Core Insights - The drone technology sector is experiencing significant growth, with advancements making drones essential across various industries [1] Company Summaries Jabil Inc. (JBL) - Jabil holds a Zacks Rank 1 and has seen substantial benefits from strong momentum in capital equipment, AI-powered data center infrastructure, cloud, and digital commerce [5] - The company emphasizes product diversification, aiming for no single product or family to exceed 5% of operating income or cash flows in any fiscal year [5] - Jabil's expected revenue and earnings growth rates for the next year are 5.8% and 17.8%, respectively, with a recent 8.4% improvement in the Zacks Consensus Estimate for next-year earnings [7] HEICO Corp. (HEI) - HEICO also holds a Zacks Rank 1, benefiting from increased orders for aftermarket replacement parts and repair services due to rising air travel [8] - The company anticipates strong order flows for its defense products, supported by a projected 13% increase in the U.S. defense budget to $1.01 trillion for fiscal 2026 [9] - HEICO's expected revenue and earnings growth rates for the current year are 13.2% and 23.7%, respectively, with a slight 0.2% improvement in the Zacks Consensus Estimate for current-year earnings [10] L3Harris Technologies Inc. (LHX) - L3Harris has a Zacks Rank 2 and benefits from solid U.S. budget funding, which is expected to enhance its revenues [11] - The company is experiencing strong demand for its defensive solutions from various regions, including Asia-Pacific and Latin America, and is involved in the U.S. administration's Golden Dome initiative [11] - L3Harris's expected revenue and earnings growth rates for the current year are 1% and -20%, respectively, with a 0.1% improvement in the Zacks Consensus Estimate for current-year earnings [12]

Core Insights - Kitron reported solid quarterly sales and profits, particularly driven by the Defence & Aerospace market sector [1][3] - The company raised its outlook for 2025 due to sustained momentum in key sectors [3][4] Financial Performance - Revenue for Q2 2025 was EUR 172.2 million, an increase from EUR 164.6 million in Q1 2025 and EUR 167.6 million in Q2 2024 [1] - Operating profit (EBIT) for Q2 2025 was EUR 15.0 million, compared to EUR 12.5 million in Q1 2025 and EUR 15.0 million in Q2 2024, with an EBIT margin of 8.7% [2] - Profit after tax for Q2 2025 was EUR 10.0 million, slightly down from EUR 10.4 million in the same quarter last year, resulting in earnings per share of EUR 0.05 [3] Order Backlog and Growth - The order backlog at the end of Q2 2025 was EUR 509.3 million, reflecting a 12% increase compared to the previous year, with strong growth in the Defence/Aerospace and Industry sectors [3] - The company secured five strategically important contracts during the second quarter [3] Outlook for 2025 - Kitron expects full-year revenue for 2025 to be between EUR 675 million and EUR 725 million, and operating profit (EBIT) to be between EUR 55 million and EUR 65 million, an increase from the previous outlook [4]

Investment Rating - The report maintains a "Buy" rating for Foxconn Industrial Internet (FII) with a revised target price of Rmb31.11, reflecting an upside potential of 17.9% from the current price of Rmb26.38 [16][17]. Core Insights - FII's 2Q25 net income guidance is between Rmb6.7 billion and Rmb6.9 billion, with a midpoint of Rmb6.8 billion, representing a 31% quarter-over-quarter increase and a 50% year-over-year increase [1]. - The company is experiencing significant growth in cloud computing revenues, projected to exceed 50% year-over-year, and AI server revenues are expected to grow over 60% year-over-year [1]. - FII's revenues from cloud service providers (CSPs) increased by over 150% year-over-year in 2Q25, and revenues from 800G switches are projected to be three times higher than in 2024 [1]. - The report anticipates a compound annual growth rate (CAGR) of 29% for net income from 2025 to 2027, with AI server revenues expected to rise from 29% in 2024 to 68% by 2027 [1]. Financial Projections - The report revises net income estimates upward by 3%, 4%, and 6% for 2025, 2026, and 2027 respectively, due to higher revenue expectations [5]. - FII's revenue projections for 2025E, 2026E, and 2027E are Rmb850.1 billion, Rmb1,130.6 billion, and Rmb1,274.5 billion respectively, reflecting increases of 5%, 10%, and 9% from previous estimates [8]. - The gross profit (GP) for 2025E is revised to Rmb49.9 billion, with operating profit (OP) at Rmb31.4 billion and net income at Rmb27.6 billion [8]. Market Position and Competitive Analysis - FII is positioned as a leading supplier in the AI server market, particularly in rack-level AI servers, supported by a comprehensive supply chain and global production capabilities [5][9]. - The target price is based on a price-to-earnings (P/E) multiple of 16x for 2026E, reflecting a market re-rating on AI servers [10][15].

