Equity Bottom-Up

• In February, Aozora Bank Ltd (8304 JP) extended its writedowns and the shares fell sharply. By end-Feb, we found out Japanese activist Murakami-san had bought shares. 
• I didn’t see the endgame. The pump worked, but he didn’t dump. Then Aozora got Daiwa to be a lead investor through a 3rd party share allotment, diluting Murakami-san.
• Last week we got news the FSA had approved the Daiwa transaction. Yesterday, we got news the Murakami Group would sell its whole stake to Daiwa. 

• Samsonite is similar to another HK-listed company that I have written extensively about, L’Occitane (973 HK), in that they are both western brands selling globally but somehow listed on HKSE.  
• The company announced a share buyback program this morning.  The company targets to repurchase up to USD200m, which is around 4.3% of the total shares outstanding.
• With the announcement of the share buyback plan, it offers an attractive entry point for the stock, as I like the fundamentals of the company and the valuation is cheap. 

• Fast Retailing is due to report Q3 results on 11 July. We update our views on the outlook for the stock heading into the announcement.
• Uniqlo Japan has already released monthly sales data for the March to May quarter. Performance in May was again strong, slightly surpassing our estimates
• We maintain our full year earnings estimates. The stock has declined by around 6% since Q2 results, but remains fully valued.

• One of the key themes this year that has worked well has been Korean food & beverage stocks that have significantly outperformed KOSPI. 
• Some of the best selling Korean foods (especially overseas) include Samyang Foods’ instant noodles, CJ Seafood’s seaweed products, and Wooyang’s frozen gimbab. 
• We prefer a basket approach to investing in Korean F&B stocks. A basket of top 10 F&B stocks in Korea has outperformed the market YTD and this outperformance could continue.

• Debt restructuring in 2021 reduced interest costs and improved profitability, with promoters increasing their stake by 4%.
• Revenue and EBITDA have grown significantly, with a revenue CAGR of 35% and EBITDA CAGR of 72% over the past 3 years.
• Strong export presence and increasing domestic market share indicate robust growth potential despite global economic fluctuations.

• Apple Announces New AI Features at WDC; Shares Surge to New All-Time Highs
• Top Movers: Major Computex Exhibitors See Share Prices Fall Despite Strong Presence
• Computex 2024: Chip Companies Notably Competing to Win PC Makers

• Core Scientific, a leading entity in the cryptocurrency mining and data center sector, has recently positioned itself as a pivotal player in the evolving digital infrastructure landscape.
• The firm reported robust financials for the first quarter of Fiscal Year 2024, showcasing significant growth and operational efficiency.
• Notably, Core Scientific rejected an unsolicited acquisition proposal from CoreWeave, an event that merits analysis concerning its impact on shareholder value and corporate strategy.

• The billion-dollar order that had initially seemed like a game-changer for Wardwizard Innovations turned out to be its downfall as it happens to be a Non Binding MoU. 
• While for an INR 300 crore revenue company billion dollar order was huge, hence stock price rose on the back of rosy picture.
• Promoter used the situation to dump the shares via stake sale as the news of order led to 20% rise in the stock price which eventually raises Corporate Governance Concerns

• SSI grew and expanded, but underwent restructuring after market downturn in 2015
• Share price has not fully reflected improved fundamentals post-restructuring
• Undervalued at P$3.8 per share, with fair value estimate of P$10 per share, offering 160% potential upside for investors

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.

• Cuckoo Holdings is known for its high-quality rice cookers popular among Asians, particularly Koreans
• Stock price of the company has increased due to its success, with dividends rising from 800 to 1,100 per share
• South Korea’s “value-up” program may further boost the company’s growth and attract more investors as the importance of rice in Korean cuisine creates a strong market for its products

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.

For our next Corporate Webinar, we are glad to welcome Miniso Group Holding Limited’s Investor Relation Specialist, Ms. Allis-Yueling Chen. 

In the upcoming webinar, Allis will share a short company presentation after which, she will engage in a fireside chat with Smartkarma Insight Provider, Eric Wen. The Corporate Webinar will include a live Q&A session.

The Corporate Webinar will be hosted on Thursday, 20 June 2024, 16:00 SGT.

About Miniso Group Holding Limited

Miniso Group Holding Limited is a global value retailer offering a variety of trendy lifestyle products featuring IP design. Since Miniso Group opened its first store in China in 2013, they have successfully incubated two brands, “MINISO” and “TOP TOY”. The flagship brand “MINISO” is a globally recognized retail brand and have established a store network worldwide of 6,630 stores in more than 200 countries. The flagship brand “MINISO” offers a frequently-refreshed assortment of lifestyle products covering diverse consumer needs, and consumers are attracted to their products’ trendiness, creativeness, high quality and affordability.

