In today’s briefing:
- Mobileye Profit Warning Is A Harbinger Of Gloom As Q423 Earnings Loom
- China Healthcare Weekly (Jan.5) – WuXi XDC, GLP-1s New Game Rule, Innovent, Cansino, A-Share Outlook
- Vanguard (5347.TT): 1Q24F Revenue Might Decline ~10% QoQ.
- ‘Clippy’ Having the Last Laugh? Microsoft’s Design Change to Drive AI PC Adoption; Dell Trade Update
Mobileye Profit Warning Is A Harbinger Of Gloom As Q423 Earnings Loom
- From a growth forecast of >20% YoY just two months ago, 2024 is now pegged as a low-to-no growth year
- This will be a big negative for the likes of Infineon, ST Microelectronics, NXP, Globalfoundries and HH Grace, among others.
- Our anticipated gloomy Q423 earnings season just got a whole lot gloomier
China Healthcare Weekly (Jan.5) – WuXi XDC, GLP-1s New Game Rule, Innovent, Cansino, A-Share Outlook
- WuXi XDC remains our top pick in China healthcare. We’re optimistic about its share price performance. Cansino is stronger than imagined, and we recommend investors to be patient with it.
- The future competitive landscape of GLP-1s would present very different situation from traditional drugs. Innovent’s Mazdutide could be a “dark horse” if the head-to-head trial against Semaglutide is successful.
- For GLP-1s, it will be difficult to shake the first-mover position of the first two giants (Semaglutide and Tirzepatide) unless latecomers are able to show higher marginal benefits.
Vanguard (5347.TT): 1Q24F Revenue Might Decline ~10% QoQ.
- Vanguard Intl Semiconductor (5347 TT) is likely to see that there could be a decline of around 10% QoQ in 1Q24F.
- In terms of revenue contribution, Taiwan, US, China, Europe, and Japan account for approximately 40%, 20%, 15%, 15%, and 10% respectively.
- Taiwan Semiconductor (TSMC) (2330 TT) may give up technology development at 40nm and above and transfer them to Vanguard.
‘Clippy’ Having the Last Laugh? Microsoft’s Design Change to Drive AI PC Adoption; Dell Trade Update
- On January 4th, Microsoft announced a design change for PCs whereby a new physical key will be added to PC keyboards; the Microsoft Copilot key.
- Microsoft Copilot will become a must-have for companies in our view. Initial Copilot capabilities can dramatically improve worker productivity and this should help drive AI PC upgrades for the industry.
- CES 2024 Jan 9th – 12th will showcase AI PC models sporting Intel’s Core Ultra processors and Microsoft’s new Copilot key. We also update our Dell vs. Taiwan PCs trade.
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