In today’s briefing:
- E-Guardian (6050) Partial Offer Update
- Yuanta ETFs Rebalance Preview: Changes Galore as Stocks Soar; Shorts Increase, Then Cover
- Market Information About Samsung Electronics’ Shareholder Return
- [Alibaba (BABA US, BUY, TP US$127) TP Change]: The New Wanxiangtai Will Enhance the Take Rate
- Earnings: MCHP and IFX, SIMO Rumors, SMCI, POWI, GFS, COHR, WOLF, AMAT, CSCO
- Dynatrace Inc.: Will The Rookout Acquisition Become A Major Growth Catalyst? – Key Drivers
- Unity Software Inc.: The VisionOS Upside & Other Major Drivers
- Confluent. 2Q Wrap: Solid Results and Leadership Position In a $60B+ TAM
E-Guardian (6050) Partial Offer Update
- When this was launched, it traded more volume than expected on the first day, then again on the second day. Since then it has traded cheap vs initial estimates.
- A week after the launch, two separate Large Shareholder Filings came out. Those bear scrutiny.
- The back end trade is still an interesting one in my opinion.
Yuanta ETFs Rebalance Preview: Changes Galore as Stocks Soar; Shorts Increase, Then Cover
- There should be 4 changes to the Yuanta/P-Shares Taiwan Top 50 ETF and 1 deletion for the Yuanta/P-Shares Taiwan Dividend Plus ETF in September.
- The potential adds are driven by the AI-frenzy that has swept the market for the last few months. Most potential deletions are shipping stocks that are way off their highs.
- Short interest on the potential deletions is high in terms of days of ADV and free float. The rise in shorts on the potential adds is being rapidly covered.
Market Information About Samsung Electronics’ Shareholder Return
- The local market is increasingly convinced that Samsung Electronics’ quarterly dividends for the latter half of this year will experience a reduction.
- Samsung Electronics plans to apply the updated regulations from the 2024 1st quarter dividends, following the conclusion of the capital market law revision at the end of this year.
- It might be prudent to refrain from trading that bets on a reduction in the 1P discount in the first half of this year.
[Alibaba (BABA US, BUY, TP US$127) TP Change]: The New Wanxiangtai Will Enhance the Take Rate
- Taobao and Tmall have implemented two major reforms: 1) The launch of the Wanxiangtai Platform Unlimited Edition; 2) Changing the rules for displaying merchant sales volume from monthly to annual.
- Although the new Wanxiangtai differs from PDD’s “Fangxintui” and “Quanzhantui” , the idea is to simplify and automate merchant promotion. We anticipate that this change will boost the take rate.
- We increased our core e-commerce take rate estimate for BABA in FY24/FY25 to 3.85%/4.0%, respectively, and raised our TP to US$ 127.
Earnings: MCHP and IFX, SIMO Rumors, SMCI, POWI, GFS, COHR, WOLF, AMAT, CSCO
Infineon’s big news is that they, too, will be building one of the largest Silicon Carbide fabs in the world. This makes Wolfspeed’s Siler City look puny in comparison.
- Infineon is now looking to be number three in the Silicon Carbide device game, targeting ~500 million in 2023.
- So given the impressive growth, Infineon is a bit late but plans to spend 5 billion dollars over five years for the factory in Kulim.
Dynatrace Inc.: Will The Rookout Acquisition Become A Major Growth Catalyst? – Key Drivers
- Dynatrace Inc. delivered a strong result and managed an all-around beat in the quarter.
- With a new CRO and a strong vision for the future, Dynatrace is in a good position in the cloud-based software landscape.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
Unity Software Inc.: The VisionOS Upside & Other Major Drivers
- Unity Software Inc. delivered a mixed set of results in its most recent result, with revenues above Wall Street expectations but below-par earnings.
- The company ended the quarter with a strong acceleration in revenue growth, impressive margin improvements, and positive cash flow generation.
- The company’s core subscription growth is robust, and its product portfolio continues to expand with new offerings, such as Unity 2022 LTS, Unity PolySpatial, and Unity Cloud.
Confluent. 2Q Wrap: Solid Results and Leadership Position In a $60B+ TAM
- I remain bullish on the stock and reiterate a $37 PT. Confluent (CFLT US) delivered upside to total revenue, gross margin, and non-GAAP operating margin estimates.
- The company raised guidance for CY23 total revenue and profitability. There were plenty of positives, including cloud momentum and customer demand.
- The US-based data streaming pioneer appears well positioned to outperform my estimates, and I see a path to profitability (non-GAAP) in CY24 at the earliest.
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