In today’s briefing:
- Reasons Why KT’s Foreign Room Is Likely to Fall Below the 3.75% Cutoff Level
- TSMC (2330.TT; TSM.US): The Outlook of 3Q24 Is Pretty Much In-Line, and GM Could Be Better.
- We See TSMC’s Margins Increasing Much Higher Than Guidance in Long-Term; 2Q24 Shows Apple Ramping Up
- MediaTek (2454.TT): 3Q24 Might Grow Slightly QoQ, While AI PCs Could Be Delivered in 2H25.
- S&P 500 September Forecasts: Saved by the Dell?
- Silversun Technologies Inc (SSNT) – Wednesday, Apr 17, 2024
- Tech Supply Chain Tracker (19-Jul-2024): China’s auto exports, 2023.
- Kinatico Ltd – FY24 NPAT up 225% and 60% ahead of RaaS forecasts
- Kinatico (ASX:KYP) Georg Chmiel Interview
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Reasons Why KT’s Foreign Room Is Likely to Fall Below the 3.75% Cutoff Level
- KT’s foreign room has been exhausted due to value-up trading inflows, NPS selling shares, and KT canceling treasury stocks.
- Hyundai Motor may sell 0.5% of its KT stake, likely to overseas investors. KT’s 700,000 share cancellation will lower foreign ownership to the low-4% range, possibly below 3.75% by November.
- Focus on the stock price surge from ETF recall requests around the effective date, and note that passive outflow corrections typically occur afterward.
TSMC (2330.TT; TSM.US): The Outlook of 3Q24 Is Pretty Much In-Line, and GM Could Be Better.
- TSMC expects sales to grow by mid-20% YoY in USD in 2024, compared to low to mid-20% previously.
- The N3/N5 capacity is very tight, and they are even working with customers for 2026 capacity requirements, while N2 is on track to enter MP in 4Q25.
- A16 will enter MP in 2H26, and it’s first process starts adopting backside power.
We See TSMC’s Margins Increasing Much Higher Than Guidance in Long-Term; 2Q24 Shows Apple Ramping Up
- Significant revenue guidance hike — TSMC reported 2Q24 results, increasing 2024E revenue growth guidance to exceed ‘mid-20’s’ percent, a significant hike from previous guidance.
- Management is low-balling LT margins — Latest figures and long-term margin color makes us believe that TSMC will be able to increase GM much higher than current official LT guidance.
- Signs of Apple expecting strong iPhone 16 sales — TSMC reported strength in smartphone end-applications and we believe this is reflective of Apple ramping up re: stronger iPhone volume expectations.
MediaTek (2454.TT): 3Q24 Might Grow Slightly QoQ, While AI PCs Could Be Delivered in 2H25.
- Mediatek Inc (2454 TT) is forecasted to experience slight growth in 3Q24 compared to 2Q24.
- Qualcomm Inc (QCOM US) is expected to introduce AI PCs in 2024, while Mediatek Inc (2454 TT) scheduled for this product is anticipated to delivered in 2H25.
- The shipment forecast for the Dimensity 9400 is approximately 5 million sets in 2H24.
S&P 500 September Forecasts: Saved by the Dell?
- Dell Technologies (DELL US) is the main candidate for addition-transition with uncertainty arising from the ‘Multiple Share Classes’ criterion. Forecasted demand is ~$7bn and ~4 ADV.
- Williams Sonoma (WSM US) is one of the top candidates for addition-migration with uncertainty due to the migrations’ inconsistent market cap selection pattern. Forecasted demand is $840m and ~2.6 ADV.
- American Airlines Group (AAL US) is one of the main candidates for deletion with uncertainty due to price hence ranking fluctuations until cut-off. Forecasted supply is $290m and ~0.8 ADV.
Silversun Technologies Inc (SSNT) – Wednesday, Apr 17, 2024
- Author admires Brad Jacobs’ entrepreneurial success but questions high valuation of SilverSun Technologies
- Conversion of SSNT into stake in QXO implies optimistic market capitalization of $46 billion
- Author remains skeptical of QXO valuation despite Jacobs’ successful track record
This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.
Tech Supply Chain Tracker (19-Jul-2024): China’s auto exports, 2023.
- XPeng and Baidu leading China’s autonomous driving technology advancements in 2023
- Malaysia’s semiconductor sector set for growth in 3Q24 with talent recruitment and AI integration
- Singtel partners with SK Telecom for 6G and AI innovation, while automakers persist in V2X development efforts
Kinatico Ltd – FY24 NPAT up 225% and 60% ahead of RaaS forecasts
- RaaS Research Group has published an update report on ‘Know Your People’ regtech company, Kinatico (ASX:KYP) following its Q4 FY24 result which confirmed the company delivered NPAT of $0.8m for FY24, up 225% on FY23 and 60% ahead of our forecast.
- Q4 SaaS revenue jumped 40% on the pcp to $2.8m and was 12% ahead of Q3 and was ahead of our expectations.
- Transactional revenue of $4.5m for the quarter was flat on Q3 and down 12% on the pcp.
Kinatico (ASX:KYP) Georg Chmiel Interview
- RaaS Research Group recently interviewed Kinatico Non Executive Director Georg Chmiel on what attracted him to join the KYP board in September 2023.
- We discussed the merits of platform businesses and his experiences with technology platform companies.
- Mr Chmiel noted the merits of recurring revenues, including higher margins than one-time or transactional revenue, and lower costs as the platform becomes more scalable.