In today’s briefing:
- Technology Select Sector Index (XLK US): NVIDIA Could Flip Places with Apple; HUGE Flows
- Taiwan Dual-Listings Monitor: TSMC Historically Extreme Premium Continues; CHT at Short Level Again
- Elon Set to Lose $56B Incentive? If So, Will Tesla’s AI Shift to XAI?
- AEM Holdings: New CEO = One Final Kitchen Sink in 2Q24?
- Tech Supply Chain Tracker (14-Jun-2024): India limits Chinese participation, woos Taiwanese investments.
- Cyber Security Cloud Inc (4493 JP): Q1 FY12/24 flash update
- Chat GPT Makes as Foolhardy a Bet as Apple does a Genius One
- Broadleaf (3673 JP): Q1 FY12/24 flash update
- Cyber Security Cloud Inc (4493 JP): Q1 FY12/24 report update
- Ai Holdings (3076 JP): Q3 FY06/24 flash update
Technology Select Sector Index (XLK US): NVIDIA Could Flip Places with Apple; HUGE Flows
- The Technology Select Sector SPDR (XLK US) ETF tracks the Technology Select Sector Index and has an AUM of over US$70bn.
- NVIDIA Corp (NVDA US) has broken through the US$3tn market cap barrier and is very close to Apple (AAPL US) in terms of free float market cap.
- If NVIDIA ranks higher than Apple on free float market cap at the close on Friday, there could be huge inflows to NVIDIA and outflows from Apple a week later.
Taiwan Dual-Listings Monitor: TSMC Historically Extreme Premium Continues; CHT at Short Level Again
- TSMC: +21.3% Premium; Trading at New +15-25% Range This Year
- ASE: +12.7% Premium; We Continue to View 14%+ as Fresh Short Level
- CHT: +1.2% Premium; Good Level to Short Relative to History
Elon Set to Lose $56B Incentive? If So, Will Tesla’s AI Shift to XAI?
- Crucial Vote: Shareholders are voting on Musk’s $56 billion compensation deal and Tesla’s reincorporation in Texas, pivotal decisions for the company’s direction.
- High Stakes: The outcome will determine Musk’s commitment to Tesla, potentially shifting his focus to other ventures and impacting Tesla’s operations.
- Institutional Opposition: Significant resistance from institutional investors and logistical issues for global shareholders create uncertainty. Abstaining from voting counts as a vote against, hindering Elon-supporting retail investors.
AEM Holdings: New CEO = One Final Kitchen Sink in 2Q24?
- AEM (AEM SP) announced a new CEO as of 30th of May 2024. The new CEO officially starts 1st of July 2024.
- Amy Leong will take over from Chandran Nair as she leaves her Chief Commercial Officer role at Formfactor Inc (FORM US).
- Given the weak business results and inventory management issues it should be expected that Mrs Leong would want to clean the proverbial house before she starts in her new role.
Tech Supply Chain Tracker (14-Jun-2024): India limits Chinese participation, woos Taiwanese investments.
- India is limiting Chinese participation in Indian subsidiaries while seeking investments from Taiwan, diversifying its economic ties.
- AWS is committing significant funds to establish data centers in Taiwan, anticipating obstacles in securing renewable energy sources.
- Elephantech is seeking collaborators to scale up their eco-friendly PCB manufacturing operations to meet the escalating demand. Join the sustainable production movement.
Cyber Security Cloud Inc (4493 JP): Q1 FY12/24 flash update
- Revenue was JPY954mn (+32.5% YoY), with subscription-based recurring revenue at JPY837mn (+23.6% YoY), accounting for 87.8% of total revenue.
- Operating profit was JPY315mn (+94.2% YoY), with operating expenses at JPY638mn (+14.5% YoY), and OPM at 33.1% (+10.5pp YoY).
- Companywide ARR totaled JPY3.4bn (+22.7% YoY), with user count at 1,292 companies (+6.2% YoY) and churn rate at 1.05% (+0.01pp YoY).
Chat GPT Makes as Foolhardy a Bet as Apple does a Genius One
- Last night Bloomberg’s Mark Gurman reported that in exchange for OpenAI’s position in MacOS, IOS, and iPadOS, Apple would pay OpenAI nothing.
- To level set, earlier this week, Apple unveiled their implementation of artificial intelligence, branded “Apple Intelligence”.
- Apple Intelligence separates itself from Google’s Gemini and OpenAI’s ChatGPT by identifying and addressing user queries that contain personal information, but for capabilities it isn’t capable of performing, asking for user permission, and outsourcing the request to OpenAI’s ChatGPT, anonymously.
Broadleaf (3673 JP): Q1 FY12/24 flash update
- Revenue increased by 10.6% YoY to JPY4.0bn, with cloud services revenue up 79.3% YoY due to subscription growth.
- Operating loss was JPY109mn, pre-tax loss JPY42mn, and loss attributable to owners JPY35mn, all improved from Q1 FY12/23.
- Revised 1H FY12/24 forecast: revenue JPY8.2bn, operating loss JPY500mn, pre-tax loss JPY500mn, and loss attributable to owners JPY400mn.
Cyber Security Cloud Inc (4493 JP): Q1 FY12/24 report update
- In FY12/23, CSC reported revenue of JPY3.1bn (+34.5% YoY), operating profit of JPY550mn (+42.5% YoY), recurring profit of JPY560mn (+41.5% YoY), and net income attributable to owners of the parent of JPY427mn (+39.4% YoY).
- Revenue expanded on improved annual recurring revenue (ARR) and user count of Shadankun, WafCharm, and SIDfm products.
- The company released its new product, CloudFastener, in October 2023.
Ai Holdings (3076 JP): Q3 FY06/24 flash update
- Sales rose by JPY1.9bn (+5.3% YoY) due to growth in Security Equipment, Peripheral Computer Equipment, and Others segments.
- Recurring profit increased by JPY6.1bn (+76.2% YoY) due to equity method investment gain from Iwatsu Electric Co., Ltd.
- Ai Holdings revised full-year earnings forecast for FY06/24: Recurring profit JPY18.6bn, net income JPY15.6bn, sales JPY53.0bn.
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