr could impact some of the major health care stocks in Korea, especially those that are involved in developing and producing vaccines.
• Although the share prices of many Korean vaccines related stocks have declined materially in the past 2-3 years, RFK Jr becoming the next US Health Secretary could pose further headwinds.

• Asustek Guides for 20%+ YoY PC Revenue Growth in 4Q24E;  Lenovo Delivers 17% YoY PC Revenue Growth in CY3Q24
• AI PCs: A Multi-Year Upgrade Cycle with Rising Average Selling Prices; AI PCs 80% of the PC Market by 2027E
• Maintain Structural Long View for AI PC Up-Cycle; Asustek, Acer, & Lenovo Well-Positioned Through 2025E

• Oriental Watch reported H1 FY25 revenues/profits down 2.6%/-13.7 % YoY despite the tough retail sales environment, especially in HK (25% of revenues).
• The company declared a 24.6 HKD cents dividend, equivalent to a 14% dividend yield annualized on the current price.
• With 62% of the market capitalization in cash, a 7x PE, and a 14% dividend yield (assuming a consistent 100% payout), this is a name to look at.

• In 3Q2024, Sea Ltd demonstrated its ability to turn a profit at Shopee, whilst booking strong growth, with sales & marketing kept well in check and active users increasing substantially.
• E-Commerce registered higher take rates, through higher commissions, more paid advertising, and increasing levels of self-fulfilment through SPX Express, whilst Digital Financial Services saw a rapid acceleration in loan growth.
• Digital Entertainment was back on form with strong growth in bookings, active users, ARPU, and adjusted EBITDA. Management remains confident about 4Q2024 and the outlook for 2025.

• Tencent reported C3Q24 revenue, IFRS operating profit, and IFRS net income in-line, in-line, 11% vs. our estimates and in-line, in-line, 18% vs. consensus. 
• The bright spot is fintech transaction volume grew 10% YoY showing gain in market share, which coupled with rebound in consumption since October should rive recovery.
• We raise TP by 2% to HK$518. Tencent is still our TOP PICK in an uncertain geopolitical environment with an upswing fundamental story.

• Asahi Intecc (7747 JP) recorded 9% YoY revenue growth to ¥31B in Q1FY25. Revenue growth is attributable to the continued strong trajectory of medical division, which reported 10% YoY growth.
• Strong rebound in China is key highlight for medical division performance. Revenue from China increased by a whopping 36% YoY and 44% QoQ to a record high of ¥9.3B.
• Despite a better-than-expected Q1FY25, the company maintains full-year FY25 guidance, due to external factors such as currency movements as well as uncertainties in trends for net sales, productivity, and expenditure.

• GXO Logistics’ latest earnings for the third quarter of 2024 painted a mixed yet informative picture of its financial performance and strategic positioning.
• The company reported record revenues of $3.2 billion, marking a substantial year-over-year increase of 28%.
• This robust top-line growth is partially attributed to an organic revenue growth of 3%, which has shown a sequential upward trend throughout the fiscal year.

• Howmet Aerospace’s third quarter 2024 results demonstrate significant performance gains amidst a complex operating environment.
• The company’s revenue growth was substantial at 11% year-over-year, with commercial aerospace driving much of this improvement with a 17% increase in revenue.
• The engine products and fasteners segments excelled, supported by robust structures performance.

• Toyota Motor Corporation has announced its fiscal year 2025 second-quarter financial results.
• The company achieved an operating income of JPY 2.4642 trillion for the first half of the fiscal year, which was maintained close to the previous year despite some setbacks in production and increases in expenses.
• While sales revenue touched JPY 23.2824 trillion, the net income of JPY 1.9071 trillion saw a significant decrease from the prior year, primarily due to exchange rate fluctuations which caused valuation losses in foreign currency assets.

• Cleveland-Cliffs presented its third-quarter 2024 results during a challenging period of weaker steel demand and pricing, largely attributed to reduced automotive production and high interest rates affecting consumer decisions.
• The company’s acquisition of Stelco, a Canadian steelmaker, was a notable development during this period, promising operational agility and cost efficiency.Cleveland-Cliffs reported a quarterly adjusted EBITDA of $124 million on 3.8 million tons of shipments.
• This was a decline from previous performance levels, which the company attributed to reduced activity in the automotive industry.

