Core Insights - Celestica Inc. and Flex Ltd. are prominent players in the electronics manufacturing services (EMS) industry, serving various sectors including cloud computing, automotive, healthcare, and industrials [1][3] - Both companies are strategically positioned to capitalize on the growing demand for advanced manufacturing solutions driven by technologies such as AI, IoT, and 5G [2][7] Celestica Overview - Celestica has over 25 years of manufacturing experience and focuses on cloud-optimized data storage and networking solutions, benefiting from the generative AI boom [4] - The company is experiencing growth from its 800G network switches, essential for AI applications and data center operations, contributing to solid top-line growth [5] - Despite its growth, Celestica faces challenges with high research and development costs leading to margin contraction and stiff competition from major players like Foxconn and Jabil [6] Flex Overview - Flex operates in 30 countries and is well-positioned to meet the demands of emerging technologies, including IoT and autonomous vehicles [7] - The company reported a 50% growth in its cloud and data center power business in fiscal 2025, with expectations for continued strength into fiscal 2026 [8][9] - Flex's shares trade at a lower forward P/E ratio of 14.49 compared to Celestica's 22.72, making it more attractive from a valuation perspective [14] Financial Performance - Celestica's 2025 sales and EPS are expected to grow by 13.1% and 30.1%, respectively, with positive trends in EPS estimates over the past 60 days [11] - Flex's 2025 sales are projected to rise by 0.4% and EPS by 9.4%, with recent upward revisions in EPS estimates [12] - Over the past year, Celestica's stock has gained 119.8%, outperforming the industry growth of 51.7%, while Flex's stock has increased by 36.6% [13] Investment Considerations - Celestica shows strong revenue and EPS growth, while Flex's valuation metrics appear more attractive, leading to a Zacks Rank of 2 (Buy) for Flex compared to Celestica's 3 (Hold) [15][16] - Both companies anticipate improvements in sales and profits for 2025, but Flex is currently viewed as the better investment option based on Zacks Rank [16]

Earnings Report - Jabil Inc. is set to release its third-quarter earnings results on June 17, with analysts expecting earnings of $2.30 per share, an increase from $1.89 per share in the same period last year [1] - The company projects quarterly revenue of $7.03 billion, compared to $6.76 billion a year earlier [1] Dividend Information - Jabil has signed a memorandum of understanding with AVL Software and Functions GmbH, which may attract investor interest in its dividends [2] - The current annual dividend yield is 0.18%, translating to a quarterly dividend of $0.08 per share, or $0.32 annually [2] - To generate $500 monthly from dividends, an investment of approximately $3,297,000 or around 18,750 shares is required [3] - For a more modest income of $100 per month, an investment of $659,400 or about 3,750 shares is needed [3] Dividend Yield Dynamics - Dividend yield can fluctuate based on changes in the stock price and dividend payments [4][5] - For example, if a stock's price increases, the dividend yield decreases, and vice versa [5] - Changes in dividend payments also affect yield; an increase in dividends raises the yield if the stock price remains constant [6] Stock Performance - Jabil's shares fell by 1.8%, closing at $175.84 on the previous Friday [6]

Summary of Benchmark Electronics Conference Call Company Overview - **Company**: Benchmark Electronics - **Industry**: Electronics and Precision Technologies Manufacturing - **Market Capitalization**: $2.7 billion [3] Key Financial Highlights - **Free Cash Flow**: $140 million over the last twelve months, with a gross margin greater than 10% for six consecutive quarters [4][11] - **Net Cash**: $79 million at the end of Q1 [4][19] - **Revenue**: $632 million in Q1, in line with guidance [13] - **Gross Margin**: 10.1% in Q1, slightly up from 10.0% year-over-year [14] Operational Insights - **Global Manufacturing Footprint**: 21 locations, with 55% in the Americas and 36% in the U.S. [6] - **Employee Count**: 12,500 associates, including 420 engineers [4] - **Focus on Inventory Management**: Reduced inventory days from 94 to 89, aiming for 5-5.5 turns [20] Sector Performance - **Medical Sector**: 12% decline quarter-over-quarter due to demand softness, expected recovery in the latter half of the year [16][24] - **Aerospace and Defense**: 4% growth quarter-over-quarter, driven by strong defense demand [15][22] - **Industrial Sector**: Slight decline of 2% quarter-over-quarter, but positive outlook for growth [15][22] - **Semi Cap Sector**: Revenue decreased by 2%, but year-over-year growth of 18% indicates market share gains [14] Strategic Focus - **Outsourcing Trend**: Continued growth expected in outsourcing, particularly in industrial and medical sectors [8][30] - **Tariff Management**: Minimal impact from tariffs as they are considered a pass-through, with 36% U.S. footprint providing stability [12][13] - **Future Growth Areas**: Anticipated growth in semi cap and industrial sectors, with ongoing investments in technology and capacity [21][22] Capital Allocation and Shareholder Returns - **Dividends**: Commitment to maintaining dividends, with a focus on returning capital to shareholders [18][47] - **Share Buybacks**: $8 million in shares repurchased in Q1, aimed at offsetting dilution [19][47] - **M&A Strategy**: No recent acquisitions, focusing on organic growth and existing customer base [48][49] Conclusion - **Outlook**: Optimistic about future growth, particularly in semi cap and industrial sectors, while maintaining operational efficiency and margin stability [28][30]

Key Takeaways CLS margins remain under pressure due to high research and development costs. Temporary U.S. exemptions aid CLS' CCS segment, which includes servers and networking switches. Despite margin headwinds, CLS shares have surged 125.8% over the past year, outpacing its industry.Celestica Inc. (CLS) remains skeptical of the dynamic macro environment owing to trade policy uncertainty. While the business environment remains fluid with frequent policy adjustments, recent announcements have provided ne ...

