USA: Core Producer Prices Soft on Net in July; Lowering July Core PCE Tracking to +0.14%
Goldman Sachs· 2024-08-14 03:00
13 August 2024 | 9:39AM EDT USA: Core Producer Prices Soft on Net in July; Lowering July Core PCE Tracking to +0.14% BOTTOM LINE: The producer price index (PPI) increased by somewhat less than expected in July. Relative to expectations, core producer price inflation was soft on net, with the PPI excluding food and energy remaining unchanged (vs. consensus) +0.2%) and the PPI excluding food, energy, and trade services increasing 0.3% (vs. consensus +0.2%). Based on details in the PPI report, we now estimate ...
UroGen Pharma (URGN.US)2Q24 Recap: Jelmyto sales flat; operating expenses edge higher ahead of NDA completion
Goldman Sachs· 2024-08-14 03:00
Investment Rating - The report maintains a Neutral rating on UroGen Pharma (URGN) with a 12-month price target of $22, indicating a potential upside of 51.6% from the current price of $14.51 [42][43]. Core Insights - UroGen Pharma's Jelmyto sales remained flat year-over-year at $21.8 million, slightly below estimates, with challenges related to Medicaid/Medicare discounting impacting revenue guidance for FY24 [2][42]. - The company is focused on completing the rolling NDA submission for UGN-102, with expectations for priority review and potential commercialization in early 2025 [2][42]. - Management expressed confidence in the company's capitalization to reach profitability as it launches UGN-102 and advances its pipeline, despite caution regarding UGN-102's ability to replace TURBT surgery in the near term [2][42]. Financial Summary - UroGen Pharma reported total operating expenses of $184.9 million for 2Q24, slightly above expectations, driven by pre-commercial manufacturing costs for UGN-102 and increased R&D expenses for UGN-103 [2][42]. - The gross margin improved to 90.1%, while R&D expenses increased by 7.1% year-over-year [15][42]. - The company anticipates revenue growth, with projections of $95 million to $102 million for FY24, contingent on the uptake of Jelmyto and the successful launch of UGN-102 [2][42]. Model Adjustments - The report updates its model to reflect actuals from 2Q24 and adjusts near-term operating expense assumptions based on recent trends [2][42].
UOL Group (UTOS.SI):1H24 slightly below,Executing on divestment and asset enhancement initiatives despite weaker resi; Buy
Goldman Sachs· 2024-08-14 03:00
13 August 2024 | 9:16PM SGT UOL Group (UTOS.SI): 1H24 slightly below: Executing on divestment and asset enhancement initiatives despite weaker resi; Buy UOL reported 1H24 core Patmi of S$143m, +8% YoY and slightly below at 39%/43% of GSe/IBES consensus. Revenue was -7% YoY with lower residential sales partially offset by higher investment and hotel revenue, and EBITDA +3% on higher contribution from commercial/hotel segments. While residential sales and contribution remain weak, commercial portfolio saw str ...
Thyssenkrupp Nucera (NCH2.US)A quarter of strong delivery, but lack of visibility on new green hydrogen orders weighs on forecasts
Goldman Sachs· 2024-08-14 03:00
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 ...
TOTVS SA (TOTS3.SA) Updating Estimates Post~2Q24
Goldman Sachs· 2024-08-14 02:59
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 ...
Ulvac (6728.T) Earnings Review: 4Q above expectations; mixed business environment for FY6/25, but management says medium~term plan targets within reach; Buy
Goldman Sachs· 2024-08-14 02:59
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].
Tencent Music Entertainment Group (TME.US):First take,2Q24 in~line, healthy music growth and record high GPM of 42%; Buy
Goldman Sachs· 2024-08-14 02:59
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].
TBO Tek Ltd. (TBOT.BO) 1QFY25 in line; Sector~leading growth to sustain despite near~term travel weakness; Buy
Goldman Sachs· 2024-08-14 02:59
14 August 2024 | 6:11AM IST Buy | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------|-------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------|-------|---------------------------------------------------------------------------------------|----------|----------|---------------------------------------------------------------------|----------- ...
The 720: Sea Ltd, Taiwan ODM, Asics, TME, Wanhua, China TSF, Global Market Views
Goldman Sachs· 2024-08-14 02:59
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 ...
Taiwan ODM: AI server timeframe re~calibrating adds uncertainties in 2H24; general servers and PCs in recovery; 2Q24 / July review
Goldman Sachs· 2024-08-14 02:59
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 ...