• Cirrus Logic has reported strong financial performance for the second quarter of fiscal year 2025.
• The company achieved record revenue and earnings per share, with revenue reaching $541.9 million.
• This figure was near the upper end of their guidance range and reflects strong demand for components used in smartphones.

• AppLovin’s latest earnings for the third quarter ending September 2024 provides a comprehensive overview of the company’s performance, strategic initiatives, and future growth prospects.
• The company reported strong financial metrics with total revenue reaching $1.2 billion, marking a 39% year-over-year increase.
• Adjusted EBITDA also rose significantly to $722 million, reflecting a 72% increase from the same period last year, and achieving a 60% adjusted EBITDA margin.

• Duolingo, a prominent player in the online language learning space, has reported its financial results for the third quarter of 2024, outlining both strengths and areas to watch.
• The company demonstrated robust growth in key metrics, including a 54% year-over-year increase in daily active users (DAUs), with its Family Plan onboarding 21% of its subscriber base.
• This impressive user growth, particularly after a high growth rate in previous years, suggests that Duolingo continues to successfully engage its expanding user base.

• Total revenue grew slightly as we expected in our preview note.
• The operating margin improved significantly, but this was due to the shrinks of non-cash items.
• However, we believe Alibaba will benefit from the boycott against JD.com and the disposal of Sun Art.

• Chinese cemetery operator with three main assets: the Anxian Yuan cemetery in Hangzhou, the Fushouyuan cemetery in Yinchuan and the Dachenshan cemetery in Niuxin Village, Guizhou Province
• The stock is inexpensive at 6.1x trailing P/E with a 13.3% dividend yield that’s covered by cash flows. Further, net cash represents 82% of market cap with limited contract liabilities.
• Recent tomb sales has been weak for reasons that seem macro related. Other risks are historical share dilution: the 2020 rights issue was under-priced, 85% taken up by the founder. 

• Fidelity National Information Services, Inc. (FIS) reported mixed results for the third quarter of 2024, demonstrating both strengths and potential challenges in their operations.
• The company experienced a steady growth in adjusted revenue, which increased by 4% year-over-year.
• This growth was primarily driven by an acceleration in recurring revenue across its segments, notably in Banking and Capital Markets, with both segments achieving margin expansion.

• Illumina experienced a mixed third-quarter performance for 2024, illustrating both advancements and challenges in its operational landscape.
• The company reported quarterly revenue of $1.1 billion, matching its expectations but reflecting a 2% decrease year-over-year.
• This decline was linked to reduced instrument sales due to the launch-year comparisons of the NovaSeq X series and effects of capital constraints globally.

• Vertex Pharmaceuticals recently reported its third-quarter earnings for 2024, presenting a picture of solid financial performance alongside significant advancements in its pipeline and product launches.
• Financially, Vertex Pharmaceuticals reported a 12% year-over-year increase in revenue, reaching $2.77 billion for the third quarter.
• This growth was underpinned by robust performance both in the U.S. and international markets, with U.S. revenues rising by 10% and international sales by 14%.

• With Trump becoming the next President of the United States, we explain why the rechargeable battery sector in Korea is likely to get further battered in the coming months. 
• Trump administration could eliminate or significantly slash the $7,500 consumer tax credit for electric vehicle (EV) purchases, which is one of the key provisions of the Inflation Reduction Act (IRA).
• We expect the sell-side to further cut their earnings estimates on the key key names in the Korean rechargeable battery sector in the coming months.

• Marriott International’s third-quarter financial performance for 2024 indicated a mixture of growth and existing challenges within the global hospitality landscape.
• The company reported a 6% year-over-year increase in net rooms, underscoring its robust expansion efforts and strong development activities.
• Global Revenue Per Available Room (RevPAR) rose 3% for the quarter, fueled by a 2.5% increase in Average Daily Rate (ADR), with the group segment leading the charge, posting a 10% rise in RevPAR, which highlights the sustained demand in this category.

• Cardinal Health, Inc. reported strong financial and operational results for the first quarter of fiscal year 2025, primarily driven by its Pharmaceutical and Specialty Solutions segment.
• CEO Jason Hollar highlighted the company’s effective management amidst a customer transition in its largest business segment, which still achieved a 16% growth in segment profit.
• The demand across various pharmaceutical categories, notably specialty and consumer health, played a significant role in this growth.