• Firms that split their shares show an avg. return of +25.4% one year after split. That’s more than 2x the average return of the S&P 500 during those periods. 
• Critically, returns post stock splits are mainly seen from announcement to actual split date. Mega caps have shown 9.3% absolute returns 12 months post split. Be cautious of misleading averages.
• On relative terms (v/s S&P500) price returns were down 6.3% 12-months after stock splits. All splits generated negative returns except for Tesla in 2020.

• Patel Engineering (PEC IN) ‘s large order book, strategic sectors focus, and successful debt reduction through QIP and restructuring.
• Strong financial resilience, projected revenue growth, and robust order pipeline signal promising future prospects.
• Poised for growth strong order pipeline and increased government focus on Infrastructure, Hydro Power segment and Irrigation segment.

• While Marui’s credit card business now has in excess of ¥4 trillion in GTVs, its shopping buildings are also doing outperforming the mall sector.
• Sales for all 22 buildings rose 14.5% last year but as much as 24% at some buildings.
• This is the result of new tenants, more services and better marketing based on vast in-house data sources. This data-mining capability will get better and is unique to Marui.

• With ORG offering a 4.9% higher price and securing Zhang Wei’s acceptance, the ball is now back in Baowu’s hands. Good reasons exist for Baowu to raise its offer price. 
• Baowu’s subsidiary Shanghai Baosteel Packaging-A (601968 CH) needs CPMC Holdings (906 HK) more than ORG, given its smaller market share and weaker profitability.
• At ORG’s offer price, CPMC’s PERs for FY24 and FY25 of 15.4x and 14.2x are cheaper than Baosteel Packaging’s 22x and 18.7x. This gives additional justifications for a higher offer. 

• Independent Director’s resignation highlights the lack of strong corporate governance practices within Suzlon. 
• Suzlon Energy’s response to the outgoing director’s concerns demonstrates a willingness to address issues and make necessary changes to enhance corporate governance.
• Though it does not raise concerns on any financial irregularities and legal violation but resolution of issues remains a key event to watch for.

• Concord Biotech Ltd (CONCORDB IN) reported 19% revenue growth in FY24. EBITDA and PAT grew at a faster pace of 26% and 28%, YoY, respectively.  
• With focus on deeper market penetration, acquiring new customers, and introducing new products in niche categories, Concord is well-positioned for 25% revenue CAGR in 3–5 years.
• Despite a huge run-up from the IPO price, Concord shares are trading at forward P/E of 38.9x, which is lower than peers.

• Regenerative medicine remains an extremely exciting area of healthcare with vast investment potential.
• In spite of the usual setbacks in valuation and strategy, the sub-sector has pivoted and the market remains innovative and attracts investment capital.
• Rather than replace entire tissues, which is a complex activity, we believe the immediate future for stem cells is more likely to be in the successful stimulation of the bodies on repair mechanisms.

• AViC upwardly revised its full-year FY24/9 earnings forecast at the time of its 1H earnings announcement, demonstrating renewed and accelerated growth after recovering from the temporary slowdown in growth caused by business conditions and funding difficulties among startups and other emerging companies in FY23/9.
• While many of its competitors are showing sluggish business performance, the Company has been able to pursue growth on its own by committing to improving both client advertising efficiency and in-house productivity through meticulous and data-driven business operations as well as executing its fast-paced Plan-Do-Check-Act (PDCA) cycle.
• Meanwhile, its share price has not risen in line with the boost in EPS, with the latest P/E ratio hovering around 20x based on the revised earnings forecast.

• The Jetstream # 1 appraisal well has been tested at a rate of up to 0.8 mmcf/d with helium concentration of 8.7%-14.5%.
• The flow rate initially reached 0.15 mmcf/d with flowing tubing head pressure of 34 psi. The bottom hole pressure was 162 psi.
• A compressor was then installed at the well head to reduce the flowing tubing head pressure to 20 psi, thereby increasing the difference between the flowing pressure and the reservoir pressure.

• Japanese semiconductor equipment stocks have started to drop back, but device maker Rohm is already down 25% year-to-date and down 43% from its 52-week high. 
• Rohm’s operating profit fell 53% last fiscal year and management is guiding for a 68% decline in in FY Mar-25. Investment in power devices remains strong despite weak sales.
• 1H guidance is for an 80% year-on-year decline in operating profit on a 6% decline in sales. Buy into this weakness. Recovery should start in 2H.

• One interesting interpretation of the new Akeso-summit cooperation is that it aims to pave the way for potential acquisition of Summit by MNC. The climax of the story hasn’t arrived.
• Jacobio is a good target for potential M&A and licensing deals. So, this company has considerable potential returns and also strong safety margin, which is worth taking a gamble on.
• There’re concerns that Genscript could face US scrutiny due to alleged ties with Chinese government. Share price rebound may not last considering geopolitical conflicts and CXO industry downturn in 24H1.

• Tuniu’s revenue grew by 71% YoY in 1Q24, as the company benefited from the travel industry’s recovery.
• Smart Share Global’s revenue plunged by 52% YoY in 1Q24 due to fewer customers in shopping malls.
• PDD plans to price products on behalf of retailers, which reflects the severe competition in e-commerce.

