13 August 2024 | 4:56PM CEST eutra Thyssenkrupp Nucera (NCH2.DE) A quarter of strong delivery, but lack of visibility on new green hydrogen orders weighs on forecasts NCH2.DE 12m Price Target: €10.50 Price: €8.48 Upside: 23.9% Thyssenkrupp Nucera reported 3Q24 results this morning (August 13th), with total revenue of €235.7mn, in line with the preliminary results, its highest quarterly revenue recorded thanks to the ongoing implementation of the CA and AWE projects, and positive operating income of €0.8mn t ...

13 August 2024 | 5:50PM BRT eutra TOTVS SA (TOTS3.SA) Updating Estimates Post-2024 TOTS3.SA 12m Price Target: R$34.00 Price: R$29.50 Upside: 15.3% We update our estimates to factor in the mostly-in-line 2Q24 results as well as updated macroeconomic assumptions. All in, we raise our 12-month price target to BRL34.00/share (up from BRL33.00) mainly on lower cost of capital, and maintain our Neutral rating. Overall, the solid ARR trends in 2Q corroborate the constructive view on revenue-growth drivers we prese ...

Investment Rating - The report maintains a "Buy" rating for Ulvac (6728.T) with a 12-month price target of ¥12,000, indicating an upside potential of 45.5% from the current price of ¥8,249 [1][6][9]. Core Insights - The earnings review for Ulvac shows that 4Q results exceeded expectations, with operating profits of ¥9.4 billion, significantly above estimates and guidance [1][6]. - Management has indicated that despite a mixed business environment, the medium-term targets remain achievable, with a forecasted 5% year-over-year increase in orders for FY6/25 to ¥270 billion [1][5]. - The company expects improvements in gross margins driven by sales growth and product mix enhancements, with management anticipating that 90% of the gross margin improvement will come from these factors [6][8]. Financial Summary - For FY6/24, total revenue is projected at ¥261.1 billion, with operating profits expected to reach ¥29.8 billion [2]. - The forecast for FY6/25 includes total revenue of ¥279.9 billion and operating profits of ¥35.4 billion, reflecting a positive growth trajectory [2][6]. - EPS estimates for FY6/25 are set at ¥517.5, increasing to ¥651.5 by FY6/26 [2][6]. Business Environment - The report highlights a mixed business environment, particularly in the semiconductor sector, with some delays in investment timing for growth areas, but overall, management remains optimistic about future growth [5][8]. - The company is focusing on market share gains in logic, memory chip, and power semiconductor equipment applications, which are expected to drive top-line growth [8][9]. Valuation and Risks - The valuation methodology suggests a target price based on FY6/26 earnings estimates and an EV/EBITDA multiple of 20X, reflecting the global SPE sector average [9]. - Key risks include slower-than-expected margin improvements and potential downturns in capital expenditures for flat panel displays [9].

Investment Rating - The report maintains a "Buy" rating for Tencent Music Entertainment Group (TME) with a 12-month price target of US$16.00 per ADS and HK$62.30 for 1698.HK, indicating an upside potential of 21.9% [7][10]. Core Insights - Tencent Music reported 2Q24 revenue largely in line with expectations, showing a slight year-over-year decline of 2% but a significant increase in non-GAAP operating profit by 39% year-over-year [2][4]. - The company achieved a record high gross profit margin (GPM) of 42%, reflecting an 8 percentage point increase year-over-year, driven by operating leverage from online music services and subscriber growth [4][8]. - The number of paying subscribers increased by 3.5 million quarter-over-quarter, with an average revenue per paying user (ARPPU) of RMB 10.7, marking a 10% year-over-year improvement [4][8]. Financial Performance Summary - **Net Revenues**: RMB 7,160 million, down 2% year-over-year, and slightly below Goldman Sachs estimates [4]. - **Online Music Revenues**: RMB 5,424 million, up 28% year-over-year, indicating strong growth in this segment [4]. - **Adjusted Net Income**: RMB 1,873 million, a 22% increase year-over-year, slightly above estimates [4]. - **Gross Margin**: Increased to 42%, surpassing expectations, with a target of 45% in the medium term [4][8]. - **Operating Expenses**: Remained disciplined, with total OPEX largely flat quarter-over-quarter, reflecting a focus on cost management [4][8]. Subscriber and Revenue Metrics - **Total Subscribers**: 117 million, with a year-over-year growth of 18% [4]. - **ARPPU**: RMB 10.7, showing a 10% increase year-over-year [4]. - **Quarterly Subscriber Growth**: Sustained momentum with 3.5 million net adds [4][8]. Market Outlook - The management's outlook for 3Q growth in subscribers and ARPU, along with profitability expansion, will be critical to watch [2][4].

