In today’s briefing:
- Renesas 1Q25: Cheap Stock That’s Bottoming Out
- HK Connect SOUTHBOUND Flows (To 25 Apr 2025); First Net Sell in Ages, Led by Heavy SOE Selling
- Sage Group Plc: Initiation of Coverage- Network Services and Automation Expansion Can Fuel A Revenue Surge Across Regions!
- Inside TSMC’s Explosive Growth: AI Demand Soars, Tariffs Loom, and a $165 Billion U.S. Gamble!
- Auto Trader Group: Initiation of Coverage- 6 Major Game-Changers Impacting Its 2025 Performance & Beyond!
- Verizon Communications: Expanding Fixed Wireless Access (FWA) Solutions To Change The Game!
- EToro IPO Preview: High Crypto Exposure, CopyTrader Technology Is Not “Deep Tech”
- Pegasystems Incorporated: Is The Pega Cloud ACV Growth Here To Stay?
Renesas 1Q25: Cheap Stock That’s Bottoming Out
- Revenues are still declining by ~teens% YoY but margins shows signs of improvements as end-demand improves and utilization is low.
- Renesas doesn’t have an inventory problem and increasing revenues will lead to higher utilization and higher margins.
- As Renesas is showing signs of a bottom, the stock is very cheap, trading at -2 standard deviations or 11x 2025 EPS, 9x 2026 EPS.
HK Connect SOUTHBOUND Flows (To 25 Apr 2025); First Net Sell in Ages, Led by Heavy SOE Selling
- Q1 saw record quarterly inflows by SOUTHBOUND investors at HK$435bn, beating the previous record of Q1 2021 by more than HK$100bn. The first three weeks in April were HK$168bn.
- The fourth week (this past week) saw net outflows on low volume as SOUTHBOUND investors sold SOEs quite heavily.
- 9 of the top 10 Net Sells as % of Volume this past week had China, Beijing, or Shanghai as the first word in their name.
Sage Group Plc: Initiation of Coverage- Network Services and Automation Expansion Can Fuel A Revenue Surge Across Regions!
- Sage Group PLC recently reported a successful year, demonstrating notable growth and a solid financial performance.
- The company’s annual recurring revenue (ARR) increased for the third consecutive year, with a 11% rise to GBP 2.3 billion.
- This growth was balanced between new and existing customers, reflecting effective customer retention strategies and upsell accomplishments.
Inside TSMC’s Explosive Growth: AI Demand Soars, Tariffs Loom, and a $165 Billion U.S. Gamble!
- Taiwan Semiconductor Manufacturing Company (TSMC) posted a strong set of first-quarter 2025 results, reinforcing its leadership position despite an increasingly complex global backdrop.
- The company reported a 60% surge in profit to NT$361.56 billion ($11.12 billion), comfortably beating analyst forecasts.
- Revenue rose 42% year-over-year to NT$839.25 billion ($25.53 billion), although it marked a sequential decline of 5.1% in U.S. dollar terms due to seasonal softness in smartphone demand.
Auto Trader Group: Initiation of Coverage- 6 Major Game-Changers Impacting Its 2025 Performance & Beyond!
- Auto Trader Group reported its half-year results for the period ending September 30, 2024, demonstrating a mix of robust performance indicators and notable challenges.
- During this period, the company attained record levels of platform engagement, significantly surpassing nearest competitors in consumer involvement.
- Moreover, Auto Trader made a promising start in monetising its Deal Builder product, although hurdles in translating market engagement into higher stock levels impacted overall revenue performance.
Verizon Communications: Expanding Fixed Wireless Access (FWA) Solutions To Change The Game!
- Verizon Communications Inc. presented its first-quarter results for 2025, indicating a strong start to the year with robust financial performance.
- The company recorded a 2.7% increase in wireless service revenue, meeting the high end of its guidance range, and reported an all-time high adjusted EBITDA of $12.6 billion, marking a 4% growth.
- Free cash flow improved by over $900 million, which supports its capital allocation priorities, including debt reduction and dividend growth, setting a positive tone as Verizon navigates a complex economic environment.
EToro IPO Preview: High Crypto Exposure, CopyTrader Technology Is Not “Deep Tech”
- EToro Group Ltd., a social investment network and trading-app provider, plans to raise up to $400M in upcoming US IPO.
- Israeli social trading platform was valued at ~$10B during a planned merger with a publicly-listed SPAC in 2022. However, the SPAC deal collapsed.
- EToro launched copy trading services in 2010 and made a big bet on crypto segment. Revenue from cryptoassets accounted for ~96% of total revenue and income in 2024.
Pegasystems Incorporated: Is The Pega Cloud ACV Growth Here To Stay?
- Pegasystems Inc. delivered a strong performance in the first quarter of 2025, highlighted by significant growth in annual contract value (ACV) and impressive cash flow results.
- ACV increased by $74 million, marking over 13% year-over-year growth.
- This was largely driven by robust adoption of the Pega GenAI Blueprint, which has revolutionized how the company engages with clients and partners by allowing rapid demonstration of Pega’s platform capabilities.
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