Daily Brief Equity Bottom-Up: Taiwan Dual-Listings Monitor: TSMC Post-CNY Spread Persisting; Why UMC Discount Could Flip Positive and more

• TSMC: +17.3% Premium, High Double Digit Level Persisting Since CNY
• UMC: -1.5% Discount, We Believe Spread Biased to Go Positive
• ChipMOS: +0.6% Premium, Collapsed from +4.6%. Now Within Typical Range.

• Trip.com reported a strong set of Q4 and FY23 earnings results last week
• Company has held the line on SG&A expenses; look for strong H124 growth
• We believe shares are cheap and recommend investors buy below US$43/ADS

• ChipMOS Margin Rebound Sputters, Guidance Implies Margins Could Remain Under Pressure
• Valuation Appears Precarious In Light of Latest Results and Guidance
• Valuation Appears Precarious In Light of Latest Results and Guidance

Key points

• Aritzia has potential for significant share price upside, with potential returns between 170% to 344% over a 3-year period
• The author has previously exited the stock at $50 but is considering going long again due to the brand’s continued strength despite recent challenges
• The analysis questions whether Aritzia’s targets for fiscal year 2027 are reasonable and raises concerns about the company’s potential for future growth

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Luckin Coffee (LKNCY US) concluded FY23 with a 203.3% surge in non-GAAP net profit to Rmb3.2bn, benefiting from higher store count and monthly transacting customers.
• Luckin plans to lift store count by at least 23%, with total to reach over 20,000 in FY24. Product innovation, promotional discount reduction, and better store efficiency are profit drivers. 
• Net cash reached Rmb3.8bn, or 7% of market cap. With a consensus EPS forecast of 28% CAGR in the next two years, its 15.1x and 11.7x PERs are not stretched.

• A bombed-out sector down 80% from the peak is worth another look
• Weaker companies have exited the industry or have already gone under 
• The sector ETF has a good risk reward  with catalysts ahead

• Fang Weihao’s departure means PAGD’s strategic transformation failed. The business model of being a “vassal” of Ping An Group seems hard to bring high valuation due to “discounted” growth potential.
• PAGD is at a crossroads. The question is which development path will the new CEO choose – Follow Fang Weihao’s strategy or return to the traditional Internet healthcare business model?
• Both directions have painful costs that investors will not be happy with. Therefore, we recommend that investors remain sober and rational in the face of the bullish view on PAGD.

Key points

• AI is a rapidly growing trend in the global market, with Taiwanese manufacturer AVC experiencing significant growth in their stock value.
• AVC has shown strong financial performance in recent years, with impressive average revenue and margin metrics.
• The company is expected to continue its growth trend in 2023, with higher margins than historical averages, as the impact of technology and COVID has been beneficial for AVC.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points

• Honeywell CEO optimistic about strong performance of long-cycle Aero business, particularly aero cycle
• Predicts double-digit growth in 2024 and sustained high growth rates until 2030
• Airbus experiencing strong orders and growing backlog, production challenges in matching supply with demand indicate tight aircraft market

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Human services company Millennium Services Group Ltd (ASX:MIL) has released its H1 FY24 interim result, with both revenue (pre-disclosed) and EBITDA in line with RaaS estimates.
• Adjusted H1 FY24 EBITDA increased ~100% on the back of 15% revenue growth, a 20bps increase in gross margin and a well-controlled cost base.
• Management has reiterated both revenue and EBITDA guidance for FY24 which are reflected in current RaaS estimates.