In today’s briefing:
- US Restriction on Semi Export to China Negative for All Equipment Makers, Naura, AMEC, ASML, TEL
- ASML. Class Action Lawsuit Looms As Share Price Declines 37% From Peak
- The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (December 2)
- Baidu Inc.: Generative AI & Search Transformation Driving Our Bullishness! – Major Drivers
- Dell Technologies: An Insight Into Expansion Beyond Endpoint Security & Storage Opportunities! – Major Drivers
- NetApp Inc.: Keystone Subscription Model Expansion As A Critical Growth Lever! – Major Drivers
- Is Intel Doomed Without Patrick Gelsinger? The Challenges Facing Its New CEO!
- iQIYI Inc.: The Mini & Short Dramas Integration & Other Major Drivers
- ａｖｉｃ (9554 Jp) – Quality Company with High Growth, Profit Margin, and ROE
- What’s News in Amsterdam – 3 December (ASM International | ASML Holding | InPost | Dutch retail sales | Black Friday update)
US Restriction on Semi Export to China Negative for All Equipment Makers, Naura, AMEC, ASML, TEL
- An additional 24 Equipment are added to the restriction list (negative to AMAT, KLA, LAM). No explicit restrictions on ASML or Tokyo Electron, but that’s done indirectly.
- HBM Memory sales to China restricted (directly negative to Samsung), but restriction of DRAM Manufacturing Equipment sales is long-term positive to Micron, Samsung, SK Hynix.
- 140 Chinese firms added to the Entity List, including all China’s Semi Production Equipment makers (Naura, AMEC, Piotech, SiCarrier).
ASML. Class Action Lawsuit Looms As Share Price Declines 37% From Peak
- A case against ASML being brought by the Hollywood Firefighters Pension Fund (HFPF) is now opening up into a class action lawsuit
- Claims that ASML withheld crucial information from investors in the Jan-Oct 2024 time period, e.g. impact of US sanctions, strength of the semi recovery, order backlog etc.
- In reality, ASML warned in October 2023 that 2024 would be a zero growth year. Did the HFPF think they were kidding?
The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (December 2)
- Hong Kong market breadth stays strong despite market pullback in November. Mainland investors continue to increase exposure to HK market through Southbound Connect platform.
- Baidu (9888 HK) , Baidu (BIDU US) , the global leader in Robotaxis, was granted a license to start operating its autonomous cars in Hong Kong.
- Vitasoy Intl Holdings (345 HK) shares surged on takeover rumours after Yeo Hiap Seng (YHS SP) increased its stake to more than 12% allowing them to call a Board meeting.
Baidu Inc.: Generative AI & Search Transformation Driving Our Bullishness! – Major Drivers
- Baidu’s third-quarter 2024 financial performance presents a complex picture, showcasing both opportunities and challenges that shape the company’s investment thesis.
- The company reported total revenues of RMB 33.6 billion, reflecting a 3% decline year-over-year.
- However, Baidu Core’s revenue remained stable at RMB 26.5 billion.
Dell Technologies: An Insight Into Expansion Beyond Endpoint Security & Storage Opportunities! – Major Drivers
- Dell Technologies Inc. reported solid results for the fiscal year 2025 third quarter, demonstrating both strengths and challenges across its various segments.
- The company achieved a revenue of $24.4 billion, marking a 10% increase year-over-year, driven by strong growth in its Infrastructure Solutions Group (ISG) thanks to robust demand for AI servers and traditional servers.
- Diluted earnings per share (EPS) reached $2.15, reflecting a 14% rise, while cash flow from operations was $1.6 billion.
NetApp Inc.: Keystone Subscription Model Expansion As A Critical Growth Lever! – Major Drivers
- NetApp’s recent earnings for the second quarter of fiscal year 2025 reflects a strong performance with both opportunities and challenges evident in the company’s results.
- Key aspects of the company’s current position and future outlook can be synthesized as follows: NetApp demonstrated significant growth in its all-flash storage segment, showing a 19% year-over-year increase, and enjoyed solid momentum in cloud storage services, which helped drive revenue beyond expectations.
- The reported revenues reached $1.66 billion, showing a 6% increase compared to the previous year.
Is Intel Doomed Without Patrick Gelsinger? The Challenges Facing Its New CEO!
- Intel has been making headlines recently with a series of significant developments that underscore the company’s tumultuous state.
- On December 1, 2024, CEO Pat Gelsinger stepped down after a tenure that saw the company’s stock price plunge by 61%.
- The leadership vacuum was filled by interim co-CEOs, David Zinsner and Michelle Johnston Holthaus, with Intel initiating a global search for a permanent successor.
iQIYI Inc.: The Mini & Short Dramas Integration & Other Major Drivers
- iQIYI recently divulged its financial and operational results for the second quarter of 2024, revealing several intriguing aspects about its current business trajectory.
- This analysis aims to distill the substantial information provided during the earnings call and form an even-handed view on iQIYI’s performance and future prospects.
- iQIYI remains a significant player in the long-form video sector in China, holding a competitive edge in the drama and film categories.
ａｖｉｃ (9554 Jp) – Quality Company with High Growth, Profit Margin, and ROE
- Under its mission of “Creating a new view of the world with the AViC Team as the business driver,” AViC (hereafter, the Company) provides a full range of services related to digital marketing, from strategy development to execution.
- In addition, the Company strives for and ensures “quality growth” by maintaining and improving profitability while pursuing sustainable business growth.
- One of the Company’s distinguishing characteristics is its high productivity compared to competitors.
What’s News in Amsterdam – 3 December (ASM International | ASML Holding | InPost | Dutch retail sales | Black Friday update)
- In this edition: • ASM International / ASML Holding | US to implement additional export controls to China • InPost | step-up in deployment APMs in the UK and extension of cross-border proposition • Dutch retail sales | up 2.0% YoY in value and up 0.6% YoY in volume in October • Black Friday update | Sunday’s iDEAL transaction data showed a modest YoY increase
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