14 August 2024 | 6:11AM IST Buy | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------|-------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------|-------|---------------------------------------------------------------------------------------|----------|----------|---------------------------------------------------------------------|----------- ...

Investment Ratings - Sea Ltd: Buy [2] - Asics: Buy [7] - Tencent Music Entertainment (TME): Buy [7] - Wanhua Chemical: Buy [8] - CP ALL: Buy [8] - BDMS: Buy [8] - Envicool: Buy [8] - Lotes: Downgrade to Neutral [9] Core Insights - Sea Ltd has improved growth outlook with FY24 GMV growth guidance raised to mid-20%, and Shopee expected to return to EBITDA positive from Q3 2024 [2] - Asics reported strong operating profits and expects orders for 1H25 to increase by over 20% due to continued demand [7] - TME is shifting focus to ARPPU growth, lowering net adds guidance but maintaining music revenue targets [7] - Wanhua Chemical's estimates revised down due to weaker margins but maintains a Buy rating based on expected recovery in polyurethane demand [8] - CP ALL showed healthy revenue growth and margin improvement, with a higher 12-month target price [8] - BDMS reported solid revenue growth but weaker margins, maintaining a Buy rating [8] - Envicool anticipates strong growth momentum in data center cooling, maintaining a Buy rating [8] - Lotes faces intensifying competition in server sockets, leading to a downgrade to Neutral [9] Summary by Relevant Sections Sea Ltd - Strong Q2 results with a significant stock reaction due to revised growth guidance [2] - E-commerce EBITDA loss narrowed, with Shopee Brazil achieving positive contribution margin for the first time [2] Asics - Operating profits for 1H12/24 were ¥59.0 billion, a 76% increase year-on-year [7] - July sales increased by 19% year-on-year, outperforming the company's 2H sales outlook [7] Tencent Music Entertainment (TME) - 2Q24 results were in line, but outlook for 2H24-2025 is mixed [7] - Management aims to maintain music revenue by increasing ARPPU [7] Wanhua Chemical - Revised EPS estimates down by 5-9% post 2Q24 results [8] - Anticipates a cyclical recovery in polyurethane demand over the next 12 months [8] CP ALL - 2Q24 PATMI of Bt6.2 billion, a 41% year-on-year increase [8] - Strong performance at CVS with robust revenue growth [8] BDMS - 2Q24 EPS of Bt0.21, a 9% year-on-year increase [8] - Revenue growth of 7% year-on-year, but EBITDA margin weaker than expected [8] Envicool - Solid 2Q24 results with expectations for strong growth in data center cooling [8] Lotes - Downgraded to Neutral due to rising competition in server sockets [9]

Investment Rating - The report assigns a "Buy" rating to several companies including ASUS, Quanta, and Gigabyte, while others like Compal and Pegatron are rated as "Neutral" [25]. Core Insights - The supply chain for AI servers is experiencing increased uncertainties regarding the launch timeline of new models, now expected to be late 2024 to early 2025, which may affect client order decisions [5][6]. - General servers are showing signs of recovery, with notable revenue increases reported by companies such as FIL and King Slide, indicating a positive trend in the sector [6][8]. - The report highlights a mixed outlook for PCs, with companies focused on commercial models expecting growth, while those with consumer model exposure anticipate a decline [6][8]. Summary by Sections AI Servers - The AI server market is facing uncertainties due to model revisions and delayed launches, impacting client order strategies [5][6]. - The expected launch of new AI server models has been pushed to late 2024 to early 2025, creating a cautious outlook for the second half of 2024 [5]. General Servers - Companies like FIL and King Slide reported significant year-over-year revenue growth of 16% and 92% respectively, indicating a recovery in general servers [6][8]. - The overall sentiment in the supply chain remains positive for growth in general servers during the second half of 2024 [6]. PCs - ODMs with a higher focus on commercial PCs are optimistic about a single-digit increase in global shipments for 2024, while those focused on consumer models expect flat to declining shipments [6][8]. - ASUS aims for a 15-20% quarter-over-quarter increase in PC shipments in Q3 2024, driven by Windows 11 and AI PCs [6]. Networking and Capacity Expansion - FII's networking revenues increased by 20% year-over-year in Q2 2024, surpassing expectations, driven by demand from CSP clients [7]. - Wistron announced a $214 million investment in capacity expansion for AI servers across multiple regions, reflecting positive trends in the AI server market [7]. Stock Recommendations - The report suggests that companies with a strong presence in general servers and commercial PCs, such as Hon Hai, FII, and Quanta, are likely to outperform during the upcoming product cycle [8].

