In today’s briefing:
- September Nikkei 225 Review – Lasertec, Mercari, Nitori IN, Expected DELETEs Out (Matsui the Biggie)
- ARM Holdings Pre-IPO – Peer Comparison – The Smallest and One of the Slowest
- Recent Dell & HP Results Provide Additional Clarity on Coming AI PC Wave
- China Internet Weekly (4Sep2023): Quarterly Results See Growing – BIDU, VIPS, ZTO, Giant, BEKE
- Elastic: Blowout 1QFY24 Earnings. Shares Popped ~20% On Heavy Volume
- Avant Group (3836) – Shifting to a Software-Driven Strategy
- BILL Holdings Inc.: What Are The 3 Biggest Growth Drivers Of This Fintech Major? – Financial Forecasts
- Applied Materials Inc.: Is The Recent Uptick In Financials Enough To Warrant A ‘Buy’ Rating? – Major Drivers
- Carly Holdings Limited – Strong Growth in FY23
September Nikkei 225 Review – Lasertec, Mercari, Nitori IN, Expected DELETEs Out (Matsui the Biggie)
- Today, somewhat earlier than expected), the Nikkei Index Team announced the changes to the Nikkei 225.
- Lasertec Corp (6920 JP), Mercari (4385 JP), and Nitori Holdings (9843 JP) are added. Nippon Sheet Glass (5202 JP), Mitsui E&S Holdings (7003 JP), and Matsui Securities (8628 JP) removed.
- That triggers flows of about ¥480bn a side, and some big, big changes. The announcement helps understand new process better.
ARM Holdings Pre-IPO – Peer Comparison – The Smallest and One of the Slowest
- Softbank Group (9984 JP) aims to raise around US$8-10bn via selling some of its stake in ARM Holdings’ US IPO.
- ARM develops and licences high-performance, low-cost, and energy-efficient CPU products and related technology, which is used by semiconductor companies and OEMs to develop their own products.
- In our earlier note, we looked at Arm’s past performance. In this note, we undertake a peer comparison.
Recent Dell & HP Results Provide Additional Clarity on Coming AI PC Wave
- Dell and HP’s latest results indicate an improving PC industry environment in 2H23E, though weaker than expected China demand has softened initial expectations.
- A key take-away is that a major AI PC upgrade cycle is indeed on the horizon, with additional clarity now provided as to when and how it will unfold.
- A ‘step-change’ AI PC upgrade cycle will make the strength of the current near-term cycle recovery less relevant, and isn’t yet priced-in by the market.
China Internet Weekly (4Sep2023): Quarterly Results See Growing – BIDU, VIPS, ZTO, Giant, BEKE
- The Chinese economy looks weak according to the data from the statistics bureau.
- However, many big Chinese internet companies began to recover in Q2 as we mentioned in August.
- Here we list five recovering companies that investors may not pay attention to.
Elastic: Blowout 1QFY24 Earnings. Shares Popped ~20% On Heavy Volume
- Elastic NV (ESTC US) delivered a high quality beat and raise and reported a modest upside to revenue and profitability. The start of the fiscal year looked strong.
- The leading provider of search engine for enterprises and SMBs guided FY24 ahead of consensus estimates. I reiterate our Overweight rating on ESTC.
- The 1Q print was outstanding, with +17% y/y revenue growth, a record non-GAAP Op Margin of ~10% and FCF margin of ~13%.
Avant Group (3836) – Shifting to a Software-Driven Strategy
- Evolving to enhance corporate value – AVANT GROUP is a domestic market leader in financial consolidation software embarking on a growth and business transformation strategy.
- Combining the ongoing dynamic need for corporate data management, structural demand for digital transformation, and M&A growth, the company seeks to establish itself as a global standard in providing the necessary data and tools to enhance corporate value to its diverse customer base.
- The new medium-term plan focuses on 1) a software-driven strategy with a strong emphasis on the growth of in-house as well as valid external vendor technology, and 2) allocating ¥19.7 billion cash for growth investments, with the objectives to construct a network of leading-edge technology providers to complement its business.
BILL Holdings Inc.: What Are The 3 Biggest Growth Drivers Of This Fintech Major? – Financial Forecasts
- BILL Holdings Inc. managed to exceed analyst expectations in terms of revenue and earnings.
- The company demonstrated robust growth in total revenue and core revenue, reflecting the success of its various services.
- In the fourth quarter, BILL Holdings continued to exhibit impressive growth, reporting a significant increase in total revenue and attaining non-GAAP net income.
Applied Materials Inc.: Is The Recent Uptick In Financials Enough To Warrant A ‘Buy’ Rating? – Major Drivers
- Applied Materials delivered an all-around beat in the most recent quarterly result.
- Applied Materials’s strategic focus on the IoT AI era yielded substantial growth and innovation within the semiconductor industry.
- This transition aligns with Applied’s strengths in materials engineering and allows the company to offer comprehensive solutions to manage complexity.
Carly Holdings Limited – Strong Growth in FY23
- Carly Holdings Limited (ASX:CL8) operates a vehicle subscription business, which it launched in March 2019, leveraging existing operations, strategic relationships and technology.
- Car subscription allows business and retail customers to pay a single monthly fee to access a car for 30 days or more and is an alternative to purchasing or financing a vehicle.
- Carly has attracted larger automotive industry businesses as shareholders, with a direct offering and services to support automotive manufacturers and dealers to generate revenue form car subscriptions.
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