13 August 2024 | 8:31 PM SGT Asia-Pacific Portfolio Strategy: Asian equity market daily update: The MXAPJ Index was flat today. Indonesia and Philippines markets outperformed, while India and Australia markets underperformed. Within MXAPJ sectors, Info Tech and Comm Serv led while Health Care and Materials lagged. MSCI Japan rose 3.1% today. For a detailed analysis, please see Weathering summer storms, August 7, 2024. Exhibit 1: The MXAPJ index has gained 5.2% YTD after gaining 5% in 2023, particularly led ...

13 August 2024 | 10:10PM BRT Allos SA (ALOS3.SA): 2024 First Take:Improving Fundamentals; Income Statement Within Expectations Jorel Guilloty +55(11)3372-3522 jorel.quilloty@as.com Goldman Sachs do Brasil CTVM S.A. Our take: We expect Allos 2024 results to have a muted impact on shares. Net revenue and NOI came within expectations, while property EBITDA and FFO came slightly ahead driven by better SG&A. Fundamentals generally saw an improvement with occupancy rising 60 bps y/y to 96.3%. Occupancy cost saw a ...

13 August 2024 | 5:49AM EDT Americas Healthcare: Biotechnology: Boston Biotech Bus Tour - Day 1 takeaways We met with the management teams from LNTH, BPMC, KYMR, and RYTM during Day 1 of our Boston biotechnology bus tour. We offer our detailed takeaways below. Takeaways Lantheus Holdings (LNTH, Not Covered) We hosted Brian Markison (CEO), Paul Blanchfield (President), and Robert Marshall (CFO), as well as representatives of the company's investor relations team during our 2024 Boston Biotech Bus Tour. The c ...

13 August 2024 | 9:27AM EDT Americas Restaurants: SBUX appoints current CEO of CMG as new Chairman/CEO This morning, SBUX announced that Brian Niccol has been appointed chairman and chief executive officer, with the current CEO/chairman Laxman Narasimhan stepping down effective immediately. Mr. Niccol will join the company on September 9, with current CFO Rachel Ruggeri serving as interim CEO until then. CMG's Board of Directors has appointed Scott Boatwright, Chief Operating Officer, as Interim CEO. SBUX: ...

13 August 2024 | 7:45PM EDT Americas Energy Key learnings from earnings season that support The Future of Utilities Capex; Buy SRE, PWR The Future of Utilities Capex Explore > With second quarter earnings season now behind us, we reflect on key learnings that support The Future of Utilities Capex, our constructive view on Utilities, and our Buy rating on Quanta Services (PWR). We believe commentary from utilities continues to point to positive capital spending revisions as we look to the Fall and early 2025 ...

13 August 2024 | 11:07AM EDT Americas Agriculture: Proposed changes in LCFS Late Monday (8/12), the California Air Resources Board (CARB) proposed amendments to the Low Carbon Fuel Standard (LCFS), subject to a public hearing & vote on November 8th. This follows prior proposal amendments issued in December 2023 that had been scheduled for hearing & vote in February 2024 that was ultimately postponed. Key highlights of proposed changes 1) 9% step-down in 2025 CI reduction. CARB is proposing to modify the nea ...

Investment Rating - The report maintains a "BUY" rating for FIT Hon Teng with a new target price of HK$ 4.25, indicating an upside potential of 88.1% from the current price of HK$ 2.26 [4][12]. Core Insights - FIT Hon Teng reported strong 2Q24 results, with revenue of US$ 1,102 million, reflecting a 20% year-over-year increase, and a net profit of US$ 22.3 million, a significant improvement from US$ 0.35 million in 2Q23 [2][6]. - The company has raised its FY24E guidance for networking business revenue to high double-digit year-over-year growth, up from a previous estimate of 5-15% [2][12]. - The earnings growth is driven by the networking business and the EV segment, which saw a remarkable 231% year-over-year increase due to the Voltaira merger [2][6]. Financial Summary - Revenue projections for FY24E are set at US$ 4,677 million, with expected growth of 11.5% year-over-year, and net profit is projected to reach US$ 183.5 million, reflecting a 41.6% increase [3][10]. - The gross profit margin (GPM) is expected to improve to 20.6% in FY24E, with operating profit margin (OPM) targeted at 7.0% [8][10]. - The company anticipates a rebound in revenue and net profit for FY24E, with expectations of 12% and 42% year-over-year growth, respectively [2][12]. Segment Performance - The EV segment's revenue surged by 231% year-over-year, while the networking segment grew by 29% year-over-year, driven by strong AI demand [2][6]. - The smartphone segment also performed better than expected, benefiting from key customer shipment improvements [2][6]. Earnings Revision - The report indicates that FY25-26E EPS estimates are 13-23% above consensus, reflecting confidence in the company's growth trajectory [2][10]. - Adjustments to FY24-26E EPS have been made to account for higher gross profit margins, offset by increased operating expenses for new products [2][10]. Valuation - The stock is currently trading at 11.2x FY24E P/E and 6.9x FY25E P/E, which is considered attractive given the projected 42% and 63% year-over-year EPS growth for FY24 and FY25, respectively [2][12].

