Daily Brief Equity Bottom-Up: Is the lithium bottom in? and more

• Significant increase in the lithium market, with double digit percentage increases in the sector
• The information about the market came from China and was transparent, leading to positive market reactions
• Potential impact on downstream battery facilities and operating costs for CATL ‘s lepidolite mine

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• UiPath, a leader in AI-powered automation platforms, has exhibited a positive performance in its fiscal second quarter of 2025, as discussed in their recent earnings call.
• The company surpassed the upper end of its financial guidance across key metrics, an indication of effective execution and robust value delivery to customers.
• The report showed significant advancements, with UiPath achieving a 19% increase in Annual Recurring Revenue (ARR), reaching $1.551 billion.

• Global auto and EV sales in 2024 are heavily impacted by supply chain resilience, as emphasized by Cenex CEO Robert Evans.
• Silicon Saxony in the EU is attracting global players with EUR50 billion investments, positioning itself as a semiconductor hub.
• Chinese game developers are pushing AI boundaries by developing NPCs to virtual societies, while Samsung offers aggressive discounts in the US to compete with Apple’s Korea strategy in 3Q24.

• Samsara’s second quarter fiscal 2025 earnings report reflects a period of substantial growth and profitability, underscoring the company’s strategic positioning and operational efficiency in the Internet of Things (IoT) and connected operations market.
• The company announced annual recurring revenue (ARR) of $1.26 billion, marking a significant year-over-year increase of 36%.
• Additionally, a notable achievement includes a quarterly record for non-GAAP operating margin, which highlights Samsara’s ability to scale profitably.

• Apple’s latest iPhone release received mixed reviews, with some finding it to be a ho-hum upgrade
• The base level iPhone 16 was seen as having more significant improvements compared to previous models
• There is a shift in Apple’s strategy to attract more users to upgrade to the base model iPhone 16, potentially increasing sales volume but leading to a drop in average selling price

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• An announcement by Contemporary Amperex Technology Co. Ltd. (CATL) that is to halt production at its giant lithium concentrator in Yichun, Jiangxi province, triggered a sharp rise in domestic lithium mining companies’ stocks.
• Ganfeng Lithium Group Co. Ltd. and Tianqi Lithium Corp. hit their daily price limits Wednesday, while other lithium firms saw significant gains.
• CATL’s decision to stop production comes after steep falls in lithium prices, which have dropped 60% from previous highs.

• AMD’s market share in the desktop CPU segment has surged to 30%, driven by strong Ryzen sales and innovative product releases, challenging Intel’s longstanding dominance in this space.
• Intel’s revenue in the data centre segment fell 20% year-over-year, reflecting challenges in product delays and increasing competition from AMD’s EPYC processors, impacting overall growth potential.
• Both companies have ramped up AI-related investments, with AMD committing $1.5 billion and Intel investing $3 billion in AI technology development, aiming to capitalize on the growing market demand.

• Sumber Alfaria Trijaya (AMRT IJ) booked a solid set of 1H2024 results despite a seasonally slower quarter with margins holding up well and market share improving versus competition.
• Outlet expansion for Alfamart is running ahead of guidance, with Alfamidi growing in line and a more measured expansion for Lawson, as it beds down last year’s aggressive rollout. 
• Outside Java is seeing the strongest growth in sales and the focus on expansion of DCs and stores plus Alfamart is increasing the number of chillers. Valuations reflecting growth prospects.

• Guidewire Software Inc. concluded its fiscal fourth quarter and full year 2024 financials with robust performance, spearheaded by a successful shift towards cloud-based services.
• The transition to a vertical software-as-a service (SaaS) model from an on-premise system appears to capture significant market interest, marked by an annual recurring revenue (ARR) growth of 14% and fully-ramped ARR acceleration of 19%.
• This transition underscores the company’s strategic realignment towards offering more scalable and efficient cloud solutions.

• Operating revenue increased 79.6% YoY to JPY1.5bn, driven by strong sales of TDM-621 across multiple regions.
• Operating loss narrowed to JPY317mn, with SG&A expenses rising 16.0% YoY to JPY1.2bn and R&D expenses up 1.7% YoY.
• Recurring loss of JPY787mn, including foreign exchange losses of JPY449mn and interest expenses of JPY21mn.