In today’s briefing:
- PDD (PDD US): Stock Plunged After Excellent 2Q24 Result – Your Time to Buy
- Technically Speaking, Breakouts and Breakdowns: HONG KONG (AUGUST 24)
- Taiwan Tech Weekly: Nvidia Results Imminent; Apple IPhone 16 Reveal Date; Micron’s Taiwan Expansion
- Prodia (PRDA IJ) – New Outlets and Esoteric Testing Driving Growth
- Intel Missed the Party, while AMD’s ZT Systems is the Bet to Stay in the Game
- BFI Finance Indonesia (BFIN IJ) – On the Cusp of a Turn
- UI: Revenue Trending Higher, PT to $240
- Kunlun Energy (135 HK): The Most Solid Play
- Tech Supply Chain Tracker (27-Aug-2024): Longsys-Kingston venture stalls, Shanghai sale uncertain.
- Telix Pharmaceuticals (TLX AU): Illuccix Continues to Drive Growth in 1H24; More Products to Come
PDD (PDD US): Stock Plunged After Excellent 2Q24 Result – Your Time to Buy
- The stock plunged today after the announcement of excellent performance for 2Q24.
- In 2Q24, revenue grew by 86% YoY and the operating margin improved 10 percentage points YoY.
- We believe investors should buy, as it is just a tactic from major stock sellers.
Technically Speaking, Breakouts and Breakdowns: HONG KONG (AUGUST 24)
- Hong Kong’s unusual trading channel pattern may be coming to an end and short selling declines.
- Alibaba Group Holding (9988 HK) broke a falling triangle pattern and now trades above near term support levels. The company’s dual listing announcement and large buyback program are near-term positives.
- GDS Holdings (9698 HK) has broken out of its rounding bottom pattern with a positive earnings announcement. China Ruyi Holdings (136 HK) has broken out from its triangle pattern.
Taiwan Tech Weekly: Nvidia Results Imminent; Apple IPhone 16 Reveal Date; Micron’s Taiwan Expansion
- Nvidia, Dell, Marvell results coming out this week.. Apple iPhone 16 Reveal September 9th?
- Micron progressing on potential Taiwan capacity expansion due to strong HBM DRAM demand
- AMD acquires a key U.S. server systems integrator, expanding its enterprise server opportunity in a market including Taiwan’s server ODM players such as Hon Hai, Wiwynn, Inventec, Quanta, and Compal.
Prodia (PRDA IJ) – New Outlets and Esoteric Testing Driving Growth
- Prodia (PRDA IJ) is starting to see its growth strategy gain traction with a QoQ increase in 2Q2024 revenues driven by more esoteric testing and promotions driving growth.
- The company has started to roll out physical outlets more aggressively, especially points of collection, with new clinical labs also providing a wider array of tests including genomic testing.
- Prodia continues to drive its omnichannel strategy through U by Prodia and its ProdiaLink for Doctors, with capex for Prodia Digital in decline. Valuations remain extremely attractive versus Indian comparables.
Intel Missed the Party, while AMD’s ZT Systems is the Bet to Stay in the Game
- First, let’s start with Intel. Intel had a pretty poor earnings result. There’s no two ways about it.
- Intel reports Q2 EPS $0.02 ex-items vs FactSet $0.10, announces $10B cost reduction plan; suspends dividend
- There was another layoff of around 15% of employees, a full dividend suspension (finally, guys), and a capex cut.
BFI Finance Indonesia (BFIN IJ) – On the Cusp of a Turn
- BFI Finance Indonesia (BFIN IJ) adopted a cautious stance to new bookings in 2Q2024 given domestic and geopolitical risks but total receivables remained steady as did credit costs.
- The company remained focused on non-dealer 4W financing, increased heavy equipment, and reduced 2W exposure, with a move towards dealer-used 4W financial and generally loans with higher value collateral.
- BFIN maintains solid funding from banks at a lower cost than its peers and it is expected to start to move to higher-yielding assets in 2H2024. Valuations remain attractive.
UI: Revenue Trending Higher, PT to $240
- Ubiquiti delivered its first quarterly revenue of more than $500 million as the Company generated free cash flow to further reduce its debt balance.
- Ubiquiti reported fiscal fourth quarter (June) results that were lower than we were forecasting as we assumed service provider segment would continue to trend higher sequentially.
- Ubiquiti is now on a revenue trajectory of achieving over $500 million in quarterly revenue along with gross margin of over 40 percent.
Kunlun Energy (135 HK): The Most Solid Play
- Kunlun Energy (135 HK) posted a healthy 2.6% earnings growth for 1H24. If not for the expiry of two oilfields last year, its earnings growth would have reached 6.8%.
- Natural gas sales pre-tax margin contracted 0.5pp YoY, but has recovered significantly HoH. Other businesses have all seen good margin expansion.
- The company has further accumulated net cash which increased 8.3% in the last six months. At HK$2.76/share, this equals 35% of the share price.
Tech Supply Chain Tracker (27-Aug-2024): Longsys-Kingston venture stalls, Shanghai sale uncertain.
- Longsys-Kingston JV delay and uncertain future of Shanghai plant sale causing concern in the semiconductor industry.
- Kaynes SemiCon secures India’s first paying OSAT customer, reaching a significant milestone in advanced semiconductor packaging.
- Evalue sets ambitious goal to dominate Taiwan’s EV charging market with 30% share by 2026, while AWS sparks cloud battle in SEA.
Telix Pharmaceuticals (TLX AU): Illuccix Continues to Drive Growth in 1H24; More Products to Come
- Telix Pharmaceuticals (TLX AU) announced 65% YoY revenue growth to A$364M and reversed a loss with A$29.7M net profit in 1H24.
- The U.S. sales from Illuccix was the main driver with a 64% YoY increase in revenue to A$359M (~$243M), reflecting continued growth in sales volume and market share gains.
- Telix reaffirms its full year 2024 revenue guidance of $490–$510M (A$745–776M), up 48–54% YoY. R&D expenditure guidance for 2024 remains at 40–50% increase on 2023.
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