In today’s briefing:
- Quiddity Primer for KOSPI 200 Index Rebal Events (2024)
- KPIT: On Track to Beat the FY24 Raised Guidance
- KLA Corporation: Leading Edge Investments and Memory Conversions & Other Major Drivers
- Spotify 4Q’23 Update
- Himax: Industry Readthrough for Automotives, Notebooks, and Edge AI Applications
- Intel Corporation: Solid Advances in AI and the Cloud & Other Major Drivers
- Visa Inc.: Strong Cross-Border Business Performance To Set Off US Slowdown! – Major Drivers
- Can T-Mobile Be the Stealthiest Investment of 2024: Growth Strategies Unveiled! – Major Drivers
- Western Digital Corporation: A Tale Of Improving Profitability Through Cost Reduction and Optimized Product Mix! – Major Drivers
- ATEN: Business Proves Stable, PT to $17
Quiddity Primer for KOSPI 200 Index Rebal Events (2024)
- KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).
- KOSPI 200 is also used as the underlying index for various financial products such as ETPs, ELS, index funds, and futures/options.
- In this insight, we take a brief look at the index selection methodology and the historical price and volume performance of KOSPI 200 index rebalance baskets.
KPIT: On Track to Beat the FY24 Raised Guidance
- Despite upping the FY24 guidance in the prior quarter (Q2FY24), KPIT is confident of beating even the raised guidance, led by strong Q3FY24 performance and an upbeat outlook.
- Despite accelerated revenue in H1FY24 from the Honda engagement, Q3FY24 saw robust revenue growth of 4.3% QoQ in CC terms. EBITDA margin expanded to 20.6% vs 20% QoQ.
- KPIT’s new venture, Qorix, is coming along well and could prove to be transformative. This could enable KPIT to become a product company, alongside being a high-growth service company.
KLA Corporation: Leading Edge Investments and Memory Conversions & Other Major Drivers
- KLA Corporation saw a revenue of nearly $9.7 billion in 2023, marking a decrease of 8% compared to the previous year.
- Despite less leading-edge investment in both logic and memory, legacy node customers and the semiconductor infrastructure assisted in exceeding the initially projected revenue.
- Business segments such as automotive, specialty semiconductor process equipment, and infrastructure for wafer and mass manufactures experienced growth in 2023.
Spotify 4Q’23 Update
- While not exactly Meta-like twists and turns, Spotify’s rise from the ashes of late 2022 perhaps slipped through many investors’ mind.
- The stock was at ~$70 in December, 2022. Today, it closed at $232.
- Before I get to my highlights from today’s call, let me first mention that I am no longer a shareholder of Spotify as I sold my shares today at $243
Himax: Industry Readthrough for Automotives, Notebooks, and Edge AI Applications
- Readthrough: Automotive Applications End-Demand — China Market Soft But Touch and Dimming Technology is Expanding
- Readthrough: Panel Makers Constraining Supply in 1Q24 to Protect Pricing
- Readthrough: Customers Are Restocking Notebooks in 1Q24E, PC Replacement Cycle is Coming
Intel Corporation: Solid Advances in AI and the Cloud & Other Major Drivers
- In the fourth quarter of 2023, Intel managed to display consistent progress towards its Integrated Device Manufacturer (IDM) 2.0 transformation.
- This implied effective execution of its strategy to reestablish process leadership and fostering product execution.
- Revenue exceeded expectations for the fourth consecutive quarter due to the company’s focus on driving operating leverage and managing expenses, thereby meeting the cost savings commitment for fiscal year 2023.
Visa Inc.: Strong Cross-Border Business Performance To Set Off US Slowdown! – Major Drivers
- Visa Inc.
- has had a solid start to fiscal year 2024, reporting in their latest earnings call a first quarter year-on-year increase in payments volume by 8%.
- Key themes have included consistently providing excellent service to customers, seeking new partnerships, delivering innovative solutions and exploring new ways to amplify their brand to support their partners.
Can T-Mobile Be the Stealthiest Investment of 2024: Growth Strategies Unveiled! – Major Drivers
- During 2023, T-Mobile added over 3.1 million postpaid phone net additions, driven by the highest postpaid phone gross additions in the company’s history.
- As a result, they achieved their highest share of postpaid phone net additions within the industry as a whole.
- A high point was reached in Q4, with 934,000 postpaid phone net additions, representing the highest in the industry by a wide margin.
Western Digital Corporation: A Tale Of Improving Profitability Through Cost Reduction and Optimized Product Mix! – Major Drivers
- In the latest earnings, Western Digital confident of its portfolio strategy given its significant outperformance across Flash and HDD businesses.
- The company reported revenue of $3 billion, a non-GAAP gross margin of 15.5%, and a non-GAAP loss per share of $0.69.
- These numbers met or exceeded the guidance range provided in October.
ATEN: Business Proves Stable, PT to $17
- The sales emphasis A10 Networks (ATEN) started to put on winning enterprise customers proved as the enabler for the Company posting sequential growth in the fourth quarter of 2023
- ATEN reported results missing our expectations with North American service providers continuing to delay their spending plans.
- The customer mix has changed in recent quarters. ATEN is no longer generating two-thirds of its revenue from service providers. In the fourth quarter the figure was 58.4 percent
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