Daily Brief Equity Bottom-Up: Alphabet 2Q’24 Update and more

• Yesterday’s Google’s earnings may have been bit of “meh” at first glance, but there were nuggets in the call that may have important implications for the broader market.
• Network segment continues to struggle, but the rest of the businesses continue to grow at healthy double digit rate.
• Search revenue growth surpassed YouTube ads revenue growth last quarter. For the first time, Cloud posted >$10 Bn quarter while maintaining high 20s growth YoY.

• Since the release of 3Q24 (YE August) results on July 10, the share price of Saizeriya (7581 JP) is up nearly 10%, greatly outperforming Nikkei during the same time frame. 
• The 3Q24 results showed that Japan’s operating profit finally improved, while China remained solid. 
• The company is currently trading at 24x 2025E PE with strong earnings growth.

• Arco Graphics is a strategic reseller of industrial CAD and semiconductor fab ERP software in Japan, representing Dassault Systems and IBM
• Despite consistent EBIT growth over the past 7 years, the company’s valuation remains attractive for investors
• Expected to announce better-than-guided results for Fiscal 2023 in May, along with an improved shareholder returns strategy

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.

• Dai Nippon Printing is a 150-year-old Japanese industrial conglomerate with a focus on niche growth businesses and a history of cross-shareholding sales and share repurchases
• The company has a dominant position in its highest earning segments and is undervalued at 5-6x forward P/E, potentially offering significant upside in the future
• Originally founded as Shueisha in 1876, DNP has evolved from a printing company to a diversified business with a strong emphasis on research and development.

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.

• Reconstructed board of Yes Bank implemented an ill-conceived, poorly executed retail strategy to revive the bank
• Structural problem of low net interest margin and high overheads not resolved
• Retail assets strategy characterised by low yield, high operating cost and rising credit cost which the bank has finally acknowledged

• Alphabet’s revenue jumped 14% YoY to $84.74B, exceeding the $84.19B forecast, fueled by strong digital ad sales and cloud services demand.
• Net income rose 28.6% to $23.6B, surpassing the $22.9B estimate, reflecting effective cost management and revenue growth despite margin concerns.
• YouTube’s ad revenue fell short of expectations, growing slower than Q1 due to increased competition and tougher year-on-year comparisons, impacting overall share performance.

• Plover Bay Technologies (1523 HK) reported 28.4%/55 % YoY revenue/net profit growth, led by growth from new customers in the US, Australia, and Europe. 
• The company reiterated its long-term guidance of reaching 300 mn USD revenue (FY23: 94 mn USD) in less than ten years. There was no clear guidance for FY24. 
• The stock trades at 14.8x PE FY24e, with a 5.4% dividend yield (assuming an 80% payout), and is at the cusp of an inflection in its growth. 

• Doosan Robotics reported disappointing 2Q 2024 results. It generated sales of 14.4 billion won (up 10.1% YoY) and operating loss of 7.9 billion won in 2Q 2024.
• After the disappointing results in 2Q 2024, it is likely that the consensus will lower their sales and profit estimates of Doosan Robotics for the next three years.
• The consensus is likely to lower sales estimates by at least 15-20%+ in the next two years. In addition, the profit margin estimates are likely to be reduced materially. 

• Ashford Inc. has approved a going dark transaction offering $5.00 cash per share to common stockholders with fewer than 10,000 shares
• Potential profits of $2,300 using 9,999 shares represent a 4.8% return, annualizing to 19.2% due to a projected July closing
• AINC is a hotel management company led by Monty Bennett, and the transaction is subject to a stockholder vote and IRA Waiver Proposal, with directors and executive officers expressing their support.

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.

• NCKU in Taiwan achieves breakthrough in angstrom-scale semiconductor precision, potentially revolutionizing the industry.
• Uncertainty surrounds impact of Trump win on green energy, with transition likely to be slower but not impossible.
• Apple introduces new open-source AI models, Kyushu attracts record investments from TSMC, while SK Hynix experiences sales/profit growth. Vietnam partners with Qorvo, Cadence to train 50,000 engineers by 2030.