Daily Brief Equity Bottom-Up: How Netflix is upending Hollywood and more

• Netflix recently hit an all-time high on the stock market, capitalizing on the chaos in the entertainment industry
• The company was initially seen as a renegade tech startup, leading the streaming market with its first mover advantage
• After reporting a loss in subscribers, Netflix announced plans to launch an advertising-supported business to combat competition in the streaming wars.

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• Entree Resources (ETG CN) has been roaring over the past three weeks on the back of …no official news!
• As we highlighted in our prior insights we expected an arbitration ruling by late 3Q24, but there has been no news published by Entree or Rio Tinto Ltd (RIO AU) 
• Volume spike and price action remind us of Turquoise Hill buyout in 2022.

• Facebook’s original vision Pro demo showcased impressive technology with custom silicon and high miniaturization, but it is still far from being a consumer product.
• Comparisons were made between Facebook’s demo and Apple’s vision Pro, highlighting different approaches to hardware development and philosophies.
• Despite debates on shipping products and final designs, both companies are pushing the boundaries of technology and advancing towards a glasses form factor for AR/VR.

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• Kilburn Engineering (KEL IN) acquired new assets, expanded into waste heat recovery, and enhanced its market position with acquisitions in July and August 2024.
• Debt settlement, 2 Fundraise, 2 Mega acquisition, diversification of revenue and margin improvement are some key positives for Kilburn.
• Rs. 371Cr of Order Book, FY25E Revenue of Rs. 500Cr Revenue leads to 60% revenue growth and expecting margins of 20% will lead to huge potential for this company.

• Astra International is well-positioned to fend off the challenge of incoming EV players to Indonesia, a country far more suited to Hybrid EVs, with little charging infrastructure.
• Despite new entrants, the company has maintained its market share at 57% YTD, with Chinese EV makers fighting amongst themselves and other Japanese ICE brands losing some share. 
• Astra continues to develop new HEV products, with a line up of 10 BEVs due by 2028 from Toyota but investments in the ecosystem are already underway. Valuations remain attractive.

• Oriental Watch (398 HK) will report its H1 FY25 result in mid-November. We expect earnings to be down 5-10% YoY, as SSSG would be flattish for the period.
• We expect a 25-26 cent dividend ( ~14% yield annualized). With the stimulus measures in place, we expect China’s mood to be slightly more upbeat.
• Oriental Watch (398 HK) goes ex-dividend today (23.5 cent/share dividend). As we enter trading today, it may be available at a higher yield. 

• With its Danaher Corp (DHR US) heritage, Veralto (VLTO US) has built a foundation based on durable and recurring sales growth, high profitability, and strong cash generation.
• Veralto’s products and services are mission-critical yet account for less than 1% of client costs, leading to high switching costs and ensuring customer retention and financial resilience through economic cycles.
• Veralto holds market leadership in both its Water Quality (WQ) and Product Quality & Innovation (PQI) segments, which positions it well for the increasing regulatory and environmental demands. .

• BigCommerce, headquartered in Austin, Texas, conducted its earnings call for the second quarter of 2024, marking significant strides in the company’s growth amidst challenging business environments.
• This complex economic landscape presents both opportunities as well as challenges which BigCommerce aims to strategically navigate.
• As reported, BigCommerce’s revenue for the quarter was slightly under $82 million, reflecting an 8% year-over year increase.

• Peabody is a global coal company operating in the US and Australia, offering exposure to both thermal and metallurgical coals
• Despite recent success and a positive recommendation, the stock has lagged behind other coal companies
• With a current share price of $23.40, market cap of $2.9bn, and strong FCF yield of around 30%, Peabody presents a promising risk/reward opportunity in the current market environment

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.

• Shenzhen Mindray Bio-Medical Electronics (300760 CH) reported double-digit growth in revenue and net profit in 1H24.
• In-Vitro diagnostics and medical imaging systems segments drive performance, while patient monitoring and life support lagged.
• International market continues to show strength, while China lingers for now.