Core Viewpoint - Growth stocks have consistently outperformed value stocks over the years, and with ongoing bullish sentiment towards AI and other disruptive technologies, investing against growth may be risky [1] Group 1: Invesco S&P 500 Pure Growth ETF (RPG) - RPG, with $1.7 billion in assets, tracks the S&P 500 Pure Growth Index, which evaluates growth purity through metrics like momentum and three-year sales and earnings growth [2] - The ETF aims for growth purity by avoiding dilution from blend stocks or those with significant value traits, making it a more focused growth investment [2] - RPG is gaining attention as growth stocks continue to show strong performance, supported by Bank of America's recent upgrade of growth ETFs [3] Group 2: Market Trends and Investor Behavior - Bank of America upgraded its view on US large-cap growth ETFs from Neutral to Favorable, citing strong returns and significant inflows, while still expecting moderate relative returns between value and growth in the medium term [4] - Since 2022, growth ETFs have seen over $118 billion in inflows, significantly outpacing the $60 billion inflows into value ETFs during the same period, indicating a strong investor preference for growth [5] Group 3: RPG's Investment Characteristics - RPG has a 22.228% allocation to tech stocks, which is lower compared to traditional cap-weighted ETFs, and it limits individual holdings to a maximum of 2.86%, enhancing its diversification [6]

Summary of Tencent Holdings (0700.HK) 3Q25E Preview Company Overview - **Company**: Tencent Holdings (0700.HK) - **Reporting Date**: 3Q25 results to be reported on November 13, 2025 Key Industry Insights - **Gaming Sector**: - Anticipated strong performance driven by titles such as Delta Force and Peacekeeper Elite - Delta Force's daily active users (DAU) surpassed 30 million in September 2025, supported by promotional activities [3][12] - Tencent maintained a dominant position in mobile gaming, capturing 8 out of the top 10 grossing mobile games in China by the end of September 2025 [3][11] - **Advertising Sector**: - Marketing services revenue expected to sustain growth at approximately 20% year-over-year, aided by AI-powered ad technology and the growth of video accounts and mini shops [1][2] Financial Projections - **3Q25 Revenue Forecast**: - Total revenues projected to increase by 13.5% year-over-year to RMB 189.7 billion, with non-GAAP net profit expected to rise by 11% year-over-year to RMB 66.4 billion [2][10] - Online gaming revenues anticipated to grow by 17% year-over-year to RMB 60.6 billion, with domestic and international games expected to grow by 15% and 22% respectively [2][55] - **4Q25 Outlook**: - Potential offset of soft gaming seasonality by deferred revenues from previous quarters and marketing services revenue benefiting from e-commerce festivals [1][2] Core Financial Metrics - **Earnings Summary**: - 2025E Net Profit: RMB 255.3 billion, with a diluted EPS of RMB 27.596 [5][10] - Projected growth rates for sales revenue and core NPAT are 13.0% and 14.6% respectively for 2025 [10][55] Notable Game Titles and Performance - **Top Mobile Games**: - Honour of Kings (HoK) remains the top-grossing mobile game, followed by Delta Force, which has recently surpassed Peacekeeper Elite in grossing [12][17] - Delta Force's MAU reached 49.4 million in August 2025, indicating strong user engagement [20][21] - **New Game Releases**: - Tencent released four new titles in 3Q25, including Valorant Mobile, which performed well in downloads and grossing [48][51] - A solid pipeline of 96 mobile games is expected to support future revenue growth [52][55] AI and Technology Developments - **AI Integration**: - Tencent's Hunyuan 3D model has improved modeling accuracy by three times, with over 40% of new code generated by AI [4][1] - Continued growth in Tencent Cloud's international business, maintaining high double-digit growth over the past three years [4] Investment Recommendation - **Rating**: Maintain Buy - **Target Price**: HK$735, representing a potential upside of 12.8% from the current price of HK$651.50 [6][10] Conclusion - Tencent is positioned for a solid performance in 3Q25, driven by strong gaming revenues and advertising growth, with a robust pipeline of new games and advancements in AI technology. The company is expected to continue its leadership in the gaming sector while capitalizing on advertising opportunities.

Core Insights - Synopsys, Inc. has received regulatory approval to proceed with the sale of its Optical Solutions Group and PowerArtist businesses to Keysight Technologies as part of its acquisition of Ansys, completed on July 17, 2025 [1][2]. Group 1: Business Transactions - The divestitures of the Optical Solutions Group and PowerArtist businesses are required by regulatory authorities and are expected to be concluded around October 17, 2025 [1][2]. - These transactions are not material to Synopsys's financials, indicating that they will not significantly impact the company's overall financial performance [2]. Group 2: Company Overview - Synopsys, Inc. specializes in providing tools and services for the design and manufacture of semiconductor chips and electronic systems, focusing on electronic design automation (EDA) tools, silicon intellectual property (IP), simulation and analysis solutions, and design services [3].