• Shares of RoboSense Technology, a mass producer of LiDAR products and perception solutions, rose ~86% since IPO and outperformed Hesai Group and Hang Seng Index on a YTD basis.
• Founder-Led LiDAR company priced its IPO at HK$43/share and raised ~HK$1B gross proceeds in January. RoboSense shares fell on first day of public trading on the Hong Kong stock exchange.
• Today, RoboSense Technology became the most valuable LiDAR company in the world and is now valued at roughly $4.6B. 

• Tapestry is acquiring Capri, which owns Michael Kors, Versace, and Jimmy Choo
• FTC is scrutinizing the merger due to antitrust concerns in the affordable luxury market
• Capri’s deteriorating fundamentals may lead to a break price of $25 per share, with uncertain success of the acquisition

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.

Key points

• AMA Group is positioned as the dominant player in the Australian vehicle repair industry
• The company offers opportunities for revenue and cost synergies similar to Boyd’s success in North America
• Mimval’s 2022 write-up on AMA reflects optimism for the company’s growth potential and ability to capitalize on opportunities in the market

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.

• TC Energy Corporation’s TRP.PR.D preferred shares offer attractive total return with limited risk over the next 5 years
• Best suited for PAs and small funds in Canada due to low trading volume and tax advantages
• Consider purchasing a basket of Canadian fixed-reset preferred shares for maximum exposure, potentially converting to Series 8 with a floating dividend rate based on the 90-day Government of Canada treasury bill rate

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.

Key points

• Dropbox was last pitched in August 2022 with nearly reached $1B FCF guidance for 2024
• Company hit a plateau with guidance for $957M to $997M in last earnings call, factoring in stock-based compensation resulting in over $620M in FCF on an $8.1B equity
• Despite recent drop in equity value, Dropbox offers higher earnings yield and potential upside in equity value compared to Box

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.

• Whilst the Chinese online games market has struggled since 2023, NetEase (9999 HK) has continued to gain revenue market share driven by the success of its mobile titles.
• Future revenue growth will depend on the continued success of NetEase’s legacy titles and its robust pipeline of upcoming releases, including several highly anticipated launches.
• NetEase trades nearly 2 standard deviations below its 5-year historic average PE trading range, a level that has proved to be a very good entry point.

• High potential for additional recoveries with longer liquidation period
• Solvent receivership of Signature Bank offers compelling investment opportunity
• Potential for substantial upside for common equity, preferred equity, and unsecured bonds

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.

• Meituan reported C1Q24 revenue 6.0%/6.2% higher our estimate/consensus, and adjusted net income 19%/29% higher than our estimate/consensus. The stock fell on lower takeout order and in-store revenue guidance for C2Q24;
• The stock has two uncertainties:(1)Strategic moves by Douyin and Eleme,(2)success of overseas expansion. There are no easy answers to these two questions but we believe the corner has been turned
• We maintain the stock as BUY rating and raise TP to HK$156/share to factor in the improvement in profitability.

• Chubb Limited showcased a strong performance in its Q1 2024 update, with notable growth across multiple segments and a robust financial posture.
• The demonstrated acceleration in core operating income by over 20% to $2.2 billion and an operating EPS increase of nearly 23% to $5.41 underlines a solid upward trajectory.
• Particularly impressive was the company’s Property & Casualty (P&C) segment where underwriting income rose over 15% to $1.4 billion, underscoring a combination of earned premium growth and favorable underwriting margins.

• Generac Holdings delivered a mixed performance for the first quarter of 2024.
• Strength in the Home Standby Generator segment and operational improvements played favorable roles, while declines in the global portable generators and domestic energy storage markets were notable drags on revenue.
• Generac’s consistent effort in expanding its dealer and installer networks, alongside investments in both traditional and emerging product lines, solidifies its market leadership and positions it well for long-term growth.

• Manulife Financial Corporation has posted a strong first quarter of 2024, exemplifying solid strategic execution and financial performance across its diversified operations.
• The company reported a 16% growth in core earnings and a significant 20% increase in core EPS, supported by robust contributions from its Asian markets and Global Wealth and Asset Management (WAM) segments.
• Furthermore, core return on equity (ROE) advanced by nearly two percentage points year-over-year to 16.7%, surpassing the medium-term target of 15%.

• Ciena Corporation reported its fiscal second quarter 2024 financial results, delivering a mixture of strengths and areas for caution.
• Revenue for the quarter reached $911 million, aligned with market expectations but reflecting the ongoing variability in the order patterns of service providers, particularly impacted by inventory adjustments.
• The adjusted gross margin stood at 43.5%, showcasing the company’s ability to maintain profitability even in a fluctuating market scenario.

