In today’s briefing:
- JMT Network Services – SET Elimination, ROA Halving, Worsening Credit Metrics
- China Banks Screen; Focus on the Credit Quality Risks
- Asahi Broadcasting Group Holdings Corporation (9405 JP) – 4Q Follow-Up
- Ambarella Inc.: A New AI Powerhouse? – Key Drivers
- Amkor Technology: 4 Key Factors That Will Help Offset The Revenue Decline – Financial Forecasts
- Cirrus Logic Inc.: The Role Of Innovation & Other Factors In The Company’s Success – Key Drivers
JMT Network Services – SET Elimination, ROA Halving, Worsening Credit Metrics
- JMT Network services does debt collection for banks in Thailand
- Earnings are good but not relative to its asset growth with worsening provisions
- Its ROA appears to be in structural decline, with worsening credit metrics in 1Q23
China Banks Screen; Focus on the Credit Quality Risks
- In this China banks screener; we focus on the potential for increased credit quality headwinds going forward, given the weak GDP growth outlook
- China bank shares have been poor performers and still we see selective buy opportunities, with better credit quality metrics
- We favour Industrial Bank and CCB both of which have attractive valuations; Minsheng, on the other hand, remains exposed to a worsening of the credit quality cycle
Asahi Broadcasting Group Holdings Corporation (9405 JP) – 4Q Follow-Up
- Over the last 5 years, share prices of major terrestrial TV broadcasters have substantially underperformed TOPIX, in large part due to the unprecedented, challenging environment as annual data by Dentsu showed total internet advertising expenditures exceeded total television media advertising expenditures in 2019 for the first time ever, and the annual MIC survey on average time spent using main media showed internet usage time exceeded TV real-time viewing in 2020.
- However, this underperformance trend has begun to change in 2023, as the stock market begins to discount the potential to commercialize the IP value of broadcaster content libraries.
- In February, USEN-NEXT HOLDINGS announced plans to acquire Premium PlatformJapan, Inc. (PPJ), the operator of “Paravi” subscription video distribution service.
Ambarella Inc.: A New AI Powerhouse? – Key Drivers
- Ambarella managed to exceed analyst expectations in terms of revenue as well as earnings.
- However, despite these headwinds, the company’s Q1 results exceeded expectations.
- The introduction of the CV3 platform marks a new phase in the development of the AI market for Ambarella.
Amkor Technology: 4 Key Factors That Will Help Offset The Revenue Decline – Financial Forecasts
- Amkor Technology delivered a disappointing set of results as the company was unable to meet the revenue expectations as well as earnings expectations of Wall Street.
- Despite the decline in revenue, the company’s diversified end-market exposure provided stability and resilience.
- Amkor’s technology leadership in advanced packaging allowed them to win new programs in the communications market, offsetting the softening of the consumer and computing markets.
Cirrus Logic Inc.: The Role Of Innovation & Other Factors In The Company’s Success – Key Drivers
- Cirrus Logic managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
- The company achieved a significant revenue of $1.9 billion.
- We give Cirrus Logic a ‘Hold’ rating with a revised target price.
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