In today’s briefing:
- Black Sesame Pre-IPO: Earnings Show Strong Potential
- Lululemon: Underestimated Is An Understatement
- Amazon: Monetary Conditions Are In The Driver’s Seat And Higher Margins Are Already Priced-In
Black Sesame Pre-IPO: Earnings Show Strong Potential
- Chinese autonomous driving chip maker (SoCs) Black Sesame Technologies (BLACKSES HK) has filed for HKEx IPO and plans to raise around US$200m which will be spent on R&D and commercialisation.
- According to Frost & Sullivan, Black Sesame was ranked the third largest provider of automotive- grade high computing power SoCs, based on shipment in 2022.
- The company is in early stages of commercialisation, and the top line has expanded significantly in 2022 with launch of SoCs in 2021. Black Sesame’s earnings show significant growth potential.
Lululemon: Underestimated Is An Understatement
- The company’s international sales growth is somewhat of a hidden asset, as the arena is underserved.
- Lululemon’s regional brand exposure is expanding with new store openings.
- The stock is theoretically undervalued, which is why the stock is undervalued.
Amazon: Monetary Conditions Are In The Driver’s Seat And Higher Margins Are Already Priced-In
- Amazon has significantly underperformed the broader equity market, in spite of the recent rally.
- The narrative for generative AI is strong, but the share price is currently driven by other factors.
- Margin improvements are being priced-in, which significantly limits any potential upside, without monetary conditions becoming supportive.
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