• Sun Life Financial’s first quarter of 2024 delivered mixed financial outcomes, indicative of diverse operational strengths and challenges across its array of business lines and geographical areas.
• The company’s broad diversification strategy remains a fundamental pillar, helping to absorb regional and segment-specific volatilities.
• On the positive spectrum, the company witnessed a robust 30% growth in individual protection underlying earnings in Asia, driven by significant sales increases in Hong Kong and stable performance in India.

• Progressive Corporation reported strong first quarter results for 2024, marking a period of robust growth and profitability.
• This quarter was highlighted by an 18% increase in net premiums written and an impressive combined ratio of 86.1%.
• These results represent both growth and a sound strategic approach to rate revisions and risk management, reflective of the company’s core values and business strategy.

• Travelers Companies Inc.’s first quarter 2024 results exhibit a strong financial performance characterized by solid growth in both top-line and bottom-line metrics, further strengthened by strategic initiatives and investments that bolster its market position.
• The company reported core income of $1.1 billion, reflecting a notable increase from the previous year, despite facing a $211 million one-time tax benefit in the prior year’s quarter.
• This performance was bolstered by a core return on equity of 15.4%, showcasing effective capital utilization.

• Fonterra Shareholders Fund’s dividend yield was 14.2% in 2023. Its dividend yield averaged 8.7% in the past three years. 
• Fonterra Co-Operative Group, is a New Zealand based multinational dairy cooperative. Outside investors who are not allowed to hold shares in Fonterra Co-Operative Group can invest in Fonterra Shareholders Fund. 
• In May 2024, Fonterra announced that it plans to sell off its consumer products businesses and concentrate on business to business sales as a dairy ingredients supplier.

• Indie Semiconductor’s Q1 2024 financial results and strategic discussion provide both encouraging and cautionary insights.
• During this period, the company reported a year-over-year revenue increase of 29% to $52.4 million, driven by strong performance in their Autotech market segment, albeit slightly below the provided guidance.
• Gross profit stood at $26.4 million, reflecting a gross margin of 50.3%, which fell short of expectations due to unfavorable product mix adjustments.

• Samsung chairman kicks off US visit with Verizon, highlighting importance of partnerships for expanding US market presence.
• French tech startups shine at InnoVEX, showcasing innovation and talent in the tech industry at Computex 2024.
• Taiwan chipmakers showcase cutting-edge tech at Computex 2024, while India’s EV market shows promise and challenges with Modi’s third-term win.

• KANTSU Co., Ltd. (hereafter, “Kantsu”) is a warehouse logistics specialist providing comprehensive logistics services, including warehousing, inventory management, and delivery of products sold by e-commerce (EC) and catalog businesses, handling approximately 12 million shipments per year.
• The Company has also created a highly profitable business by selling its in-house developed IT systems that streamline operations to external customers.
• In terms of sales and profits, the Company’s two main drivers are its Logistics Services Business and IT Automation Business.

• The first quarter fiscal 2025 earnings by Best Buy Co., Inc. demonstrated some mixed results.
• On the positive side, it highlighted that the company had better-than-expected Q1 profitability through strong execution and preparation for future growth.
• The company has been driving improvements in its priorities and its operational metrics.

• BurgerFi International is currently examining a strategic decision involving the possible sale of the company.
• This review comes in the wake of their reported financial outcomes for the first quarter of 2024.
• Analyzing the financial data and strategic initiatives articulated during the earnings discussion can provide insights into the potential advantages and challenges related to such an acquisition.

• As per the Q1 2025 earnings, Asana experienced a positive start to the year, with revenues growing 13% year-over-year.
• Revenue from large customers grew even faster.
• Non-operating margins also improved by 5 percentage points year-over-year.

• In its second quarter of fiscal 2024, Hewlett Packard Enterprise (HPE) reported notable performance, surpassing its initial revenue and non-GAAP diluted net earnings per share (EPS) expectations.
• This growth was primarily driven by a robust increase in demand for AI systems, highlighted by a significant uptick in revenue contributing to a cumulative AI systems orders of $4.6 billion for the quarter.
• HPE’s optimistic outlook is further supported by a raise in full-year revenue and non-GAAP EPS guidance, though it maintains its forecast for free cash flow.

• CrowdStrike Holdings Inc. has reported its fiscal first quarter 2025 results, demonstrating robust growth and financial performance.
• CrowdStrike’s investment appeal is anchored on its comprehensive cybersecurity solutions delivered through the Falcon platform, an AI-native software that consolidates various cybersecurity functionalities.
• This platform strategy leverages artificial intelligence to enhance cybersecurity measures, streamline operations, and improve cost-efficiencies for clients.

• Guess?, Inc.’s Q1 fiscal 2025 showed a strong start to the year, with significant progress on operational, strategic, and financial objectives.
• The company reported results for the first quarter exceeding expectations in revenues, operating earnings, and per share results.
• Sales growth was recorded in each of their segments and gross margins expanded favorably impacting the bottom line.

