[Music] There are still close to a billion people in this world who have little to no access to electricity. The vast majority of them in Africa, in South and Southeast Asia. But what does life without electricity even look like.For most of us, it's unimaginable. How would we feed our family without being able to keep food in a fridge, do work without computers, other tools, stay safe, healthy, connected. Everything comes to a halt without electricity.But for one in eight people in this world, that is still ...

Core Viewpoint - The U.S. Department of Commerce has imposed preliminary antidumping tariffs of 93.5% on Chinese graphite-based active anode material, significantly impacting the North American battery materials landscape and promoting domestic sourcing of these materials [2][3]. Industry Summary - The U.S. tariffs on Chinese AAM are part of a broader strategy to encourage North American battery manufacturers to source materials locally, especially following the "Big Beautiful Bill" which incentivizes sourcing outside of China to retain tax credits [2][4]. - The total value of AAM imports from China was reported at $350 million in 2023 and $380 million in 2022, indicating a significant market that is now subject to high tariffs [3]. - The tariffs are retroactive, requiring importers to post large cash deposits for recent and future shipments, which could lead to increased costs for U.S. battery manufacturers [3][7]. Company Summary - Northern Graphite Corporation is positioned to benefit from these developments as the only producer of natural graphite in North America, with plans to build one of the region's largest AAM plants in Baie-Comeau, Quebec [4][9]. - The company is a founding member of the North American Graphite Alliance (NAGA), which aims to promote a secure domestic graphite supply chain and has been actively engaging with U.S. policymakers [4][5]. - Northern Graphite's assets include the Lac des Iles mine in Quebec and the advanced stage Bissett Creek project in Ontario, both of which are strategically located to meet the growing demand from North American battery manufacturers [10].

Core Insights - Eaton has significantly outperformed the S&P 500, delivering total returns of 57.8% since the last article [1] Investment Strategy - A well-diversified portfolio should be constructed with a core foundation of a high-quality low-cost S&P 500 fund [1] - For those who can tolerate short-term risks, an overweight position in the technology sector is recommended, as it is believed to be in the early stages of a long-term secular bull market [1] - Large oil and gas companies that provide strong dividend income and growth are suggested for dividend income [1] - A top-down capital allocation approach is recommended, tailored to individual investor situations, including factors like age, retirement status, risk tolerance, income, net worth, and goals [1]

Industry Overview - In 2025, U.S. utilities have transitioned to a phase of renewed relevance after a transformative period, with the S&P 500 Utilities Select Sector SPDR (XLU) growing 9.9% year to date as of July 16 [1] - The current macro environment features elevated interest rates and persistent inflation, which have underscored the resilience of utilities, making them attractive for institutional investors seeking defensive sectors [2] Structural Changes - Utilities are undergoing significant structural changes, including grid modernization, smart meters, distributed energy integration, and renewable energy build-out, supported by federal programs like the Infrastructure Investment and Jobs Act [3] - These modernization efforts are enabling utilities to adopt cleaner energy solutions while upgrading their systems, positioning them for long-term growth [3] Investment Opportunities - The utilities sector in 2025 presents a compelling mix of stability and growth potential, backed by reliable price structures, strong regulatory support, and increasing demand driven by electrification [4] - Utility stocks are typically long-term buy-and-hold options due to their regular dividend declarations and higher dividend yields compared to other equities, providing stability and growth potential in the current environment [5] Company Highlights - Enel SpA (ENLAY) has an expected earnings growth rate of 8.2% for the current year, with a Zacks Consensus Estimate improvement of 11.3% over the past 60 days, holding a Zacks Rank 2 and a VGM Score of B [7] - Deutsche Telekom AG (DTEGY) is projected to have an earnings growth rate of 18.9% for the current year, with a 5.2% improvement in earnings estimates over the past 60 days, holding a Zacks Rank 1 and a VGM Score of A [8] - Telenor ASA (TELNY) is expected to see a 24.3% earnings growth rate for the current year, with a 10.1% improvement in earnings estimates over the past 60 days, also holding a Zacks Rank 1 and a VGM Score of B [9] Conclusion - The utilities sector is rebounding in 2025 as investors prioritize stability amid high interest rates and inflation, with companies like ENLAY, DTEGY, and TELNY showing strong earnings growth and improving estimates [10]

