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 ...

13 August 2024 | 8:34PM JST Ulvac (6728.T) Buy Earnings Review: 40 above expectations; mixed business environment for FY6/25, but management says medium-term plan targets within reach; Buy 6728.T 12m Price Target: ¥12,000 Price: V8,249 Upside: 45.5% 4Q above expectations; FY6/25 guidance also cleared market expectations 4Q6/24 operating profits of ¥9.4 bn, reported after the August 13 close, were well above our estimate of ¥7.3 bn, guidance of ¥2.6 bn, and the Bloomberg consensus of around ¥5.5 bn. 4Q order ...

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 | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------|-------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------|-------|---------------------------------------------------------------------------------------|----------|----------|---------------------------------------------------------------------|----------- ...

14 August 2024 | 7:25AM HKT The 720: Sea Ltd, Taiwan ODM, Asics, TME, Wanhua, China TSF, Global Market Views In Focus | Sea Ltd Sea Ltd - Better growth outlook & clarity on breakeven timeline - Buy. While Sea delivered a strong set of 2024 results overall, we believe the positive stock reaction (up c.10% intraday) largely came from the upward revision in FY24 GMV growth guidance to mid-20% with Shopee to return to EBITDA positive from 3Q24 (vs prior guidance: GMV growth at high teens, breakeven in 2H24). In ...

14 August 2024 | 1:10AM HKT ASUS 2024 is also supported by one-off license fees Taiwan ODM: Al server timeframe re-calibrating adds uncertainties in 2H24; general servers and PCs in recovery; 2Q24 / July review We spoke with the Taiwan ODM and Al servers supply chain post 2Q24 results and, overall, the supply chain turns more conservative on Al servers business in 2H24 considering the Al server model revisions, which could prolong the time of launch and add uncertainty to clients' reaction (whether to add o ...

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]

Investment Rating - The report assigns a "Sell" rating for Pandora (PNDORA.CO) [2][6]. Core Insights - Pandora demonstrated solid organic top-line growth of +15% in 2Q24, exceeding the Visible Alpha Consensus Data estimate of +12% [2]. - The company upgraded its FY24 organic revenue guidance to a midpoint of +9-12%, up from +8-10% previously [2]. - Despite the positive near-term performance, the report highlights increasing challenges for the second half of 2024, including tougher comparables, commodity margin pressures, and heightened expectations for operating leverage [2][3]. - The report notes that Pandora's current valuation is at a premium compared to historical multiples, trading at 15x PE versus a 10-year average of 13x [2][8]. Summary by Sections Financial Performance - Revenue for FY24 is forecasted at Dkr31,393.4 million, with EPS estimates revised to Dkr64.45 for FY24 [4][8]. - The report anticipates total revenue growth of 11.6% for FY24, with EBIT margins projected at 25% [4][8]. Market Trends - Current LFL (like-for-like) trading is reported at +MSD, with expectations for moderation in growth, particularly in Germany [3]. - The US market remains a key focus, with space growth driving performance, while LFL growth has moderated to +5% in 2Q24 [3]. Commodity Impact - Recent moderation in spot silver prices has led to a reduction in cumulative spot commodity impacts to -140bps, down from -220bps [3][7]. - Pricing strategies are highlighted as the most significant offset to commodity pressures, alongside cost efficiencies [7]. Product Performance - New product categories, including LG Diamonds and the Essence collection, have shown strong performance, with the Essence collection contributing approximately 3% to total sales [7][8]. - Core charm collections, however, have underperformed, growing only +1% [7]. Valuation and Price Target - The 12-month price target is set at Dkr1,060, reflecting slight organic growth upgrades and reduced commodity headwinds [8]. - The report emphasizes that despite brand momentum, the current valuation appears to be largely priced in, warranting a "Sell" rating [8].