• Last September, Toyota Motor (7203 JP) Group affiliate Aisin (7259 JP) said they would get rid of ALL their cross-holdings. That signalled a future sea change in Toyota intra-group relations.
• It meant all Toyota group companies could do that. The big moves started with a multi-party offering of Denso Corp (6902 JP) shares – Toyota, Toyota Industries, and Aisin sold.
• Then others. Then in March, Denso announced a 2.5yr selldown of ~¥460bn of Toyota Industries shares. That meant a TI buyback was likely. We got one. Now we have details.

• Activist short seller Scorpion alleges Lasertec is a “colossal fraud” and “ticking time bomb”
• Most of their allegations relate to problems with Lasertec’s EUV mask inspection tools
• Lasertec achieved Intel’s distinguished supplier ward for the past six years and last December landed an award from TSMC for  “Distinguished EUV Mask Inspection and Metrology Collaboration”. What gives?

• During the upcoming Dragon Boat Festival, both flight and railway traffic seems sluggish, indicating a cooled-down enthusiasm for long-distance trips due to budget constraints.
• Data points to booming short-distance travel with self-driving as the major means, helped by lower price;
• Benefiting from hotel booking and catering, Meituan is the biggest beneficiary of such consumption downgrade.

• Total revenue increased by 25% YoY and all business lines grew strongly.
• In 1Q24, the operating losses from new initiatives decreased by 45% YoY, but new initiatives revenue still grow.
• We conclude that the price target can be double of the market price.

• There is nothing in the main investments at JM that suggests the grind lower on ROE and net profit will suddenly reverse, rather it should continue
• Astra International, Hong Kong Land, and DFI Retail are key to JM and there is little joy here, with HKL potentially having more valuation impairments
• Quarterly figures from Astra, which are a window on the current interim for JM, are not positive, with the worst quarter in over one year

• Water Oasis (1161 HK) reported profits down 30% YoY (ex-one-off profits down 9% YoY only), but commentary cited headwinds in the business due to muted HK economic sentiment.
• Anticipating these headwinds, the company cut its semi-annual dividend by 50% to only 3.5 cents (implying a 7% yield on the current share price) despite a massive cash buildup.
• Net cash at 396 mn HKD is now 58% of the market cap. Given the current economic backdrop, we see a conservative approach to dividend payment in the medium term. 

• Taiwan Semiconductor (TSMC) – ADR (TSM US) is planning to launch its 2nm in 2025.   
• TSMC is expected to acquire one High-NA EUV machine this year for R&D purposes, but it will not be used for commercial production.
• TSMC is expected to increase the cost of its Chip-on-Wafer-on-Substrate (CoWoS) package by around 15% in 2H24.

• After a strong 68% increase in share price in 2023, Saizeriya (7581 JP) has been trading range bound, and up 8% year-to-date in 2024. 
• Continued weakness in Japan on the profitability front in 1HFY24 offset continued strong performance in China.
• Japan’s operating profit is set to improve in the second half of the current fiscal year (ending August), and China’s strength will continue on the back of accelerating store openings. 

• Air Liquide investing $250M in new US facility for Micron gas supply, reflecting commitment to growth and sustainability.
• Maruti Suzuki focusing on renewable energy expansion in India, showing dedication to environmental initiatives and reducing carbon footprint.
• EVs driving demand for high-tech satellite dishes, while Nvidia aims to hire 50% foreign workers for new R&D center in Taiwan. EU-China tariff risks highlighted.

• Countries across the ASEAN region continue to invest on developing their respective EV markets with governments introducing new initiatives and offering further incentives.
• The price war among Chinese EV players has escalated in recent month, causing pressure on non-Chinese players. European and Japanese EV makers are increasingly looking at ASEAN for cost advantage.
• The four companies we looked at have reported earnings and we have discussed their latest results and our investment thesis.

• A stabilizing property market matters more than other factors such as industry rivalry and shareholder return policies for the performance of leading China e-commerce players in our view.
• China’s worst property market downturn is probably behind us. This will gradually help restore consumer confidence and lift consumer propensity to spend, improving growth outlook for China e-commerce sector.
• We believe China e-commerce players will in general benefit from a stabilizing housing market. Alibaba remains the most attractive play in the space. 

• A high disease burden, high demand for chronic treatment, and an ageing population makes China an excellent opportunity for an established pharma company.
• With 1/3 of the market cap in cash, a healthy payout ratio, and a FPE of under 8, CMS is one of the bargain beneficiaries in the Chinese healthcare space.
• The founder/CEO recently purchased 8m shares. He last bought shares in 2020-2021. The share price almost tripled afterwards.

• Onewo (2602 HK), a leading China property management company with the controlling shareholder being China Vanke (H) (2202 HK), announced a major share repurchase mandate last night.
• The company intends to repurchase its shares in the open market up to HKD5.8bn, which is around 20% of the current market cap. 
• The company is trading at 13x 2024E PE on around 15% net profit growth in 2024E, and at 5% forward dividend yield. 

