In today’s briefing:
- Alibaba: A Quick Take on 1QFY24
- SMRT – Accounting vs. Reality
- SS&C Technologies Holdings Inc.: Can The New SS&C Flex Become A Major Catalyst For Revenue Growth? – Key Drivers
- XPER: Connected Car Connected Earnings
- Restar Holdings (3156) – Remaining on Course with Business Transformation
Alibaba: A Quick Take on 1QFY24
- Alibaba (ADR) (BABA US)‘s 1QFY24 revenue and OP beat consensus by RMB 9.2bn and RMB 14.4bn respectively, possibly on the back of a successful 6.18 shopping festival.
- It looks like Alibaba Group Holding (9988 HK) has decided to abandon its New Retail Strategy and instead, put more effort into e-commerce, especially on popular platforms like Taobao and Tmall.
- Although this is a good-sign and could rally the stock short-term, we would still steer clear of Alibaba as we remain skeptical about the overall health of the Chinese economy.
SMRT – Accounting vs. Reality
- SmartRent’s 2Q was a bit of a head-scratcher. The significant growth in sales from 1Q didn’t carryover into 2Q, with top-line decelerating from ~74% YoY in Q1 to 26% YoY in 2Q.
- Trends of key KPIs suggest deterioration in the underlying business is continuing and in fact worsening, as we have seen from industry peers recently.
- The exact cause of such is unclear given management’s hesitance to provide clear commentary.
SS&C Technologies Holdings Inc.: Can The New SS&C Flex Become A Major Catalyst For Revenue Growth? – Key Drivers
- SS&C delivered mixed results for the previous quarter, with revenues above the analyst consensus.
- The company’s strength was evident in its alternative business, particularly private markets, which saw a significant growth of over 20%, as well as in its Intralinks and retirement businesses.
- SS&C plans to focus on expense management, prioritize innovation, and continue product rollouts.
XPER: Connected Car Connected Earnings
- XPER reported second quarter results underscoring the progress the Company has made in securing new design wins and revenue opportunities for its connected car and media platform segments
- Simultaneous with the second quarter results, XPER announced Sharp would use TiVo operating system for smart TVs starting in 2024
- New design wins for DTS AutoSense and DTS AutoStage are expected to translate into revenue towards the end of 2024
Restar Holdings (3156) – Remaining on Course with Business Transformation
- Focus maintained on growth, experiencing temporary headwinds – Q1 FY3/2024 results showcased the company’s strong execution in driving growth, with sales increasing by 6.2% YoY.
- Although there was a major improvement in profitability in the Environmental Energy segment, the core Semiconductor and Electronics Components experienced a negative of persistent demand weakness in China.
- There was also reduced spot demand, negative FX translation impact YoY and on inventory valuation, and allowance for doubtful debt related to a key customer.
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