J P M O R G A N Asia Pacific Equity Research 27 April 2025 Futu Holdings Our thoughts on Ant Group set to take control of a retail broker in HK Futu's share price fell 6.4% on Friday (vs. KWEB index -0.2%), following the news that Ant Group is acquiring 50.55% stake in Bright Smart Securities (耀才 證券), a retail broker in HK (link). For details about Bright Smart Securities and comparison with Futu, please refer to Table 1Comparisn betwBrigh Smartnd Fuand Table 2Sumary ofkeprating dforFut andBright Smarecuits ...

Company Overview - VCI Global Limited is a diversified global holding company focusing on sectors such as AI & Robotics, Fintech, Cybersecurity, Renewable Energy, and Capital Market Consultancy [3] - The company has a strong presence in Asia, Europe, and the United States, emphasizing technological innovation and sustainable growth [3] Financial Results Announcement - VCI Global will release its financial results for the fiscal year 2024, which ended on December 31, 2024, before markets open on May 13, 2025 [1] - An earnings call is scheduled for 8:00 a.m. Eastern Time on May 13, 2025, to discuss the financial and business outlook [1] Management Statement - Dato' Victor Hoo, Group Executive Chairman and CEO, expressed excitement about sharing the company's progress and growth during fiscal year 2024 with investors [3]

Core Viewpoint - Ebang International Holdings Inc. reported a significant improvement in its financial performance for the fiscal year 2024, marking a turning point as the company expands into the renewable energy sector while maintaining a focus on cost control and operational efficiency [3][4]. Financial Performance - Total net revenues for fiscal year 2024 increased by 20.9% to US$5.9 million, up from US$4.9 million in 2023 [2][4]. - Gross profit for fiscal year 2024 was US$1.2 million, a recovery from a gross loss of US$16.7 million in 2023 [2][6]. - Net loss for fiscal year 2024 was US$20.9 million, reduced from a net loss of US$38.0 million in 2023 [2][9]. Operational Highlights - The increase in revenues was attributed to the acquisition of a renewable energy business in November 2024 and rental income from idle office space [4]. - Cost of revenues decreased by 78.3% to US$4.7 million in 2024, primarily due to the recognition of a VAT recoverable impairment of US$16.7 million in 2023 [5][6]. - Total operating expenses decreased by 14.6% to US$31.6 million in 2024, driven by a reduction in selling expenses and adjustments in strategic policies [6][7]. Strategic Direction - The company is entering the renewable energy sector, leveraging its design, research, and manufacturing capabilities to innovate and capture market opportunities [3][11]. - Ebang aims to balance exploration of new business domains with meticulous cost control to ensure steady growth [3][11]. Shareholder Information - Net loss attributable to Ebang International Holdings Inc. was US$20.3 million in 2024, compared to US$36.8 million in 2023 [10]. - Basic and diluted net loss per share improved to US$3.22 in 2024 from US$5.86 in 2023 [10][18].

Core Viewpoint - Jiayin Group Inc. has filed its annual report for the fiscal year ended December 31, 2024, with the SEC, highlighting its position as a leading fintech platform in China [1]. Group 1: Company Overview - Jiayin Group Inc. is a prominent fintech platform in China, established in 2011, focused on connecting underserved individual borrowers with financial institutions [3]. - The company operates a secure platform featuring a comprehensive risk management system and a proprietary risk assessment model that utilizes advanced big data analytics and algorithms [3]. Group 2: Financial Reporting - The annual report includes audited consolidated financial statements and is available for shareholders and ADS holders upon request [2].

Group 1: Dutch Bros - Dutch Bros has experienced a drop in stock price recently but is still up 18% year-to-date, outperforming the market [2] - The company operates a chain of coffee shops with a unique brand and low prices, primarily focusing on drive-thru locations while expanding to meet demand [3][4] - Dutch Bros aims to grow from 1,000 stores to 7,000, indicating significant expansion potential compared to competitors like Starbucks [4] - Revenue for the fourth quarter of 2024 increased by 35% year-over-year to $343 million, with same-store sales up 6.9% and net income turning positive at $6.4 million [5] - The stock trades at a forward P/E ratio of 74, reflecting high market expectations for future growth [6] Group 2: Axon Enterprise - Axon Enterprise is a leader in law enforcement technology, providing products like Tasers and body cameras, and has shown consistent growth over the past decade [7][9] - The company is innovating with AI tools, such as Draft One, which assists law enforcement in writing reports, indicating strong demand for its technology [8] - Axon has expanded its customer base beyond law enforcement, securing contracts with private sector companies, which diversifies its revenue streams [10] - The company has maintained revenue growth of 20% or more annually for the last 10 years and is well-positioned to navigate economic challenges [9][11] Group 3: MercadoLibre - MercadoLibre is the leading e-commerce company in Latin America, with a significant opportunity for growth as 35% of adults in the region lack bank accounts [12] - The company has achieved a remarkable 1,400% return over the last decade and continues to grow revenue at high double-digit rates, with a 37% increase in the fourth quarter [13] - MercadoLibre serves 67 million unique active buyers and is expanding its financial services, contributing to a total revenue of $21 billion in 2024 [14] - The company is investing in growth opportunities, such as credit card issuance and new fulfillment centers, which may pressure near-term margins but promise long-term benefits [15] - Currently, MercadoLibre trades at a price-to-sales multiple of 5.3, suggesting potential for excellent returns as it expands in a region with 650 million people [16]

