In today’s briefing:
- Popmart (9992 HK): Long Term Constraints Cloud Near Term Recovery
- Taiwan Tech Weekly: Samsung Finally Announces Chip Production Cuts; Hon Hai’s New EV Factory
- PT Bundamedik Tbk (BMHS IJ): Growing Core Business; Eyeing Mid-Teens Revenue Growth in 2023
- AI minus the BS (Part 2)
- Keurig Dr Pepper: The Recent Share Price Drop Might Not Last For Long
Popmart (9992 HK): Long Term Constraints Cloud Near Term Recovery
- Markets expect Popmart to deliver fast growth for years to come, yet we are skeptical because the pop toy business, by definition, is a niche market.
- Blaming COVID for Popmart’s weak results risks focusing too much on near-term cyclical recovery but overlooking structural bottlenecks to growth.
- While we are cautious for long term, continued improvement in business and news flow leading to 1H results will likely result in share price rebound and provide tactical trading opportunity.
Taiwan Tech Weekly: Samsung Finally Announces Chip Production Cuts; Hon Hai’s New EV Factory
- Samsung announced that it would reduce memory chip production in light of crashing profits, this is after the company had previously said it would not reduce production. Memory names rallied.
- Hon Hai announced a $820m investment plan for EV manufacturing in southern Taiwan.
- Japan’s semiconductor manufacturing equipment export restrictions targeting China will take effect starting in July.
PT Bundamedik Tbk (BMHS IJ): Growing Core Business; Eyeing Mid-Teens Revenue Growth in 2023
- Bundamedik Tbk PT (BMHS IJ) reported 15% decline in revenue in 2022. However, non-COVID business recorded revenue growth of 17%. Contribution of core business to total revenue increased to 92%.
- All the key operating parameters improved significantly from pre-COVID level. Occupancy rate of the existing hospitals improved to 66% in 2022 from 58% in 2021. New hospitals recorded 71% occupancy.
- The company aims to achieve revenue growth of ~17% YoY and EBITDA growth of 23–24% YoY in 2023, supported by the significant development of the company’s core business.
AI minus the BS (Part 2)
- In Part 1 of this series, we emphasized that despite the considerable hype and fear-mongering surrounding it, ChatGPT and recent development in the field of AI deserves a closer look.
- Then we explored ChatGPT’s basic capabilities.
- If you just look at the summary of what it can do, you might conclude that we have just invented a magical unicorn that spews rainbows across the sky as it flies.
Keurig Dr Pepper: The Recent Share Price Drop Might Not Last For Long
- Keurig Dr Pepper share price has been under pressure over the recent months due to higher than expected drop in profitability.
- Beverage segments, however, continue to perform well and would most likely offset weaknesses in coffee.
- Investors should not expect a quick rebound in the company’s free cash flow.
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