In today’s briefing:
- BABA’s Babies: They’re All Grown Now! Weibo the Twitter of China
- Key Insights from Qualcomm’s Latest Data; Mediatek Taking Market Share?
- Tech Supply Chain Tracker (02-May-2024): Global changes affect Taiwan-China relations; business strategies evolve.
- Jusung Engineering: Announces Equity Spin Off + Physical Division Split
- Lam Research Corporation: NAND Market Recovery & Critical Opportunities That Lie Ahead! – Major Drivers
- Meta Platforms: How Will The Adoption of AI Tools and Strategic Bets Change The Game? – Major Drivers
- Fiserv Inc: What Are Its Biggest Core Strengths That Amplify Its Competitive Edge? – Major Drivers
- International Business Machines (IBM): What Is The Expected Impact Of Strategic Acquisitions Like HashiCorp & Software AG? – Major Drivers
- ServiceNow Inc: How Will The Adoption of GenAI Technology Impact Their Future Revenues & Profitability? – Major Drivers
- Spotify Technologies: Is It Able To Achieve The Necessary Growth through Audiobooks & Flexible Pricing Structures? – Major Drivers
BABA’s Babies: They’re All Grown Now! Weibo the Twitter of China
- Weibo (9898 HK) is an inexpensive profitable large social media company in China
- Weibo generates a large cash flow which it uses to pay a 9% dividend yield
- Weibo has synergies with Alibaba’s core e-commerce business and fits well within its other media company ecosystem
Key Insights from Qualcomm’s Latest Data; Mediatek Taking Market Share?
- Qualcomm’s latest earnings came in at the high end of guidance with automotive revenue surging and mobile steady. We analyze QCOM results’ key implications for Mediatek.
- Qualcomm’s 2024E global handset market volume guidance remained unchanged vs. last quarter; however we believe Mediatek may have taken some market share in CY1Q24.
- Qualcomm confirmed Mediatek’s view regarding high-end phone demand strength right now, with AI capabilities the likely driver. Combining QCOM + Mediatek color suggests an AI-driven handset upgrade cycle ahead.
Tech Supply Chain Tracker (02-May-2024): Global changes affect Taiwan-China relations; business strategies evolve.
- Geopolitical shifts are impacting Taiwanese businesses in China, leading to strategic adjustments and shifts in orders to specialty IC foundries.
- CHPT anticipates a surge in probe card orders in the second half of 2024, while SK Hynix expects high demand for HBM in 2025 with production nearly sold out.
- Meredot’s technology allows for micromobility vehicles and robots to charge wirelessly simultaneously, while Taiwan’s Compal will have its first foreign CEO in the electronics industry.
Jusung Engineering: Announces Equity Spin Off + Physical Division Split
- On 2 May, Jusung Engineering (036930 KS) announced an equity spin-off as well as a physical division split.
- We are negative on this combination of equity spin-off and physical division split of Jusung Engineering.
- After the two units are listed on 6 December 2024, it is likely that the semiconductor unit (Jusung Engineering Co) will rise while Jusung Holdings Co is likely to decline.
Lam Research Corporation: NAND Market Recovery & Critical Opportunities That Lie Ahead! – Major Drivers
- Lam Research Corporation delivered a strong start to 2024, with the Q1 earnings surpassing the midpoint of their guidance.
- Although the business environment prospers as predicted, the company acknowledges ongoing risks and uncertainties reflected in SEC public filings.
- The quarter witnessed stability in Lam’s overcall 2024 revenue profile, with spending mainly driven by lithography shipments into China and enduring investment in domestic China.
Meta Platforms: How Will The Adoption of AI Tools and Strategic Bets Change The Game? – Major Drivers
- Meta Platforms Inc.’s Q1 shows strong headway with an increase in both product momentum and business performance reaching an estimated 3.2 billion active users per day, showcasing healthy growth particularly in the US market.
- The performance of the associated messaging app, WhatsApp, has been highlighted, reporting a steady increase in daily active users and message sends in the US. Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
Fiserv Inc: What Are Its Biggest Core Strengths That Amplify Its Competitive Edge? – Major Drivers
- Fiserv has started the year on a high note.
- This promising start was partly due to strong financial performances characterised by a 19% rise in adjusted earnings per share and a 7% increase in adjusted revenue growth.
- Remarkably, this positive performance enabled the company to lift their adjusted earnings per share outlook to a range of $8.60 – $8.75 from the former range of $8.55 – $8.70, signalling anticipated growth of 14% to 16%.
International Business Machines (IBM): What Is The Expected Impact Of Strategic Acquisitions Like HashiCorp & Software AG? – Major Drivers
- International Business Machines Corporation’s Q1 2024 earnings demonstrated the company’s solid performance with good financial results across revenue and cash flow.
- These results indicate the quality of the company’s portfolio and its hybrid cloud and AI strategy.
- The software division performed well, with infrastructure showing strength.
ServiceNow Inc: How Will The Adoption of GenAI Technology Impact Their Future Revenues & Profitability? – Major Drivers
- ServiceNow had a strong first quarter in 2024, outperforming guidance on all top-line and profitability metrics.
- The company’s subscription revenue grew by 24.5% year-over-year on a constant currency basis.
- Current remaining performance obligations (CRPO) rose by 21% year over-year in constant currency, which was above the company’s guidance.
Spotify Technologies: Is It Able To Achieve The Necessary Growth through Audiobooks & Flexible Pricing Structures? – Major Drivers
- Spotify’s first-quarter 2024 earnings were marked by strong growth and a shift towards monetization and efficiency in operations.
- The company demonstrated solid performance with robust revenue growth, ongoing expansion in gross margin, and the most significant operating income to date.
- Spotify’s continued focus on increasing revenue while improving the bottom line resulted in an encouraging quarterly performance that exceeded expectations.
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