Core Insights - Hillcrest Energy Technologies has published a technical white paper detailing the advantages of its Zero Voltage Switching (ZVS) technology in power inductor design, highlighting significant cost savings and size reductions [1][2][5] Market Context - AC filter inductors account for 15-25% of total system cost and volume in grid-connected power systems, presenting a critical component challenge [2][10] - The global power electronics market is projected to exceed $50 billion by 2030, indicating substantial commercial opportunities for efficiency improvements in core components [2] Research Methodology - The analysis compared conventional inductor designs with ZVS-optimized alternatives in 200 kW power range applications, focusing on LC and LCL filter topologies [3][4] Performance Analysis - ZVS-optimized inductors showed a 75% cost reduction, 4x weight reduction, and 3.3x volume reduction compared to conventional designs [5] - The ZVS systems achieved 45% lower total inductor losses, with copper losses reduced by 40% and core losses by 2.5x [5][6] Industry Applications - The research has applications in electric vehicle charging infrastructure, grid-tied renewable energy systems, and energy storage applications, where reduced component footprint and improved efficiency are critical [7][12] Commercial Development - Hillcrest is transitioning from technology development to commercial deployment, establishing Centers of Excellence for various applications [12] - The company is collaborating with Ocean Batteries to develop a 200kVA | 800V ZVS inverter prototype for marine shore power applications, targeting the European energy storage market [13] Strategic Partnerships - Hillcrest is engaged in a technology evaluation project with a global Tier 1 automotive supplier to assess the integration of ZVS technology into next-generation electric vehicle inverters [14] - The company has completed customer demonstrations showing its ZVS traction inverter prototype achieving up to 99.7% efficiency [15] Strategic Financing - Hillcrest announced a CDN $4.25 million private placement from a strategic investor, which would result in the investor holding approximately 19.9% of the company's shares [20] - The company is actively pursuing additional funding opportunities, including potential licensing arrangements [22]

Core Insights - The partnership between Microchip Technology and Delta Electronics aims to enhance the development of sustainable applications through the use of Microchip's mSiC™ technology and Delta's energy-saving solutions [1][2] Group 1: Partnership Details - The collaboration focuses on utilizing Microchip's mSiC™ products in Delta's designs to create innovative SiC solutions and energy-saving products [1] - The agreement allows for top-tier design support, including technical training, insights into R&D activities, and early access to product samples [3] Group 2: Technology and Market Impact - SiC technology is crucial for sustainable power solutions due to its wide-bandgap properties, which facilitate smaller and more efficient designs for high-voltage applications at lower system costs [2] - Delta Electronics aims to leverage Microchip's expertise in SiC and digital control to accelerate the market introduction of solutions for high-growth sectors such as AI, mobility, automation, and infrastructure [2] Group 3: Company Background - Microchip Technology has over 20 years of experience in developing SiC devices and power solutions, offering a range of mSiC products including MOSFETs, diodes, and gate drivers [4] - Microchip serves over 100,000 customers across various markets, including industrial, automotive, consumer, aerospace, and defense [6]

Summary of the Automotive Outlook Webinar Industry Overview - The webinar focused on the automotive outlook for the Asia Pacific region, excluding China, with insights into the impact of US tariffs on vehicle production and sales across various countries in the region [1][2][3]. Key Points and Arguments General Market Outlook - The overall growth in the Asia Pacific region is projected at a moderate rate of 3%, primarily driven by expansions in China and India [4][5]. - Excluding China, production in the Asia Pacific is expected to remain flat compared to the previous year, with no growth anticipated in Japan and declines in Korea and ASEAN [4][5]. Impact of US Tariffs - The US tariffs are expected to significantly impact vehicle exports from Japan and Korea, with Japan's vehicle sales projected to decrease by 17-18% compared to pre-tariff forecasts [6][7]. - Cumulative production impacts in Japan are estimated at around 1.1 million units from 2025 to 2028, reducing the forecast from 8.1 million units to 7.7 million units annually for the next three years [8]. - Korea is also expected to face severe impacts, with around 300,000 units per year affected due to the tariffs, and a cumulative reduction of 1 million units in exports from 2025 to 2028 [11][12]. Country-Specific Insights - **Japan**: The market has shown resilience with a 13% sales increase in the first four months of the year, but long-term demographic issues and a shift towards electrification pose risks [19][20][21]. - **Korea**: The market is experiencing a decline in exports, with a projected 9% drop in exports this year and a further 13% next year. The production is expected to drop by 6% this year and 7% next year [16][17][18]. - **India**: The Indian automotive market is expanding, driven by high demand for SUVs and favorable agricultural conditions. Production is expected to reach around 6 million units this year [23][25][29]. - **Southeast Asia**: Thailand and Indonesia are facing significant challenges due to weak economies and high non-performing loans, leading to a decline in vehicle affordability and sales [30][33][34]. Electrification Trends - There is a rebound in Battery Electric Vehicle (BEV) sales, particularly in India, driven by government incentives and new product launches [42][45]. - Hybrid vehicle sales are booming in most markets, benefiting Japanese OEMs, while BEV sales are recovering globally but face challenges due to infrastructure issues and pricing [43][44][46]. Additional Important Insights - The automotive market in Thailand is particularly weak, with sales expected to be the lowest since 2009, largely due to a lack of credit and political instability [30][31]. - The presence of Chinese OEMs is increasing in the region, particularly in Thailand, which may impact future production and export dynamics [33][34]. - The overall production volume for Asia Pacific, excluding China, is expected to remain flat this year, with India being the only market showing expansion [41]. This summary encapsulates the key insights and projections discussed during the webinar, highlighting the challenges and opportunities within the automotive industry in the Asia Pacific region.

