Group 1 - Plexus is an electronics manufacturing services provider operating across various end markets [1] - The company has experienced a relatively modest environment over the past few quarters despite a consistent pipeline [1] - Some peers in the industry are forecasting stronger performance compared to Plexus [1]

Group 1 - The research service "Asia Value & Moat Stocks" targets value investors looking for Asia-listed stocks with significant discrepancies between price and intrinsic value, focusing on deep value balance sheet bargains and wide moat stocks [1] - Hon Hai Precision (HNHPF) (HNHAF) (2317.TW) maintains a Buy rating despite underwhelming August performance, with positive prospects for its smartphone segment [1]

Summary of USI (601231.SS) Conference Call Company Overview - **Company**: USI (601231.SS) - **Industry**: Electronics Manufacturing Services (EMS) - **Market Position**: Leading market share in System-in-Package (SiP) module manufacturing with over 30 production sites globally, serving various sectors including communications, consumer electronics, industrial, cloud & storage, automotive electronics, and medical [3][4] Key Points from the Conference Call AI Accelerator Growth - **Revenue Growth**: Management anticipates strong growth in AI accelerator revenues, projecting a 23% year-over-year increase in server-related revenues for 2025 and over 20% in 2026 [7][8] - **Production Capacity**: Current production capacity for AI accelerator cards is 60,000 units per month, expected to increase to 90,000 units by the fourth quarter of 2025 [7][8] Product Expansion - **New Opportunities**: USI is exploring new business avenues in AI server-related products, including motherboard SMT, power distribution boards (PDB), and power distribution units (PDU) for high voltage direct current (HVDC) AI servers [1][8] - **Optical Transceivers**: The company plans to introduce 1.6T optical transceivers for data centers, with expectations to accelerate development in this area [8] SiP Applications - **Growing Applications**: SiP technology is expanding into new applications, particularly in AI glasses, with management noting increased orders for integrated modules [8] - **Future Revenue Driver**: SiP for AI glasses is expected to become a significant revenue driver for USI in 2026 [8] Industry Insights - **Demand for ASIC AI Servers**: Positive expectations from USI regarding AI accelerator cards align with anticipated demand growth for ASIC AI servers, with a projected increase in ASIC shipment contributions to 38% in 2025 and 40% in 2026 [2] - **Key Players**: Notable companies expected to benefit from this trend include Wiwynn, Wistron, Hon Hai, and others involved in silicon photonics and liquid cooling technologies [2] Additional Considerations - **Market Dynamics**: The shift towards AI technologies is driving demand for advanced server solutions, indicating a robust growth trajectory for companies involved in this sector [2][8] - **Strategic Partnerships**: USI is collaborating with its parent company ASE to promote solutions in the HVDC vertical power supply segment, enhancing its market position [8] This summary encapsulates the critical insights from the conference call, highlighting USI's strategic initiatives, growth projections, and the broader industry context.

Core Viewpoint - Foxconn (Hon Hai Precision Industry Co., Ltd.) reported a record revenue of NT$606.51 billion for August 2023, marking a year-on-year increase of 10.61% and a slight month-on-month decrease of 1.20% [1] Group 1: Revenue Performance - The revenue for August 2023 reached NT$606.51 billion, equivalent to approximately RMB 141.96 billion, achieving a new high for the month [1] - Year-on-year revenue growth was recorded at 10.61%, while there was a minor month-on-month decline of 1.20% [1] Group 2: Business Segment Analysis - In Foxconn's four major business segments, "Cloud Network" and "Components & Others" experienced both year-on-year and month-on-month growth [2] - The growth in the "Cloud Network" segment was driven by sustained demand for AI server shipments [2] - The "Components & Others" segment's growth was attributed to new product stocking and demand for key component supplies [2] - Conversely, the "Computer Terminal" and "Consumer Electronics" segments saw declines in both year-on-year and month-on-month metrics [2] - The decline in "Computer Terminal" revenue was linked to demand fluctuations and exchange rate impacts, while "Consumer Electronics" faced challenges due to product transitions and currency factors [2] Group 3: Future Outlook - Foxconn forecasts significant growth in "Cloud Network" product shipments for the third quarter, maintaining a strong growth trend [4] - The ICT sector is entering its traditional peak season, with operational activities expected to gradually increase [4] - Overall operations are anticipated to show positive growth both year-on-year and month-on-month in the third quarter [4]

