Daily Brief TMT/Internet: Alphabet, Argo Graphics, Plover Bay Technologies, SUMCO Corp, Ono Sokki, Perfect , Caci International, ASE Technology Holding and more

• Yesterday’s Google’s earnings may have been bit of “meh” at first glance, but there were nuggets in the call that may have important implications for the broader market.
• Network segment continues to struggle, but the rest of the businesses continue to grow at healthy double digit rate.
• Search revenue growth surpassed YouTube ads revenue growth last quarter. For the first time, Cloud posted >$10 Bn quarter while maintaining high 20s growth YoY.

• Arco Graphics is a strategic reseller of industrial CAD and semiconductor fab ERP software in Japan, representing Dassault Systems and IBM
• Despite consistent EBIT growth over the past 7 years, the company’s valuation remains attractive for investors
• Expected to announce better-than-guided results for Fiscal 2023 in May, along with an improved shareholder returns strategy

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Alphabet’s revenue jumped 14% YoY to $84.74B, exceeding the $84.19B forecast, fueled by strong digital ad sales and cloud services demand.
• Net income rose 28.6% to $23.6B, surpassing the $22.9B estimate, reflecting effective cost management and revenue growth despite margin concerns.
• YouTube’s ad revenue fell short of expectations, growing slower than Q1 due to increased competition and tougher year-on-year comparisons, impacting overall share performance.

• Plover Bay Technologies (1523 HK) reported 28.4%/55 % YoY revenue/net profit growth, led by growth from new customers in the US, Australia, and Europe. 
• The company reiterated its long-term guidance of reaching 300 mn USD revenue (FY23: 94 mn USD) in less than ten years. There was no clear guidance for FY24. 
• The stock trades at 14.8x PE FY24e, with a 5.4% dividend yield (assuming an 80% payout), and is at the cusp of an inflection in its growth. 

• NCKU in Taiwan achieves breakthrough in angstrom-scale semiconductor precision, potentially revolutionizing the industry.
• Uncertainty surrounds impact of Trump win on green energy, with transition likely to be slower but not impossible.
• Apple introduces new open-source AI models, Kyushu attracts record investments from TSMC, while SK Hynix experiences sales/profit growth. Vietnam partners with Qorvo, Cadence to train 50,000 engineers by 2030.

• Orders for 1H FY12/24 totaled JPY7.1bn (+27.0% YoY), with Measuring Equipment at JPY2.3bn (+14.9% YoY) and Custom Order Test Equipment and Services at JPY4.8bn (+33.7% YoY).
• Operating loss expanded to JPY478mn, recurring loss to JPY457mn, and net profit attributable to owners of the parent was JPY884mn due to a JPY1.9bn gain from the sale of fixed assets.
• Full-year FY12/24 forecast: Sales JPY12.5bn (+8.3% YoY), Operating profit JPY300mn (+115.8% YoY), Recurring profit JPY330mn (+61.8% YoY), Net income JPY1.6bn (+253.9% YoY).

• Perfect Corp. provides an AI and machine learning based B2B SaaS platform for virtual try on and marketing of beauty and fashion products as well as six mobile apps sold B2C for makeup suggestions, try-on, tutorials, photo and video editing and most recently, Gen AI creation and editing.
• It is expanding its offering to new verticals and has strong IP as well as the largest database for AI training in the industry.
• It has a dominant market share and serves almost all the major beauty brands worldwide.

• Perfect Corp. provides an AI and machine learning based B2B SaaS platform for virtual try on and marketing of beauty and fashion products as well as six mobile apps sold B2C for makeup suggestions, try-on, tutorials, photo and video editing and most recently, Gen AI creation and editing.
• It is expanding its offering to new verticals and has strong IP as well as the largest database for AI training in the industry.
• It has a dominant market share and serves almost all the major beauty brands worldwide.

• CACI’s stock price has decreased by approximately 4%
• The company has a strong presence in government services and defense sectors
• CACI is considered an undervalued investment opportunity with potential for significant growth in the future

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• General products did not show an immediate recovery, but selective products have reached the bottom.    
• The 3Q24 sales will grow in the mid to high teens QoQ in EMS, and IC-ATM sales will grow in the mid to high single digits QoQ.  
• AI remains strong across all sectors. Despite AI SP driving the replacement cycle, other general demands still show muted recovery in 3Q24.