In today’s briefing:
- Iriso Electronics (6908 JP): Murakami Becomes a Substantial Shareholder
- KS / Kuaishou (1024 HK): 2Q24, Significant Margin Improvement and 100% Stock Upside
- FnGuide Semiconductor Top10 Index Rebalance Preview: Two Changes Likely in October
- Tech Supply Chain Tracker (21-Aug-2024): SDC closes Slovakia branch.
- Lumir IPO Valuation Analysis
- Ai Holdings (3076 JP): Full-year FY06/24 flash update
- Oddity Tech Ltd.: Brand Development & Diverse Portfolio Driving Our Optimism! – Major Drivers
Iriso Electronics (6908 JP): Murakami Becomes a Substantial Shareholder
- Murakami’s entities, City Index Eleventh and Aya Nomura, reported a 5.06% position in Iriso Electronics (6908 JP). The purchases were from 25 July to 13 August.
- Murakami’s average buy-in price over the last 60 days was JPY2,378.90 per share, a 7.8% discount to the last close price.
- Murakami’s disclosure suggests two possibilities: the start of an activist campaign or a short-term pump-and-dump play. The former is likely as Iriso is cash-rich with a P/B less than 1x.
KS / Kuaishou (1024 HK): 2Q24, Significant Margin Improvement and 100% Stock Upside
- The gross margin improved 5 pp (percentage points) YoY and the operating margin improved 7 pp YoY in 2Q24.
- In 2Q24, total revenue grew by 12% YoY, with the main business up by 22% YoY.
- Three cross-sectional comparisons reach similar stock upsides about 100%. Buy.
FnGuide Semiconductor Top10 Index Rebalance Preview: Two Changes Likely in October
- With the start of the review period around the corner, there could be two changes for the FnGuide Semiconductor Top10 Index at the October rebalance.
- Wonik Ips (240810 KS) and Techwing Inc (089030 KS) are potential adds while ISC Co Ltd (095340 KS) and Dongjin Semichem (005290 KS) are potential deletes.
- Passives will need to trade more than 2x ADV on two potential changes and more than 1x ADV on another potential change.
Tech Supply Chain Tracker (21-Aug-2024): SDC closes Slovakia branch.
- SDC closes Slovakia branch due to declining competitiveness in European market, experiencing challenges in the region.
- SSFC remains optimistic about growth in China’s auto market despite market slowdown, seeing potential for expansion.
- Global semiconductor industry strengthens in 2Q24, as per SEMI report, with Taiwanese IPC maker showcasing at Automation Expo 2024 in India.
Lumir IPO Valuation Analysis
- Base case valuation of Lumir is target price of 18,542 won per share. Given the low upside relative to IPO price range, we have a Negative view of this IPO.
- Our net profit estimates in 2025 and 2026 are 38% and 63.3% lower than the company’s estimates.
- Lumir provides key technologies for satellite systems, including small synthetic aperture radar (SAR) satellite systems and payloads.
Ai Holdings (3076 JP): Full-year FY06/24 flash update
- Sales increased by 7.4% YoY to JPY49.8bn, with operating profit up 4.4% YoY to JPY9.9bn.
- Recurring profit rose 88.8% YoY to JPY19.9bn, driven by a JPY9.4bn equity method investment gain from Iwatsu Electric.
- FY06/25 forecasts include sales of JPY68.0bn (+36.5% YoY) and operating profit of JPY10.5bn (+6.6% YoY).
Oddity Tech Ltd.: Brand Development & Diverse Portfolio Driving Our Optimism! – Major Drivers
- ODDITY’s Q2 2024 earnings report shows substantial growth and operational efficiency, indicating strong performance and an aggressive growth trajectory.
- The company posted a 28% increase in first-half revenue, reaching $404 million, alongside an impressive $110 million in adjusted EBITDA and $104 million in free cash flow.
- Such figures not only indicate potent financial health but also highlight ODDITY’s strategic efficiency, outpacing legacy incumbents significantly.
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