In today’s briefing:
- Japan Weekly | Ibiden, Fanuc, Canon
- September Brazil Bank Data Charts – Arrears Imply Better NPLs Trends to Come; Have Spreads Peaked?
- Vertex Pharmaceuticals (VRTX US): Better-Than-Expected Q3 Result; Guidance Raised 2nd Time This Year
- Intel 3Q22: Still Too Optimistic
- Micron Technology: The New York Mega Fab & Other Drivers
- Rio Tinto ADR: Initiation of Coverage – Business Strategy
- Nike Inc: The Connected Partnership & Other Drivers
Japan Weekly | Ibiden, Fanuc, Canon
- NKY +0.80%WoW; TOPIX +0.91%WoW; TSE Mothers +3.0%WoW. 3 days up; 2 days down this week as small caps; high valuation and tech stocks rallied
- PM Kishida orders additional fiscal stimulus of ¥29.1 trillion. Including other private sector investment and funding, the total stimulus size to exceed ¥71 trillion.
- Bank of Japan maintains their ultra looks monetary policy in place at the end of their 2-day policy meeting
September Brazil Bank Data Charts – Arrears Imply Better NPLs Trends to Come; Have Spreads Peaked?
- In September, we highlight that data on credit in arrears (15-90 days overdue) showed MoM improvements in all our measures; this implies a positive leading indicator for NPLs
- System loan growth was +16.8% for the twelve months to September, a slight acceleration from the August YoY rate (+16.7%), due largely to faster corporate loan growth
- New credit spreads appear to have peaked, even if spreads on average loans are set to remain elevated; we favour Banco do Brasil, for good credit quality and attractive valuations
Vertex Pharmaceuticals (VRTX US): Better-Than-Expected Q3 Result; Guidance Raised 2nd Time This Year
- Vertex Pharmaceuticals (VRTX US) reported 18% y/y revenue growth to $2.3 billion, led by 46% growth outside the U.S. on continued strong uptake of Trikafta. U.S. revenue grew 5% y/y.
- The company raised full-year 2022 product revenue guidance by 2% at the mid-point to $8.8–8.9 billion, representing 17% y/y growth at the mid-point.
- The company will submit biologics licensing application (BLA) for exa-cel to the FDA, beginning in November 2022 and expects to complete the submission by the end of Q1 2023.
Intel 3Q22: Still Too Optimistic
- Intel put forth a significant cost cutting program to generate $3B in savings in 2023 and $8-10B by 2025.
- CEO Gelsinger’s PC forecasting track record is horrendous, we wouldn’t bet on a down MSD 2023 market.
- Datacenter…which once carried near 60% margins hit breakeven this quarter… an astonishing fall.
Micron Technology: The New York Mega Fab & Other Drivers
- Micron delivered a mixed set of results for the previous quarter, missing out on the revenue expectations of Wall Street but managing an earnings beat.
- As a result, demand is being reduced for the other parts of the supply chain, which already have more than enough inventory, because the servers cannot be built.
- Therefore, although the overall demand for clouds is generally healthy, this is one factor that is having an impact on it.
Rio Tinto ADR: Initiation of Coverage – Business Strategy
- This is our first report on global metals and mining giant, Rio Tinto.
- The company has been witnessing a decent demand for all of its primary commodities as per recent results.
- Moreover, the Rio Tinto Safe Production System is still being effectively implemented, and there are now 15 deployments at 11 sites, up from 5 sites at the beginning of the year.
Nike Inc: The Connected Partnership & Other Drivers
- Nike successfully delivered yet another all-around beat in the first quarter of the new fiscal with its key brands, Nike, Jordan, and Converse continue to enjoy strong consumer affinity and demand.
- For the quarter, their revenue grew by double-digits and the company generated the highest net revenue quarter ever for Nike Digital.
- Customers are still supporting Nike Digital, as evidenced by the Nike commerce app’s record-breaking Q1 traffic.
💡 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
