Daily Brief Equity Bottom-Up: We Need To Talk About New World (17 HK) and more

• 0.08x P/B. That’s where New World Development (17 HK) is currently trading. Less than half the P/B of the next comparable real estate peer.
• So, what’s going on? Announcing an expected HK$19-20bn loss for FY24 last week didn’t help matters. Shares are down 14% this week and 85% since Covid.
• Landlords need to drastically cut rents to jumpstart the retail sector. That translates to further impairment losses for property developers. 

• Taiwan Semiconductor (TSMC) – ADR (TSM US)  will benefit from Intel Corp (INTC US)‘s decision to use their 20A processor, named Arrow Lake.  
• Intel plans to stick with the 18A process and has identified about 5 potential customers.
• As of now, TSMC remains the primary source for technology deliveries.

• Baidu has reported its financial results for the second quarter of fiscal year 2024, showcasing resilience with its Baidu Core which posted a modest revenue growth to RMB 26.7 billion.
• This growth was driven by the accelerating performance in the AI Cloud sector, which somewhat counterbalanced the drag provided by the online marketing segment.
• Notably, there was an 8% year-over-year increase in non-GAAP operating profit for Baidu Core, reflecting continued operational efficiencies.

• Toyota Kirloskar, Toyota Motor‘s 89%-owned India JV, recorded a 65% rise in revenues and 240% jump in profits to around USD575 million in FY2024 following 48% increase in units sold.
• The company has continued to maintain its strong growth momentum in FY2025 YTD, with wholesale volumes up 36% YoY.
• Successful launch of rebadged Suzuki models, ramped-up production and customer-friendly initiatives have supported Toyota’s accelerated volume growth in India.

• Mispronunciations of Nvidia can be a red flag for some investors
• The volatility in Nvidia stock after earnings was not surprising due to high trading volume and options activity
• Buy side expectations and unofficial whisper numbers can impact stock performance in high profile companies like Nvidia

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• This Insight focuses on lenders operating in consumer finance, including MSME-focused NBFCs. 
• Companies in focus include Bajaj Finance Ltd (BAF IN), Poonawalla Fincorp (POONAWAL IN),SBFC Finance Limited (SBFC IN) & MAS Financial Services Ltd (MASFIN IN). 
• We also cover high yield lender Five Star Business Finance (FIVESTAR IN).  

• Erajaya Swasembada (ERAA IJ) booked a solid set of 1H2024 results driven by the availability of affordable handsets, with volumes driving growth despite lower prices. 
• The company’s Erablue consumer electronics JV with Mobile World Investment (MWG VN) now has 61 outlets and is set to break even in 2024, with 80 stores expected by year-end. 
• The other growth drivers will come from private-label accessories and its Grand Lucky supermarket expansion. Valuations look attractive will the company trading on a 6x forward PER multiple.

• July 2024 ranked as the warmest July in NOAA’s 175-year global record. Land & sea surface temperatures were above average across the planet barring few exceptions.
• July had the 2nd smallest sea ice coverage in 46-years at 8.49 million square miles. There is a 77% chance that 2024 will rank as the warmest year on record.
• Heating, Ventilation, and Air Conditioning (“HVAC”) stocks continue to rise on strong demand as temperatures peak across the planet.

• Workday, a leading provider of enterprise cloud applications for finance and human resources, delivered a mixed set of results in its fiscal 2025 second-quarter earnings.
• The company reported a 17% growth in subscription revenue and a healthy increase in its 12-month backlog, which grew 16%.
• Professional services also saw growth, contributing to a total revenue growth of the same percentage.

• Snowflake Inc. reported a solid financial performance for the fiscal second quarter of 2024, with product revenue increasing by 30% year-over-year to $829 million, surpassing analyst expectations.
• The company raised its full-year revenue outlook to $3.36 billion, reflecting its continued focus on innovation and product development.
• Despite this growth, Snowflake’s stock faced pressure, dropping by 7% in extended trading as concerns over its ability to fully capitalize on AI-related opportunities persisted.