In today’s briefing:
- Surging Buzz Around the Potential Split of Samsung Electronics
- Pony AI Pre-IPO – The Positives – Scaling up Robotaxi & Robotrucks
- Horizon Robotics IPO Trading – More than 55% of the Deal Taken up by Existing Shareholders
- Texas Instrument: Small Beat in 3Q24, Uninspiring 4Q Guidance, the Stock Is Very Expensive.
- Tech Supply Chain Tracker (24-Oct-2024): 2025+ global smartphone forecast.
- Pony AI IPO Preview: Small Scale and Early Stage Development. Is Exponential Growth Ahead?
Surging Buzz Around the Potential Split of Samsung Electronics
- We’re starting to see some local market players getting ready and setting up trades that bet on a potential split for Samsung Electronics.
- Samsung could leverage the buzz around spinning off its foundry business to split key units—foundry, memory chips, and others—into two or three separate companies at the shareholder meeting.
- Additionally, the valuation gap between Samsung Electronics and Biologics has narrowed more than it has in the last decade, making it an even more attractive opportunity.
Pony AI Pre-IPO – The Positives – Scaling up Robotaxi & Robotrucks
- Pony AI (PONY US) an autonomous mobility solutions provider, is looking to raise up to US$300m in its US IPO.
- As per Frost & Sullivan, Pony AI was among the first companies in China to obtain licenses to operate fully driverless robotaxis in all four Tier-1 cities in China.
- In this note, we talk about the positive aspects of the deal.
Horizon Robotics IPO Trading – More than 55% of the Deal Taken up by Existing Shareholders
- Horizon Robotics (9660 HK) raised around US$800m, including over-allocation, in its Hong Kong IPO.
- Horizon Robotics (HR) is a provider of advanced driver assistance systems (ADAS) and autonomous driving (AD) solutions for passenger vehicles, empowered by its proprietary software and hardware technologies.
- We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading updates.
Texas Instrument: Small Beat in 3Q24, Uninspiring 4Q Guidance, the Stock Is Very Expensive.
- TXN reported 3Q24 last night: EPS 7% above Consensus, small beat. However, 4Q guidance shows a delayed / tepid recovery: revenue to decline -6% YoY, EPS to decline -21% YoY.
- Industrial demand is still declining steeply -23% YoY, “hovering at the bottom”. Auto revenue -2% YoY with growth in China but rest of world is declining.
- The stock is trading at 31x 2025 and 25x 2026 Consensus EPS, way above its valuations range.
Tech Supply Chain Tracker (24-Oct-2024): 2025+ global smartphone forecast.
- Global smartphone shipments expected to increase beyond 2025, with OLED technology gaining popularity in tablets and notebooks while Mini LED becomes less preferred.
- Uncertainty over whether Trump will end TSMC’s subsidies for Arizona factory, impacting material suppliers benefiting from TSMC’s growth in 3Q24.
- PSMC chairman shifts from cautious approach towards India to optimism with new partnership with Tata, while Horizon Robotics’ Hong Kong IPO supported by Alibaba, Baidu, and TSMC for manufacturing.
Pony AI IPO Preview: Small Scale and Early Stage Development. Is Exponential Growth Ahead?
- Pony AI, a founder-led global autonomous driving company, filed for an IPO in the United States and may raise up to $300M on the Nasdaq exchange.
- The technology company operates fully driverless robotaxis (L4) in Beijing, Shanghai, Guangzhou and Shenzhen, Mainland China.
- Pony AI has raised ~$1.4B in equity financing from top-tier investors, including Toyota Motor, HongShan, IDG Capital, 5Y Capital, ClearVue Partners, and Eight Roads Ventures, among others.
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