Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: TIM S.A. Sponsored ADR (TIMB) - TIMB currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The stock has a Zacks Rank of 1 (Strong Buy), suggesting a favorable outlook based on historical performance [3] Performance Metrics - Over the past week, TIMB shares increased by 2.31%, outperforming the Zacks Wireless Non-US industry, which rose by 1.36% [5] - In a longer timeframe, TIMB's monthly price change is 4.33%, compared to the industry's 1.77% [5] - Over the last quarter, TIMB shares have risen by 8.95%, and over the past year, they have increased by 62.13%, while the S&P 500 has only moved 3.76% and 14.96%, respectively [6] Trading Volume - TIMB's average 20-day trading volume is 433,489 shares, which serves as a baseline for price-to-volume analysis [7] Earnings Outlook - In the past two months, two earnings estimates for TIMB have been revised upwards, increasing the consensus estimate from $1.40 to $1.52 [9] - For the next fiscal year, one estimate has moved upwards with no downward revisions [9] Conclusion - Considering the strong performance metrics and positive earnings outlook, TIMB is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a potential candidate for near-term investment [11]

Industry Overview - The Zacks Wireless Non-US industry is facing challenges such as high capital expenditures for infrastructure upgrades, margin erosion, supply-chain disruptions, and geopolitical conflicts, but healthy demand trends in the digital age are expected to benefit the industry long-term [1][4] - The industry includes mobile telecommunications and broadband service providers that offer voice services, IoT solutions, content streaming, and various IT services [3] Current Challenges - Increased infrastructure spending has compromised short-term margins due to aggressive promotional expenses and a decline in linear TV subscribers, leading firms to diversify from legacy telecom services [4] - High raw material prices and geopolitical tensions have affected profitability, with price-sensitive competition expected to intensify [6] Future Prospects - Companies like América Móvil, Telia, and TIM are positioned to benefit from rising demand for scalable infrastructure and accelerated 5G deployment [2] - The industry has outperformed the S&P 500 and the broader Zacks Computer and Technology sector, gaining 43.1% over the past year compared to 16.3% and 27.3% respectively [9] Valuation Metrics - The industry has a trailing 12-month Price/Book ratio of 1.13X, significantly lower than the S&P 500's 8.33X and the sector's 10.31X [12] Notable Companies - **América Móvil**: Leading telecommunications provider in Latin America, with a 54.1% stock gain over the past year and a Zacks Rank 1 (Strong Buy) [15] - **Telia**: Provides mobile services in Northern Europe, with a 39.3% stock gain and a Zacks Rank 3 (Hold) [18] - **TIM**: Focused on 5G rollout in Brazil, with a 63% stock gain and a Zacks Rank 1 (Strong Buy) [20]

Core Points - Major European telecom companies are urging the European Commission to relax merger rules to boost investment in digital infrastructure and enhance competitiveness against US and Asian rivals [1] - The CEOs of Deutsche Telekom, Orange, Telefónica, TIM, Vodafone, Nokia, and Ericsson have expressed their concerns in a joint letter to the Commission President, highlighting the need for bold actions to address scale requirements [1] - The upcoming Digital Networks Act, expected to be proposed in November, aims to promote the development of digital infrastructure in Europe, but has faced internal opposition within the European Commission [1] Group 1 - European telecom companies are advocating for changes in merger regulations to facilitate investment [1] - The Digital Networks Act is seen as a critical opportunity for the industry to enhance competitiveness [1] - Internal opposition within the European Commission poses challenges to the proposed legislation [1]

Core Insights - The article emphasizes the focus on value investing in Asia, particularly in Hong Kong, targeting stocks with significant discrepancies between market price and intrinsic value [1] - It highlights two main categories of investment opportunities: deep value balance sheet bargains and wide moat stocks, which are characterized by their strong competitive advantages [1] Group 1: Investment Strategy - The research service aims to identify deep value balance sheet bargains, such as net cash stocks and low price-to-book (P/B) ratio stocks [1] - It also seeks wide moat stocks, which are high-quality businesses with sustainable competitive advantages, often referred to as "Magic Formula" stocks [1] Group 2: Market Focus - The primary focus is on the Asian equity market, with a particular emphasis on opportunities listed in Hong Kong [1] - The service provides monthly updates and watch lists to keep investors informed about potential investment opportunities [1]

