Daily Brief Equity Bottom-Up: Narrative and Numbers | Affordable Housing Finance | FY24 and more

• This Insight focuses on lenders operating in the affordable housing space.
• Companies in focus are Aavas Financiers Ltd (AAVAS IN);  Home First Finance (HOMEFIRS IN) & Aptus Value Housing Finance India (APTUS IN). 
• Recent IPOs of Aadhar Housing Finance Ltd (1218027D IN) & India Shelter Finance (0570670D IN)  are also covered. 

• Total revenue increased by 26% in 2Q24, as sales volume grew strongly after March.
• We believe the operating margin will be stable due to the ability of battery production.
• We also believe the tariff penalty from Europe is not a concern in the long run, as BYD’s products have expanded to 77 countries.

• NVIDIA’s Q2 revenue soared 122% to $30.04 billion, exceeding estimates, driven by unprecedented demand for AI-driven data center chips. 
• The data center segment grew 154% YoY, generating $26.3 billion, reflecting NVIDIA’s strong position in AI hardware with major contributions from cloud providers. 
• Despite approving a $50 billion stock buyback, NVIDIA’s shares fell 8% after-hours due to concerns over future chip supply and broader market trends, though the stock is up 150% YTD.

• AI advancements driving demand for MLCCs, leading to growth in passive component industry and shaping future technology trends.
• Super Micro Computer faces delay in annual report filing amid allegations of accounting manipulation, raising concerns in the tech market.
• Industry predictions for Semicon India 2024 and updates from Intel and Sony on upgrades in car cockpits and price increase on PS5 due to rising component costs. Taiwan drone market facing potential delay due to China’s dominance in crucial modules.

• Shenzhen International (152 HK) reported 1H24 net profit of HK$653m. While toll road and other segments are under pressure, the logistics segment has benefited from REIT issuance.
• In 2H24, it may book profit from the initial land appreciation gain from the South China Logistics Park transformation and profit from the 50%-owned Yicheng Zhenwanyue.
• SZI seeks to realise the value of its assets. At 0.4x P/B or 1SD below the 5-year average, the stock, with a 7.5% yield, is deeply undervalued. 

• The valuation of Huawei Technologies Co. Ltd’s smart car unit has surged to 115 billion yuan ($16 billion) only seven months after its launch, following a recent investment.

• Yinwang Intelligent Technology Co. Ltd., a wholly-owned subsidiary of Huawei founded in January, has agreed to sell a 10% stake to Avatr Technology Inc., an electric vehicle (EV) startup backed by China’s state-owned automaker Chongqing Changan Automobile Co. Ltd. (000625.SZ -1.54%) and battery giant Contemporary Amperex Technology Co. Ltd. (CATL). 

• Avatr agreed to pay 11.5 billion yuan for the stake, with the payment to be made in three installments, contingent on conditions such as the introduction of Huawei’s smart car technologies and talent to Yinwang.

• Chinese parcel volume growth slowed in July (+22%) vs firmer pace in Q2 (+32%)
• At company level, there are signs the steep price declines from H1 are moderating
• If worst of price declines is in rearview mirror, beat down names are worth a look

• 3i is a unique publicly traded investment company with a major stake in the European retailer Action
• 3i operates differently from traditional private equity firms by investing its own balance sheet funds
• 3i has a complex history dating back to pre-World War II and is difficult to categorize in traditional investment vehicle terms

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

• Chubb Limited’s second-quarter earnings for the period ending June 30, 2024, revealed a robust financial performance, characterized by significant growth in premium revenue and substantial increases in both core operating and investment income.
• The insurer reported a core operating EPS of $5.38, marking a 9.3% increase from the previous year.
• This was supported by a growth in net premiums of 11.8% (or 12.3% on a constant dollar basis) facilitated by a diversified portfolio across geographical regions and business segments.

• Paul Cerro, founder of the Cedar Grove Empire, discusses his investment in Redcat Holdings
• Redcat is a US-based drone manufacturer specializing in unmanned drones for military purposes
• Redcat is poised to potentially win a lucrative US Army contract, driving significant upside potential

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