• Based on Atour (ATAT)’s strong pillow sales in 11.11, we raised C4Q24/2025 revenue estimate by 6.9%/7.1%. Our number is now 7.9%/15% higher than consensus;
• The outstanding performance of the retail business may draw more consumer attention to the brand, thus bring contribute to Atour’s hotel expansion.
• We raise the TP by US$1 to US$37/ADS and maintain the BUY rating.

• In Q3, TotalEnergies beat revenue forecasts by 6.4% but missed EPS estimates by 3.7%. Revenue and adjusted net income fell by 2.8% YoY and 37%, respectively.
• TotalEnergies’ average liquids price realisation fell 2.4% YoY, European refining margins dropped 84.7%, while LNG price realisation rose 3.7% YoY.
• TotalEnergies’ Q3 cash flow fell 27% YoY to USD 6.8 billion. It announced USD 2 billion in Q4 buybacks and a 0.79 euro/share interim dividend.

• Swiggy (1255298D IN) debuts with an 8% premium, raising Rs. 11,328 crore in IPO for Dark store expansion, brand promotion, tech & inorganic growth.
• Swiggy lags behind Zomato across metrics, while Zomato diversifies with high-growth ticketing and “Going Out” segments.
• With both segments is on the edge of becoming Contribution and EBITDA positive, one need to look the results of upcoming quarters of swiggy carefully.

• Grab booked an impressive performance in 3Q2024, with strong evidence of its high-value products such as advance bookings gaining traction along with increasing monthly transacting users through its Saver offering. 
• The company’s delivery business benefitted from strong performance from GrabMart and GrabFood. Its Grab Unlimited subscription hit record new highs, with users transacting four times as frequently as non-users.
• Grab also saw a strong performance from GrabFin and its digital banks, which all started lending in November plus rapid deposit growth. Guidance increased reflecting a more positive outlook. 

• Prakash Industries (PKI IN) Bhaskarpara Coal Mine is now received all the government approvals ensuring stable, self-supplied coal for steel production as well as open market sale.
• This development reduces raw material costs, boosts EBITDA potential, and strengthens PIL’s valuation amid past corporate governance concerns.
• PIL has manageable debt and with rising EBITDA, the company is available at a very attractive valuation compared to its peers.

• Geely’s revenue grew by 20% YoY and deliveries increased by 19% YoY in 3Q24.
• The operating margin improved to 5.3% in 3Q24 versus 2.9% in 3Q23.
• We conclude an upside of 58% and a price target of HK$22 for the end of 2025.

• In Q3 FY24, Appier achieved record-breaking revenue, reaching JPY 9.1 billion, marking a 28% year-over-year growth.
• Operating income for Q3 surged by 2.5 times YoY to JPY 788 million, with the operating margin improving by 4.3 percentage points to 8.7%.
• At less than 4x EV/Sales and 16x FY25 EBITDA the stock does not appear expensive.

• AEM (AEM SP) released 3Q24 numbers and bumped its guidance higher as its key customer pulled forward some orders.
• In 2025 it will be the first year where customers outside of Intel will make up the majority of AEM’s revenues. This is a big milestone for AEM.
• Continued business from Intel and growth in new key accounts means we should expect FY25 revenue growth. Guidance for FY25 will come by February 2025. 

• Plover Bay Technologies (1523 HK) issued a profit alert stating that the profit for the first 10 months of FY24 grew by>10% over the entire FY23 profit (28 mn USD). 
• Nov/Dec tend to be decent business months for the company, so we expect the profit to be a little over 40 million USD for FY24, implying a 17-18x FY24 PE.  
• The company has net cash of more than 50 mn USD and consistent ROEs of more than 35% (currently >65%), with excellent prospects for future growth.

• ASML maintains its 2030 targets: revenue EUR44-60bn, Gross Margin 56-60%. But the narrative has changed, again. In 2022, it was Mature nodes (DUV) and EUV. In 2024, it’s AI. 
• What’s changed? Lower growth in Smartphone, PC, Auto. AI bigger than expected. Server DRAM and HBM is the major positive change. NAND is revised down sharply. It’s actually believable. 
• The guidance implies Operating Profits growing between 9.5-17.5% Cagr over 2024-2030. That’s pretty good but the stock is trading at 27x 2025 EPS, 22x 2026. No room for disappointment. 

