In today’s briefing:
- KLAC Q1’23 Earnings Report. So Far, So Good
- China A-Share Consumer Staples: Depressed Share Price Cannot Reflect Decent Earnings
- Global Semiconductor Sales Increased 0.33% MoM In March 2023
KLAC Q1’23 Earnings Report. So Far, So Good
- Q1’23 revenues of $2.43 billion, marginally above the guided midpoint $2.35 billion, down 17.5% sequentially and up 6.4% YoY.
- For Q2’23, the company expects revenues of $2.25 billion at the midpoint, down 4% sequentially.
- KLAC historically outperforms its peers during semi down cycles. This time will be no different.
China A-Share Consumer Staples: Depressed Share Price Cannot Reflect Decent Earnings
- We believe the recent underperformance of A-share consumer staples is unjustified. Their 1Q23 results are generally decent despite negative impact from the pandemic in Jan 2023.
- Both Shanxi Xinghuacun Fen Wine Factory Co (600809 CH) and Fu Jian Anjoy Foods Co Ltd (603345 CH) witnessed good revenue growth and margin expansion.
- Foshan Haitian Flavouring & Food (603288 CH) and Inner Mongolia Yili Industrial Group (600887 CH) have less satisfactory revenue and margin. Nonetheless, all four companies exhibited good operating cost control.
Global Semiconductor Sales Increased 0.33% MoM In March 2023
- Global semiconductor sales for the month of March amounted to $39.83 billion, representing a 0.33% increase sequentially, the first such increase in twelve months.
- Q1 2023 sales amounted to $119.5 billion, a decrease of 8.7% compared to the fourth quarter of 2022 and 21.3% less than the first quarter of 2022.
- While small, the March MoM increase is still hugely significant.
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