Daily Brief United States: Ubiquiti Inc., Greenland Technologies Holdi, Pan American Silver and more

• UI June quarter (fiscal year end) showcased how investment in more inventory has led to Ubiquiti growing revenue and the return of gross margin above 40 percent
• UI reported revenue of $491.1 million for the June quarter compared to our forecast of $483.4 million. Ubiquiti having more product in stock on a regular basis led to outperformance
• Ubiquiti is now on pace to grow revenue again in fiscal 2024 with greater possibility of free cash flow compared to fiscal 2023

• Reported EPS of $0.18 on revenues of $3.6 million, up from $0.13 in 2Q22 and $0.11 in 1Q23.
• The performance was driven by increased traction in the recovering China/Asian market and higher-margin products contributing more to the overall revenue mix.
• Excluding the impact of FX headwinds, revenues would have been up 19% Y/Y.

Pan American Silver (PAAS) reported a significant increase in mineral reserves and resources estimates, for gold in particular, on the back of the Yamana transaction. Inclusive of MARA, Morococha and Jeronimo, the company’s total proven and probable (P&P) reserves grew 12% y-o-y to 577Moz of contained silver (Ag) and 259% to 13Moz of contained gold (Au). PAAS plans an extensive drilling and exploration campaign for 2023 in order to further upgrade and extend the resource base. While our financial estimates remain unchanged, we have slightly revised our valuation down to US$22.0/share to reflect the reported reserves and resources data.