Core Insights - Advanced Micro Devices, Inc. (NASDAQ:AMD) has formed a strategic partnership with OpenAI, which includes the deployment of 6 gigawatts of AMD GPUs over the coming years [1][2] - Goldman Sachs has maintained a price target of $210 and a Neutral rating for AMD, viewing the partnership as a substantial positive for the company [1][3] - The deal with OpenAI includes performance-based warrants allowing OpenAI to acquire up to 160 million shares of AMD, representing approximately 10% of the company [2] Financial Implications - AMD is expected to benefit from increased revenue and non-GAAP EPS as a result of the partnership with OpenAI [2] - Despite the positive outlook, Goldman Sachs has cited potential funding risks and high customer concentration in AMD's GPU datacenter business as concerns [3] Market Position - AMD operates in high-growth industries such as gaming, data centers, and AI, manufacturing GPUs, microprocessors, and high-performance computing solutions [3]

Financial Data and Key Metrics Changes - Annual recurring revenue (ARR) increased 20% to ZAR 4,806 million, and on a U.S. dollar basis, increased 21% to $272 million [4] - Total revenue of ZAR 1,344 million increased 21%, with subscription revenue of ZAR 1,182 million increasing 20% [7] - Operating profit increased 18% to ZAR 356 million, and adjusted earnings per share increased 13% to ZAR 8.28 [16][20] Business Line Data and Key Metrics Changes - Cartrack generated approximately ZAR 1.2 billion in subscription revenue, an increase of 20% [5] - Karooooo Logistics's delivery-as-a-service revenue reached ZAR 139 million, an increase of 38% [6] - Cartrack's operating profit margin was a healthy 29% in Q2 [9] Market Data and Key Metrics Changes - South Africa's subscription revenue growth accelerated to 18%, contributing 71% of total subscription revenue [10] - Southeast Asia and the Middle East subscription revenue growth increased 26%, with approximately 303,000 subscribers [11] - European subscription revenue accelerated to 27%, with approximately 216,000 subscribers [12] Company Strategy and Development Direction - The company focuses on expanding its distribution capabilities and enhancing customer engagement through video solutions and AI [14][21] - Strategic investments in sales capacity are aimed at accelerating organic growth and broadening the customer base [10][22] - The company prioritizes organic growth and innovation while maintaining a disciplined capital allocation strategy [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate healthy cash flow and sustain growth in an expanding market [21] - The company is encouraged by the strong performance and believes it is well-positioned for future growth due to robust customer demand [21][22] - Management acknowledged the challenges in scaling operations due to the need for sufficient teams to meet demand [24][26] Other Important Information - The company reported a commercial customer retention rate of 95% and a subscription growth margin of 72% [9] - The balance sheet remains strong with net cash and cash equivalents of ZAR 393 million [9][20] - The company aims to return surplus cash to shareholders primarily through an annual dividend [14] Q&A Session Summary Question: Can you talk about the touch rates on newer offerings and ARPU growth? - The company has grown ARPU by 4%, with a target of 10% growth in South Africa [24][25] Question: How does the sales capacity compare to demand? - The company is experiencing more demand than it can deliver, indicating a need to build teams faster [25][26] Question: What is the market penetration in each region? - South Africa is estimated at 35%, Europe at 20%-25%, and Asia at under 10% [34][35] Question: How is AI being utilized in scaling go-to-market efforts? - AI is being explored for efficiency, but there are challenges in customer acceptance in certain markets [36]