• Freee KK (4478 JP) reported 1QFY06/2025 results which saw the company generating its first-ever Adj. operating profit, earlier than we expected.
• The company has begun capitalising its software assets (decline in R&D costs as % of revenue) and this coupled with fall in S&M costs have contributed to profits.
• The corporate paying customers surpassed more than 200k for the first time and we expect freee’s earnings to continue to improve going forward.

• Management reiterates 1) growth accelerating on Advanced Logic (Gate All Around, Back Side Power), Advanced Packaging incl HBM, DRAM capacity additions  2) improving margins  3) energy-efficient computing driving materials innovation.
• The risk is Mature node Capex slowdown in China, which we think is underestimated for 2025. China revenue: AMAT 30%, ASML 47%.
• AMAT is trading at reasonable multiples on modest Consensus expectations, upside possible as 2nm and HBM accelerate. ASML is trading on rich multiples, on rich expectations, less room for upside.

• In 3Q24, game revenue increased by 13% YoY, higher than our estimate, 9% YoY.
• The gross margins of all business lines improve in 3Q24, especially “others”.
• We set the upside at 50% and the price target at HK$605 for the end of 2025. Buy.

• Although it is UNCERTAIN when the wars in Ukraine and the Middle East will end, if these wars indeed come to an end, this could POSITIVELY IMPACT Korean construction sector.
• The end of the wars in Ukraine and the Middle East is likely to NEGATIVELY IMPACT the Korean military/defense sector. 
• The major Korean construction companies have low valuation multiples. On the other hand, the major Korean military/defense companies have high valuation multiples.

• Sea (SE US) ‘s management expects all three business segments – ecommerce, financial services and entertainment – to deliver high growth and profitability in 2025, supported by strong macro-eceonomic tailwind.
• It’s GAAP revenue was US$4.3 billion, up 30.8% year-on-year and net income was US$153.3 million, as compared to total net loss of US$(144.0) million for 3Q2023.
• Its e-commerce business achieved positive adjusted EBITDA in 3Q 2024 in both Asia markets and Brazil.

• ARM reported good numbers with steady guidance for the coming quarter.
• Qualcomm’s earnings performed well, but concerns exist over rising costs and potential loss of customers.
• Uncertainty surrounds US government policies on semiconductor manufacturing and trade with China, impacting industry players like Intel and Nvidia.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Although Hong Kong markets have slumped after Trump’s election, mainland China’s markets have gained.  Southbound net buying of HK stocks hit a 2024 high on the day Trump won.
• Sands China (1928 HK) had a breakout from a double top as Macau recorded good Golden Week arrivals.  Blue Moon Group Holdings (6993 HK) had a breakout after 3 years.
• CanSino Biologics (6185 HK) formed a breakout after a new vaccine was approved and it reported better results.  Haidilao International Holding (6862 HK) share price advanced as it expands stores.

• US market continues to see historical high; in the real estate space, we look at Prologis, the world’s largest logistics company
• We like the sector on the back of strong structural demand drivers and depleting supply.  Logistics is the future and we think Prologis is the name to own
• Broader real estate index is up 8.3% YTD, while PLD is down -15% YTD.  Valuation is attractive, we think PLD has room to catch up

• Paladin Energy faces water supply disruptions from NAM Water in Namibia, leading to a drop in guidance for Langer Heinrich uranium mine.
• The company has adjusted its FY25 uranium production guidance from 4-4.2 million pounds to 3-3.6 million pounds.
• Despite the challenges, Paladin Energy remains confident in meeting customer delivery obligations and has flexibility in contracts to manage the situation.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• SharkNinja’s third quarter of 2024 financial performance highlighted several strengths and strategic initiatives that point to its robust market position and growth trajectory, balanced by some areas of concern that underline potential risks.
• Displaying a strong performance in adjusted net sales and adjusted EBITDA growth, SharkNinja reported substantial year-over-year increases, demonstrating resilience and strategic agility in a fluctuating economic environment.
• The global teams’ efforts mirrored in a 35% rise in adjusted net sales and 26% growth in adjusted EBITDA, showcasing strong operational execution and market responsiveness.

• Foxconn’s reforms at Sharp result in significant profit growth in 2Q24.
• Taiwan supply chains brace for impact of Trump’s imminent global tariffs.
• Apple to boost iPhone production in India following Trump victory, taking advantage of evolving global trade dynamics.