• Foxconn’s Hyderabad factory to begin producing Airpods in August, as confirmed by Telangana official.
• Qualcomm CEO backs Arm’s forecast of 50% Windows PC market share in 5 years.
• UnaBiz achieves record-breaking 90% accuracy with AI-enabled Wi-Fi geolocation; Nvidia and Foxconn unveil advanced computing center in Taiwan. EU establishes AI office to enforce AI Act. Tower Semi awaits wafer fab approval in India post-elections. Win Semiconductors propelled by mobile phone surge into 2024.

• Vanguard announce the establishment of a 12” Fab in Singapore with 60% stake, with Nxp Semiconductors Nv (NXPI US) will invest remaining 40%.  
• The nodes produced will span from 40nm to 130nm, encompassing mixed-signal, PMIC, and analog ICs to support automotive, industrial, consumer, and mobile applications.  
• Vanguard will uphold a healthy cash balance, along with large debt and a follow-up cash offering.

• Apollo-Managed funds and affiliates will lead an investment of $11 billion to acquire from Intel a 49% equity interest in a joint venture entity related to Intel’s Fab 34
• This deal follows a similar mid-2022 deal with Brookfield to co-invest in two new leading edge fabs in Arizona at a cost of up to $30 billion
• Why make the deal with Fab 34 in Ireland instead of the Ohio fab under construction?

• Surge in revenue during 1Q24 may have implications for a return to strong profit growth
• There is no evidence of structurally weaker core costs, like COGS and SGA and even R&D
• ROE is now above 20% and this after it large capital raising in FY22

• Marvell had a pretty solid result and guided to sequentially better revenue.

• The market didn’t like this, but I thought, looking through the result, I liked this result quite a bit. Shares did not.

• Marvell Technology reports Q1 EPS $0.24 ex-items vs FactSet $0.24.

• Lasertec shares dropped nearly 8% following a scathing 53-page report by Scorpion Capital, accusing management of “colossal fraud.” 
• The SC report is shrill, in our view, and therefore, we think we add value by contributing a second opinion. 
• In our view, Lasertec is due for a correction even if SC’s report is inundated by hyperbole.

• CP Axtra (CPAXT TB) is a merger upon a merger combining the Makro wholesale business and the Lotus hypermarket and supermarket businesses, along with a hybrid mall operation. 
• The combined entity continues to realise operational synergies in sourcing and logistics, with a strong B2B element. Omnichannel makes up more than 16% of sales and is growing rapidly.
• CP Axtra (CPAXT TB) provides an alternative retail exposure to its parent CP ALL (CPALL TB) with ongoing restructuring benefits still to be realised. Valuations look attractive relative to growth.  

• In 1Q24, Pop Mart International Group L (9992 HK)‘s international sales grew around 250% yoy, and made up around one quarter of sales (vs. 17% of sales in 2023). 
• I now expect 39% sales growth in 2024, driven by 140% yoy growth in the international business and 18% growth in domestic China business. 
• I further expect a 50% yoy growth in net profit growth in 2024 driven by a 0.8ppt increase in gross margin and 0.5ppt in operating leverage. 

• Gelsinger excited for AI PC breakthrough at Computex 2024, plans Intel’s 40th anniversary event in Taiwan next year.
• MediaTek unveils AI and wireless advancements at Computex 2024, demonstrating commitment to technology innovation.
• Nvidia CEO predicts rise of robots in the future; Taiwan’s LEO satellite program delayed by funding and tech transfer issues.

• Accounting fraud costs the global economy at least US$1 trillion each year in losses to investors, suppliers and consumers
• Detecting accounting fraud early gives investors valuable intel to rethink certain stock or bond holdings.
• Transparently.AI’s AI-powered solution is highly accurate in measuring and detecting accounting manipulation and fraud.

• The market’s assumption of no special dividends in Chow Tai Fook Jewellery (1929 HK)‘s upcoming FY24 result is conservative, and this does not fit into its usual pattern. 
• Should it pay special DPS, the dividend yield may reach an attractive 10.7%. With its net cash position, CTF can financially maintain the average 135.6% payout ratio. 
• A return to its historical average dividend yield of 7.4% means that CTF’s share price will need to go up by 45% from the current level.

• Tosei achieved record revenue and profit, driven by robust growth in its fund management business and a balanced portfolio of stable and sales-driven operations.
• Activist investor Dalton acquired a 5.02% stake, highlighting concerns over recent governance decisions and potential Board independence dilution due to the Nagoya Railroad alliance.
• Dalton’s involvement ensures heightened scrutiny, promising better governance, and potentially favorable outcomes for minority shareholders amid Tosei’s continued strong business performance.

• Short term overhang from expanded share count and selling from unwilling participants
• The copper supply and demand story is intact and the fundamentals of the company remain strong
• Parent’s uptake of the rights is positive but the stock will take time to build a base for the next leg up 

• Results underline high earnings visibility in Profit-Generating Funeral Services – Q1-4 FY3/24 results were in line with guidance, with positive high growth momentum being sustained at Profit- Generating Funeral Services.
• The legacy businesses (Information and HR) missed forecasts, highlighting turnaround challenges.
• However, the new business Asset Consulting has started strongly as a high-margin activity, and the outlook is positive. 

