In today’s briefing:
- GoTo Gojek Tokopedia (GOTO IJ) – Warming Up the New Engines of Growth
- Memory Monitor: Micron Leapfrogging Into HBM3E for AI; Nanya Lagging Peers But Poised to Benefit
- Tesla Increases Price of Model Y in China in Sign That Price War Is Easing
- Ant Group Completes Microloan Business Reshuffle
- Japan Airlines – Encouraging Lifting of Medium Term Expectations to Narrow Recovery Gap to ANA
- Adobe Inc.: When Will Its Adoption Of Generative AI Reflect On Its Top-Line? – Major Drivers
- Jabil Inc.: What Are Its Latest Advancements In AI? – Major Drivers
- Intel. CHIPS Act Funding Ceremony Overshadowed By Reports Of New Fab Delays
- Dentsply International (XRAY US): Sombre Growth Outlook and Pricey Valuation
- [Kuaishou (1024 HK, BUY, TP HK$81) TP Change]: Prime Beneficiary of Playlet Induced Traffic
GoTo Gojek Tokopedia (GOTO IJ) – Warming Up the New Engines of Growth
- GoTo Gojek Tokopedia (GOTO IJ) 4Q2023 results revealed another sequential increase in GTV and positive adjusted EBITDA for both ODS and e-commerce, despite reduced incentive and marketing spending.
- GoTo achieved positive top-line growth by expanding its total addressable market through more affordable products and a strong performance from consumer lending in fintech, coupled with great cash cost efficiencies.
- 2024 will be a transformational year for GoTo without the yoke of Tokopedia promotional spending but with significant cash coming in every quarter that can be used to drive growth.
Memory Monitor: Micron Leapfrogging Into HBM3E for AI; Nanya Lagging Peers But Poised to Benefit
- Micron shares have soared after the company reported its latest results with forward margin guidance well above consensus expectations.
- Micron appears to be successfully leapfrogging into ther HBM memory space, and says that its production for 2024E is sold out and for 2025E is already all ‘allocated’.
- Taiwan’s Nanya Tech has lagged its peers by a wide margin; Nanya lacks HBM products however HBM market demand is driving supply tightness for all DRAM.
Tesla Increases Price of Model Y in China in Sign That Price War Is Easing
- Tesla Inc. will increase the price of its popular Model Y crossover by 5,000 yuan ($694) in China, a move that offers rivals a temporary reprieve as a raging price war engulfs the world’s largest auto market.
- The price rise on China-made Model Y vehicles will start on April 1, Tesla confirmed with Caixin Wednesday. Meanwhile, some of the extras offered by Tesla to its Chinese customers, including an 8,000-yuan insurance subsidy, will expire on March 31.
- Tesla previously announced a price increase of $1,000 for the Model Y in the United States and 2,000 euros ($2,542) in Europe.
Ant Group Completes Microloan Business Reshuffle
- Chinese fintech giant Ant Group Co. Ltd. has completed the reshuffle of its consumer lending businesses Huabei and Jiebei, wrapping up a years-long, government-driven overhaul, a person close to the matter told Caixin.
- Ant’s two wholly owned small loan business units, the operators of Huabei and Jiebei, have fully exited the businesses during the past year.
- The two brands have been incorporated into Chongqing Ant Consumer Finance Co. Ltd. (CACF), a subsidiary set up in 2021 that is 50% owned by Ant, according to the person close to CACF.
Japan Airlines – Encouraging Lifting of Medium Term Expectations to Narrow Recovery Gap to ANA
- JAL finishing FY24 strongly with another guidance upgrade – upgraded FY26 targets more logical in light of existing ANA targets
- Demand momentum particularly helpful as wages rise across Japan and cost control to remain impressive over FY25-FY26 as LCC growth set to dilute FSC inflation
- Detailed analysis of JAL’s widening margin gap to ANA suggests revenue solution required – momentum helpful and needs to be watched carefully
Adobe Inc.: When Will Its Adoption Of Generative AI Reflect On Its Top-Line? – Major Drivers
- Adobe Inc.
- delivered robust financial results for the first quarter of fiscal year 2024, with a revenue of $5.18 billion.
- This represents a 12% year-over-year growth, demonstrating the significant role of Adobe products in powering the global digital economy.
Jabil Inc.: What Are Its Latest Advancements In AI? – Major Drivers
- The second quarter of fiscal year 2024 saw Jabil Inc.
- achieve approximately $6.8 billion in revenue.
- This performance was in line with the guidance for the majority of the company’s businesses.
Intel. CHIPS Act Funding Ceremony Overshadowed By Reports Of New Fab Delays
- Intel snags $8.5 billion in direct funding through the CHIPS and Science Act to advance its commercial semiconductor projects in Arizona, New Mexico, Ohio and Oregon.
- Investment Tax Credit (ITC) of up to 25% on > $100 billion in qualified investments and eligibility for federal loans up to $11 billion are also on offer
- Meanwhile, two separate reports suggest delays of up to two years in Ohio and suppliers in Arizona unable/unwilling to meet previous commitments to establish local supply chains. Ouch!
Dentsply International (XRAY US): Sombre Growth Outlook and Pricey Valuation
- Dentsply International (XRAY US) guided for 2024 revenue of $3.96–4.02B, flat to up 1.5% on an organic basis and 12% growth in 2024 EPS at midpoint.
- The macro environment continues to be challenging. The company anticipates the ongoing softness in imaging will continue in 2024. Cost savings will support the bottom-line growth.
- In terms of every valuation metrics, Dentsply is overpriced compared to its U.S.-listed peers. Strong balance sheet, accelerating dividend, and buyback do not justify the pricey valuation.
[Kuaishou (1024 HK, BUY, TP HK$81) TP Change]: Prime Beneficiary of Playlet Induced Traffic
- Kuaishou reported C4Q23 revenue, IFRS OP, and IFRS net income in line, 31%, and 51% vs. our estimates; and in line, 43%, and 67% vs. consensus.
- The significant profit beat was mainly due to the rich content supply on the platform that led to organic traffic influx, resulted in marketing costs reductions.
- We raised our TP by HK$2 to HK$81, implies 20X PE, vs. current trading at 13X PE for 2025.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