• Nexon’s 3Q24 earnings report saw its stock dip -17% as revenue missed guidance and foreign exchange losses weighed on the bottom line.
• Nexon’s operating profit rose +11% y/y to ¥51 billion, with an operating margin of 38%
• The stock is trading at 8.5x EBITDA, which makes it very attractive versus the sector

• Nidec’s Q2 operating income beat my estimates, driven by strong small motors and appliance segments, though automotive profits underperformed
• The automotive division is shifting focus from e-axles to broader auto parts, while improving operational efficiency through partnerships and streamlined logistics
• Despite macro risks, Nidec remains well-positioned for long-term growth in digitalization, decarbonization, and automation, with a price target of ¥4,350

• TXN reported 3Q24 last night: EPS 7% above Consensus, small beat. However, 4Q guidance shows a delayed / tepid recovery: revenue to decline -6% YoY, EPS to decline -21% YoY.
• Industrial demand is still declining steeply -23% YoY, “hovering at the bottom”. Auto revenue -2% YoY with growth in China but rest of world is declining. 
• The stock is trading at 31x 2025 and 25x 2026 Consensus EPS, way above its valuations range.

• Global smartphone shipments expected to increase beyond 2025, with OLED technology gaining popularity in tablets and notebooks while Mini LED becomes less preferred.
• Uncertainty over whether Trump will end TSMC’s subsidies for Arizona factory, impacting material suppliers benefiting from TSMC’s growth in 3Q24.
• PSMC chairman shifts from cautious approach towards India to optimism with new partnership with Tata, while Horizon Robotics’ Hong Kong IPO supported by Alibaba, Baidu, and TSMC for manufacturing.

• Our core pick is Brazilian exchange B3; this is a contrarian call, given its poor share price performance year to date, but it is attractively priced versus its peers
• B3’s share of post-trade revenue is understated, and it is a well-diversified exchange in terms of the product offering, which includes cash equities, equity derivatives, FX, interest rates and commodities
• We also like Hong Kong Exchange, with its high share of post-trade revenues; HKEx should benefit from improving investor sentiment towards China, boosted by the Chinese government’s recent economic stimulus

• Multi Bintang Indonesia (MLBI IJ) experienced a massive inflection in its revenue with 21.9%/35% revenue/net profit growth as we approach the Q4 high season. 
• Earlier, parent Heineken NV (HEIA NA)  had flagged in its H1 2024 report that Indonesia was experiencing double-digit growth following excise duties implemented in January 2024.
• Trading at 11.5x FY24/net cash with >8% dividend yield and historical ROCEs averaging over 80%, we see a turning point in the share price now. 

• Together with the just-announced HK$0.40 special DPS, SITC International (1308 HK) has already handed back HK$1.12/share to shareholders YTD, realising a dividend yield of 6.5%.
• Its 3Q24 performance is impressive, with revenue surging 56.6% YoY. Both volume (+13.4%) and average freight rates (+44.1%) have exhibited solid momentum. 
• While the consensus forecasts have been upgraded by 7-11% since the 1H24 result, there appears more room to go. FY24 ROE is now expected to be 32.2%.

• Goldwin has big plans for both The North Face in the Japanese and Korean markets and for its own brand globally.
• But there are worries about saturation for the former in Japan, slowing brand development, and lack of expertise in overseas markets to build its own brand.
• Goldwin has had an amazing run but can it build a global brand? If it can, it will feed into high levels of demand for Japan-tech sports brands.

• In 3Q24, Samsung Biologics (207940 KS) reported 15% YoY revenue growth to KRW1,187B, driven by the contribution of Plant 4, the full utilization of Plants 1–3, and biosimilar products.
• The company has raised 2024 annual revenue growth guidance to 15–20% YoY from 10–15% earlier, driven by successful ramp-up of Plant 4 and favorable Fx movement.
• The company has signed record-breaking CMO contract with an Asian pharmaceutical company, thereby bringing the company’s total new contract value for the year to more than $3.3B.

• We are reiterating our Buy rating, $30 price target and projections for JAKKS Pacific with the company announcing 3Q24 (September) results after the close on Wednesday.
• We remain confident in our inline projections for the quarter, and believe the company, with a strong, somewhat lower-risk Holiday movie lineup in 2024, the beginning of the ramp of the Authentic Brands and The Simpsons license expansions, and the potential upside for Dog Man and the company’s own Wild Manes line launch, is well positioned to drive top and bottom line upside into 2025.
• As such, we reiterate our Buy rating and $30 price target for JAKK.