• Carnival Corporation is the world’s largest cruise ship operator with a large fleet and significant market share
• The company was severely impacted by the COVID-19 pandemic, halting service for 15 months and taking on substantial debt
• Since resuming cruises in July 2021, Carnival has seen a rebound in revenues driven by strong demand for post-COVID travel, but still faces challenges with cashflow and debt sustainability

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.

• RaaS Research Group has published a flash comment on advanced materials manufacturing group Amaero International (ASX:3DA) following its announcement that the first atomiser has been commissioned at its Tennessee facility ahead of schedule.
• The commissioning is an important step toward the production of C103 and specialty alloy powder at the facility and allows the company to move to the next step of achieving qualification and, ultimately, commercialisation.
• Amaero’s announcement underpins our confidence in the production timing we have applied to our estimates.

• On May 28, 2024, MediciNova, Inc. (MNOV) announced that two abstracts regarding MN-001 (tipelukast) and MN-002 were presented as posters at the 92nd European Atherosclerosis Society (EAS) 2024 Congress.
• The poster on MN-001 discussed the objectives and design of the ongoing Phase 2 clinical trial enrolling patients with Type 2 diabetes, dyslipidemia, and NAFLD, which has now enrolled a total of 33 patients.
• The other presentation regarded the mechanism of action of MN-001/MN-002 in lipid metabolism.

• Alibaba Pictures’ revenue increased by 44% YoY and EBTIDA increased by 61% in the March quarter.
• Cainiao, Alibaba’s logistics network, plans to purchase fresh food from the places of origin.
• Li Auto finished a round of layoff, in which headcount was reduced to 22,000 from 30,000.

• Indiabulls Housing Finance (IHFL IN) Raised INR 3,693 crores through rights issue, issued $350 million bond.
• Strong balance sheet, low NPAs, poised for growth in the retail housing via its asset light model.
• Rebranding to Samman Capital signals new phase of the company with multi-year growth guidance.

• On 3 June, the shares of Korea Gas jumped limit up 30% to 38,700 won on huge volume (13.4 million), which was 37x higher than the previous day volume traded. 
• This was driven by the announcement of the South Korean President Yoon giving the approval to conduct exploratory drilling for potentially vast oil and gas prospects near Pohang. 
• The Korean government announced that there is a “very high” possibility the area contains as much as 14 billion barrels of oil and gas.

• SK Hynix leads in next-gen HBM innovation, setting pace with Indian startup FermionIC aiming for market domination.
• AMD releases new processors for data centers and PCs promising improved performance and efficiency with Instinct, Ryzen, and EPYC.
• India partners with Taiwan for semiconductor ecosystem development, while Russia plans to produce 350nm chips with self-developed EUV machines in 2024.

• Q124 showed solid top-line growth, impressive improvement in core margins
• We are not too concerned about moderating domestic hotel, air pricing
• After consensus EPS raised, TCOM a BUY below US$50 per ADS, in our view

• Numerical targets for FY24/12 initial guidance are shown in the exhibit below.
• Despite initial guidance for consolidated OP of ¥800mn, an increase of ¥420mn (+110.3% YoY), the Company cites conservatively forecasting non-operating and extraordinary items such as interest expenses, restructuring costs, and exchange rate fluctuations for initial guidance for ordinary profit break-even and a net loss of (¥600mn) for profit attributable to owners of parent (see P2).
• Key initiatives and expectations for 2024 include: 1) in Japan, aim to provide more data-oriented and efficient services (online golf equipment sales GPM improving after 4Q inventory adjustment), 2) GOLFTEC golf lesson cash sales set to improve on coach issue addressed and marketing campaigns such as “7 shots better,” and 3) expand SkyTrak sales distribution channels. 

• A near-term key NVX goal is to secure additional customers and lock in demand.
• NVX recently formed an agreement with PowerCo SE, part of the Volkswagen Group, to develop, test and analyze synthetic graphite anode materials customized for PowerCo’s requirements.
• If successful, this could lead to a new supply agreement.

• Institutions were net buyers of Singapore stocks over the five trading sessions through to May 30, with S$108.4 million of net institutional inflow, as 20 primary-listed companies conducted buybacks by way of market acquisition with a total consideration of S$37.9 million.
• Meanwhile Mapletree Pan Asia Commercial Trust, Singapore Airlines, Mapletree Logistics Trust, Jardine Cycle & Carriage, CapitaLand Ascendas Reit, Sembcorp Industries, UOL Group, Jardine Matheson Holdings, Mapletree Industrial Trust, and Keppel Reit led the net institutional outflow over the five sessions.
• In addition to the 9.3 per cent interest that the Tang group owns in ARA H-Trust, the proposed acquisition increases the Tangs’ holding in ARA H-Trust to 28.3 per cent.