Financial Data and Key Metrics Changes - The company achieved a 5.2% year-over-year increase in service revenues for the first nine months of 2025, with EBITDA rising 6.7% year-over-year and a net income increase of 42.2% year-over-year [4][5] - Operational cash flow reached BRL 4.5 billion, reflecting a disciplined approach to capital expenditures [4][14] - The company announced BRL 1.8 billion in interest on capital and repurchased BRL 369 million in shares, emphasizing its commitment to shareholder remuneration [5][13] Business Line Data and Key Metrics Changes - Mobile service revenues increased by 5.6% annually over nine months and 5.2% in the third quarter, driven by postpaid expansion [5] - The postpaid segment added 415,000 lines, with a low churn rate of 0.8%, while prepaid showed signs of stabilization [5][7] - Broadband ARPU was reported at BRL 94 in the third quarter, with a 3.7% year-over-year growth in the client base [7] Market Data and Key Metrics Changes - The company has expanded its 5G network to 1,000 cities across Brazil, maintaining leadership in download speed and network quality [7][8] - The competitive environment in mobile remains rational, with no significant disruptions from smaller players [26][56] Company Strategy and Development Direction - The company is focused on innovation, customer experience, and operational excellence to drive sustainable growth [4] - The B2B segment is a key aspect of the strategic plan, with a focus on expanding revenue streams through IoT solutions and partnerships, such as with Vale for TIM Smart Mining [10][11] - The company aims to maintain a disciplined approach to costs and leases while enhancing shareholder returns through buyback programs [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 goals and continuing to deliver value through strong performance in mobile postpaid and B2B segments [15] - The company anticipates a balanced growth strategy, with expectations for improvements in prepaid and broadband segments [15][19] Other Important Information - The company was recognized in the top 10 of the FTSE & Russell Diversity and Inclusion Index, highlighting its commitment to ESG practices [5] - The Revamp My Team app has over 17.7 million unique users, driving digital engagement and e-commerce growth [8][9] Q&A Session Summary Question: Mobile service revenues deceleration - Management noted that the deceleration in mobile service revenues is consistent with seasonal patterns and not primarily driven by competition, with a focus on maintaining postpaid growth [18][19] Question: Competitive environment and price adjustments - The competitive environment remains positive, with plans for potential price adjustments in the postpaid segment in the upcoming year [26][27] Question: Lease efficiency plan and partnerships - The company is in discussions with partners to enhance lease efficiency, aiming to keep lease costs stable while expanding coverage [30][33] Question: Fiber business and customer acquisition - Improvements in customer acquisition quality and churn management have contributed to positive net additions in the fiber business [39][40] Question: B2B and IoT growth opportunities - The company is focusing on specific verticals for B2B growth, with plans to expand its portfolio of solutions and enhance customer relationships [50][51] Question: Operating cash flow growth and revenue guidance - Management confirmed guidance for operating cash flow growth, emphasizing a stable competitive environment for mobile services [58][56] Question: Price increase magnitude and base affected - Price adjustments have been made for both control and pure postpaid customers, with further adjustments being assessed for the next year [64][65]

