In today’s briefing:
- ARM Holdings Limited – The Positives – Pervasive Global Presence
- KS (Kuaishou 1024 HK): 2Q23, First Net Profit Since IPO, Growth Accelerated, Buy
- Quiddity Leaderboard-DAX Sep 23: No More Catalyst for the Short Sartorius – LONG Merck Trade
- KOSPI Size Indices – Plenty of Migrations to Attract Active Flows
- IQIYI (IQ US): Embracing Moderate yet Stable Growth
- An Update on 2023H1 Results of Activation Group (9919 HK)
- Arista Networks Inc.: Capitalizing on Strong Growth Outside the Cloud Domain! – Major Drivers
ARM Holdings Limited – The Positives – Pervasive Global Presence
- Softbank Group (9984 JP) aims to raise around US$8-10bn via selling some of its stake in ARM Holdings ’ US IPO.
- ARM develops and licences high-performance, low-cost, and energy-efficient CPU products and related technology, which is used by semiconductor companies and OEMs to develop their own products.
- In this note, we talk about the positive aspects of the deal.
KS (Kuaishou 1024 HK): 2Q23, First Net Profit Since IPO, Growth Accelerated, Buy
- The total revenue growth rate accelerated significantly to 28% YoY in 2Q23.
- The high-margin businesses grew more rapidly than the low margin business.
- Gross Merchandise Value and Active user base still increased strongly.
Quiddity Leaderboard-DAX Sep 23: No More Catalyst for the Short Sartorius – LONG Merck Trade
- In this insight, we take a look at the names leading the race to become ADDs/DELs for the DAX, MDAX, and SDAX Indices in the September 2023 Rebalance.
- Software AG (SOW GR) was deleted from the MDAX index triggering a couple of interim changes in the last week of July 2023.
- Currently, I do not expect any changes for the DAX or MDAX indices in September 2023 but I expect one change for the SDAX index.
KOSPI Size Indices – Plenty of Migrations to Attract Active Flows
- The review period for the September rebalance of the KOSPI Size Indices started 1 June and will end 31 August. The changes will be implemented at the close 7 September.
- We see 7 migrations from MidCap to LargeCap, 6 migrations from LargeCap to MidCap, 7 new adds to MidCap, and 17 migrations from SmallCap to MidCap.
- Historically, stocks migrating from SmallCap to MidCap have outperformed stocks that are migrating between other categories.
IQIYI (IQ US): Embracing Moderate yet Stable Growth
- IQiyi failed to give its share price a lift with stronger-than-expected 2Q results except for slight miss in paying subscribers .
- We believe that investors are expecting the end of its remarkable turnaround story and embracing a stable and moderate growth stage.
- While iQiyi trades at ~10x our FY23 earnings, the cheap valuation by itself doesn’t stand out among China internet peers as a group. We would wait for better entry points.
An Update on 2023H1 Results of Activation Group (9919 HK)
- Activation Group (9919 HK) unveiled its first-half financial results for 2023 on August 10th, 2023.
- In this article, we will provide an overview of Activation’s performance during this period and share thoughts on its future prospects.
- The Experiential Marketing segment recorded a full recovery, reaching RMB 280 million, surpassing the 2021 H1 level of RMB 276 million.
Arista Networks Inc.: Capitalizing on Strong Growth Outside the Cloud Domain! – Major Drivers
- Arista Networks managed to surpass the revenue and earnings expectations of Wall Street.
- The company generated $1.46 billion in revenue for the quarter and $1.58 in non-GAAP earnings per share.
- Arista is adjusting to these developments and increasing its investments in AI as its biggest cloud customers reassess their conventional cloud and AI networking plans.
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