TTM Technologies (TTMI) 2025 Conference Summary Company Overview - TTM Technologies is a technology solutions provider primarily focused on printed circuit boards (PCBs), which account for approximately 75% of its business. The company generated revenues of about $2.5 billion last year and is diversifying into integrated electronics and subsystems [3][4][6]. Core Business Segments - The company operates in five end markets: - Aerospace and Defense (46% of net sales in 2024) - Data Center Computing - Networking - Medical - Automotive [11][20][22]. Growth and Diversification Strategy - TTM has grown through acquisitions and has shifted focus from traditional PCB manufacturing to more complex, value-added products, particularly in aerospace and defense [6][7]. - The company has a program backlog of nearly $500 million, indicating strong future revenue potential [14]. - Year-to-date revenue growth for 2025 is approximately 15%, with defense revenue growth year-over-year at about 21% [13]. Market Trends and Opportunities - The rise of generative AI is driving demand in data center computing and networking, which are expected to grow significantly [18][22]. - The automotive sector is facing challenges, with expected growth below the industry benchmark due to slower adoption of electric vehicles (EVs) in the U.S. and Europe [22][24]. - The medical and industrial automation sectors are also showing growth, driven by advancements in technology and increased demand for sensors and testing equipment [25][26]. Operational Expansion - TTM is expanding its manufacturing footprint globally, with significant operations in Asia (primarily China and Penang) and the U.S. [8][30]. - A new facility in Penang is expected to generate $200 million in annual revenues, while a facility in Syracuse, New York, will focus on ultra-high-density interconnect PCBs for military applications, projected to generate $100 million [32][34]. Financial Performance - The company has achieved operating margins of around 11% to 13%, with a target of maintaining a leverage ratio between 1.5 to 2 [36][40]. - Strong cash flow from operations has enabled TTM to invest in growth and maintain a solid capital structure [39][42]. Strategic Focus - TTM's strategic focus includes diversification, differentiation through engineering capabilities, and operational discipline [26][35]. - The company is also exploring opportunities in the commercial space sector and is preparing for potential onshoring of manufacturing related to generative AI [18][50]. Leadership Transition - A new CEO has recently been appointed, bringing a more technical background, which may influence the company's focus on technology and innovation moving forward [56][58]. Conclusion - TTM Technologies is well-positioned for growth in aerospace and defense, data center computing, and networking, while navigating challenges in the automotive sector. The company's strategic investments and operational expansions are expected to enhance its competitive edge in the market [57][44].

Group 1 - Jabil, Inc. (JBL) has experienced a stock price increase of 97.9% over the past year, which is lower than the industry's growth of 127.8% and Celestica Inc.'s increase of 361.6% but higher than Flex Ltd.'s growth of 76.6% [1][8] - The company's strategy of end-market and product diversification is a significant growth catalyst, aiming to ensure that no single product or product family exceeds 5% of operating income or cash flows in any fiscal year [3][5] - Jabil's revenue growth is expected to be driven by strong demand in healthcare, cloud, retail, and industrial sectors, alongside the adoption of 5G wireless and cloud computing [4][9] Group 2 - Jabil has raised its 2025 revenue outlook to $29 billion and adjusted EPS to $9.33, with expectations of generating over $1.2 billion in adjusted free cash flow [8][9] - The company has restructured its internal operations to align more closely with specific end markets, aiming to develop domain-specific expertise and enhance responsiveness to market demands [6][15] - Jabil's collaboration with Intel on 800G silicon photonics modules positions it as a key player in the AI/ML ecosystem, promising high performance and reliability in data transmission [10][11] Group 3 - The Zacks Consensus Estimate for Jabil's 2025 earnings has increased by 8.7% to $9.39 per share, indicating positive market sentiment regarding the company's growth potential [12][17] - Jabil is well-positioned to capitalize on growth opportunities in AI data center hardware, power and energy infrastructure, and healthcare, supported by strong margins and robust free cash flow [15][16] - The company has a long-term earnings growth expectation of 16.6% and a trailing four-quarter average earnings surprise of 6.7%, reflecting its strong financial outlook [17]

Core Insights - Celestica (NYSE: CLS) stock has seen a significant increase of approximately 344% since the initiation of bullish coverage in March 2024 [1] Group 1: Company Performance - The stock performance of Celestica has been highlighted as one of the top picks, indicating strong investor interest and confidence in the company's future prospects [1] Group 2: Investment Strategy - The investment group Beyond the Wall Investing offers features such as a fundamentals-based portfolio, weekly analysis from institutional investors, and alerts for short-term trade ideas based on technical signals [1]

