In today’s briefing:
- Lumir IPO Preview
- FXI Rebalance Preview: China Tower (788 HK) Could Replace CICC (3908 HK)
- Tech Supply Chain Tracker (20-Aug-2024): Regional production helps Foxconn.
- ELTK: Eltek releases 2nd quarter 2024 financial results. The company also provided updates on market trends and its capacity improvement program. We maintain our price target of 18.00 per share.
- Global Payments Inc: Expanding Integrated Solutions & Recent Acquisitions Driving Our ‘Buy’ Rating! – Major Drivers
- HubSpot Inc.: These 7 Factors Are Driving Our Optimism! – Financial Forecasts
- IPS Inc (4390 JP): Initial Coverage,Q1 FY03/25 flash update
- Kulicke and Soffa Industries: Expansion in Thermocompression Bonding & Hybrid Bonding Technologies & Other Major Drivers
- Viasat Inc.: A Story Of Revenue Growth and Diversification through Direct-to-Device Initiatives! – Major Drivers
- Warner Bros. Discovery Inc.: A Tale Of Robust Content Pipeline & IP Monetization! – Major Drivers
Lumir IPO Preview
- Lumir is getting ready to complete its IPO on KOSDAQ in September. The IPO which is expected to raise between 49.5 billion won to 61.5 billion won.
- Lumir specializes in the development of observation satellite technology including image data processing devices and onboard computers for a number of government satellite series.
- Lumir had sales of 12.1 billion won (up 90.5% YoY) in 2023. Its sales surged by 477% YoY to reach 8.2 billion won in 1H24.
FXI Rebalance Preview: China Tower (788 HK) Could Replace CICC (3908 HK)
- With the review cutoff done, we expect just one change for the iShares China Large-Cap (FXI) (FXI US) ETF in September.
- China Tower (788 HK) is a high probability inclusion while China International Capital Corporation (3908 HK) is a high probability deletion.
- There has been an increase in cumulative excess volume for both stocks in the last few months, but the pace has slowed noticeably in the recent past.
Tech Supply Chain Tracker (20-Aug-2024): Regional production helps Foxconn.
- Foxconn benefits from regionalized production with improved efficiency, reduced shipping costs, and better supply chain integration.
- AMEC is confident in their lawsuit against the US Department of Defense, showing strong belief in the merit of their legal case.
- Japan’s economy faces uncertainty with financial resources at risk after Kishida’s resignation, raising concerns amidst the country’s economic landscape and supply chain players cautiously optimistic about AI server boom.
ELTK: Eltek releases 2nd quarter 2024 financial results. The company also provided updates on market trends and its capacity improvement program. We maintain our price target of 18.00 per share.
- Eltek Ltd is an established manufacturer of Printed Circuit Boards (PCBs) that is entering a new growth phase due to increases in manufacturing capacity and potential M&A transactions.
- The company has the potential to grow both revenues and earnings at double-digit growth rates for the foreseeable future if they can execute on their accelerated investment program and maintain technological superiority.
- The company maintains a strong balance sheet and generates free cash flow.
Global Payments Inc: Expanding Integrated Solutions & Recent Acquisitions Driving Our ‘Buy’ Rating! – Major Drivers
- Global Payments delivered mixed results in its second quarter of 2024.
- The company reported a 6% adjusted net revenue growth or 7% excluding the impact from the divestiture of Netspend’s consumer assets, with adjusted earnings per share growing by 12%.
- Operationally, Global Payments advanced its market positioning through strategic expansions and solution rollouts across varied verticals.
HubSpot Inc.: These 7 Factors Are Driving Our Optimism! – Financial Forecasts
- HubSpot, in its Q2 2024 earnings presentation, portrayed a complex yet promising landscape, balancing solid growth with strategic adjustments in response to market conditions.
- The company reported a 21% year-over-year revenue growth in constant currency, backed by a surge in its customer base to 228,000, marking an addition of over 11,200 net customers within the quarter.
- This growth trajectory was underpinned by enhanced operational efficiencies resulting in a notable improvement in operating margins, expanded by 270 basis points year-over year to 17%.
IPS Inc (4390 JP): Initial Coverage,Q1 FY03/25 flash update
- Revenue reached JPY3.7bn (+47.5% YoY), with increases in Global Telecommunications but declines in Domestic Telecommunications and Medical & Healthcare.
- Operating profit was JPY760mn (+84.0% YoY), with cost ratio falling 7.1pp YoY and SG&A ratio rising 3.0pp YoY.
- Foreign exchange gains of JPY350mn were booked in Q1 FY03/25 due to valuation of foreign currency-denominated receivables and payables.
Kulicke and Soffa Industries: Expansion in Thermocompression Bonding & Hybrid Bonding Technologies & Other Major Drivers
- Kulicke and Soffa Industries Inc., a global provider of semiconductor assembly equipment, reported its fiscal third quarter 2024 results with a focus on strategic growth initiatives and progress in various sectors.
- The company has been actively working in areas such as advanced packaging, advanced dispense qualifications, and adopting new ball bonding solutions.
- During the earnings call, the company highlighted its involvement with the U.S.-Joint semiconductor consortium, aiming to foster collaboration in advanced packaging production solutions.
Viasat Inc.: A Story Of Revenue Growth and Diversification through Direct-to-Device Initiatives! – Major Drivers
- Viasat, Inc. recently delivered its Q1 FY 2025 earnings results, reporting an encouraging uptick in year-over-year revenue and adjusted EBITDA growth, reflecting a positive development.
- The company showcased a strategic focus in strengthening its capital structure and continues to make significant investments to set the stage for a promising future.
- Specifically, the enhancements include expected activations in aviation, robust defense and advanced technology orders, and a strong existing and prospective order pipeline, which have collectively allowed Viasat to elevate its fiscal year outlook.
Warner Bros. Discovery Inc.: A Tale Of Robust Content Pipeline & IP Monetization! – Major Drivers
- In the second quarter of 2024, Warner Bros. Discovery navigated a mixed environment marked by significant achievements and prevailing market challenges, reflecting the complex visibility of its transition phase two years post its launch.
- The direct-to-consumer (DTC) segment exhibited robust performance, highlighted by impressive international subscriber growth initiated by the strategic timing of Max’s launch in Europe to coincide with the Olympic Games.
- This geographical expansion has fundamentally bolstered Warner Bros. Discovery’s position as a formidable player on the global streaming scene, leveraging large-scale live events to drive subscriber engagement and growth.
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