• What you need to know: • EDG announced assay results for four drill holes as part of its 10,000m 2024 drill program; it has completed 22 holes (6,100m) to date.
• • Today’s results confirmed strong mineralization in large untested gaps between Eagle & Imperial, also confirming mineralization at depth.
• • A 2nd drill rig has been added to accelerate the drill program – this rig will test the near-surface portion of the Eagle Zone.

• Konica Minolta, a key player in the Japanese office equipment market, presents an attractive investment opportunity, particularly in light of the recent actions by activist investor Effissimo.
• The investment case for Konica Minolta hinges on several factors, including potential structural reforms, M&A activity, and undervaluation.
• Given Effissimo’s track record with Ricoh and the broader industry dynamics, the thesis for a bullish outlook on Konica Minolta is compelling.

• On the 27th September, China Merchants China Direct Investments (133 HK) (CMCDI) teased a share buyback and a special dividend. But as of today. no firm details have been forthcoming. 
• CMCDI has also now offered to reduce management fees by 25 basis points in the new management agreement, which will be voted on  by independent shareholders in November/December.
• This concession does not go far enough. Especially when 45% of the management fees are received by founder Victor Chu. 

• Taiwan Semiconductor Manufacturing Company (TSMC) has reported a robust performance in the third quarter of 2024, underscored by significant revenue growth driven by both smartphone and AI-related demand.
• The company’s industry-leading 3-nanometer and 5-nanometer technologies have been at the forefront of this demand surge.
• Revenue for the third quarter increased sequentially by 12.8% in New Taiwan dollars, reflecting not only strong demand but also higher capacity utilization and cost improvement efforts.

• Neil Chenoweth wrote a detailed investigative piece on Min Res founder Chris Allison and former top executives, alleging a tax evasion scheme using shareholder funds.
• The scheme involved buying machinery with inflated prices from a company named Far East Equipment Holdings in the British Virgin Islands.
• Min Res stock dropped 13% in response to the article, with implications on leadership and governance of the company.

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• A lot has happened since we published our Disney thesis back in February.
• On the corporate front, Disney emerged victorious from its proxy battle with Nelson Peltz and managed to patch things up with Florida Governor Ron DeSantis.
• In media, Disney posted its first streaming profit—ahead of schedule—and secured the NBA’s coveted “A Package,” though it came with a hefty price tag.

• Hong Kong markets continue to outperform globally this year with short selling declining and mainland buying increasing.  These trends should accelerate going into next year.
• Sun Art Retail (6808 HK)resumed trading after announcing that the company is entertaining one or more potential acquisition plans for the company.  The company also announced strong 1H25 earnings.
• Shanghai Electric Group Company (2727 HK) announce a buyback plan for 10% of A and H shares outstanding.  The company also announced the acquisition of the China Fanuc robotics business.

• Nextracker’s first-quarter earnings for the fiscal year 2025 have offered a mixed yet promising insight into the company’s financial and operational trajectory.
• The company reported a significant 50% year-on-year growth in revenue and recorded its highest-ever adjusted EBITDA.
• These figures underscore Nextracker’s strong performance, particularly in a financial landscape characterized by a keen focus on renewable energy solutions.

• China Conch Venture Holdings (586 HK) is sitting on a steep discount of 59% to its NAV. Its holding in Anhui Conch Cement (600585 CH) is already valued at HK$13.3/share.
• Its waste-to-energy business has a value of Rmb4.4bn by assuming 5x PER, but this business has a net book value of Rmb10bn. Pipeline capacity equals 21.7% of operational capacity.
• The new energy segment, including lithium battery recycling and the manufacture of positive and negative electrode materials, has solid prospects but is overlooked by the market.

• Foxconn is expanding its SDV development efforts to further the advancement of smart car technology.
• Intel is seeking collaboration with Samsung to better compete with TSMC in the competitive foundry market.
• Nvidia is collaborating with Indian partners to develop a custom chip for the Indian market, while Xiaomi launches China’s first 3nm SoC.

