In today’s briefing:
- WeRide Pre-IPO – The Positives – Large Monetisation Opportunity on the Horizon
- Amazon Q2 Earnings: Eyes on AWS Margins, Website Traffic, and Advancements in Chips
- WeRide Pre-IPO – The Negatives – Losses Have Widened, Still in the Early Stages of Commercialization
- Tech Supply Chain Tracker (02-Aug-2024): E Ink & Himax reveal color e-paper controller.
- Meta Surges 7% on Strong Q2 Report; Driven by Ad Growth, Q3 Forecast and AI Investments
- Freelancer – Using AI to enhance revenue and profit growth
- Ryoden Trading (8084 JP): Q1 FY03/25 flash update
- Softcreate Holdings (3371 JP): Q1 FY03/25 flash update
- Marubun Corp (7537 JP): Q1 FY03/25 flash update
- Hakuto Co Ltd (7433 JP): Q1 FY03/25 flash update
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WeRide Pre-IPO – The Positives – Large Monetisation Opportunity on the Horizon
- WeRide Corp (WER CH) is looking to raise around US$300m in its upcoming US IPO.
- WeRide provides autonomous driving products and services from L2 to L4 of driving automation.
- In this note, we will talk about the positive aspects of the deal.
Amazon Q2 Earnings: Eyes on AWS Margins, Website Traffic, and Advancements in Chips
- Amazon anticipates a 13% YoY rise in Q2 2024 revenue to $148.67 billion and a 58% YoY jump in EPS to $1.03, highlighting robust earnings.
- AWS is expected to see a $1 billion increase in quarterly revenue, reflecting an 18% year-over-year growth, driven by custom AI chips and model training services.
- Analysts have reaffirmed buy ratings for Amazon, with an average target price of $228, reflecting strong confidence in the company’s growth prospects.
WeRide Pre-IPO – The Negatives – Losses Have Widened, Still in the Early Stages of Commercialization
- WeRide Corp (WER CH) is looking to raise around US$300m in its upcoming US IPO.
- WeRide provides autonomous driving products and services from L2 to L4 of driving automation.
- In this note, we will talk about the not so positive aspects of the deal.
Tech Supply Chain Tracker (02-Aug-2024): E Ink & Himax reveal color e-paper controller.
- E Ink and Himax introduce new color e-paper controller to enhance display technology, offering improved visual experience.
- Taiwan’s Economic Minister outlines plans to boost global competitiveness, focusing on strategic initiatives to strengthen economy.
- Shanghai commits $13.7 billion investment in IC, AI, and biopharma industries, driving growth in technology sectors.
Meta Surges 7% on Strong Q2 Report; Driven by Ad Growth, Q3 Forecast and AI Investments
- Meta’s Q2 revenue of $39.1B surpassed expectations, up 22% YoY. EPS jumped 73% YoY to $5.16, beating estimates.
- Ad revenue within the Family of Apps rose 22% YoY, driven by online commerce and strong performance in Europe and the Rest of the World.
- Q3 revenue forecasted between $38.5B and $41B. Meta’s AI investments are set to enhance ad delivery and support long-term growth, despite increasing CapEx.
Freelancer – Using AI to enhance revenue and profit growth
Freelancer reported a mixed performance in H124, with Escrow.com volumes down significantly after a very strong Q123, while the Freelancer platform benefited from growth in the Loadshift business. There are several promising opportunities in the enterprise business, including providing AI model training services and integration into new verticals within Escrow.com, that could reinvigorate growth from H224. Management is focused on making incremental improvements to the core marketplace platform with the aim of encouraging clients to become regular users of the platform and expanding the size of projects.
Ryoden Trading (8084 JP): Q1 FY03/25 flash update
- Revenue decreased to JPY55.2bn (-13.1% YoY) with a progress rate of 25.2%; operating profit fell to JPY1.0bn (-42.6% YoY).
- Recurring profit dropped to JPY1.2bn (-28.4% YoY) with a progress rate of 17.3%; net income attributable to owners was JPY862mn (-20.8% YoY).
- Strong sales in North America and Europe, robust memory and sensor IC sales, but weak power device sales due to excess inventory.
Softcreate Holdings (3371 JP): Q1 FY03/25 flash update
- In Q1 FY03/25, revenue increased 6.7% YoY to JPY7.1bn, while operating profit decreased 15.1% YoY to JPY1.1bn.
- The EC Solutions business saw a 6.8% YoY rise in revenue to JPY4.0bn and a 5.8% YoY decline in operating profit.
- The IT Solutions business reported a 6.5% YoY revenue increase to JPY3.1bn and an 11.5% YoY decrease in operating profit.
Marubun Corp (7537 JP): Q1 FY03/25 flash update
- Net sales: JPY50.8bn (-15.9% YoY); Operating income: JPY2.6bn (-15.4% YoY); Ordinary income: JPY572mn; Profit: JPY429mn.
- Electronic Devices business: Net sales JPY40.6bn (-17.7% YoY); Operating income JPY2.7bn (-11.2% YoY); decreased semiconductor demand.
- Foreign exchange losses: JPY1.1bn due to yen depreciation; minor impact on consolidated earnings for FY03/25.
Hakuto Co Ltd (7433 JP): Q1 FY03/25 flash update
- Q1 FY03/25 results: Sales JPY42.4bn (-5.4% YoY), Operating profit JPY1.7bn (-13.1% YoY), Recurring profit JPY2.3bn (+30.6% YoY), Net income JPY1.5bn.
- Segment sales: Electronic Devices and Components JPY34.8bn (-3.1% YoY), Electronic and Electric Equipment JPY4.7bn (-18.0% YoY), Industrial Chemicals JPY2.8bn (-8.9% YoY).
- Segment profit: Electronic Devices and Components JPY1.6bn (+7.3% YoY), Electronic and Electric Equipment JPY127mn (-68.8% YoY), Industrial Chemicals JPY45mn (-75.5% YoY).