In today’s briefing:
- Shinko Electric (6967 JP) Takeover – Time To Buy Dips, and Ibiden (4062 JP)
- Fuji Soft (9749) – Fuji Softer
- GitLab Inc.: Expansion of AI-Driven Developer Tools & Major Growth Drivers
- BUY/SELL/HOLD: Hong Kong Stock Updates (September 12)
- Hewlett Packard Enterprise (HPE): Expanded Portfolio of AI Solutions & Hybrid Cloud Solutions Are Critical Growth Catalysts! – Major Drivers
- Asana Inc.: These Are The 4 Biggest Challenges In Its Path For Growth! – Major Drivers
- NEOJAPAN Inc (3921 JP): 1H FY01/25 flash update
- Credo Technology Group: Expansion Of Optical Digital Signal Processor Business & Rack-to-Rack Connectivity Solutions Driving Our ‘Buy’ Rating? – Major Drivers
- i-mobile Co Ltd (6535 JP): Full-year FY07/24 flash update
- Zscaler Inc.: Expansion into Emerging Product Lines Driving Our Bullish Rating! – Major Drivers
Shinko Electric (6967 JP) Takeover – Time To Buy Dips, and Ibiden (4062 JP)
- Late last month, Shinko Electric Industries (6967 JP) announced that the JIC consortium Tender Offer due to be launched by end-August would be delayed. Next update? January 2025.
- Everyone was expecting a delay, but that caused the stock to fall. Then tech/AI fell out of bed, Ibiden crashed, then China export restrictions noise/pushback caused further delay.
- I saw a 9% gross spread yesterday and thought “Geez”, that’s a buy.” A day later, it’s 6%. Still wide, still interesting. And that has set a boundary.
Fuji Soft (9749) – Fuji Softer
- When Bain came out saying they would bid more, with preparation to launch in November, KKR launched early to see if they could get the jump, discussed here.
- The stock popped when the Bain’s bid was obviously serious, and supported by the Founding Family, but it went to Bain’s “5% higher” plus another 5%. I was bearish.
- But I signalled willingness to change my mind if the stock price dropped. It has dropped.
GitLab Inc.: Expansion of AI-Driven Developer Tools & Major Growth Drivers
- GitLab’s Q2 Fiscal Year 2025 results showcase a blend of growth and strategic enhancements, particularly in its DevSecOps platform enriched with AI capabilities.
- Revenue grew substantially by 31% year-over-year, totaling $183 million, a testament to the adoption of new accounts alongside expansions in existing clientele including notable names like Delaware North and Guild Mortgage.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
BUY/SELL/HOLD: Hong Kong Stock Updates (September 12)
- Hong Kong market is range bound with conglomerates showing strength over the last few weeks. As the CNY/HKD strengthens the A/H premium should narrow.
- SUNeVision Holdings (1686 HK) reported good results on the back of increased demand driven by the AI sector.
- Yum China Holdings (9987 HK),Yum China Holdings (YUMC US) reported flat sales and an increase in operating profit in a difficult fast food retail environment in China.
Hewlett Packard Enterprise (HPE): Expanded Portfolio of AI Solutions & Hybrid Cloud Solutions Are Critical Growth Catalysts! – Major Drivers
- Hewlett Packard Enterprise Co (HPE) demonstrated a strong financial performance in the third quarter of fiscal 2024, reporting substantial year-over-year revenue growth and a marginal increase in non-GAAP diluted net earnings per share.
- As delineated in their earnings call, the company continues to navigate a dynamic market environment, focusing on growth sectors such as AI, hybrid cloud, and networking.
- Revenue reached $7.7 billion, a 10% increase from the previous year, which is attributed to notable growth in AI systems revenue and other portfolio enhancements.
Asana Inc.: These Are The 4 Biggest Challenges In Its Path For Growth! – Major Drivers
- Asana’s second quarter fiscal year 2025 earnings presentation highlighted several fundamental aspects of the company’s financial health and strategic direction.
- The overall tone indicated cautious optimism, marked by a cautious stabilization in revenues with indications of accelerating growth in the foreseeable future.
- Financially, Asana reported a revenue increase of 10% year-over-year, surpassing its own projections and signaling subtle strength within certain operational segments.
NEOJAPAN Inc (3921 JP): 1H FY01/25 flash update
- Revenue increased by 4.4% YoY to JPY3.4bn, operating profit rose by 40.8% YoY to JPY848mn.
- Revenue from desknet’s NEO Cloud grew 7.5% YoY, while AppSuite Cloud revenue surged 30.6% YoY.
- Total license revenue declined 27.8% YoY, with desknet’s NEO licenses decreasing 22.7% YoY.
Credo Technology Group: Expansion Of Optical Digital Signal Processor Business & Rack-to-Rack Connectivity Solutions Driving Our ‘Buy’ Rating? – Major Drivers
- Credo’s Q1 fiscal 2025 results suggest a mixed yet promising growth trajectory.
- The company reported total revenue of $59.7 million, with product revenues significantly marking a 30% increase at $57.3 million in comparison to previous quarters.
- This growth highlights the effectiveness of Credo’s strategy in expanding its product offerings across high-speed connectivity solutions such as active electrical cables (AEC), optical digital signal processing (DSP), and line card physical layer devices (PHYs).
i-mobile Co Ltd (6535 JP): Full-year FY07/24 flash update
- i-mobile reported FY07/24 revenue of JPY18.7bn (+14.1% YoY) and operating profit of JPY3.5bn (+0.7% YoY).
- Consumer Service business FY07/24 revenue was JPY16.0bn (+20.1% YoY) and segment profit JPY3.4bn (+15.8% YoY).
- FY07/25 projections: revenue JPY23.0bn (+22.8% YoY), operating profit JPY4.5bn (+26.8% YoY), net income JPY3.0bn (+21.9% YoY).
Zscaler Inc.: Expansion into Emerging Product Lines Driving Our Bullish Rating! – Major Drivers
- Zscaler is actively expanding and executing within the rapidly evolving cybersecurity market.
- Recent developments highlight the company’s strong financial performance and strategic positioning as it continues to capitalize on growing demand for advanced security solutions.
- Zscaler posted robust financial results, showcasing a 30% year-over-year growth in revenue, underscoring the increasing market demand and customer adoption of its solutions.
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