• Netflix’s third-quarter performance for 2024 highlights several key developments that provide a nuanced view of its position in the competitive streaming market.
• On the financial front, Netflix delivered strong results, surpassing expectations on both earnings per share ($5.40 vs. $5.12 expected) and revenue ($9.83 billion vs. $9.77 billion expected), reflecting a 15% year-on-year growth.
• The company added 5.1 million new subscribers, slightly above Wall Street expectations, bringing its total membership to 282.7 million.

• Delfi Ltd (DELFI SP) saw some impact from the weaker IDR and higher cocoa prices in 1H2024 but prospects for 2H2024 look more promising with less expected disruption.
• The company continues to roll out new distribution across modern trade independent and general trade as well as new variants for existing best-selling brands such as Silver Queen chocolate.
• The company remains confident that the cocoa price will decline from current levels although it may remain higher than historic levels. Valuations remain attractive. 

• Despite a share price correction this month, JD.com (9618 HK) remains firmly amid an earnings upgrade cycle driven by improved profitability expectations.
• Following significant share price volatility over the past 2 months, JD.com’s near-term momentum indicators currently display bullish signals.
• JD.com still trades at more than one standard deviation below its 5-year historic average forward PE ratio, and near the lowest level it has ever been.

• Haemonetics Corporation’s first quarter fiscal year 2025 results reveal mixed outcomes in a challenging market scenario.
• The company reported a revenue of $336 million, which represents an 8% increase on a reported basis and a 3% organic growth.
• Despite the revenue growth, the adjusted earnings per diluted share decreased by 3% to $1.02, reflecting some strain from operational challenges and the dynamic market conditions.

• nCino has posted its financial results for the second quarter of fiscal year 2025, delivering performance that exceeded initial forecasts in several key areas, including subscription revenues and non-GAAP operating income.
• The company has observed a notable improvement in the financial services industry in the United States compared to the previous year.
• nCino’s growth in the U.S. has been robust, particularly within its existing customer base which seems keen on leveraging the company’s expanded platform capabilities.

• The Chemours Company faced various challenges in the second quarter of 2024, yet demonstrated resilience and adaptability in managing these issues.
• Key points from the earnings call include the impact of a severe drought on their titanium dioxide production at Altamira, Mexico, which led to unplanned downtime and an $8 million cost for the quarter.
• Despite this, Chemours was proactive in addressing the immediate needs of affected employees and the community while optimizing production to meet customer demands, achieving a 16% increase in volumes compared to the first quarter.

• HK-Listed Apparel & Footwear Screener: Right Stocks Listed in the Wrong Market – Attractive Yield & Rapid Expansion Outside China – Sep 2024  helped us screen out great names.
• JNBY Design Ltd (3306 HK), an apparel retailer trading at 9.2x FY24 with a ~10% yield and a long-term track record of >34% 10 Yr-average ROCEs, is one such name. 
• Even with modest single-digit growth guidance, we see a growing yield and a great cash buffer (20% of the market cap), and dividends are sustainable. 

• PBF Energy’s second quarter 2024 earnings presentation reveals a mixed financial landscape marked by challenges and strategic achievements.
• Despite experiencing weaker-than-expected earnings, the company successfully maintained a robust cash position and further advanced its operational goals.
• The quarter faced unusual market conditions where RIN-adjusted crack spreads saw a significant decrease, contributing to tighter margins across the board.

• Nexstar Media Group’s second quarter of 2024 delivered robust overall performance as the company continued to showcase its ability to navigate challenging market dynamics effectively.
• As discussed during the recent earnings call, Nexstar achieved record total net revenue and distribution revenue, underscoring its strategic success in optimizing revenue streams amid continued industry shifts.
• Particularly noteworthy was the substantial growth in adjusted EBITDA and adjusted free cash flow, which highlights disciplined execution across operational facets.

• Boat OEM industry facing drop in demand post high sales period due to Covid
• MasterCraft has strong position in ski/wake category, a niche market
• Despite challenges from tepid retail demand and high inventory levels, MasterCraft could benefit from ski/wake category strength in long term

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.

• IRDM started 2024 with changes to its reporting metrics and that trend continued when with Q3. 
• When IRDM reported third quarter 2024 results, the Company disclosed it would experience a decline in reported IOT subscriber metrics.   
• The change subscriber count would not impact IRDM’s revenue due to contract pricing. It could create negative headwind in 2025