In today’s briefing:
- Tencent (700 HK): 4Q24, Revenue Growth Back to Two Digits
- China Resources Beer Signals a Bottom in Consumption?
- Anta Sports (2020 HK): Need to Exercise Caution
- TSMC Takeover of Intel: An Official Denial
- Adobe’s Gen AI Playbook: The $200 Billion Opportunity You Can’t Ignore!
- AIA Group & HDFC Bank: Big Hitters Lose Momentum
- Asia Real Estate Tracker (19-Mar-2025): Invesco buys Korea senior homes.
- Dell Technologies: Is There Going To Be A Robust Impact Of AI and Data Center Solutions Growth In The Coming Years?
- Ecolab: The Untold Truth Behind Its Razor-and-Blade Model—And Why It’s a Cash Machine!
- Broadcom’s Future Looks Bright Despite NVIDIA CEO Jensen Huang’s Claims! Here’s What We Think!
Tencent (700 HK): 4Q24, Revenue Growth Back to Two Digits
- The growth rate of total revenue came back to two digits in 4Q24.
- The growth rate of game revenue reached 20% YoY in 4Q24.
- The gross margins of all business lines improved YoY in 4Q24.
China Resources Beer Signals a Bottom in Consumption?
- Historical results as expected with a sales and profit decline
- The first 2 months of the year show a positive trend
- Market reaction to the results should highlight low investor expectations
Anta Sports (2020 HK): Need to Exercise Caution
- Anta Sports Products (2020 HK)‘s strong FY24 result is masked by one-offs and Amer Sports (AS US). Without them, its earnings would have declined by an alarming 5.4% in 2H24.
- Its ANTA and FILA brands have seen YoY operating profit drop in 2H24, with heavy margin pressure. Their revenue growth has also showed meaningful slowdown sequentially.
- The 18.6x PER for FY25 is at a 50% premium to the sector, but the market expectation of 15% growth looks challenging. The YTD rally has opened room for profit-taking.
TSMC Takeover of Intel: An Official Denial
- The latest TSMC taking over Intel Foundry was on 13 March and involved joint investments by AMD, Broadcom, Nvidia, Qualcomm. Complicated.
- Yesterday, TSMC Board member and Taiwan Minister of National Development Paul LIU flatly denied: “such a topic has never been discussed at the board level”.
- As a result, Intel stock declined -6% yesterday. TSMC has corrected by -16% since early Feb. The stock is at average valuations, no obvious upside to Consensus.
Adobe’s Gen AI Playbook: The $200 Billion Opportunity You Can’t Ignore!
- Adobe’s Q1 fiscal year 2025 financial results have demonstrated a robust performance, with the company reporting a record $5.71 billion in revenue, marking an 11% year-over-year increase.
- The company also achieved a notable growth in its GAAP and non-GAAP earnings per share, which rose by 13% year-over-year.
- Adobe’s results underscore the essential role its products play in the global digital economy, reaffirming its fiscal ’25 targets in light of the strong quarterly performance.
AIA Group & HDFC Bank: Big Hitters Lose Momentum
- Ownership levels in AIA Group Ltd (1299 HK) and HDFC Bank (HDFCB IN) have started to reverse from the highs.
- SK Hynix, Meituan and Mediatek Inc all make recent gains in fund ownership, while HDFC Bank and AIA Group see closures.
- UBS in AIA Group and TT International in HDFC Bank lead the fund-level closures.
Asia Real Estate Tracker (19-Mar-2025): Invesco buys Korea senior homes.
- Invesco makes investment in Korea senior living portfolio by acquiring local operator Caredoc.
- KKR, Gaw, Alyssa Partners collaborate to host forum discussing Japan multi-family housing on Wednesday.
- Thailand approves funding of $2.7B for data centers with a total capacity of 347MW.
Dell Technologies: Is There Going To Be A Robust Impact Of AI and Data Center Solutions Growth In The Coming Years?
- Dell Technologies Inc. recently reported its fiscal year 2025 fourth-quarter financial results, demonstrating a mixed performance that offers both opportunities and challenges for investors.
- The company recorded $95.6 billion in revenue for the fiscal year, reflecting an 8% increase, and achieved an operating income of $8.5 billion.
- Notably, Dell achieved a record EPS of $8.14, an increase of 10%, attributing this success to efficiency improvements and cost reductions, with operating expenses decreasing by 4% year-over-year.
Ecolab: The Untold Truth Behind Its Razor-and-Blade Model—And Why It’s a Cash Machine!
- Ecolab has reported another record-setting year with impressive growth in sales, earnings, margins, and free cash flow in 2024, amid a steady organic sales growth of 4% in the last quarter.
- The firm sees consistent success in its largest and most profitable market, the United States, where organic sales increased by mid-single digits.
- Nonetheless, geographic variations persist, with other global regions experiencing low single-digit growth, affected by mixed macroeconomic trends.
Broadcom’s Future Looks Bright Despite NVIDIA CEO Jensen Huang’s Claims! Here’s What We Think!
- Broadcom’s stock surged following its impressive fiscal first-quarter earnings, signaling resilience in the artificial intelligence trade despite recent market volatility.
- The company reported revenue of $14.92 billion, surpassing Wall Street’s expectation of $14.62 billion, while adjusted earnings of $1.60 per share exceeded analysts’ estimates of $1.51.
- Additionally, Broadcom projected $14.9 billion in revenue for the current quarter, above the consensus estimate of $14.71 billion.
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