Financial Data and Key Metrics Changes - The company achieved a 5.2% year-over-year increase in service revenues for the first nine months of 2025, with EBITDA rising 6.7% year-over-year and a net income increase of 42.2% year-over-year [4][5] - Operational cash flow reached R$ 4.5 billion, with a disciplined approach to CapEx maintaining investment efficiency [4][14] - The company announced R$ 1.8 billion in interest on capital and repurchased R$ 369 million in shares, reinforcing its commitment to shareholder remuneration [5][13] Business Line Data and Key Metrics Changes - Mobile service revenues increased by 5.6% annually over nine months, with postpaid expansion being a key contributor [5] - The broadband segment showed operational improvements, with broadband ARPU at R$ 94 in the third quarter and a 3.7% year-over-year growth in the client base [7] - The B2B segment is expanding, with IoT solutions covering 23.5 million hectares and generating R$ 435 million in contracted revenues since Q1 2024 [10][11] Market Data and Key Metrics Changes - The company has the broadest 4G and 5G coverage in Brazil, with 5G now available in 1,000 cities [7] - The competitive environment in mobile remains rational, with no significant disruptions from smaller players [26] Company Strategy and Development Direction - The company is focused on innovation, customer experience, and operational excellence to drive sustainable growth [4] - The strategy includes a "more-for-more" approach to optimize the cost-benefit equation and enhance value propositions [6] - The company aims to maintain strong performance in mobile postpaid and B2B segments while continuing to recover prepaid and broadband [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 goals and delivering value through strong performance in mobile postpaid and B2B segments [15] - The company anticipates a stabilization in prepaid and broadband segments, with improvements expected in top-line growth [20] Other Important Information - The company reached the top 10 of the FTSE & Russell Diversity and Inclusion Index, highlighting its commitment to ESG practices [5] - The Revamp My Team app has over 17.7 million unique users, driving digital engagement and e-commerce growth [8] Q&A Session Summary Question: Mobile service revenues deceleration - Management noted that the deceleration in mobile service revenues is consistent with seasonal patterns and not heavily influenced by competition [18][19] Question: Competitive environment and price adjustments - The competitive environment remains positive, with plans for potential price adjustments in the postpaid segment next year [26][27] Question: Lease efficiency plan and partnerships - The company is in discussions with partners regarding lease efficiency, aiming to keep lease costs stable while expanding coverage [31][33] Question: Fiber business and customer acquisition - Improvements in customer acquisition quality and churn management have led to positive net additions in the fiber business [39][40] Question: B2B and IoT growth opportunities - The company is focusing on specific verticals for B2B growth, with ambitions to expand its portfolio of solutions [50][51] Question: Operating cash flow growth rate - Management confirmed guidance for operating cash flow growth, expecting it to align with previous forecasts [58][59] Question: Price increase magnitude and base affected - The company implemented price adjustments for both control and pure postpaid customers, with plans to explore further adjustments in the next quarter [64][65]

Financial Data and Key Metrics Changes - The company achieved a 5.2% year-over-year increase in service revenues for the first nine months of 2025, with EBITDA rising 6.7% year-over-year and a net income increase of 42.2% year-over-year [3][4] - Operational cash flow reached R$ 4.5 billion, with a disciplined approach to CapEx maintaining investment efficiency [3][11] - The company distributed R$ 1.8 billion in interest on capital and repurchased R$ 369 million in shares, reinforcing its commitment to shareholder remuneration [4][11] Business Line Data and Key Metrics Changes - Mobile service revenues increased by 5.6% annually over nine months, with postpaid expansion being a key contributor [4] - The company added 415,000 postpaid lines in the quarter, with a low postpaid monthly churn rate of 0.8% [4][5] - TIM Ultrafibra showed operational improvements, with broadband ARPU at R$ 94 in the third quarter and a 3.7% year-over-year growth in the client base [5] Market Data and Key Metrics Changes - The company has expanded its 5G network to 1,000 cities across Brazil, leading in download speed and network quality [5][6] - The competitive environment in mobile remains rational, with the company planning price adjustments for the next year [21][22] Company Strategy and Development Direction - The company is focusing on innovation, customer experience, and operational excellence to drive sustainable growth [3] - The B2B segment is a key aspect of the strategic plan, with a focus on expanding revenue streams through IoT solutions and partnerships [8][41] - The company aims to maintain its leadership in network quality while expanding its service offerings [6][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 goals and emphasized the importance of mobile postpaid and B2B segments for future growth [12] - The company anticipates continued recovery in prepaid and broadband segments, with a focus on efficiency and shareholder returns [12] Other Important Information - TIM was recognized in the top 10 of the FTSE & Russell Diversity and Inclusion Index, highlighting its commitment to ESG practices [4] - The Revamp My Team app has over 17.7 million unique users, driving digital engagement and e-commerce growth [6][7] Q&A Session Summary Question: About mobile service revenues and competition - Management noted that the slight deceleration in mobile service revenues is consistent with seasonal patterns and not heavily influenced by competition [15][16] Question: Competitive environment and potential price increases - The competitive environment remains positive, with plans for price adjustments in the next year [20][22] Question: Lease efficiency plan and expected impacts - The company is in discussions with partners to optimize lease costs while expanding coverage [24][25] Question: Growth opportunities in B2B and IoT - Management highlighted the focus on specific verticals like agro business and mining, with plans for organic and inorganic growth [40][41] Question: Operating cash flow growth and revenue guidance - Management confirmed guidance for operating cash flow expansion within the expected range [44][47] Question: Price increase magnitude and impact on customer base - The company implemented price adjustments for both control and pure postpaid customers, with plans to assess further adjustments in the next year [50][53]

