In today’s briefing:
- Will Apple Intelligence Drive IPhone Maker past USD 4 Trillion in Market Cap?
- Silergy (6147.TT): The Wafer Demand Is Projected to Increase by 30-40% QoQ from 2Q24 Onwards.
- UMC (2303.TT; UMC.US): The Outlook for 3Q24 Has Reached a Slightly Upside QoQ.
- Novatek (3034.TT): To Achieve a ~5% QoQ Growth in Revenue and Relatively Flat GM QoQ in 3Q24
- Monthly Chinese Tourism Tracker | Outbound Recovery Expands | Domestic Solid Too | (June 2024)
- European Airlines – Fare Softening Suggests Elevated Earnings Risk with Self-Help Stories Crucial
- Lufthansa – ITA Airways Financial Sustainability Questions Without Lufthansa Partnership/Steering
Will Apple Intelligence Drive IPhone Maker past USD 4 Trillion in Market Cap?
- Never a pioneer, instead a perfectionist in delivering mind bending experience. That’s what Apple has stood for traditionally. Can it repeat the act in the Gen AI era?
- Siri to have advanced language comprehension and Writing Tools to deliver useful features to drive convenience and productivity.
- Private Cloud Compute ensures user data remains encrypted and secure. Reflects Apple’s commitment to privacy amidst growing concerns surrounding data misuse.
Silergy (6147.TT): The Wafer Demand Is Projected to Increase by 30-40% QoQ from 2Q24 Onwards.
- We presume Silergy is likely to see demand recovery or inventory rebuilding starting from 2Q24.
- Silergy’s wafer demand is projected to increase by 30-40% QoQ from 2Q24 onwards.
- Silergy’s primary focus remains on China, Taiwan, and Korea, but the US market is promising for potential growth.
UMC (2303.TT; UMC.US): The Outlook for 3Q24 Has Reached a Slightly Upside QoQ.
- United Microelectron Sp Adr (UMC US) 3Q24 outlook could be showing a slightly upside quarter over quarter and the gross margin is approaching to ~30%.
- We estimate that UMC’s overall utilization in 3Q24 will be around 65-70%, with 12” at 70-75% and 8” at 60%.
- UMC is benefiting from Novatek shipping OLED DDIC to Apple (AAPL US) in 3Q24.
Novatek (3034.TT): To Achieve a ~5% QoQ Growth in Revenue and Relatively Flat GM QoQ in 3Q24
- We expect Novatek Microelectronics Corp (3034 TT) to achieve approximately a 5% QoQ growth in revenue and relatively flat gross margin (GM) QoQ in 3Q24.
- Semiconductor Manufacturing International Corp (SMIC) (981 HK) and HLMC are capable of producing DDICs at 40nm and below.
- Novatek is experiencing a decline in demand for 55nm Touch with Display Driver (TDDI) in 3Q24.
Monthly Chinese Tourism Tracker | Outbound Recovery Expands | Domestic Solid Too | (June 2024)
- Growth of outbound Chinese travel demand strong in May as HK, Macau slow
- Domestic travel demand also showed solid growth in May and early June
- Trip.com appears reasonably cheap now that it’s dipped below US$50, BUY
European Airlines – Fare Softening Suggests Elevated Earnings Risk with Self-Help Stories Crucial
- Forward looking fare data suggests pricing further weakening for the European flag carriers on long haul in particular.
- We expect Lufthansa to miss EBIT guidance by 30% in 2024 while we also cut Air France-KLM 2024 EBIT by 15%.
- IAG stands out as most resilient, with BA seemingly outperforming peer pricing on the Transatlantic.
Lufthansa – ITA Airways Financial Sustainability Questions Without Lufthansa Partnership/Steering
- As Lufthansa nears European Commission approval for its investment in ITA Airways, as widely reported this week, we highlight our analysis of the Italian carrier.
- In a strong year for the global industry, heavy 2023 losses prompt questions over ITA’s financial sustainability with Lufthansa support.
- We highlight that ITA’s problems are in revenue generation rather than operational efficiency.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
