In today’s briefing:
- StubWorld: PCCW’s Premium To NAV Is Unsustainable
- Nintendo (7974) | Game Over for Switch
- Intel Q224 Meltdown. Don’t Say We Didn’t Warn You…
- Asian Dividend Gems: KT Corp
- Toyo Business Engineering (4828 JP): Q1 FY03/25 flash update
- Tenable Holdings Is Exploring A Sale! 4 Reasons It Makes A Decent Acquisition Target At THIS Valuation! – Major Drivers
- Tower Semiconductor: Enhanced Capacity and Technological Advancements in Silicon Photonics and RF-SOI Are Major Growth Drivers! – Financial Forecasts
- Check Point Software Technologies: Expansion of Infinity Platform and Large Deals Catalyzing The Top-Line Performance! – Major Drivers
StubWorld: PCCW’s Premium To NAV Is Unsustainable
- Continued stub losses are one thing. Ballooning PCCW Ltd (8 HK) parent debt is another.
- Preceding my comments on PCCW and HKT Ltd (6823 HK) are the current setup/unwind tables for Asia-Pacific Holdcos.
- .These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.
Nintendo (7974) | Game Over for Switch
- Nintendo missed Q1 with Operating income coming in at Y54.5b (-71% YoY) vs our estimate Y116b and the street at Y94b
- Switch 2 hardware and software units sold are now suffering from buyer fatigue as consumers await the next-gen console
- The stock will likely fall quite sharply over the next week. Looking for good buying opportunity in anticipation of the next console cycle
Intel Q224 Meltdown. Don’t Say We Didn’t Warn You…
- Q224 revenues of $12.8 billion, in line with their updated May outlook, ~flat QoQ and down 1% YoY.
- Gross margin (non-GAAP) was 38.7%, down 1.1 points YoY but down a whopping 4.8 points from the April outlook.
- Shares tanked >24% in after hours trading. What’s really going on at Intel?
Asian Dividend Gems: KT Corp
- We have a Positive view of KT Corp (030200 KS) due to three main reasons.
- First, KT has started to implement aggressive capital return policy (returning 50% of net income through dividends and share buybacks/cancellations). Two other reasons include Corporate Value Up and higher Smartscore.
- KT Corp has been the best performing stock among the three major Korean telcos in the past one year. KT Corp’s shares are up 27.9% in the past one year.
Toyo Business Engineering (4828 JP): Q1 FY03/25 flash update
- Orders were JPY4.7bn (-4.5% YoY) and revenue was JPY5.0bn (+7.2% YoY), reaching a record high.
- Operating profit was JPY1.2bn (+16.7% YoY) with an OPM increase of 1.9pp to 23.2%.
- mcframe license revenue was JPY1.3bn (+22.0% YoY), breaking the record high for the Products business.
Tenable Holdings Is Exploring A Sale! 4 Reasons It Makes A Decent Acquisition Target At THIS Valuation! – Major Drivers
- Tenable Holdings has been in the news after reports suggested that the management is exploring strategic alternatives including a potential sale.
- The company delivered a mixed performance for Q2 2024, with lower-than-predicted Calculated Current Billings (CCB) but stronger performance in revenue and earnings.
- Although the performance of the company’s flagship Cyber Exposure platform, Tenable One, and its cloud security offerings were both highlighted as central growth drivers, it was noted that the traditional Vulnerability Management (VM) market, in which the company is a leader, has become increasingly cyclical.
Tower Semiconductor: Enhanced Capacity and Technological Advancements in Silicon Photonics and RF-SOI Are Major Growth Drivers! – Financial Forecasts
- Tower Semiconductor posted a solid financial performance for the second quarter of 2024, showcasing revenue of $351 million and a net profit of about $53 million, translating to a net margin of approximately 15%.
- Notably, the company achieved sequential quarterly revenue growth as previously targeted and forecasts continued growth with a third-quarter revenue guidance of $370 million, plus or minus 5%.
- The commitment to driving innovation and expanding market leadership was evident throughout the period.
Check Point Software Technologies: Expansion of Infinity Platform and Large Deals Catalyzing The Top-Line Performance! – Major Drivers
- Check Point Software reported solid financial results for the recent quarter, showcasing moderate growth across key financial metrics.
- The company achieved a 7% increase in revenues, reaching $627 million, which exceeded the midpoint of its projected range.
- Additionally, non-GAAP earnings per share (EPS) grew by 8% to $2.17, reflecting Check Point Software’s ability to manage costs effectively while navigating a challenging market environment.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