• SLCA has seen a decrease in shares and reduction in debt, making its enterprise value cheaper
• Core thesis remains unchanged, with focus on potential split of company’s two businesses for separate valuations
• Recent acquisition in frack sand business by Atlas Energy provides comparable valuation exercise for SLCA, suggesting potential value of company’s assets and opportunity for increased valuation in the future

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• 1Q24 production (excluding NGL) in the Williston was 1,151 boe/d.
• This is 140 boe/d above our expectations and ~100 boe/d above 4Q23 production.
• Production in March (excluding NGL) had increased to 1,212 boe/d.

• Several US customs brokers have been suspended under new, tighter rules
• The new rules could make ‘de minimis’ imports slightly more difficult
• Whether it lists in London or NYC, additional rule changes could threaten SHEIN

• Xiaomi reported CY1Q24 revenue, non-IFRS operating income and non-IFRS net income 2.7%, in-line, and 21.7% vs. consensus;
• SU7 interest drove more and higher quality traffic to Xiaomi channels, driving higher revenue and margin for IoT and handset sales, in our view. 
• We expect this augmentation to sustain higher non-EV margin and growth in the long-run, and for ADAS and battery upgrades to drive demand for its next EVs. 

• Innovent’s 24Q1 product sales was up just 6% QoQ. The overall data shows that PD-1 growth has entered a bottleneck. This makes 24H2 YoY growth rate uncertain.
• The deal between Hengrui and Hercules is different from traditional license-out cooperation, but belong to asset spin-off in essence, which is a “smart deal” and also a meaningful attempt.
• There’re some positive signals in Zai Lab’s 24Q1 performance, but the pain points of business model severely limit its profitability/revenue scale. Zai Lab still has a long way to go.

• Divi’s Laboratories (DIVI IN) reported steady performance in Q4FY24, marked by YoY and sequential growth in revenue and improvement in profitability. Double-digit growth is expected to continue.
• Custom Synthesis business grew 47% YoY and 38% QoQ to INR12B in Q4FY24, driven by increasing value realization from existing commercial projects and addition of new projects to the portfolio.
• In Custom Synthesis, Divi’s Lab is in the process of entering into a long-term supply agreement with an MNC customer and is planning for capacity addition at its manufacturing facility.

• In the fourth quarter fiscal of 2024, Deckers Brands achieved record revenue growth of 18% compared to the previous year, almost reaching $4.3 billion of annual revenue.
• Gross margin increased by a considerable 530 basis points from last year to 55.6%, and earnings per share rose by 51% to $29.16.
• These results reflect Deckers’ successful long-term strategies and the hard work of its employees.

• Cosco Shipping Energy Transp. Co. Ltd. (H) (1138 HK)‘s 1.25x 12-month forward P/B is more than 2SD above historical average. Though earnings have improved, this still appears rich.
• The market expects this upcycle will sustain for at least 5 years, but as a cyclical stock, CSET has never had such a long cycle in the last 10 years. 
• While VLCC rate has gained 36% YTD, the average for FY24 is just in line with 2H22 and 1H23. However, earnings projections are 57% higher than that time.

• Ivonescimab’s (AK112) head-to-head clinical win against Keytruda (Pembrolizumab) reaffirmed Akeso’s standing as the flag-bearer of Chinese innovative drugs. It also affirmed its business model of specialized R&D+flexible distribution. 
• This success might be followed by a similar win globally in 2025-27,as well as AK112 and 104’s head-to-head win against Tislelizumab.
• We reiterate our BUY rating on Akeso and adjust TP to HK$58 to reflect revenue share from AK112 to come in from 2025 but in bulk after 2027

• ASM is a hedge fund with a strong track record of investor activism in taking over distressed assets and closed-end funds. 
• Lazard, the second largest CMCDI shareholder, bought shares last week at a multi-year high sending a strong message to the market.
• CMCDI can also explore announcing a discount management program besides agreeing to ASM’s claim to sell assets to pay dividends and offer a share buyback to reduce the NAV discount.

• NetEase’s first quarter earnings highlighted the company’s ongoing growth, driven in large part by its game portfolio.
• Net revenue for Q1 rose to RMB 26.9 billion, marking an accelerated YoY increase led by the company’s diversified game offerings.
• There was significant growth from established game franchises which have managed to maintain high popularity among their user bases, showcasing the sustainability of the company’s games.

• Atour reported C1Q23 revenue 4.6%/6.8% higher than our est./cons., and non-GAAP NI 6.9%/8.8% higher than our est./ cons, driven by hotel expansion and new retail products.
• The company raised total revenue guidance from 30% to 40% YoY for 2024 due to a strong retail sales trend. 
• We believe retail sales is a form of increase in Atour’s same store sales. We thus raise TP to US$39 to reflect this retail-driven increase of same store sales.