14 August 2024 | 7:40AM HKT Sino Biopharmaceutical (1177.HK): Earnings Review: 1H results beat with margin improvements; Highlight potential in analgesia field; Buy 1H beats on expenses saving / one-off gains: 1H24 sales of Rmb15.9bn (+11% y/y vs GSe Rmb15.3bn) was better than our expectations, mainly coming from 1) strong growth in oncology (+19.5% y/y) benefited from smooth ramp-up of newly launched products including F-627 (G-CSF) and four biosimilar drugs (Rituxan/Humira/Avastin/Herceptin), 2) solid gro ...

13 August 2024 | 10:01PM IST SJVN Ltd. (SJVN.BO): First Take: Q1FY25 - Hydro generation normalisation drives YoY PAT growth against a weak base SJVN's Q1FY25 adjusted consolidated PAT of c.Rs3.6bn rose 37% YoY against a weak base. Hydro generation increased c.54% YoY, as water flow normalised after a weak Q1FY24, which should have resulted in no / minimum fixed cost under recovery this Q. Solar generation, though minuscule, was up 240% YoY, indicative of SJVN's push into renewable capacity addition. The ear ...

Investment Rating - Seven West Media (SWM) is rated **Sell** with a 12-month price target of A$0 14 [1][7] Core Views - SWM reported FY24 Sales/EBITDA/NPAT of A$1,415mn/A$187mn/A$78mn, representing declines of -5%/-33%/-47% YoY respectively [1] - Cash conversion remains weak with GOCF of A$77mn (41% of EBITDA), impacted by the ARN acquisition [1] - Net Debt to EBITDA increased to 1 6x (1 3x ex-ARN) [1] - No dividend was declared for FY24, and the share buyback program will not be renewed in FY25 due to advertising market uncertainty [1] - FY25 operating costs are expected to be between A$1,200-1,210mn, marginally higher than GSe estimates [1] - SWM's Sept/Oct bookings are down 4-5% YoY, with SMI TV revenues declining -8%/-12% in Sept/Oct [1] Financial Performance - FY24 total revenue was A$1,415mn, a 1% increase vs GSe estimates but a 5% decline YoY [1][5] - FY24 EBITDA was A$187mn, a 3% decline vs GSe estimates and a 33% decline YoY [1][5] - FY24 NPAT was A$78mn, an 8% decline vs GSe estimates and a 47% decline YoY [1][5] - FY24 EPS was 5 1¢ps, a 7% decline vs GSe estimates and a 45% decline YoY [5] Market Outlook - SWM's revenue environment is challenged, with 90% of revenues tied to the TV market, which is expected to face structural declines in audiences [6] - FY25 revenues are assumed to decline by 2% (TV + BVOD), with a flat total TV market and a 4% decline in the total FTA market [1] - The Olympics impacted July/August trading, but tougher comps are expected in Sept/Oct [1] Valuation and Forecasts - SWM's market cap is A$154 7mn, with an enterprise value of A$725 5mn [8] - FY25E revenue is forecasted at A$1,373 8mn, with EBITDA of A$182 9mn and EPS of 0 05¢ps [8] - The stock trades at a P/E of 2 8x and a P/B of 0 7x for FY24E [8]