In today’s briefing:
- Nvidia (NVDA.US): To Establish Offshore Headquarter in Taiwan.
- Matsuya Targets ¥20 Billion Online
- Insolation Energy Ltd- Forensic Analysis
- Tech Supply Chain Tracker (25-Dec-2024): Japanese IDMs’ global investment plans.
- FedEx’s $30 Billion Spin-Off: A Game-Changer for Freight and Shareholders? – Major Drivers
- Pro Medicus Ltd (PME AU): Strong FY24 Result; Starts FY25 With Record Breaking Contract Win
- Jabil Inc.: Can Its AI and Data Cloud Expansion Give Them A Competitive Edge? – Major Drivers
- Kolte Patil: On Track as Per FY25 Guidance
- Lamb Weston Holdings Inc.: Expanded Customer Base & Volume Growth Driving Our Bullishness! – Major Drivers
- Micron Bets Big on AI Chips Amid Sluggish Smartphone and PC Sales But Will It Work? – Major Drivers
Nvidia (NVDA.US): To Establish Offshore Headquarter in Taiwan.
- NVIDIA Corp (NVDA US) CEO Mr. Jensen Huang announced plans to establish an offshore headquarters in Taipei during his visit this June.
- From a geopolitical perspective, Taiwan is one of the focal points where the U.S. and China could potentially be in conflict.
- Focusing on AI, NVIDIA Corp (NVDA US) is currently attracting significant attention, but the decision to establish an offshore headquarters in Taipei is raising curiosity.
Matsuya Targets ¥20 Billion Online
- Department store sales to locals plummeted in October, resulting in the first decline in 32 months.
- While sluggish clothing sales was one factor, another was crowded luxury concessions putting off locals from visiting.
- Matsuya thinks it has the answer: keeping locals and tourists separate using a new online store.
Insolation Energy Ltd- Forensic Analysis
- Insolation Energy (INA IN), originated from Jaipur, Rajasthan has been a beneficiary of the heavy solar tailwinds in the last two years and has been involved in major capex phase.
- The company has received big contracts such as the MoU with government to the tune of INR 100 bn in spite of having net worth of only INR 1.1 bn.
- As far as forensics is concerned, we notice several irregularities such as low capitalisations, misclassification of OCF, EPS, naïve accounting of investments, forex movements, strange movements in margins, etc.
Tech Supply Chain Tracker (25-Dec-2024): Japanese IDMs’ global investment plans.
- Japanese IDMs are increasing global investments, while the US keeps a close eye on China’s chip industry to adjust supply chains.
- Compal Electronics introduces a new liquid cooling solution for effective cooling of electronic devices.
- Google enhances AI visual generation with Veo 2, Imagen 3, and Whisk, while Innolux focuses on FOPLP and Lam boosts fab efficiency with collaborative robots.
FedEx’s $30 Billion Spin-Off: A Game-Changer for Freight and Shareholders? – Major Drivers
- FedEx Corporation is embarking on a transformative journey with its announcement to spin off FedEx Freight into a standalone publicly traded company within the next 18 months.
- The move, estimated to unlock over $30 billion in value, aims to streamline FedEx’s core operations and capitalize on the rising valuations of standalone trucking companies.
- The spinoff is seen as a strategic step to enhance focus, competitiveness, and shareholder value.
Pro Medicus Ltd (PME AU): Strong FY24 Result; Starts FY25 With Record Breaking Contract Win
- Pro Medicus Ltd (PME AU) reported strong performance in FY24, with revenue increasing 29% YoY to A$162M. Net profit grew at a faster pace of 37% YoY to A$83M.
- At the end of FY24, full contracted revenue increased to A$624M over the next five years from A$468M in FY23, laying the foundation for continued growth in FY25 and beyond.
- In November, PME signed a A$330M, 10-year contract with Trinity Health. The contract is the largest ever for Pro Medicus and Trinity is the first customer with a national footprint.
Jabil Inc.: Can Its AI and Data Cloud Expansion Give Them A Competitive Edge? – Major Drivers
- Jabil Inc. entered the first quarter of its fiscal year 2025 with a relatively solid performance, as evidenced by its reported revenues and continued efforts in restructuring its business model.
- The company reported $7 billion in revenue for the quarter, representing a 1% increase when excluding the impact of a prior-year divestiture in the Mobility segment.
- Core operating income was $347 million, with a margin holding steady at 5%, despite a modest impact from recent hurricanes.
Kolte Patil: On Track as Per FY25 Guidance
- Kolte Patil reported a decent Q2FY25 with highest ever quarterly pre-sales of INR 770cr, a growth of 22% YoY. Pre-sales volume corresponding to this was 1.03 MSF (Million Square Feet).
- Notably, demand for premium projects has been strong. For H1FY25, 30% of pre-sales has come from 24K luxury segment. This compares to 12% in FY22.
- Year-To-Date, new launch activity has been decent with the launch of 2.2 MSF of saleable area. This includes Kolte Patil’s entry in Navi Mumbai with a project launch in Vashi.
Lamb Weston Holdings Inc.: Expanded Customer Base & Volume Growth Driving Our Bullishness! – Major Drivers
- Lamb Weston reported financial results for the second quarter of fiscal year 2025, which fell short of expectations amidst challenging operating conditions.
- The company experienced an 8% decline in net sales compared to the same period last year, driven primarily by a 6% reduction in volume due to declining restaurant traffic both domestically and internationally.
- In the backdrop of a competitive environment, Lamb Weston faced incremental customer share losses and exit from lower-margin business in EMEA, further impacting sales and volume negatively.
Micron Bets Big on AI Chips Amid Sluggish Smartphone and PC Sales But Will It Work? – Major Drivers
- Micron Technology Inc., a key player in the computer-memory chip industry, has faced significant headwinds, as evidenced by its recent revenue forecast, which missed analyst expectations.
- The company projected fiscal second-quarter revenue of $7.9 billion, far below the average estimate of $8.99 billion, while profit forecasts also lagged significantly.
- These results reflect sluggish demand in its largest markets—smartphones and personal computers—despite a notable surge in data center-related revenue and strong orders for artificial intelligence (AI) components.
💡 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