Financial Performance - Service Revenue increased by 5.2% year-over-year in 9M25[9] - EBITDA grew by 6.7% year-over-year with a 50.3% margin in 9M25[9] - Net Income increased by 42.2% year-over-year, reaching R$ 3.0 Billion in 9M25[9] - Operating Cash Flow (OpCF) reached R$ 4.5 Billion in 9M25[9] Revenue Growth & Customer Base - Mobile Service Revenues grew by 5.6% year-over-year in 9M25[11] - Postpaid net adds increased by 414k in 3Q25, with Prepaid to Postpaid Migration YoY growth of 11.4%[13] - The number of cities with 5G coverage reached 1,000 in Brazil by October 2025[16] Efficiency & Cost Control - Capex on Revenues was 16.2% in 9M25, a decrease of 0.7 percentage points year-over-year[9] - Interactions through automatic channels increased by 1.4 percentage points year-over-year[33] - E-commerce sales grew by 20% year-over-year[33] B2B & IoT - Contracted revenue in B2B IoT reached R$ 435 Million since 1Q24[28] - Total hectares covered with 4G increased by 29.3% year-over-year, reaching approximately 23.5 Million hectares[28] Shareholder Returns - R$ 1.8 Billion was announced as Interest on Capital (IoC), and R$ 369 Million in shares were repurchased[9] - The company is set to meet the guidance of approximately R$ 2.1 to 2.3 Billion in IoC/Dividends[44]