Financial Data and Key Metrics Changes - The fourth quarter net sales were $257.1 million, a decrease of 7% year-over-year but an increase of 7% sequentially from Q3 [32][42] - Adjusted loss from operations for the fourth quarter was $21.6 million, a decrease of $11.8 million from the previous fiscal year [33] - Fourth quarter adjusted EBITDA was a negative $7.1 million, down $12.4 million from the same period last year [35] - Full year net sales were $1.048 billion, a decrease of 6% from the previous fiscal year [42] Business Line Data and Key Metrics Changes - Record sales for power products in data center applications exceeded $80 million for the full year, almost double that of fiscal 2024 [13][42] - EV sales represented 20% of consolidated total sales, an increase from 14% year-over-year, but sequentially decreased by approximately 10% from Q3 [15] - The company expects a 10% to 15% decline in EV sales for fiscal 2026 due to weaker market demand and program delays [16] Market Data and Key Metrics Changes - The company experienced significant sales headwinds from the roll-off of major auto programs, particularly the GM center console and EV lighting programs [11][42] - The decline in sales was primarily driven by the impact of these program roll-offs, which had a combined year-over-year impact of $111 million [42] Company Strategy and Development Direction - The company is focused on improving operational execution and successfully launching a large pipeline of new programs, with 22 new programs launched in fiscal 2025 and another 30 expected in fiscal 2026 [18][19] - The transformation strategy aims to stabilize the organization and position it for future growth, particularly in data centers and EV markets [20][27] - The company plans to optimize its footprint and reevaluate its product portfolio to align with market opportunities [22][27] Management's Comments on Operating Environment and Future Outlook - Management indicated that fiscal 2026 will be a reset year due to EV program delays, particularly from Stellantis, but expects a return to growth in fiscal 2027 [7][10] - The company anticipates doubling its EBITDA in fiscal 2026 despite projected declining sales of approximately $100 million [10][28] - Management emphasized the importance of operational improvements and cost recovery actions in response to external challenges [16][17] Other Important Information - The company recorded $26 million in free cash flow for the quarter, marking the best quarter since Q4 of fiscal 2023 [8] - The company reduced both debt and net debt levels by $10 million from Q3 [17] - The board reduced the dividend, which was a strategic decision to provide more flexibility from a working capital perspective [92] Q&A Session Summary Question: How to understand the expected sales decline and EBITDA increase? - Management explained that operational improvements and the elimination of one-time expenses will contribute to the expected EBITDA increase despite declining sales [52][54] Question: What percentage of the new launches are EV platforms? - Approximately 50% of the new launches are related to EV platforms, with a significant focus on data center growth as well [56][74] Question: What is the status of Stellantis revenue expectations? - Management confirmed a significant reduction in expected revenue from Stellantis, with a $200 million swing from previous projections due to program delays [44][80] Question: What is the leverage waiver status? - The leverage covenants were relaxed through the next year, starting at 4.25 for Q4 of fiscal 2025 [62][64] Question: How much of the revenue decline is due to pricing? - The revenue decline is primarily due to program delays and cancellations, not pricing issues [100]

