In today’s briefing:
- Money Forward (3994): A Must-Buy Amid Yen Volatility
- TSMC’s Expansion Strategy: New Plants and Rising AI Demand Shape Future Growth
- Korea Zinc: Impressive Capital Return Plans and a Big Price Gap Between Korea Zinc and Young Poong
- Super Micro Computer (SMCI) May NOT Be the Next NVIDIA!
- Terumo Corp (4543 JP): Stellar Performance in Q1; Cost Control Measures Are Bearing Fruits
- [Earnings Review] Production Surge in Guyana and Permian Aids Exxon Beat Profit Estimates
- Tech Supply Chain Tracker (09-Aug-2024): Acer subs drive growth, boost resilience amid PC changes.
- KYEC (2449.TT): In 2Q24, Revenue Exceeded Our Expectations, and GM, OPM, and EPS Surprised Us.
- kopi-C with Oiltek’s CEO: ‘We’ve sailed through the Covid-19 pandemic and Ukraine war’
- IPAR: New Line Additive to Growth
Money Forward (3994): A Must-Buy Amid Yen Volatility
- Amidst the volatility in the Japanese yen, companies like Money Forward, with a strong domestic revenue base and minimal exposure to forex risk, present an attractive investment opportunity.
- Despite broader market uncertainties, Money Forward continues to demonstrate impressive growth, with its corporate ARR surging by 38% YoY in the most recent quarter, signaling sustained momentum.
- The recent agreement to divest 49% of its non-core B2C segment, Money Forward ME, underscores the significant undervaluation of its core operations.
TSMC’s Expansion Strategy: New Plants and Rising AI Demand Shape Future Growth
- TSMC’s new plants will increase its production capacity for 3-nm chips, aiming to triple output this year. Global market share stands at 18%.
- Major tech companies’ increased AI investments are driving demand for TSMC’s advanced semiconductors, crucial for AI and machine learning applications.
- TSMC’s automotive solutions output is expected to grow at a 50% CAGR through 2024, addressing global chip shortages in the auto industry.
Korea Zinc: Impressive Capital Return Plans and a Big Price Gap Between Korea Zinc and Young Poong
- On 7 August, Korea Zinc (010130 KS) announced several impressive capital return plan that should help to increase shareholder value.
- The separation of Korea Zinc between the Choi and Jang families has been in progress in the past several years. The exact timing of when this occurs remains uncertain.
- Our NAV Analysis of Young Poong is NAV per share of 470,065 won, representing a 52% upside from current levels.
Super Micro Computer (SMCI) May NOT Be the Next NVIDIA!
- Super Micro Computer, Inc. has garnered attention with its strong financial performance in Q4 2024, reporting record revenue growth driven by its AI server and data center infrastructure solutions.
- The company’s transition to direct liquid cooling (DLC) technology and AI-focused strategies have positioned it as a key player in the rapidly evolving technology landscape.
- With a 143% year-over-year revenue growth to $5.31 billion, SMCI has demonstrated its capability to scale and meet the increasing demand for AI infrastructure.
Terumo Corp (4543 JP): Stellar Performance in Q1; Cost Control Measures Are Bearing Fruits
- Terumo Corp (4543 JP) has reported record high quarterly revenue and profit in Q1FY25, thanks to strong demand across all the business segments, effects of pricing measures, and favorable Fx.
- With the steady progress in profit improvement measures, Q1FY25 gross profit margin (53.3%) reached to its highest level since Q2FY22. Operating and net profit growth outpaced that of revenue.
- Amid currency uncertainties and inflation, Terumo has maintained its full-year FY25 guidance issued in May. Growth will be driven by US and Europe owing to the sustained increase in demand.
[Earnings Review] Production Surge in Guyana and Permian Aids Exxon Beat Profit Estimates
- Exxon Mobil’s Q2 revenue grew 12.2% YoY and net profit increased by 17.3%. Revenue missed estimates by 0.4% while net profit exceeded expectations by 6.2%. v
- Exxon Mobil’s Q2 oil production hit a record high since the 1999 merger, driven by strong output in Guyana and the Permian basin.
- Exxon Mobil expects full-year expenditures to total USD 28 billion, including USD 25 billion for ExxonMobil and USD 3 billion for Pioneer.
Tech Supply Chain Tracker (09-Aug-2024): Acer subs drive growth, boost resilience amid PC changes.
- Acer’s subsidiaries are driving growth, providing resilience and optimism in the face of shifts in the PC market.
- China’s smartphone industry is experiencing a boom in the second quarter of 2024, indicating strong potential for growth.
- A potential US ban on Chinese vehicle technology could deepen the technology rift with lasting effects, impacting various industries.
KYEC (2449.TT): In 2Q24, Revenue Exceeded Our Expectations, and GM, OPM, and EPS Surprised Us.
- King Yuan Electronics Co, Ltd. (2449 TT)‘s 2Q24 revenue/GM/OPM/EPS were NTD$9,035mn/40.5%/29.8%/NTD$2.2.
- The main reasons of revenue growth shall be the AI aspects, especially the contribution from NVIDIA Corp (NVDA US).
- For the upcoming 3Q24, we are keeping a relatively strong confidence of 5-10% growth rate for KYEC.
kopi-C with Oiltek’s CEO: ‘We’ve sailed through the Covid-19 pandemic and Ukraine war’
- A focus on innovation and adaptability has enabled Oiltek, a vegetable and edible oil process engineering company, to grow steadily, even amid global crises.
- When Henry Yong joined Malaysia-based Oiltek in 2008 as its managing director, his priority was to hone its innovation. “We have diversified into refinery processes and engineering solutions for a wide variety of edible oils, including palm, sunflower and soybean oil, non-edible oils, renewable energy, such as biogas, biodiesel and feedstock for sustainable aviation fuel, and animal feed.
IPAR: New Line Additive to Growth
- PAR had previously issued its quarterly sales update making the second quarter results more of an update on how the business is shaping out for the remainder of the year.
- IPAR used the Q2 earnings call to disclose its intention to enter the luxury fragrance market with its own brand in 2025. Owning a brand is not new for IPAR.
- The consumer continuing to purchase fragrances undisturbed should create the opportunity to grow sales in the second half of the year ahead of new launches scheduled for 2025.
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