Daily Brief Equity Bottom-Up: Grab Holdings (GRAB US) – Leaning In with Product Initiatives and more

• Grab‘s 1Q2024 reflected strong performance from its deliveries and mobility segments despite seasonal headwinds, with growth driven by new initiatives rather than increased incentives, with affordable products leading.
• The company has launched new products in the premium segment, with advanced bookings improving the most recent initiative, while its saver products are increasing spend, frequency, and retention. 
• Another key feature of the 1Q2024 has been the strong performance of groceries, driven by alliances with retailers, and booking higher growth than food deliveries. 

• Generative AI (GAI) helps capex, no doubt. But key question is whether capex can yield to revenue and profits;
• Content creation industry is sure to realize revenue and profits. iQiyi and NetEase already said so with concreate examples;
• Advertising can realize revenue by better matching of ads inventory and perhaps improve inventory utilization.

• In 1Q24, Trip’s revenue grew strongly by 29% YoY with all business booming.
• China and Trip achieved a lot overseas travelers in March and the Labor Day Holidays.
• However, the stock price has risen 37% in the past three months.

• VBL has a history of commanding high growth through acquisitions, product portfolio and geographical expansions and operating leverage
• Varun is now focusing on interesting geographies and products which will aid its next level of growth
• There could be more than bigger success stories like Sting for Varun Beverages if it can repeat history

• Pompeo advises Taiwan to innovate constantly in chip industry to maintain dominance and not be complacent.
• LG Energy Solutions may surpass Panasonic in launching mass production of 46800 batteries, a significant development in the industry.
• Canadian startup CEMWorks is positioning itself as a key player in semiconductors, 5G, and AI with its simulation tool. SDC and LGD lead OLED monitor market with fast growth and gaming focus. China’s internet giants see 1Q24 revenue soar thanks to AI technology.

• Japan Post Insurance (7181 JP) shows us that worsening policies in force is far more important to earnings than staggering growth of new policies.
• Returns and profit growth are weak and this should matter more than a puritanical focus on new policies, embedded value.
• Non-Operational line items, likely hedging costs and reserve adjustments, are cancelling out most all positives in operations.

• In Q4FY24, Cipla Ltd (CIPLA IN) posted 10% YoY revenue growth to INR61.6B. Despite surging R&D expenditure, EBITDA increased 13% YoY to INR13B, leading to 54bps margin expansion to 21.4%.
• New launches in U.S. and outperformance in the domestic market driven by chronic portfolio should drive the growth. For FY25, the company has guided for EBITDA margin of 24.5–25.5%.
• Cipla shares soared 15% YTD. Last week, the promoters, Hamied family sold 2.5% stake in the company for ~INR26B, igniting a rally in share price.

• The Q2 Fiscal Year 2024 was a good quarter for Apple Inc. as they saw growth in several international markets and set numerous records worldwide.
• The company reported revenue of $90.8 billion and an EPS record of $1.53.
• They also announced revenue records in over a dozen countries and regions, and an all-time revenue record in Indonesia.

• The DHIBM-7P pilot vertical well encountered 24 metres of net pay in an overall hydrocarbon column of 37 metres.
• The well was drilled from the pilot hole of the recently drilled Hibiscus South well that had already encountered 5-6 mmbbl recoverable resources.
• The bottom part of this well had been plugged ahead of drilling a horizontal producer in the area (this horizontal well will be drilled next).

• Dutch Bros has experienced growth during the COVID-19 pandemic but faces challenges in a more competitive market
• Despite improved financial metrics, the company is expected to see weakness in comparable sales and new store economics
• Investors are optimistic about Dutch Bros’ growth potential but there are concerns about its ability to sustain profitability and achieve long-term growth targets amid market challenges.

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.