In today’s briefing:
- Renesas (6723 JP): Two More Strategic Acquisitions
- Asian Dividend Gems: Acter Co
- Unveiling the Shadows: A Deep Dive into Hindenburg Research’s Exposé on Temenos
- China Healthcare Weekly (Feb16)-Innovative Drug Is “Innocent” In Geopolitics, BeiGene’s BTK, Jacobio
- Cloudflare Inc: Why We See Immense Potential In AI and Vectorize! – Major Drivers
- Alibaba Group: Revitalization of Taobao and Tmall Group
- Coherent Corp.: Launch of New WaveShaper Instruments For U- And Super C-Bands & Other Major Developments
- Enphase Energy: The 4th-Gen Battery Breakthrough You Can’t Miss! – Major Drivers
- CVS Health Corporation: Integration Of Acquired Businesses
- Lear Corporation: These 7 Drivers Are Pushing The Company Forward In 2024! – Financial Forecasts
Renesas (6723 JP): Two More Strategic Acquisitions
- Renesas has acquired PCB electronic design company Altium and Gallium Nitride power device maker Transphorm. Its tender offer for Sequans Communications has been extended.
- These are positive developments in our view, but sales and profit margins were down in 4Q of FY Dec-23 and are expected to decline this quarter as well.
- On the other hand, inventory adjustment is proceeding and the share price has dropped 12.6% since last Tuesday. Buy on weakness for the longer term.
Asian Dividend Gems: Acter Co
- Based in Taiwan, Acter Co is capitalizing on its extensive experience of high-end cleanroom integration, recycling and regeneration systems, electromechanical engineering to generate consistent growth in earnings and cash flow.
- Acter Co’s dividend yield averaged 8.2% from 2019 to 2022. Its annual dividend payout averaged 76% in the same period. Estimated dividend yield is 7% in 2023.
- We found Acter Co Ltd (5536 TT) using Smartkarma’s Smart Score Screener system.
Unveiling the Shadows: A Deep Dive into Hindenburg Research’s Exposé on Temenos
- Diving Deep into Hindenburg Research’s comprehensive report on Temenos triggers a market plunge, alleging accounting manipulations, failed North American expansion, product failures, and troubled European deals.
- Allegations include aggressive revenue recognition, excessive R&D capitalization, difficulty in revenue collection, inflated free cash flow, and executive insiders stock divestment.
- Temenos denies allegations, defending its business integrity, performance, and financial standing, but market volatility persists, emphasizing the need for transparent communication and governance reassurance.
China Healthcare Weekly (Feb16)-Innovative Drug Is “Innocent” In Geopolitics, BeiGene’s BTK, Jacobio
- Due to the US Draft Bill against CXOs, stock prices of the entire pharmaceutical industry plummeted. But in reality, there’s no impact on innovative drugs, which is just “emotional suppression”.
- The future BTK inhibitors market pattern predicted by GlobalData is very close to our estimate. This actually indirectly verifies the peak sales level that BeiGene may reach in the future.
- Setbacks on KRAS/SHP2 projects discourage investors’ confidence on Jacobio. We wouldn’t recommend projecting too high expectations on BET inhibitor just yet. Share price performance could continue to be under pressure.
Cloudflare Inc: Why We See Immense Potential In AI and Vectorize! – Major Drivers
- Cloudflare Inc.’s latest Q4 2023 earnings highlighted several encouraging developments, underscoring a strong quarter of business growth and an upbeat financial performance, even amid prevailing macroeconomic uncertainties.
- The cloud-based network security company reported total revenues of $362.5 million, a 32% increase year-over-year(YoY).
- The increase was driven significantly by larger customers, with 66% of revenue coming from this group.
Alibaba Group: Revitalization of Taobao and Tmall Group
- Alibaba Group’s latest report for the December Quarter 2023 reflected steady growth despite necessary organizational adjustments.
- The call highlighted an overall focus on a more aggressive approach towards competition to win growth, reigniting the growth in their two core businesses: e-commerce and cloud computing.
- The healthy year-over-year Gross Merchandise Volume (GMV) growth in the e-commerce segment is attributed to the effective execution of user-first and competitive pricing strategies in Taobao and Tmall Group (TTG).
Coherent Corp.: Launch of New WaveShaper Instruments For U- And Super C-Bands & Other Major Developments
- Coherent Corp.’s second quarter fiscal 2024 earnings demonstrated signs of gradual improvement in its financial performance, furthering confidence in its outlook for growth and profitability.
- They reported solid sequential growth in both revenue and margins.
- Significant developments from Q2 include increasing gross and operating margins and improving demand across its communications and industrial markets.
Enphase Energy: The 4th-Gen Battery Breakthrough You Can’t Miss! – Major Drivers
- Enphase Energy Inc.’s fourth quarter 2023 financial results show a quarterly revenue of $302.6 million, a considerable shipment of 1.6 million microinverters and 80.7 megawatt hours of battery, along with a generation of free cash flow of $15.4 million.
- The company also achieved a reduction of $147 million in Q4, and met their goal of reducing channel inventory.
- The quarter saw a 50% gross margin, 29% operating expenses, and 22% operating income.
CVS Health Corporation: Integration Of Acquired Businesses
- Analyzing the latest earnings call transcript of CVS Health, it becomes evident that the company has managed to successfully navigate through a challenging environment and deliver on its financial commitments, underscoring the strength of its diversified business model.
- 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.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
Lear Corporation: These 7 Drivers Are Pushing The Company Forward In 2024! – Financial Forecasts
- Lear Corporation achieved record revenue in 2023, reaching $23.5 billion, a 12% increase from 2022.
- The significant growth in core operating earnings by 29% to $1.1 billion and the 38% increase in adjusted earnings per share to $12.02 highlight the company’s strong financial performance.
- Additionally, its operating cash flow improved by 22% to over $1.2 billion, and free cash flow conversion exceeded the target of 80%.
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