Shares of SoFi Technologies (SOFI 4.67%) are up an impressive 70% in the past 12 months. However, they have been extremely volatile. As of April 25, they trade 28% below their 52-week high. Investors won't struggle to find reasons to like this digital banking powerhouse that's aiming to disrupt a massive industry. It's developing competitive strengths and still has a lot of growth potential.Here's why this fintech stock could be a no-brainer buy in April.SoFI is looking at a huge goal"It's a matter of when, ...

Company Overview - Dave Inc. is a leading neobank and fintech pioneer in the U.S., serving millions of everyday Americans with disruptive technologies that provide banking services at lower costs compared to traditional banks [4]. Upcoming Financial Results - The company will host a conference call on May 8, 2025, at 8:30 a.m. Eastern time to discuss its financial results for the first quarter ended March 31, 2025 [1][2]. - A press release detailing the financial results will be issued on the same day prior to the conference call [1]. Conference Call Details - The conference call will include a question-and-answer period following the management's presentation [2]. - Toll-free dial-in number for the call is (866) 652-5200, and the international dial-in number is (412) 317-6060 [2]. - The call will be available for replay on the company's website in the Events section, along with a transcript [2].

Group 1 - KKR & Co. Inc. is scheduled to report its first-quarter results on May 1, indicating a proactive approach despite the recent underperformance of private equity stocks [1] - The company is focusing on sectors such as AI, fintech, finance, and technology, highlighting its commitment to long-term growth and investment strategies [1] - KKR is actively analyzing publicly traded companies, emphasizing business models, earnings performance, and competitive positioning to identify potential investment opportunities [1]

Core Viewpoint - MercadoLibre (MELI) is currently trading at a premium valuation compared to the broader Zacks Internet – Commerce industry, with a forward 12-month Price/Sales ratio of approximately 3.9, significantly higher than the industry's 2.08, indicating high growth expectations from investors [1][4]. Valuation Concerns - The premium valuation of MELI raises questions for investors, especially in light of short-term pressures such as macroeconomic uncertainties and increased competition [2]. Competitive Landscape - MELI faces intense competition in the e-commerce space from major players like Amazon, Alibaba, and Walmart, which poses a significant threat to its market share and growth trajectory [5][6]. - Amazon is expanding its presence in Latin America, while Walmart has established itself as the largest retailer in the region, and Alibaba's AliExpress offers low-cost products [5]. Macroeconomic Challenges - Operating in 18 Latin American countries exposes MELI to significant foreign exchange risks, as revenues in local currencies must be converted to U.S. dollars, making the company vulnerable to currency fluctuations [7]. - Macroeconomic headwinds in key markets like Brazil and Argentina are forcing MELI to be cautious, particularly in its fintech segment, with rising interest rates in Brazil leading to a reduction in riskier credit products [8]. Earnings Estimates - The Zacks Consensus Estimate for first-quarter 2025 earnings is $7.67 per share, revised upward by 1.9% over the past week, indicating a year-over-year growth of 13.13% [9]. - The consensus for first-quarter 2025 revenues is projected at $5.53 billion, suggesting a year-over-year growth of 27.54% [10]. Stock Performance - MELI shares have gained 25.2% year-to-date, outperforming the Zacks Retail-Wholesale sector and the S&P 500 index, which have declined by 10% and 12.7%, respectively [13]. - The stock has also outperformed the Zacks Internet – Commerce industry's decline of 15.7% during the same period [13]. Business Growth Drivers - MELI's e-commerce platform reached over 100 million unique buyers in 2024, with improvements in user experience and logistics supporting this growth [16][17]. - The fintech arm, Mercado Pago, surpassed 60 million monthly active users, driven by new credit card launches and attractive deposit returns in various Latin American countries [18][19]. Strategic Investments - The company plans to increase investments in Mexico by 38% and in Brazil by 48% in the current year, supported by a strong liquidity position with cash and cash equivalents of $2.63 billion as of December 31, 2024 [14]. Conclusion on Stock Position - Current valuations suggest that investors should hold MELI stock for now, as the company's dominant market position is countered by rising competition and macroeconomic uncertainties [20][21].

Company Overview - Honeywell International Inc. (HON) is characterized as a very strong company, noted for its profitability, effective management, and diversification across multiple segments [1] - The company possesses a solid balance sheet and a long-term strategic vision [1] Investment Focus - The analysis emphasizes a passion for finance and investing, particularly in business analysis, fundamental analysis, valuation, and long-term growth [1] - Key sectors of interest include AI, fintech, finance, and technology [1] Research and Analysis - The company actively engages in analyzing publicly traded companies, focusing on business models, earnings performance, and competitive positioning [1] - There is a commitment to providing clear, unbiased insights into companies' strengths, risks, and valuation to assist investors in forming their own opinions and investment strategies [1]