Daily Brief Equity Bottom-Up: 2025 High Conviction Idea – DIDI Global and more

• DiDi Global (DIDI US) has begun to generate positive EBITDA after several challenging years post-IPO.  With a high degree of operating leverage, the company is poised to grow quickly.
• Didi which maintains a 70% market share in the ride-hailing industry in China is expanding into Tier 3 cities where there is a large untapped opportunity.
• The company has indicated that it wants to list in Hong Kong in 2025 providing a catalyst for share price re-rating next year.

• Bitcoin has reached a new all-time high, surpassing $107,000 and steadily moving toward $110,000, as we predicted in Crypto Moves #55.
• That note remains highly relevant.
• Among the three most notable developments of the past week, MicroStrategy has been “QQQ’d.” Find out what that entails below, along with the other two standout pieces of news and the key charts shaping the market as we head into one of the last weeks of 2024.

• It is difficult for Fosun Tourism (1992 HK) to return to its peak and IPO share prices over the next two years. The buyback proposal represents a good exit opportunity.
• Net profit is unlikely to go back to FY19 level even in FY26F. The derating of the Chinese equities and Fosun Group, as well as its high gearing, are barriers.
• Its PER multiples have already aligned back to the sector average from the extremely depressed level previously. Relative to global names, it is now only at slight discounts.

• In this insight, we review the share price performances of the 18 companies/insights on the Asian Dividend Gems in 2024.
• The 18 stocks in the Asian Dividend Gems published in 2024 are up on average 4.5% from the date of publishing the insight to current price.
• The 18 companies included in the Asian Dividend Gems series this year currently have an average dividend yield of 7.1% and average SmartScore of 4.0 (out of 5.0).

• Edelweiss Financial Services Ltd. is a financial services firm in India with a market cap of $1.2 billion USD
• The company includes the largest private credit and private real assets fund manager in the country
• Management plans to sell a strategic minority stake in the Edelweiss Alts business unit and IPO the Alts unit to distribute shares directly to shareholders, potentially creating value for investors as seen in a previous div-en-specie transaction with Nuvama

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.

• Rio doubles down on lithium investment in Rincon, with a US $2.5 billion expansion plan
• BHP and Rio have historically had differing views on commodities, with examples in Potash, aluminium, and mineral sands
• Rincon project aims to expand production to 60,000 tonnes per annum, with heavy reliance on DLE technology for extraction and processing

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

• ATNI, a telecom company, has been overlooked due to industry setbacks
• Company’s businesses are healthy and poised for growth in revenue and EBITDA in 2025 and beyond
• Expected free cash flow inflection point could lead to increased dividends, stock repurchases, and debt reduction, potentially doubling stock value in two years based on projected 2026 estimates

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.

• TSM is upbeat on the AI demand and remains confident that the cycle has just begun with long a runway for growth ahead.
• TSM’s primary competitors, Intel and Samsung Electronics, are currently facing challenges within their foundry operations, placing TSM in a favorable position to expand its market share
• The Company anticipates a strong closing for FY:24 and has guided for nearly 35% YOY revenue growth in Q4 2024. We believe the momentum will continue in 2024E-2026E.

• Astronics Corporation is an aerospace components manufacturer specializing in electrical power systems, seat motion systems, and automated test systems.
• The company presents a low-risk investment opportunity at 6x normalized EBITDA, despite challenges in the commercial aerospace sector.
• With a focus on Aerospace and Test Systems products, Astronics remains an attractive investment option in the aerospace and defense industry.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• The disparity between the leading footwear retailers continues to widen.
• ABC Mart is pulling so far ahead that it has the market almost to itself. 
• Chiyoda may have finally turned the corner but G-Foot may need further financial support from Aeon.