Daily Brief Equity Bottom-Up: China Consumption Weekly (16 Dec 2024): Alibaba and more

• Alibaba sells 100% equities in Intime Department Store to Youngor.
• Meituan plans to shorten delivery workers’ work hours due to sudden death cases.
• Mixue, the lowest price fresh drink provider, began to raise its prices.

• Micron’s Latest Outlook Disappoints & Shares Fall; Decoupling Trade Between SK Hynix & Nanya Tech Has Worked However
• Smartphone AI Insights — On-Device Local Search & Context-Aware Interfaces Emerging as Key Local AI Needs
• Conclusion — Consider Swapping In MICRON as the Long Side of the Memory Decoupling Trade

• Insiders are selling more than buying, especially in the technology sector
• Spin-offs like Western Digital and Lionsgate Studios are of interest to insiders
• Public Brook is a hotel company where insiders are buying stock and preferred shares, signaling potential value unlocking opportunities. Insiders are expected to start returning capital to shareholders, but the question remains if they will follow through.

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

• Isetan-Mitsukoshi has gone from being the most cautious forecaster among the big department store retailers to the most optimistic.
• This is largely on the back of previously unimaginable sales records at its main stores, especially Isetan Shinjuku.
• All of which is bringing in piles of profit, with projections of exceeding its previous average profit by four times.

• Rapidus vs. TSMC: Can Japan’s Newcomer Compete in the 2nm Race?
• Memory Monitor: The Emerging Mass-Market Edge AI Need for Mobiles; Long Micron Vs. Short Nanya Tech 
• Hon Hai Pauses Nissan Pursuit Amid Honda Talks — A Japanese Savior for Nissan is Likely But This Confirms Hon Hai’s EV Ambitions Remain High

• TSMC’s new wafer manufacturing technology is changing the advanced packaging industry, causing a forecasted slump in general-purpose memory for Samsung and SK Hynix.
• Micron is leading the way in HBM4 development, aiming for mass production by 2026, while India’s semiconductor growth is highlighted by Marvell ahead of VLSI conference.
• China’s chip crackdown escalates as global semiconductor landscape evolves, with Tesla Shanghai factory head resigning and Xiaomi denying poaching rumors. Dixon partners with Vivo to boost local production in India.

• TSMC: +25.4% Premium; At Historical Highs, Good Level to Short the Spread
• UMC: +2.1% Premium; Upper Level of Historical Range, Short Level
• ASE: +5.4% Premium; Near-Term High However Likely Best to Wait for Higher Levels

• Top Glove Corp (TOPG MK) achieved 80% YoY revenue growth in 1QFY25 and returned to profitability with a net profit of RM5M.
• With robust demand outlook, Top Glove expects the ASP to further strengthen. The company aims to recover its EBITDA margin to pre-pandemic levels of 15% by FY26 from 10% now.
• Import alert and expected tariff increase on Chinese manufacturers, may help shift the focus from China to Malaysia, as the preferred sourcing destination, thereby helping Top Glove.

• Information Services Corporation (TSX:ISV) is a technology services provider in Canada, founded in 2000 to manage registries in Saskatchewan
• Strong Q2 results reported, market capitalization of CAD 530 million
• Ambitious plan for expansion, operates in a high-quality “monopoly” business with Registry Operations accounting for 70% of EBITDA

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.

• MLKN posted 2QFY25 adjusted EPS of $0.55 on better-than- expected revenue (+$15 million versus our estimate), with Americas Contract and Global Retail both showing strength despite industry headwinds, while the normally ‘lumpier’ International Contract was affected by uneven demand across regions.
• We reviewed the quarterly results in our summary note.
• In the critical Americas Contract segment, leading indicators continue to suggest an improving demand picture.