Daily Brief Equity Bottom-Up: TSMC. Roaring Into Year Of The Dragon and more

• Q423 revenues of $19.62 billion, at the high end of guidance, up 13.8% QoQ and down 1.5% YoY. Net profit margin of 38.2% results in net income of ~$7.5 billion.
• FY23 revenues of $69.3 billion, down 8.7% YoY, only the second such down year since 2005
• Bullish FY24 forecast for >20% YoY growth sends share price soaring in overnight trading. 

• Dai Ichi Life Insurance (8750 JP) has seen rebounding net profit at a strong rate of growth for the past four quarters.
• ROE has moved from a dismal 3.4% to 11.8% from 2Q23 to 2Q24, where a single US bank impairment should now drop out of the numbers
• New business annual premiums are up from JPY97bn to JPY122bn from 2Q23 to 2Q24 with a high solvency ratio of 654%

• TSMC: Stock Prices Soared After Reporting Earnings, But ADR Rose Higher… Now +12.4% Premium, Shortable Level
• ASE: ADR Spread Has Rebounded Substantially, Now +8.6%. Not Yet at Short Levels.
• ChipMOS: ADR Spread Drops to -2.2%, Good Level to Go Long.

• Chinese property developer Country Garden Holdings Co. Ltd. vowed to deliver more than 480,000 homes in 2024, a more modest target than 2023 after it failed to achieve its 700,000-unit goal last year.
• The focus of 2024 is still to “guarantee delivery, guarantee operation and guarantee credit,” of which delivery is the bottom line that Country Garden “must firmly hold,” Chairwoman Yang Huiyan said at the developer’s annual meeting Monday.
• Country Garden, once China’s No. 1 developer by sales, delivered more than 600,000 units last year, short of its goal set at the beginning of 2023, the developer said.

• Travelsky Technology Ltd H (696 HK) (TravelSky) issued its 2023 operating statistics and a profit warning that is far below market expectations, the share price has plunged by 36% 
• Our analysis suggests that staff cost, commission, and systems costs have soared. This will be contained when traffic accelerates and absorbs these fixed cost items 
• Our target price of HKD9.92 (+21% UPSIDE) is based on 2024 PE 14.8x (1SD below mean). Keep an eye, worthwhile trade, due for a bounce    

Key points (machine generated)

• IndiaMart is India’s largest online B2B marketplace with a market cap of $2 billion.
• The company has a 60% market share of B2B e-commerce in India, indicating a large potential for growth.
• IndiaMart benefits from a negative working capital business model, upfront supplier subscription payments, and a net cash balance sheet. It also has the option to invest in new business lines to expand its monetization opportunities. Despite limited advertising spend, the platform attracts over 1 billion in traffic.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• SoftBank group’s headline NAV discount is over 50%, factoring in the T-Mobile shares windfall at December-end
• SoftBank Corp is looking to IPO digital payments company PayPay, which should also be a positive driver for SoftBank Group shares going forward, but only a marginal one
• Arm shares have been defying gravity, but we see downside risk going forward, as well as questions over SVF1 and SVF2 private company valuations; and the threat of JPY appreciation

Key points (machine generated)

• IBP is a leading roll-up strategist in the building industry, having executed over 100 acquisitions in a short period of time.
• The company leverages its national platform, supplier relationships, and operational expertise to enhance value while keeping the acquired companies’ local brands, talent, and customer relationships intact.
• IBP’s successful acquisition strategy, along with its strong commitment to timely delivery and solid financial position, has helped the company become a key player in the insulation industry.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)

• Franco-Nevada Corporation is a gold-focused royalty and streaming company operating in the mining and energy sectors.
• Despite not having any imminent corporate catalysts, it is considered a top-tier investment choice for exposure to precious metals.
• Managed by a world-class operator, the company is expected to outperform other large-cap precious metals stocks and physical gold. Its involvement in the sale of crude oil, natural gas, and natural gas liquids adds to its attractiveness for investors in the current economic climate.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• • 4Q23 WI production of 23.1-23.5 mboe/d was comfortably within the management guidance of 22.9-24.6 mboe/d. • VAALCO held >US$120 mm in cash and cash equivalents at the end of December, up from US$103 mm at the end of September.
• The YE23 cash position was impacted by the fact the Egyptian sales during 4Q23 were for the domestic market rather than exported (domestic sales carry a lower value than exported cargoes).