In today’s briefing:
- GHCL Textile Q1 FY25 Update
- Korea Small Cap Gem #30: Kiswire
- Asustek & Acer Key Takeaways: Strong July Revenue Growth and ‘New Product Life Cycle’ Starting 3Q24
- O2O Playing a More Prominent Role in China Street Drinks
- IHI (7013 JP): Buy Back in for Post-Crash Recovery
- Toyota Motor Corporation: Investment In Future Technologies & Geographic Optimization Driving Our Optimism! – Major Drivers
- Booking Holdings: Their Strategy Of Expansion Into Alternative Accommodations Paying Off? – Major Drivers
- Micronics Japan (6871 JP): 1H FY12/24 flash update
- ConocoPhillips (COP): Will The Marathon Oil Acquisition Be A Game Changer? – Major Drivers
- MercadoLibre Inc.: Strategic Utilization of Distribution Space in Brazil & Other Major Drivers
GHCL Textile Q1 FY25 Update
- Rs. 1,000 crores allocated for growth, with Rs. 350 crores deployed. 25,000 spindles added by May 2025.
- Shift towards value-added products, including knitting, weaving, and dyed fabrics, with plans to double revenue in 3-5 years.
- Despite expansion and potential opportunities, capacity constraints and global demand shifts temper expectations in the short term.
Korea Small Cap Gem #30: Kiswire
- Kiswire Ltd (002240 KS) is the number one player for steel wire and rope products in Korea. More than 85% of its sales are generated overseas.
- The company has a consistent record of generating positive net profit. It is trading at low valuations (P/B of 0.3x and EV/EBITDA of 4.5x).
- Its average net profit from 2021 to 2023 are much higher than previous three years from 2018 to 2020, which is a testament of increasing demand for its products globally.
Asustek & Acer Key Takeaways: Strong July Revenue Growth and ‘New Product Life Cycle’ Starting 3Q24
- Strong Revenue Growth Signals Robust Demand in PC and Server Markets for Asustek and Acer
- Asus Management Continues to Describe Multi-Year PC Growth Cycle Ahead; 3Q24 Will Be Start of ‘New Product Lifecycle’
- Visit to Guang Hua Digital Plaza to Review New PC Models First-Hand. Remain Structurally Long PC Makers; Acer, Asus, Dell.
O2O Playing a More Prominent Role in China Street Drinks
- On August 7th, Meituan’s on-demand order volume reached a historical high of 98mn on surging orders from street drinks. Meituan has connected to the backend systems of street drink vendors;
- Delivery order is a double-edged sword. It boosts volume at the expense of margin. Further, the ownership of the volume is questionable;
- With Pin-hao-fan, Meituan already atomized the small restaurants. Now Meituan is playing the same trick with street drinks. The result will be more dramatic to the benefit of Meituan.
IHI (7013 JP): Buy Back in for Post-Crash Recovery
- 1Q results supported management’s full-year sales and profit guidance, which remains unchanged. Operating profit was up 2.7x YoY on a 17% increase in sales.
- Total new orders received increased by only 4.2% YoY and fell short of sales, but Aerospace & Defense orders were up 35.5% and slightly exceeded sales.
- Our own forecast – above management’s guidance this year with further growth next year – and our share price target are unchanged. 21% potential upside.
Toyota Motor Corporation: Investment In Future Technologies & Geographic Optimization Driving Our Optimism! – Major Drivers
- Toyota Motor Corporation has released its financial results for the fiscal year ended March 2024, providing a comprehensive overview that reflects both the company’s recent successes and its strategic investments towards future growth.
- In fiscal year 2024, Toyota reported robust financial performance with total vehicle sales reaching 9.443 million units, marking a 7.0% increase from the previous fiscal year.
- This growth was largely propelled by escalated sales outside Japan, counterbalancing the dip in domestic sales due to shipment suspensions from Daihatsu Motor Company and Toyota Industries Corporation.
Booking Holdings: Their Strategy Of Expansion Into Alternative Accommodations Paying Off? – Major Drivers
- Booking Holdings, a prominent player in the global online travel market, reported its second quarter 2024 financial results, highlighting a performance that exceeded expectations in various key metrics including room nights, revenue, and adjusted EBITDA.
- Room nights booked during the quarter grew by 7% year-over-year, achieving a total of 287 million.
- Revenue and adjusted EBITDA both rose by 7% to $5.9 billion and $1.9 billion respectively, while adjusted earnings per share experienced an 11% increase.
Micronics Japan (6871 JP): 1H FY12/24 flash update
- Consolidated financial results for 1H FY12/24: Sales JPY26.2bn (+54.1% YoY), Operating profit JPY5.8bn (+229.4% YoY), Net income JPY3.7bn (+222.4% YoY).
- Segment sales in Q2: Memory probe card sales JPY12.4bn (+124.1% YoY), Non-memory probe card sales JPY1.3bn (+66.8% YoY).
- Full-year FY12/24 forecast: Sales JPY55.0bn (+43.6% YoY), Operating profit JPY11.6bn (+118.4% YoY), Net income JPY8.3bn (+101.1% YoY).
ConocoPhillips (COP): Will The Marathon Oil Acquisition Be A Game Changer? – Major Drivers
- The second quarter earnings report for ConocoPhillips presented a mixed scenario, affirming the company’s continued operational strength along with areas that may trigger concern for prospective investors.
- On a positive note, ConocoPhillips announced a 34% increase in its ordinary dividend, signaling confidence in sustainable financial health and a strong commitment to returning value to shareholders.
- Furthermore, the acquisition of Marathon Oil was a highlight, poised to enhance ConocoPhillips’ operational scale and resource base, which could lead to improved efficiencies and broader market reach.
MercadoLibre Inc.: Strategic Utilization of Distribution Space in Brazil & Other Major Drivers
- MercadoLibre’s financial performance in the second quarter of 2024 highlighted robust growth and profitability, demonstrating strong execution across its primary business segments: commerce and fintech.
- Notably, Marcos Galperin, the company’s CEO, reiterated MercadoLibre’s commitment to enhancing the financial and operational accessibility for numerous small and medium-sized enterprises across Latin America, a principle that has been foundational since the company’s inception 25 years ago.
- From a financial perspective, the revenue reached $5.1 billion, marking a significant year-over-year growth of over 40%.
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