Daily Brief Equity Bottom-Up: Asian Equities: Twenty Inexpensive Consistent Compounders and more

• Consistent compounders, stocks with steady earnings growth and excess returns over a long period of time, are difficult to find. It’s even more difficult to find reasonably valued compounders.
• From the universe of large Asian companies, we screen those with steady profit growth (>10%) and excess returns in each of last 10 years and over next three forecast years.
• Our list of 20 inexpensive compounders comprises 10 from onshore China, 5 from HK, 3 from India and 1 each from Japan and the Philippines.

• The Semiconductor industry associations report re-accelerating Semi sales, and increase 2024-25 forecasts. This is due to higher AI / Accelerators, HBM Memory but the rest of the market remains sluggish
• TSMC remains on its high growth plateau at 34% YoY, driven by AI and 3nm. UMC remains on a sluggish recovery at 7% YoY.
• AMD, Nvidia, SK Hynix, TSMC: stocks are not expensive on PE relative to earnings growth. Non-Consensus: we think AMD and SK Hynix are worth a serious look.

• Geely’s sales volume grew by 27% YoY in November 2024.
• BEV delivery growth rate accelerated to 173% YoY in November from 26% YoY in July.
• Geely’s forward financial ratios are lower than its major competitors.

• The Circuit podcast discusses the uncertainty surrounding Intel’s future leadership and strategic direction
• Ben and Jay analyze the board’s role in Intel’s challenges and debate the company’s path forward
• The podcast ends on a hopeful note, with Jay expressing optimism about Intel’s 14A technology and the potential for success in the future

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• TSMC’s November revenue decline was better than expected, poised for nearly 30% annual revenue growth.
• SK Hynix restructures CIS organization to replicate HBM success model, aiming for improved performance.
• TSMC founder sheds light on reasons behind Samsung and Intel’s setbacks, pointing out core issues. YMTC refutes backdoor listing rumors, facing industry scrutiny; while Samsung explores using discrete LPDDR for AI-driven iPhones and China investigates Nvidia amid US-China chip tensions.

• Popular Vehicles and Services (PVSL IN) are available at a 50% discount since IPO and available at 25%
• PVSL plans to enter two new states by June 2025 and open multiple new facilities, including a NEXA Studio and service centers in Maharashtra and Kerala.
• PVSL’s focus on geographic expansion, high-margin segments, and inventory normalization enhances its growth potential, making it a compelling value play with room for significant re-rating in the near future.

• Innova Captab (1605221D IN)’s New Jammu facility to be commercialized by Q3 FY25, expanding capacity and product range.
• Strong order pipeline, diversified segments (CDMO, branded generics), and high-margin segments to drive profitability.
• Aiming for 25-30% revenue CAGR and 4-5% margin expansion in upcoming years.

• Blueprint Medicines Corporation, during its third quarter of 2024 financial results presentation, highlighted both promising developments and ongoing challenges.
• The company reported robust revenue growth, primarily driven by the performance of AYVAKIT, which achieved $128.2 million in net product revenue, marking a 137% year-over-year increase.
• This strong performance led the company to raise its annual revenue guidance to between $475 million and $480 million, positioning AYVAKIT on track for substantial long-term revenue, potentially exceeding $2 billion.

• The funding package between Iluka Resources and the government was finalized, leading to a 10% market decline
• Iluka Resources planned to build a Rare Earths refinery in Enneba with the assistance of a $1.05 billion non recourse loan from the Australian government
• Iluka also had plans to process their Wimmera deposit through the refinery, despite challenges with separation and impurities causing delays in development.

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

• Bio-Rad Laboratories, Inc. presented a mixed set of results for the third quarter of 2024, reflecting ongoing challenges and some positive developments across its business segments.
• The company reported net sales of $650 million, a 2.8% increase from the previous year on a reported basis, attributed largely to its Clinical Diagnostics segment.
• On a currency-neutral basis, sales increased by 3.4% year-over-year, driven primarily by a 6.4% increase in the Clinical Diagnostics group led by strong demand for quality control products, especially in the Asia Pacific region.