Financial Data and Key Metrics Changes - Annual recurring revenue (ARR) increased 20% to ZAR 4,806 million, and on a U.S. dollar basis, increased 21% to $272 million [4][17] - Total revenue of ZAR 1,344 million increased 21%, with subscription revenue of ZAR 1,182 million increasing 20% [7][17] - Operating profit increased 18% to ZAR 356 million, with an operating profit margin of 29% [7][17] - Adjusted earnings per share increased 13% to $0.0828 [17][21] Business Line Data and Key Metrics Changes - CARTRACK's subscription revenue increased 20% to approximately ZAR 1.2 billion, with a 29% operating profit margin [5][19] - Karooooo Logistics revenue reached ZAR 139 million, an increase of 38% [6][13] - CARTRACK's total subscribers increased 15% to approximately 2.5 million [9][19] Market Data and Key Metrics Changes - South Africa's subscription revenue growth accelerated to 18%, comprising 71% of total subscription revenue [10][20] - Southeast Asia and the Middle East subscription revenue growth increased to 26%, with approximately 303,000 subscribers [11][20] - European subscription revenue growth accelerated to 27%, with approximately 216,000 subscribers [13][20] Company Strategy and Development Direction - The company focuses on expanding its distribution capabilities and enhancing customer engagement through video solutions and CARTRACK tag [15][22] - Strategic investments in sales capacity are aimed at supporting future growth and improving customer acquisition [15][23] - The company prioritizes organic growth and innovation, with a disciplined capital allocation strategy [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate sustainable cash flow and maintain strong growth in an expanding market [22] - The company is encouraged by the acceleration in subscription revenue growth and remains committed to achieving FY2026 growth ambitions [23][24] - Management acknowledged the challenges in scaling operations due to high demand and the need for sufficient sales teams [25][29] Other Important Information - The company reported a net cash position of ZAR 393 million and healthy debtor collection days at 31 days [9][21] - The company aims to return surplus cash to shareholders through dividends when growth investments are not feasible [15][22] Q&A Session Summary Question: Can you talk about the touch rates on newer offerings and ARPU growth? - The company has grown ARPU by 4%, with a target of 10% growth in South Africa [26] Question: How does the new sales capacity compare to demand? - The company is experiencing more demand than it can deliver, indicating a need to build teams faster [27][29] Question: What is the market penetration in each region? - South Africa is estimated at 35%, Europe at 20-25%, and Asia under 10% [36][37] Question: How is AI being utilized in scaling go-to-market efforts? - AI is being explored, but there are challenges in customer acceptance in certain markets [38]

Financial Data and Key Metrics Changes - Annual recurring revenue (ARR) increased 20% to ZAR 4,806 million, and on a U.S. dollar basis, increased 21% to $272 million [4][18] - Total revenue of ZAR 1,344 million increased 21%, with subscription revenue of ZAR 1,182 million increasing 20% [8][18] - Operating profit increased 18% to ZAR 356 million, and adjusted earnings per share increased 13% to $0.0828 [18][21] Business Line Data and Key Metrics Changes - CARTRACK generated approximately ZAR 1.2 billion in subscription revenue, an increase of 20% [5][19] - Karooooo Logistics's delivery-as-a-service revenue reached ZAR 139 million, an increase of 38% [6][14] - CARTRACK's operating profit margin was a healthy 29% in Q2 [10][19] Market Data and Key Metrics Changes - South Africa's subscription revenue growth accelerated to 18%, contributing 71% of total subscription revenue [11][20] - Southeast Asia and the Middle East subscription revenue growth increased 26%, with approximately 303,000 subscribers [12][20] - European subscription revenue growth accelerated to 27%, with approximately 216,000 subscribers [13][20] Company Strategy and Development Direction - The company focuses on expanding its distribution capabilities and enhancing customer engagement through video solutions and CARTRACK tag [16][24] - Strategic investments in sales capacity are aimed at accelerating organic growth and broadening the customer base [11][16] - The company prioritizes organic growth and innovation while maintaining a disciplined capital allocation strategy [16][17] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate sustainable cash flow and achieve growth ambitions despite elevated operating expenses [21][22] - The company is well-positioned to capitalize on the expanding market driven by digital transformation and operational efficiency needs [22][23] - Management noted that the acceleration in subscription revenue growth reflects the strength of the operating model and strategic investments [23][24] Other Important Information - The company ended Q2 with net cash and cash equivalents of ZAR 393 million, maintaining a strong balance sheet [10][21] - The company paid a total cash dividend of approximately $38.6 million to shareholders [22] Q&A Session Summary Question: Can you talk about the touch rates on newer offerings and ARPU growth? - The company has grown ARPU by 4%, with an initial target of 10% growth in South Africa [25][26] Question: How does the new sales capacity compare to demand? - The company is experiencing more demand than it can deliver, indicating a need to build teams faster [26][27] Question: What is the market penetration in each region? - South Africa's market penetration is estimated at about 35%, Europe at 20-25%, and Asia at under 10% [35][36] Question: Can AI help in scaling go-to-market efforts? - AI is being explored, but there are challenges in customer acceptance in certain markets [37]

Core Insights - FieldRoutes, a ServiceTitan company, continues its partnership with the National Pest Management Association (NPMA) as a Strategic Partner at the 2025 PestWorld conference, highlighting its commitment to innovation and growth in the pest control industry [1][3] Company Overview - FieldRoutes is a leading cloud-based and mobile SaaS provider for field service businesses, offering a platform that automates various aspects of field service operations, including office management, route optimization, payment processing, and customer acquisition [6] Conference Participation - FieldRoutes will showcase its latest platform updates at Booth 1213 during the PestWorld conference from October 21–24, allowing attendees to learn how top-performing pest control companies enhance operations and customer experiences through its technology [2][5] Industry Impact - According to the 2025 Pest Control Technology (PCT) Top 100 list, FieldRoutes customers grew at a median rate 1.5 times faster than non-FieldRoutes companies, with 40 of the Top 100 pest control companies using FieldRoutes or ServSuite platforms, indicating the company's significant impact on industry leaders [4] Educational Sessions - The conference will feature a breakout session led by ServiceTitan Co-Founder and President, Vahe Kuzoyan, focusing on AI and the future of field services, emphasizing how Titan Intelligence can enhance back-office productivity for field service companies [3]