Core Insights - Key Tronic Corporation's shares increased by 5.3% following the release of its fourth-quarter fiscal 2025 results, outperforming the S&P 500's 0.2% growth during the same period [1] - The company reported a significant decline in revenues for both the fourth quarter and the entire fiscal year, with fourth-quarter revenues at $110.5 million, down from $126.6 million year-over-year, and total fiscal 2025 revenues at $467.9 million, a 17% decrease from $566.9 million in fiscal 2024 [2] - The net loss for the fourth quarter widened to $3.9 million, or 36 cents per share, compared to a loss of $2 million, or 18 cents per share, in the prior year, with a total fiscal year net loss of $8.3 million, or 77 cents per share, compared to a loss of $2.8 million, or 26 cents per share, in the previous year [3] Financial Metrics - The gross margin contracted to 6.2% in the fourth quarter from 7.2% a year earlier, but improved to 7.8% for the full year from 7% in fiscal 2024 due to workforce reductions and operational streamlining [4] - Operating margin decreased to 0.1% for the year from 1.2% in the prior year, impacted by credit loss adjustments [4] - Cash flow from operations improved to $8.8 million in the fourth quarter from $7.7 million in the same quarter last year, totaling $18.9 million for fiscal 2025 compared to $13.8 million in fiscal 2024 [5] Management Insights - The CEO described fiscal 2025 as a year of transition and uncertainty, citing tariff-related disruptions and strategic shifts in manufacturing, including expansion in the U.S. and Vietnam [6] - Key Tronic secured program wins in various industries and entered a significant services contract projected to exceed $20 million in annual revenues [7] - The company faced headwinds from reduced demand and tariff fluctuations, with severance expenses of $2.9 million impacting profitability, although operational efficiencies are expected to enhance margins once revenue growth resumes [8] Balance Sheet and Guidance - Adjustments for expected customer collections amounted to $1.1 million in the fourth quarter and $1.8 million for the year, further pressuring reported results [9] - Key Tronic did not provide revenue or earnings guidance for the first quarter of fiscal 2026 due to ongoing uncertainties but expressed confidence in improving gross margins as production volumes increase [10] Developments and Investments - The company is investing in its global footprint, with a new $28 million facility in Arkansas expected to create over 400 jobs, and production capacity in Vietnam being doubled [11] - These expansions aim to offer customers flexible manufacturing options while addressing rising wage pressures through automation and efficiency improvements [11]

Core Viewpoint - Celestica (CLS) shares have recently declined by 10.4% over the past week, but the formation of a hammer chart pattern suggests potential support and a possible trend reversal in the future [1][2]. Technical Analysis - The hammer chart pattern indicates a potential bottoming out, suggesting that selling pressure may be exhausting. This pattern forms when there is a small candle body with a long lower wick, typically occurring during a downtrend [4][5]. - The hammer pattern signals that bears may be losing control, and the buying interest that emerges can indicate a potential trend reversal [5]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for CLS, with a 12.2% increase in the consensus EPS estimate for the current year over the last 30 days. This indicates that analysts expect better earnings than previously predicted [7][8]. - CLS holds a Zacks Rank of 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises. Stocks with this ranking typically outperform the market [9][10].

Core Insights - Celestica Inc. (CLS) and Jabil Inc. (JBL) are prominent players in the electronics manufacturing services (EMS) industry, with Celestica being one of the largest EMS companies globally, serving various sectors including cloud-based services and business enterprises [1][4] - Jabil is also a major global supplier of EMS solutions, providing a wide range of services across multiple industries such as aerospace, automotive, and telecommunications [2][10] - Both companies are well-positioned to meet the growing demands of artificial intelligence (AI) within the EMS landscape [3][8] Celestica Overview - Celestica has over two decades of manufacturing experience and focuses on delivering cloud-optimized data storage and networking solutions, which are increasingly in demand due to the rise of AI applications [4][5] - The company emphasizes product diversification and aims to strengthen its presence in high-value markets, which enhances business resilience by reducing dependence on any single industry [5] - Despite its strengths, Celestica faces challenges with high research and development costs and stiff competition from other industry giants, which have led to margin pressures [6] Jabil Overview - Jabil operates in 100 locations across 30 countries, benefiting from strong margins and cash flow dynamics, along with extensive end-market experience and technical capabilities [7][10] - The company is expected to see growth driven by AI data center infrastructure and the adoption of 5G and cloud computing, supported by effective supply chain management [10][11] - However, Jabil also contends with a competitive environment and geopolitical tensions that may impact its margins [11] Financial Performance and Estimates - Celestica's 2025 sales and EPS estimates indicate a year-over-year growth of 20.6% and 43%, respectively, with a positive trend in EPS estimates over the past 60 days [12] - In contrast, Jabil's 2025 sales and EPS growth is projected at 0.9% and 10.6%, respectively, with a slight upward trend in EPS estimates [14] - Over the past year, Celestica has outperformed Jabil significantly, with a price increase of 244.1% compared to Jabil's 89.7% [15] Valuation Comparison - Jabil's shares trade at a lower price/earnings ratio of 18.73 compared to Celestica's 29.28, making Jabil appear more attractive from a valuation perspective [15] - Despite Jabil's favorable valuation metrics, Celestica has shown superior revenue and EPS growth, leading to a stronger overall investment case for Celestica at this time [17]