In today’s briefing:
- Renesas (6723 JP): Two More Strategic Acquisitions
- Asian Dividend Gems: Acter Co
- Last Week in Event SPACE: Outsourcing Ltd, MGM China, JSR Corp, Dissentient Blues
- Enphase Energy: The 4th-Gen Battery Breakthrough You Can’t Miss! – Major Drivers
- nVent Electric: Growth in the Data Solutions Business & Other Major Drivers
- TransDigm Group: A Strategic Focus on High IP
- Uber Technologies: A Tale Of Increasing User Engagement and Frequency! – Major Drivers
- Emerson Electric Co.: The Digital Transformation Giant! Discover How They’re Leading the Charge in R&D and Revolutionizing Industries! – Major Drivers
- Jacobs Solutions: Backlog Increase
- Masco Corporation: Will The Continued Investments in Key Growth Areas Yield Results In 2024? – Major Drivers
Renesas (6723 JP): Two More Strategic Acquisitions
- Renesas has acquired PCB electronic design company Altium and Gallium Nitride power device maker Transphorm. Its tender offer for Sequans Communications has been extended.
- These are positive developments in our view, but sales and profit margins were down in 4Q of FY Dec-23 and are expected to decline this quarter as well.
- On the other hand, inventory adjustment is proceeding and the share price has dropped 12.6% since last Tuesday. Buy on weakness for the longer term.
Asian Dividend Gems: Acter Co
- Based in Taiwan, Acter Co is capitalizing on its extensive experience of high-end cleanroom integration, recycling and regeneration systems, electromechanical engineering to generate consistent growth in earnings and cash flow.
- Acter Co’s dividend yield averaged 8.2% from 2019 to 2022. Its annual dividend payout averaged 76% in the same period. Estimated dividend yield is 7% in 2023.
- We found Acter Co Ltd (5536 TT) using Smartkarma’s Smart Score Screener system.
Last Week in Event SPACE: Outsourcing Ltd, MGM China, JSR Corp, Dissentient Blues
- Nobody “named” having >5.0% in Outsourcing (2427 JP); no public noise, the stock down; people won’t be fighting for a bump unless the delay and impairment are truly meaningless.
- Stay long MGM China Holdings (2282 HK) as its FY23 top line surpasses pre-Covid levels.
- Investors and risk arbitrageurs who are worried about the potential loss of the case to RF SUNY should simply avoid, or sell then avoid JSR Corp (4185 JP) shares.
Enphase Energy: The 4th-Gen Battery Breakthrough You Can’t Miss! – Major Drivers
- Enphase Energy Inc.’s fourth quarter 2023 financial results show a quarterly revenue of $302.6 million, a considerable shipment of 1.6 million microinverters and 80.7 megawatt hours of battery, along with a generation of free cash flow of $15.4 million.
- The company also achieved a reduction of $147 million in Q4, and met their goal of reducing channel inventory.
- The quarter saw a 50% gross margin, 29% operating expenses, and 22% operating income.
nVent Electric: Growth in the Data Solutions Business & Other Major Drivers
- Nvent Electric, a professional electrical solutions provider, reported Q4 2023 results with records in sales, margins, earnings, and cash flow proving a strong growth and execution for the full year.
- With the ongoing trends of electrification, sustainability, and digitalization, the company anticipates strong sales and profit growth for 2024.
- For Q4, the company witnessed a 16% increase in sales, with 2% organic growth, outperforming the previous year’s results.
TransDigm Group: A Strategic Focus on High IP
- TransDigm Group Incorporated’s first quarter 2024 results beat expectations and they raised their sales and EBITDA guidance for the year.
- The commercial aerospace market trends remained favorable as the industry continued to recover and progress towards normalization.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
Uber Technologies: A Tale Of Increasing User Engagement and Frequency! – Major Drivers
- The Uber Technologies Inc reported a strong Q4, with year-on-year trip growth of 24%, outpacing gross bookings growth for the fourth consecutive quarter.
- Overall, 2023 was a critical year for Uber, proving its ability to generate strong and profitable growth at scale.
- The adjusted EBITDA of $1.3 billion exceeded the Q4 outlook with GAAP operating income of $652 million.
Emerson Electric Co.: The Digital Transformation Giant! Discover How They’re Leading the Charge in R&D and Revolutionizing Industries! – Major Drivers
- Emerson Electric Co., a provider of automation solutions for the process and discrete industries, has demonstrated strong first-quarter financial results for 2024, outpacing expectations.
- Positive operating leverage, robust demand in process and hybrid markets, CapEx budgets, and continued execution by the team are primary contributors to their quarterly performance.
- Gross margins and adjusted EBITDA expansion from 2021 are reflective of the company’s ability to create value.
Jacobs Solutions: Backlog Increase
- The Jacobs Fiscal First Quarter 2024 earnings demonstrated several positive and negative aspects for investors to consider.
- Jacobs CEO, Bob Pragada, and CFO, Claudia Jaramillo, illustrated their company’s exceptional resilience in face of challenging conditions, delivering better-than-expected underlying performance.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
Masco Corporation: Will The Continued Investments in Key Growth Areas Yield Results In 2024? – Major Drivers
- Masco Corporation delivered robust fourth quarter results despite some softening in the home improvement and DIY market, signaling the company’s ability to successfully navigate changing market conditions.
- Faced with overall market softening and a 2% decline in top-line results, the company turned to pricing disciplines, cost reductions, and operational efficiencies to improve margins.
- Contrary to the volume decrease, Masco reported an increase in operating profit by $38 million owing to an improved price/commodity relationship and efficiency efforts throughout its operations.
💡 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