Core Insights - The upcoming Q2 2025 earnings reports for Ford and General Motors are highly anticipated by investors to assess which stock is better positioned [1] - General Motors is set to report earnings on the upcoming Tuesday, while Ford will follow on July 30 [1] Earnings Estimates - The Zacks Consensus Estimate for GM's Q2 earnings is $2.44 per share with revenues of $45.34 billion, having surpassed EPS estimates in the last four quarters with an average surprise of 10.16% [2] - Ford's consensus estimates are $0.30 for EPS and $41.5 billion for sales, with a less favorable earnings surprise history, beating estimates twice and missing once in the last four quarters [3] Earnings Surprise Potential - General Motors has a Zacks Rank of 3 and an Earnings ESP of -4.05%, while Ford has a Zacks Rank of 2 and an Earnings ESP of -36.59% [4] Vehicle Deliveries - Ford sold 612,095 vehicles in Q2 2025, a 14.2% increase year-over-year, driven by strong demand for trucks and hybrids [5] - General Motors sold 746,588 units, up 7.3% year-over-year, with significant growth across all brands, particularly Buick, which saw a 19.3% increase in Q2 [6] Electrification Efforts - General Motors has accelerated its electric vehicle sales, with EV sales up 111% to 46,280 units in Q2, driven by a diverse lineup [7][8] - Ford's EV sales, however, dropped 31% in Q2, but the company is focusing on hybrid strategies and operational scaling for long-term growth [9] Tariff Impact - Ford anticipates a $1.5 billion impact from tariffs, while General Motors expects a profit impact of $4-$5 billion due to tariffs on imports [10] Dividend Comparison - Ford offers a high dividend yield of over 5%, significantly higher than GM's 1.13% and the industry average of 0.3% [11] - Ford aims to distribute 40-50% of free cash flow going forward, indicating a commitment to shareholder returns [12] Earnings Outlook - The Zacks Consensus Estimate indicates a year-over-year decline in EPS for GM and Ford of 12.3% and 40%, respectively, but Ford's 2026 EPS is projected to grow by 13.4% [13] - Recent estimate revisions suggest Ford is better positioned than GM, with Ford's 2025 EPS estimate remaining stable at $1.11 [14] Stock Performance & Valuation - Year-to-date, Ford's shares have risen 20%, while GM's stock price has remained flat [15] - GM's stock trades at 5.65X forward earnings, while Ford's is at 9.94X, both below the auto sector's average of 25.82X [18] Conclusion - Ford appears better positioned heading into Q2 earnings due to its hybrid momentum, shareholder-friendly policies, and solid stock performance, despite GM's strength in EV sales [19]

Investment Ratings - Amphenol (APH) is rated as Buy with a target price of $115 based on a 35x P/E multiple for F24M EPS [1][49][51] - TE Connectivity (TEL) is upgraded to Buy with a target price of $200 based on a 20x P/E multiple for F24M EPS [1][57][60] Core Insights - The report maintains a constructive outlook on the connector industry, driven by solid demand fundamentals and increased electrification across various end markets [9][58] - Recent stabilization in automotive market production and improving industrial demand are key factors for the upgrade of TEL to Buy [1][9] - Amphenol is expected to benefit from AI-led demand and a balanced end market exposure, while TEL is positioned for margin expansion due to improved industrial demand [1][33][58] Summary by Sections Amphenol (APH) - APH is a leading manufacturer in the connector market with a diversified end market exposure, including industrial (23%), automotive (17%), and IT data communications (37%) [49][50] - The company is expected to see above-market sales and earnings growth driven by technology hardware spending and AI infrastructure [50][51] - The target price of $115 reflects a premium to its historical P/E multiple, indicating strong growth potential [51][52] TE Connectivity (TEL) - TEL is the largest electronics connector company, with a significant portion of its revenue (40%) coming from the automotive sector [56][57] - The company is expected to benefit from stabilizing automotive trends and improving industrial demand, with a strong balance sheet supporting its growth [58][60] - The target price of $200 is based on a valuation that aligns with its long-term median P/E, reflecting its market position and growth prospects [60] Market Trends - The connector market is anticipated to show continued momentum in 2025, supported by growth in IT Datacom and industrial automation spending [58] - The automotive market is stabilizing, which is crucial for TEL as it represents a significant revenue source [9][58] - AI demand is expected to ramp up, particularly in the data center segment, which is beneficial for both APH and TEL [15][58]

Demand Forecast - UK power demand is set to increase due to higher population growth rates [1] - Electrification of the economy contributes to the increase in power demand [1] Source - National Energy System Operator provides the forecast [1]