Financial Performance - TIM S.A. reported net revenue of R$6,710,987 thousand for Q3 2025, an increase of 4.55% compared to R$6,418,943 thousand in Q3 2024[18] - The company's gross income for the quarter was R$3,685,333 thousand, up from R$3,459,563 thousand in the same period last year, reflecting a growth of 6.53%[18] - Net profit for the period reached R$1,207,705 thousand, representing a significant increase of 50% compared to R$805,026 thousand in Q3 2024[20] - Earnings per share for Q3 2025 were R$0.50, compared to R$0.32 in Q3 2024, marking a growth of 56.25%[18] - The company’s total comprehensive income for the period was R$1,207,705 thousand, consistent with the net profit for the period[20] - TIM S.A. reported a net profit of R$2,980,714 thousand for the period ended September 30, 2025, compared to R$2,105,669 thousand in the same period of 2024, reflecting a year-over-year increase of approximately 41.5%[21] - Normalized Net Income for Q3 2025 was R$1,208 million, a significant increase of 50.0% YoY [37] - Normalized net income for Q3 2025 was R$1,208 million, reflecting a 50.08% increase compared to R$805 million in Q3 2024[53] Assets and Liabilities - Total assets as of September 30, 2025, amounted to R$57,371,375 thousand, a rise from R$56,327,311 thousand at the end of December 2024[15] - Total liabilities increased to R$32,158,148 thousand from R$29,922,675 thousand, indicating a growth of 7.36%[16] - Current liabilities rose to R$14,678,541 thousand, compared to R$12,827,248 thousand in December 2024, showing an increase of 14.39%[16] - TIM S.A. reported a decrease in profit reserves from R$12,559,460 thousand in December 2024 to R$10,016,294 thousand as of September 30, 2025[16] - The company’s retained earnings increased to R$1,680,714 thousand as of September 30, 2025, compared to R$1,305,669 thousand in the previous year, indicating strong profitability retention[29] Cash Flow and Investments - The company’s cash and cash equivalents stood at R$3,673,535 thousand, up from R$3,258,743 thousand, reflecting an increase of 12.7%[15] - Cash generated by operations for the period was R$9,420,114 thousand, compared to R$7,900,062 thousand in the previous year, indicating an increase of approximately 19.2%[25] - The net cash used in investment activities was R$3,376,594 thousand for the period, slightly higher than R$3,256,358 thousand in the previous year, indicating continued investment in growth[27] - TIM S.A. maintained cash and cash equivalents at R$3,673,535 thousand at the end of the period, an increase from R$2,287,330 thousand in September 2024, reflecting improved liquidity[27] Revenue Streams - Service Revenue increased to R$6,534 million in Q3 2025, reflecting a 4.8% YoY growth, driven primarily by Mobile Services [37] - Mobile Service Revenue rose by 5.2% YoY to R$6,203 million in Q3 2025, with a record Mobile ARPU of R$33.1, up 4.6% YoY [38] - Clients Generated Revenue (CGR) grew by 6.3% YoY to R$5,819 million in Q3 2025, indicating strong revenue growth from both TIM and non-TIM customers [39] Customer Metrics - The Mobile Customer Base stood at 62,619,000, with a 9.0% increase in postpaid customers YoY [37] - TIM recorded 426,000 mobile net additions in Q3 2025, a significant increase compared to 163,000 in Q3 2024[79] - The prepaid segment saw a decline of 6.8% year-over-year, with 30.275 million users, while the postpaid segment grew by 8.0% to 32.344 million users[79] - The average revenue per user (ARPU) for postpaid customers was R$ 441, reflecting a 1.9% increase year-over-year[79] Operational Efficiency - Normalized Operating Expenses totaled R$3,242 million in Q3 2025, up 1.8% YoY, remaining below the inflation rate of 5.17% [46] - Normalized EBITDA for Q3 2025 reached R$3,469 million, a 7.28% increase year-over-year from R$3,236 million in Q3 2024[53] - Normalized EBITDA margin improved to 51.7%, up 1.3 percentage points from 50.4% in Q3 2024[53] - Operating free cash flow for Q3 2025 was R$1,820 million, a 4.5% increase from R$1,743 million in Q3 2024[66] Partnerships and Strategic Initiatives - The partnership with IHS Brasil aims to construct and operate up to 3,000 telecommunications towers, enhancing infrastructure for IoT projects [36] - The strategic partnership with Cartão de Todos generated over 1 million leads, with over 50% being complete and qualified registrations[75] - TIM's education services launched an exclusive AI course with Google, achieving 50,000 enrollments shortly after launch, contributing to a total of 250,000 enrolled users[74] - The partnership with Axia Energia expanded to nationwide coverage, focusing on renewable energy solutions for corporate clients[76] Market and Regulatory Environment - The Company is currently studying the potential impacts of the OECD Pillar Two legislation, which establishes a minimum tax rate of 15% for large corporate groups, effective from 2025[130][133] - The Company assessed the impact of the new accounting standards and did not identify any material impact on its quarterly information[123][127] Accounts Receivable and Inventory - Trade accounts receivable increased to R$5,132,439 thousand in September 2025 from R$4,815,750 thousand in December 2024, representing a growth of approximately 6.6%[173] - Total gross accounts receivable increased to R$5,809,910 thousand in September 2025 from R$5,486,319 thousand in December 2024, reflecting a growth of about 5.9%[173] - Total inventory increased to R$371,966 thousand in September 2025 from R$310,054 thousand in December 2024, marking a rise of about 19.9%[179]

Core Insights - First Financial Bankshares has appointed Tim Brown as Executive Vice President and Chief Information Officer, and CEO of First Technology Services, Inc. as part of its succession planning [1] - John Ruzicka, the former CIO, will transition to Chief Banking Operations Officer, focusing on enhancing the bank's backroom operations [1][3] Leadership Changes - Tim Brown brings over 35 years of technology innovation and operations experience, having previously worked at USAA and Johnson Financial Group, which positions him well for the bank's growth into a mid-size regional bank [2] - John Ruzicka has been with the company since 2018 and has significantly improved the bank's tech infrastructure and digital modernization [2][3] Company Overview - First Financial Bank is a wholly owned subsidiary of First Financial Bankshares, Inc., operating multiple banking regions with 79 locations across Texas [3]