Financial Data and Key Metrics Changes - In Q2 FY26, total revenue increased by 21% to ZAR1,344 million, with subscription revenue rising by 20% to ZAR1,182 million [11][24] - Operating profit increased by 18% to ZAR356 million, and adjusted earnings per share rose by 13% to ZAR8.28 [25][30] - Annual recurring revenue (ARR) grew by 20% to ZAR486 million, and on a U.S. Dollar basis, it increased by 21% to USD272 million [5][6] Business Line Data and Key Metrics Changes - Kartrak's subscription revenue grew by 20% to ZAR1,204 million, with a healthy operating profit margin of 29% [8][25] - Karoo Logistics revenue reached ZAR139 million, marking a significant increase of 38% [10][19] - Subscription revenue from Kartrak accounted for 98% of its total revenue, indicating a strong reliance on subscription-based income [25] Market Data and Key Metrics Changes - South Africa's subscription revenue growth accelerated to 18%, contributing 71% of total subscription revenue [16] - Southeast Asia and the Middle East saw a subscription revenue growth of 26%, with a total of approximately 303,000 subscribers [17] - European subscription revenue growth accelerated to 27%, with 216,000 subscribers in the region [18] Company Strategy and Development Direction - The company aims to strengthen its leadership position in South Africa while expanding its distribution footprint in Asia and Europe [20][21] - There is a focus on capital allocation towards organic growth and product innovation, with a disciplined approach to M&A [22][23] - The company is committed to enhancing its distribution capabilities and increasing product adoption among existing customers [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying demand driven by digital transformation and the need for operational efficiency [32] - The company anticipates continued growth in subscription revenue, supported by strategic investments in sales and marketing [33] - There is a recognition of the bottleneck in customer onboarding and cross-selling due to insufficient team capacity [35][39] Other Important Information - The company reported a net cash position of USD393 million, reflecting a strong balance sheet [31] - The subscription gross margin was 72%, with a lifetime value to customer acquisition cost (LTV to CAC) ratio remaining above 9x [15][14] Q&A Session Summary Question: Can you talk about the tax rates you're seeing on some of your newer offerings? - The company has grown its average revenue per user (ARPU) by 4%, with expectations to grow ARPU in South Africa by 10% [35] Question: How do you think about drivers of momentum in the market? - The company has been focused on recruiting and building teams to support new customer acquisitions and cross-selling [39] Question: What did you see from vision attach rate by geo? - Most sales currently come from the existing customer base, with video sales accounting for about 10% of total sales [40] Question: How is the change in mix shift towards videos impacting gross margins? - Gross margins have remained in the range of 70% to 74%, with a slight decrease to 72% this quarter due to increased cost of sales [41] Question: How did your new sales reps compare to the existing base? - New sales reps typically take time to reach the performance levels of established salespeople [43] Question: How long do you expect elevated operating expenses to persist? - The company plans to continue investing in infrastructure and sales, indicating that elevated expenses may be a long-term strategy [44] Question: What is the estimated market penetration in each region? - South Africa is estimated to have a market penetration of about 35%, Europe around 25%, and Asia under 10% [46]

Market Sentiment & Economic Concerns - The market is experiencing a "double-edged fear," characterized by both FOMO regarding the AI wave and concerns about China and potential government shutdowns [1][2] - Concerns exist regarding developments in the credit market, although these appear contained and potentially fraud-driven [3] - Earnings from big banks are crucial as they provide insights into the economy, especially with missing CPI and jobs data [4] Banking Sector Analysis - Big banks have outperformed regional banks by double digits percentage-wise [6] - Regional banks are seen as having more potential upside due to deregulation and M&A activity [7] Investment Strategy - The company has marginally increased bond holdings, specifically longer duration, as a risk management strategy due to the late cycle [8] - The company favors GARP (growth at the right price) investments, seeking growth companies with decent valuations [10] Stock Pick: NetApp (NTA) - NetApp (NTA) is a data and cloud storage company priced at a 146% times, representing a 30% discount to the S&P 500 [11] - NetApp is considered an under-the-radar AI play, part of the "picks and shovels" rather than the "main course" [12] - Only 30% of analysts have a buy rating on NetApp, indicating it is not widely focused on [12]