14 Aug 2024 CMB International Global Markets | Equity Research | Company Update FIT Hon Teng (6088 HK) 2Q24 in-line; Upbeat guidance on power busbar and liquid cooling order wins FIT Hon Teng posted a strong set of 2Q24 results, in-line with prior positive profit alert. Following our NDR call with mgmt., we are constructive on rapid expansion of Al server product portfolio: 1) power busbar and liquid cooling CDU products certified by customers (1-3% of FY24E sales), 2) sampling of backplane connector soluti ...

Investment Rating - Maintain BUY with a target price of US$16.00, representing a potential upside of 21.9% from the current price of US$13.13 [4][17]. Core Insights - TME reported a total revenue decline of 2% YoY to RMB7.16 billion in 2Q24, aligning with consensus estimates. However, non-IFRS net income increased by 22% YoY to RMB1.87 billion, exceeding expectations [2]. - The company aims for balanced growth in music subscribers and ARPPU in 2H24E, with management reiterating a long-term target of 150 million music subscribers and RMB15 in monthly ARPPU [2][3]. - TME's earnings CAGR is projected at +21% over FY24-26E, driven by core music revenue growth and gross profit margin (GPM) expansion [2]. Revenue and Profitability - Online music revenue grew by 28% YoY to RMB5.42 billion in 2Q24, accounting for 76% of total revenue. Subscription and non-subscription revenues increased by 29% and 24% YoY, respectively [2]. - The number of paying users rose by 18% YoY to 117 million, with a monthly ARPPU growth of 10% YoY to RMB10.7 [2][9]. - GPM expanded by 7.7 percentage points YoY to 42.0% in 2Q24, attributed to margin improvements in the online music business and enhanced monetization strategies [2][3]. Future Outlook - For 3Q24E, total revenue is expected to grow by 8% YoY to RMB7.06 billion, primarily driven by a 24% YoY increase in online music revenue, despite a projected 29% YoY decline in social entertainment revenue [2]. - Management anticipates a slower pace of music subscriber net additions (1.5-2.0 million per quarter) but expects continued QoQ growth in ARPPU, supported by the high-value Super VIP program [2][3]. - GPM is forecasted to further expand by 0.8 percentage points QoQ to 42.8% in 3Q24E, with FY24E non-IFRS net income projected to grow by 27% YoY to RMB7.50 billion [2][3]. Financial Summary - Revenue projections for FY24E are RMB28.415 billion, with adjusted net profit expected to reach RMB7.501 billion, reflecting a 26.6% increase [8][12]. - The company’s gross margin is anticipated to improve to 42.2% in FY24E, with operating margin at 30.0% [8][12]. - The P/E ratio is projected to decrease from 21.1x in FY24E to 15.3x in FY26E, indicating a favorable valuation trend [3][16].

Investment Rating - The report maintains a "BUY" rating for Q-Tech with a target price of HK$6.43, indicating a potential upside of 58.8% from the current price of HK$4.05 [5][20]. Core Insights - Q-Tech's 1H24 results showed a strong recovery with a revenue growth of 40% YoY, driven by robust demand in the smartphone market and improvements in gross profit margin (GPM) [2][15]. - The company is expected to benefit from high-end product upgrades, increased automotive camera module (CCM) sales, and ultrasound FPM upgrades in smartphones, which will drive average selling price (ASP) and GPM improvements in 2H24 and 2025 [3][20]. - The report slightly revises down FY24-25E EPS by 1-8% but still projects EPS to be 19-24% above consensus estimates [2][20]. Financial Summary - **Revenue**: - FY22A: RMB 13,759 million - FY23A: RMB 12,531 million - FY24E: RMB 16,196 million (29.3% YoY growth) - FY25E: RMB 17,628 million (8.8% YoY growth) [4][25] - **Net Profit**: - FY22A: RMB 170.2 million - FY23A: RMB 83.5 million - FY24E: RMB 355.8 million (335.3% YoY growth) - FY25E: RMB 533.2 million (49.9% YoY growth) [4][25] - **EPS**: - FY22A: 14.50 RMB cents - FY23A: 6.90 RMB cents - FY24E: 30.04 RMB cents - FY25E: 45.01 RMB cents [4][25] - **Margins**: - Gross Margin FY24E: 5.9% - Operating Margin FY24E: 3.5% - Net Margin FY24E: 2.2% [4][25] Shipment and Product Mix - Q-Tech reported strong shipments in 1H24 with smartphone CCM shipments growing 30% YoY and FPM shipments increasing by 100% YoY [2][15]. - The share of high-end products (32MP+) in sales rose to 49.2% in 1H24, with OIS and periscope CCM sales showing significant growth [2][3]. Valuation Metrics - The stock is currently trading at a P/E of 12.4x for FY24E and 8.3x for FY25E, which is considered attractive given the projected EPS growth of 335% and 50% YoY for FY24 and FY25, respectively [5][20]. - The report maintains a target price based on a 13x FY25E P/E, reflecting confidence in the company's growth trajectory [20].