Core Viewpoint - Plexus Corp. is set to release its fiscal third quarter 2025 results on July 23, 2025, and will host a conference call on July 24, 2025, to discuss these results [1]. Company Information - Plexus Corp. has been in operation since 1979, focusing on partnering with companies to create products that contribute to a better world [3]. - The company employs over 20,000 individuals and specializes in providing Design and Development, Supply Chain Solutions, New Product Introduction, Manufacturing, and Sustaining Services [3]. - Plexus is recognized as a global leader in serving customers in industries characterized by highly complex products and demanding regulatory environments [3]. Event Details - The fiscal 2025 Q3 earnings conference call and webcast will take place on July 24, 2025, at 8:30 a.m. Eastern Time [4]. - Participants are encouraged to join the live webcast available in the investor relations section of the Plexus website [4].

Core Insights - Celestica, Inc. is well-positioned to benefit from the growing AI proliferation in the data center and edge infrastructure market, with the AI hardware market expected to grow at a 22.4% CAGR, reaching $210.5 billion by 2034 from $34.05 billion in 2025 [1] - The company is expanding its offerings through innovation and strategic collaborations to capitalize on emerging market trends [2] - Celestica's extensive 800G Family of Networking Switches is anticipated to be a major growth driver, optimized for AI/ML and Big Data Analytics [3] Company Developments - The DS4100 switch, designed with Broadcom's TH4-12.8T switch chipset, is gaining traction in the data-center networking market [2] - The introduction of the ES1500 switch is tailored for edge AI deployments and IoT expansion in various sectors [3] - Celestica's shares have surged 167.5% over the past year, outperforming the industry's growth of 96.4% [7][8] Competitive Landscape - Competitors include Jabil, Inc. and Flex Ltd., both of which are also benefiting from demand in AI-related sectors [4] - Jabil announced a $500 million multi-year investment initiative to expand its manufacturing capabilities in the AI data center infrastructure market [5] - Flex is focusing on industrial AI and has improved its data center solutions through the acquisition of JetCool Technologies [6] Valuation Metrics - Celestica trades at a forward P/E ratio of 27.89, which is above the industry average, potentially raising valuation concerns [8][9] - The Zacks Consensus Estimate for Celestica's earnings for 2025 and 2026 has remained unchanged over the past 60 days [11]

Core Insights - TTM Technologies, Inc. has announced the acquisition of a 750,000-square-foot facility in Eau Claire, Wisconsin, and land rights for a future manufacturing site in Penang, Malaysia, to enhance its manufacturing capabilities [1][3][4] Group 1: Acquisition Details - The Eau Claire facility was previously owned by TDK and is well-equipped for advanced technology PCB manufacturing, allowing TTM to reduce lead times for U.S. domestic capacity [3][4] - The new facility in Penang will support supply chain diversification beyond China, providing cost-competitive, high-quality PCB manufacturing in Southeast Asia [4] Group 2: Strategic Implications - These investments align with TTM's strategy to offer regionally optimized, globally connected manufacturing solutions, enhancing supply chain security and flexibility for global customers [2][4] - The Eau Claire facility is expected to support high-volume production for key markets, particularly in data center computing and networking for generative AI applications [3][4] Group 3: Economic Impact - The expansion in Wisconsin is seen as beneficial for the local economy, with the state recognized for its precision manufacturing capabilities [4] - TTM does not anticipate significant impacts on its operational results or financial condition for 2025 from these investments [5]

[Music] Hello and welcome to Market Domination. I'm Josh Lipton live from our NYC headquarters. There's more economic pressure coming from the White House and President Trump's global trade war with an announcement of fresh tariffs on goods from Japan and South Korea.Plus, the United States is close to finalizing several trade packs. So, we'll notify the other countries of higher tariff plates by July 9th. And investors are reacting.There's just one hour to go until the closing bell. And right now, stocks a ...

