In today’s briefing:
- NVIDIA’s Conundrum…
- Fast Retailing (9983) | Red Hot Summer
- The Beat Ideas- Ratnaveer Precision Engineering: Fueled with Capacity Expansion
- Samsung Biologics (207940 KS): Gaining Momentum on New Approval and Contract Wins; Hold Shares
- Fresenius Medical Care AG & Co.: How Are They Executing Portfolio Optimization through Divestitures? – Major Growth Drivers
- Daiseki Co Ltd (9793 JP): Q1 FY02/25 flash update
- Ionis Pharmaceuticals Inc.: Expanding Pipeline with Promising Drug Candidates! – Major Growth Drivers
- TripAdvisor Inc.: Focus on User Engagement and Monetization Strategies & Other Major Growth Drivers
- Elanco Animal Health Incorporated: Will The Accelerated Global Rollout of Zenrelia Boost Its Top-Line? – Major Growth Drivers
- AptarGroup Inc.: A Tale Of Recovery and Growth in North American Markets! – Major Growth Drivers
NVIDIA’s Conundrum…
- NVIDIA’s data center revenues tripled YoY in CY 2023 and are on track to more than double in CY 2024
- When Intel dominated the data centre and minted tens of billions annually, its customers benefited even more, minting hundreds of billions.
- If NVIDIA’s business model succeeds, its customers will succeed even more. This will make it extremely difficult for NVIDIA to remain the #1 global market cap stock.
Fast Retailing (9983) | Red Hot Summer
- Domestic Uniqlo SSS (including e-commerce) were +14.9% in June. Positive
- Impressive +8.1% increase in customer traffic and +6.3% gain in per-customer spend
- I have a bearish view on Fast Retailing due to rich valuations (25x EV/EBIT). However, the share price may perform well in the run up to the Q3 report.
The Beat Ideas- Ratnaveer Precision Engineering: Fueled with Capacity Expansion
- 23,000 MT Capacity expansion would double the current capacity to 49,000 MT
- INR 65 crores of Fund Raise would help increase the bottom line
- Backward integration of waste converted into raw material, ensuring economies of scale
Samsung Biologics (207940 KS): Gaining Momentum on New Approval and Contract Wins; Hold Shares
- Samsung Biologics (207940 KS) has signed the largest ever single CMO contract worth KRW1.46T ($1.1B) with an undisclosed U.S.-based pharmaceutical company. The contract value represents ~40% of 2023 standalone revenue.
- Within the first half of the year, Samsung Biologics has secured order worth of KRW2.6T, compared with order win of KRW3.5T in full-year 2023.
- Samsung Bioepis has received FDA approval for Stelara biosimilar Pyzchiva, which is expected to marketed in early 2025. So far, the FDA has approved two other biosimilars of Stelara.
Fresenius Medical Care AG & Co.: How Are They Executing Portfolio Optimization through Divestitures? – Major Growth Drivers
- Fresenius Medical Care, in its recent financial results, highlighted its commitment to continuing transformation and improvement across its segments.
- Initiatives to streamline organizational structures, enhance clinic utilization, and advance strategic growth areas, notably in value-based care, were emphasized.
- The company’s focus on optimizing manufacturing and supply chain processes is a critical element in its strategy to achieve margin improvements by 2025.
Daiseki Co Ltd (9793 JP): Q1 FY02/25 flash update
- In Q1 FY02/25, Daiseki reported sales of JPY16.7bn (-6.6% YoY), gross profit of JPY5.9bn (-1.1% YoY), and operating profit of JPY3.9bn (-0.7% YoY).
- Daiseki Co.’s sales increased 7.0% YoY, while DES’s sales fell 28.4% YoY, leading to a consolidated sales decrease.
- Consolidated operating profit for Q1 decreased by 0.7% YoY to JPY3.9bn, with OPM rising 1.4pp to 23.4%.
Ionis Pharmaceuticals Inc.: Expanding Pipeline with Promising Drug Candidates! – Major Growth Drivers
- Ionis Pharmaceuticals commenced the year 2024 with notable strides, particularly through the launch of WAINUA in the U.S. This product, among others in the pipeline, is expected to lead the company towards a more independent operation in drug commercialization.
- The company’s executives displayed confidence in the potential of upcoming products like olezarsen and donidalorsen to transform their respective therapeutic areas and achieve market penetration based on strong clinical results.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
TripAdvisor Inc.: Focus on User Engagement and Monetization Strategies & Other Major Growth Drivers
- Tripadvisor’s fourth quarter and full year 2023 financial results exceeded expectations with the company reporting revenue growth of 10% year-on-year amounting to $390 million in Q4.
- In the same period, the adjusted EBITDA was $84 million attributed to exceptional brand performance and marketing efficiencies.
- For the full year, the company reported a consolidated revenue growth of 20%, recording an all-time high of $1.8 billion, with adjusted EBITDA experiencing a 13% growth to $334 million.
Elanco Animal Health Incorporated: Will The Accelerated Global Rollout of Zenrelia Boost Its Top-Line? – Major Growth Drivers
- Elanco Animal Health Incorporated has demonstrated a strong start to 2024 with positive developments in multiple areas of its business, despite facing some challenges.
- The company has achieved encouraging financial and operational results, underscored by success in its strategic initiatives aimed at enhancement and innovation.
- Starting with the financials, Elanco surpassed its revenue, adjusted EBITDA, and adjusted EPS guidance for Q1 2024, indicating robust underlying business performance.
AptarGroup Inc.: A Tale Of Recovery and Growth in North American Markets! – Major Growth Drivers
- Aptar, a global leader in drug delivery systems and consumer product dispensing, has reported robust first quarter financial results for 2024.
- The company disclosed a 5% core sales growth and a remarkable more than 30% increase in adjusted earnings per share (EPS) as compared to the previous year.
- Notably, the Pharma segment exhibited strong performance driven by sustained demand for its proprietary drug delivery systems, marking high single-digit core sales growth.
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