In today’s briefing:
- UMC. Now I’m Interested…
- Tencent/Netease: One Game Approval for Tencent in Jan and the Perplexity
- Intel’s Acquisition Rumors: Is It A Bargain For Qualcomm, Arm Holdings & Other Tech Giants?
- The Bank of Nova Scotia: International Business Realignment Driving Our Bullishness! – Major Drivers
- Cisarua Mountain Dairy (CMRY IJ) – General Trade in the Cross Hairs
- Shanghai Henlius Biotech (2696 HK) – About the Deal Break and the Valuation Outlook
- Fifth Third Bancorp’s Surprising Southeast Expansion Plan Could Shake Up Banking Rivals! – Major Drivers
- PNC Financial Services Group: An Insight Into Its Asset Management & Fee Models & Other Major Drivers
- Tech Supply Chain Tracker (23-Jan-2025): Taiwan cable cut raises concerns.
- MIXI Inc. (2121) – Advancing Towards Strategic Objectives
UMC. Now I’m Interested…
- UMC reported Q424 revenues of NT$60,386 million, flat sequentially and in line with guidance.
- For the full year 2024, revenues amounted to NT$232,303 million, representing an increase of 4.4% YoY.
- Share price at a 4 year low and the outlook is still tepid, but almost $6 billion CapEx invested during the downturn years will pay dividends in the coming years..
Tencent/Netease: One Game Approval for Tencent in Jan and the Perplexity
- China announced game approval for the January batch. The number of games approved remained at a higher level than 2023.
- The pace of China game approval appears to have accelerated to the same level as pre-tightening.
- Tencent and CMGE received one approval for January, respectively. We also highlight perplexity of Tencent’s approved game.
Intel’s Acquisition Rumors: Is It A Bargain For Qualcomm, Arm Holdings & Other Tech Giants?
- Intel Corporation, once the world’s dominant chipmaker, finds itself at a critical juncture, sparking speculation about its future.
- Following a 9.5% surge in its stock price after rumors of a potential acquisition surfaced, the company has been thrust into the spotlight.
- The speculation originated from a report by SemiAccurate, which hinted at an unnamed company with the financial clout to acquire Intel in its entirety.
The Bank of Nova Scotia: International Business Realignment Driving Our Bullishness! – Major Drivers
- The Bank of Nova Scotia (Scotiabank) released its fourth quarter results for 2024, indicating a year of both progress and challenges as the institution implements its new enterprise strategy aimed at sustainable, profitable growth and maximizing shareholder value.
- The bank’s 2024 results reflect modest earnings growth, consistent with its expectations and guidance shared during its Investor Day.
- On the positive side, Scotiabank reported progress in increasing primary client numbers, an essential element of its growth strategy.
Cisarua Mountain Dairy (CMRY IJ) – General Trade in the Cross Hairs
- Cisarua Mountain Dairy (CMRY IJ) held an impromptu analyst call to address concerns over a potential sugar tax and the free milk program, both of which have yet to materialise.
- The company is making a marked push into general trade, armed with a broader range of affordable products including Yoghurt Sticks, UHT milk, and ready-to-eat sausages.
- Management remains confident about the outlook for 2025 with an ongoing recovery in dairy and an expansion into general trade, with a 10% increase in outlets covered. Top staples pick.
Shanghai Henlius Biotech (2696 HK) – About the Deal Break and the Valuation Outlook
- Lin Lijun voted against the privatization, which is in line with our analysis.Lin and some other long-term investors expressed their “dissatisfaction” by opposing the privatization due to disappointing Cancellation Price.
- Due to deal break, Henlius’ share price could be under pressure in short term.Investors may need to wait until the implementation of biosimilar VBP in 2025 to see situation clearly.
- Despite biosimilar VBP, we remain optimistic about the outlook of Henlius, because its future development positioning will not be limited to just biosimilars, but will focus on internationalization.
Fifth Third Bancorp’s Surprising Southeast Expansion Plan Could Shake Up Banking Rivals! – Major Drivers
- Fifth Third Bancorp’s third-quarter 2024 earnings highlight a performance characterized by stability, strategic investments, and a focus on balanced growth in a dynamic economic environment.
- The bank reported an earnings per share (EPS) of $0.78 or $0.85 after excluding certain non-recurring items, outperforming previous guidance.
- With a return on equity of 12.8%, Fifth Third has positioned itself as a leader among its peers.
PNC Financial Services Group: An Insight Into Its Asset Management & Fee Models & Other Major Drivers
- PNC Financial Services Group, a major financial institution in the U.S., reported solid financial performance for Q4 2024 and for the entire fiscal year.
- The company generated a net income of $1.6 billion for the fourth quarter, bringing the annual total to $6 billion, or $13.74 per share.
- During the year, PNC benefited from fixed asset repricing, which substantially boosted its net interest income despite the lower demand for loans.
Tech Supply Chain Tracker (23-Jan-2025): Taiwan cable cut raises concerns.
- Taiwan cable cut near China raises concerns about geopolitical tensions and gray zone tactics in the region.
- Samsung Electro-Mechanics and SoulBrain’s collaboration on advanced glass substrates aims for mass production by 2027.
- India drives semiconductor aspirations with GaN and SiC technology, showcasing its commitment to technological advancements in the industry.
MIXI Inc. (2121) – Advancing Towards Strategic Objectives
- Q1-2 FY3/25 results were ahead of guidance in our view, with underlying earnings growth stemming from improved profitability in the Digital Entertainment segment and robust sales growth in both the Sports and Lifestyle segments.
- The governance issue disclosed in December 2024 involving improper transactions at subsidiary Chariloto appears to have been fully resolved with no contingent issues to resolve.
- The company has maintained FY3/25 guidance, and we view the earnings outlook for H2 FY3/25 to be positive due to a combination of stabilizing performance with sustained successful collaborative activity with Monster Strike and seasonal uplift in the Sports segment.
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