In today’s briefing:
- Taiwan Dual-Listings Monitor: TSMC Rebounds After Sharp Breakdown; ASE Major Premium Breakdown
- China Autos Landscape Has Permanently Changed, Foreign Brands Have Lost Their Clout
- Isetan-Mitsukoshi Bets on Flagships and Real Estate
- [Q2 Earnings Preview] Google: Ad Revenue & Cloud Growth Plus AI Advancements in Focus
- Tech Supply Chain Tracker (18-Jul-2024): GlobalWafers gets $400M CHIPS Act funds.
- [Earnings Preview] Halliburton: Leans on International Operations Amid North American Weakness
- ASML Holding N.V.: Will The Prebuilding Strategy to Manage Supply Chain and Demand Pay Off? – Major Drivers
- Cadence Design Systems: Their Story Of Strategic Partnerships & Expansion through Mergers and Acquisitions! – Major Drivers
- Alcoa Corporation: Strategic Acquisition Of Alumina & 5 Pivotal Growth Drivers
- EB: TikTok a New Momentum
Taiwan Dual-Listings Monitor: TSMC Rebounds After Sharp Breakdown; ASE Major Premium Breakdown
- TSMC: +17.9% Premium; Rebounds After Brief Breakdown; Wait for Better Levels
- UMC: +1.8% Premium; Can Consider Shorting the Premium at Current Level
- ASE: +5.5% Premium Represents a Major Breakdown; Can Consider Going Long
China Autos Landscape Has Permanently Changed, Foreign Brands Have Lost Their Clout
- Chinese auto brands commands 61% market share in May 2024, up from 7% in 2021. Its premium car market share has also risen to 25% from nothing
- The transition towards EV, swift adoption of technology and sleek designs has made traditional car makers (including luxury marquees) look antiquated and out of fashion compared to the Chinese brands
- Premium Chinese automakers LiAuto and NIO will benefit over long-term, whilst the foreign dealers and local-foreign JV OEMs will suffer over the long term.
Isetan-Mitsukoshi Bets on Flagships and Real Estate
- Isetan Shinjuku expects to post sales in excess of ¥400 billion this year, a record for a single retail store, although most of the growth is from inbound tourists.
- But Isetan-Mitsukoshi is working to ensure longer term stability through more sophisticated databases and personalised marketing.
- At the same time, it will make better use of real estate assets, investing ¥500 billion around Isetan Shinjuku alone.
[Q2 Earnings Preview] Google: Ad Revenue & Cloud Growth Plus AI Advancements in Focus
- Google’s ad revenue growth consensus is 11.7% YoY in Q2, with some analysts projecting even higher, reflecting robust global digital ad spend trends.
- Google Cloud’s revenue reached $9.5 billion in Q1 2024, marking a 35% YoY increase and a 4x growth over the past four years. Q2 expected to see continued growth.
- AI investments and innovations showcased at Google I/O aim to boost user experience and market leadership, with potential double-digit growth.
Tech Supply Chain Tracker (18-Jul-2024): GlobalWafers gets $400M CHIPS Act funds.
- GlobalWafers secures $400M from CHIPS Act to boost semiconductor production amid global chip shortage.
- Samsung intensifies focus on wearable device sales with new strategies to adapt to declining demand in market.
- Acer targets Indian smartphone market with white-label approach and Qualcomm teams up with Microsoft to innovate PCs using AI technology.
[Earnings Preview] Halliburton: Leans on International Operations Amid North American Weakness
- Halliburton forecasts low double-digit revenue growth from its international business and flat revenue growth from North America in 2024.
- Management expects sequential margin growth of 25-75 bps in its Drilling & Evaluation and Completion & Production segments in Q2 2024.
- Halliburton expects its FCF to rise 10% YoY in 2024. The company returned nearly 60% of its FCF to shareholders in 2023.
ASML Holding N.V.: Will The Prebuilding Strategy to Manage Supply Chain and Demand Pay Off? – Major Drivers
- ASML Holding NV has released its financial results for the first quarter of 2024, highlighting a combination of achievements and forecasts that paint a detailed picture of the company’s current and future trajectory.
- In terms of financial performance, ASML reported total net sales of EUR 5.3 billion, which aligns with the company’s previous guidance.
- The revenue from 11 EUV (extreme ultraviolet) systems constituted EUR 1.8 billion of the total net sales.
Cadence Design Systems: Their Story Of Strategic Partnerships & Expansion through Mergers and Acquisitions! – Major Drivers
- Cadence Design Systems, Inc. recently reported a strong start to the year 2024, announcing first-quarter results that surpassed expectations and raised the financial outlook for the remainder of the year.
- Revenue for the quarter stood at $1.09 billion with non-GAAP earnings per share (EPS) reaching $1.17, underscoring a robust performance against the backdrop of dynamic market conditions.
- The company cited a record backlog of $6 billion as a primary driver for its optimistic revenue outlook, attributing this in part to burgeoning trends across AI, automotive, and 5G technologies.
Alcoa Corporation: Strategic Acquisition Of Alumina & 5 Pivotal Growth Drivers
- Alcoa Corporation recently reported its first quarter 2024 earnings, delivering a mix of strategic developments and financial results that reflect the company’s evolving business landscape.
- The company announced a significant transaction, the acquisition of Alumina Limited, which is expected to consolidate its ownership in the Alcoa World Alumina and Chemicals joint venture.
- This all-stock deal, valued at approximately $2.2 billion, aims to provide a streamlined corporate structure and enhance shareholder value.
EB: TikTok a New Momentum
- EB has teamed up with TikTok in an integration that could lead to a sharp increase in new creators and overall traffic on EB’s marketplace.
- TikTok announced on its blog that EB has been integrated to allow content creators to manage and promote events within their TikTok content.
- The integration would enable followers to purchase tickets to creators’ events straight from TikTok without having to leave the platform.
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