Investment Rating - The report maintains a "Buy" rating on ZDT and raises the target price (TP) to NT$140 from NT$130, maintains a "Neutral" rating on Unimicron and NYPCB with TP raised to NT$97 and NT$110 respectively, and maintains a "Sell" rating on Kinsus with a new TP of NT$70 from NT$63 [8][21][31]. Core Insights - The increase in BT substrate prices in early Q3 2025, driven by T-glass and gold price hikes, is expected to improve revenue trends for substrate makers, particularly Kinsus and NYPCB, with BT revenue exposure projected to exceed 25% of total revenue in 2025 [2][3]. - The report anticipates a potential further pricing hike for high layer count ABF substrates in the coming months, which could enhance revenue and profitability outlook for substrate suppliers in the second half of 2025 [3][7]. - The T-glass shortage is expected to ease by the first half of 2026, which may stabilize pricing levels despite the current supply constraints [4][7]. Summary by Sections Pricing and Revenue Outlook - BT substrate prices have increased by 5%-20% in early Q3 2025 due to T-glass supply tightness and rising gold prices, which account for 30-40% of BT cost of goods sold (COGS) [1][2]. - The report expects improved profitability for BT substrates in the second half of 2025 compared to the first half, despite potential unfavorable gross margin and operating profit margin conditions due to material cost hikes and currency appreciation [2][3]. Company-Specific Earnings Revisions - Unimicron's 2025 earnings estimate has been cut by 25% due to unfavorable foreign exchange conditions, while revenue is expected to increase by 1% [17][19]. - NYPCB's earnings estimates for 2025, 2026, and 2027 have been revised up by 3%, 11%, and 7% respectively, reflecting a positive outlook on substrate pricing [23][25]. - Kinsus's 2025 earnings estimate has been reduced by 16% due to unfavorable FX conditions, but 2026 and 2027 estimates have been increased by 10% and 11% respectively [28][30]. - ZDT's earnings estimates for 2025, 2026, and 2027 have been revised down by 17%, 1%, and 1% respectively, primarily due to unfavorable FX conditions [33][35].

Core Viewpoint - The recent announcement of Luxshare Precision's H-share listing has stirred the capital market, highlighting the company's ambitious growth plans and the leadership of Wang Laichun, who has transitioned from a factory worker to a billionaire entrepreneur [5][13]. Company Overview - Luxshare Precision has reported a revenue of 268.79 billion yuan for 2024, marking a 15.91% increase from 2023 [10]. - The net profit attributable to shareholders reached 13.37 billion yuan, a 22.03% increase compared to the previous year [10]. - The company aims to diversify its business, with 15% of its revenue coming from new sectors such as automotive connectivity and communication components [7][11]. Leadership and Strategy - Wang Laichun, the founder, emphasizes a long-term vision for the company, focusing on technological depth and capital integration rather than short-term gains [8][11]. - The company has adopted a strategy of "technical mergers and vertical integration," which has allowed it to penetrate the Apple supply chain and expand into new markets [7][11]. Financial Performance - The gross profit margin for 2024 is projected to be 10.41%, down 1.17 percentage points from 2023, indicating challenges in the manufacturing sector [10]. - The company has seen a decline in its dividend payout from 2.15 billion yuan in 2023 to 1.45 billion yuan in 2024, reflecting a focus on long-term growth over immediate returns [8]. Market Position and Future Plans - Luxshare's move to list in Hong Kong is seen as a strategic response to the evolving global manufacturing landscape, allowing for more flexible financing options and better talent acquisition tools [9][12]. - The company plans to allocate over 10 billion USD for financing, which will be directed towards expanding its production capabilities, particularly for AirPods in India [9][12]. Industry Context - The competitive landscape includes major players like Lens Technology and GoerTek, with Luxshare's listing seen as part of a broader trend of Chinese tech manufacturers seeking international capital [8][12]. - The company is also addressing supply chain risks by diversifying its production bases to countries like Mexico and India, aiming to reduce reliance on a single market [11][12].