Daily Brief Equity Bottom-Up: Ferrari (RACE US) Q2 2023: The Perfect Fisher Framework Stock That Keeps Executing and more

• In our prior insight Ferrari: Classic Fisher Company, Almost Perfect Score on The Fisher 15 Framework, we talked about Ferrari N.V. (RACE US) being a classic Fisher company.
• Q2 2023 (a quarter with 14% revenue growth/34% profit growth) showed the execution runway (order book/product mix) is tremendous, and over the long term, value can be created.
• In the short term, though, trading at 46x/40x FY23e/FY24e despite upping its guidance, there could be a case to queue up for a more favorable entry price. 

• The ACCC has decided not to authorize the ANZ takeover of Suncorp-Metway Bank
• Can be positive for ANZ without executive risk, integration costs, unknown new risks
• Differentiator ANZ to peers its islessor exposure to Australia, and better credit metrics

• With that out of the way, let’s dive into Taste Gourmet, a catering group listed in the secondary market (or GEM board) of the Hong Kong Stock Exchange.
• Catering is usually a business with little moat, characterised by low barriers to entry. 
• While some brands are widely recognizable, humans generally want to devour something different each day, therefore it is an everyday struggle for restaurants to stand out among competition.

• Toyota Motor Corp., the world’s biggest car seller, has announced plans to consolidate its research and development (R&D) resources in China and ramp up its focus on electric vehicles (EVs), as it attempts to revive stalling sales in the highly competitive market.
• The Japanese automaker said on Monday it would change the name of its largest R&D facility in China from Toyota Motor Engineering & Manufacturing (China) Co. Ltd. to Intelligent ElectroMobility R&D Center by TOYOTA (China) Co. Ltd., and consolidate engineers from its three China ventures into the newly named facility based in Changshu, Jiangsu province.
• Among other plans, it would also strengthen local development of electrified vehicles (EVs) including battery, hybrid and plug-in hybrid models and accelerate the development of an electric powertrain with its two biggest suppliers, Denso Corp. and Aisin Corp., the company said.

• 3P, subscription, and AWS grew by mid to high teen while ad segment increased by 20%+
• The mix-shift from product to services in Amazon continues as services mix increased from ~40% in 2018 to ~60% in 2023.
• Let’s start more segment level discussion with AWS.

• Ideanomics had a strong quarter.
• Solectrac and Energica, in particular, demonstrated strong growth and demand in the agriculture and motorcycle markets.
• Ideanomics remains committed to its capital investment for future profitability, with an optimistic outlook driven by the increasing demand for the company’s products and services.

• TPL captured more water business in the second quarter than the Company had previously achieved leading to revenue and earnings exceeding our expectations
• The water business has been a revenue source smoothing out the volatility associated with the movement in oil and gas prices and production levels
• While TPL is not expecting to repeat second quarter levels in the third quarter, the water business should continue to perform better than previously expected

• 2Q23 revenue of $37.6 million was above consensus of $36.4 million.

• The challenging advertising market conditions have continued but EPS of $0.09 was significantly ahead of consensus of a loss of $0.01.

• The company (which has no debt) has more than $73 million in cash and reaffirmed its full-year guidance.

• ASRT reported better than expected second quarter revenue, but surprised investors with the announcement of a generic competitor for Indocin leading to management pulling guidance.
• Indocin has been on the market for many years and generic competition was likely. Yet, there is no information on how well the competitor could manufacture enough indomethacin 
• We do not believe the third quarter is at risk and we doubt more generic competitors would surface.

Canacol Energy issued an operational update on 3 August that included gas sales and drilling plans. July 2023 gas sales were 197mmcf/day, in line with sales a year earlier. However, perhaps more importantly, the group is mobilising two additional rigs to increase production capacity to meet potential higher demand due to the emerging El Niño effect.