Group 1 - Jabil Inc. is expected to announce Q3 FY'25 results on June 17, 2025, with earnings projected at approximately $2.30 per share, a 20% increase year-over-year, and revenues around $7 billion, reflecting a 4% year-over-year growth [2] - The company is benefiting from strong performance in capital equipment, cloud and data center infrastructure, and digital commerce end-markets, with AI-related revenue projected to reach $7.5 billion for FY 2025, representing a 40% increase [2] - Jabil currently holds a market capitalization of $20 billion, with recorded revenue of $27 billion over the past twelve months, yielding an operating profit of $1.3 billion and net income of $484 million [2] Group 2 - Historical data indicates that Jabil has had 20 earnings data points over the past five years, with 14 positive one-day returns, resulting in a 70% positive return rate, which drops to 58% when considering the last three years [4] - The median of the 14 positive returns is 5.7%, while the median of the 6 negative returns is -8.0% [4] - There is a strategy to assess the correlation between short-term and medium-term post-earnings returns, which can guide trading decisions based on favorable one-day returns [3]

特朗普的美国制造政策或迎来首个胜利 凤凰网科技讯 北京时间6月11日，据《日经亚洲》报道，美国总统特朗普力推的"美国制造"战略将迎来 首个胜利。富士康目前正积极在美国扩大AI服务器产能，大幅提高美国制造的GPU模块的占比。与此 同时，其他AI服务器供应商也积极在美国布局。 在得州休斯顿的富士康制造中心，数百名建筑工人和工程师正夜以继日地工作，努力扩大该公司在美国 的AI服务器产能。 作为英伟达的重要供应商，富士康正在美国进行大规模扩张，计划将相当大的一部分(两位数百分 比)GPU模组和主板转移至美国生产。目前，该公司超过90%的此类关键组件仍在中国台湾地区制造。 "休斯顿是我们的首要任务，因为目前GPU模块和主板大多在中国台湾生产。"富士康高管对《日经亚 洲》表示。 对于富士康来说，在当前地缘政治不确定性加剧的情况下，在美国生产这些组件有助于公司及其客户提 高供应链的韧性。 这对于特朗普来说也是一场胜利。这位美国总统一直通过实施高额关税，大力推动"美国制造"政策。他 在这一领域最引人注目的举措，便是针对苹果公司，威胁对进口的iPhone征收25%关税。 AI服务器或成美国制造首个成功案例 此外，台达电子、光宝 ...

Core Insights - Powell Industries, Inc. (POWL) is experiencing strong momentum due to its solid position in the oil, gas, and utility markets, with Q2 fiscal 2025 revenues increasing by 9.2% to $278.6 million, driven by robust project activity [1][9] Group 1: Market Performance - The company benefits from favorable trends in energy transition projects, including biofuels, carbon capture, and hydrogen, which have positively impacted its performance [2] - Significant project awards, particularly in LNG and petrochemical processes, have established POWL as a leading supplier of critical electrical infrastructure [2] - POWL's diversification beyond core markets has enhanced its market share in utility, commercial, and other industrial sectors, capitalizing on global electrification and digitalization trends [3] Group 2: Financial Metrics - The company reported a strong backlog of $1.3 billion at the end of Q2 2025, with new orders totaling $249 million, up from $235 million in the same quarter last year [3][9] - POWL has committed to rewarding shareholders, distributing $6.4 million in dividends in the first half of fiscal 2025, and increasing its fiscal 2024 dividends by 2.4% year-over-year [4] Group 3: Cost Challenges - Despite strong revenue growth, POWL faces challenges from high operating costs, with cost of sales rising 11.5% year-over-year in the first half of fiscal 2025 due to increased raw material costs [8] - Selling, general, and administrative expenses also increased by 4.6% during the same period, with previous fiscal year costs climbing 34% for sales and 7.7% for administrative expenses [8]

6 June 2025 Asia Tech Hardware Server ODM/OEM primer (2025) - Players, Positioning and Profitability Alex Wang, CFA +852 2123 2613 alex.wang@bernsteinsg.com Shirley Yang, CFA +852 2123 2660 shirley.yang@bernsteinsg.com Ethan Xu +852 2123 2634 ethan.xu@bernsteinsg.com We published a primer on server ODM/OEM in Oct 2024. This updated version include the ASIC server segment, and the competition landscape changes among GPU AI servers outside of China. For investors interested in China AI server, please refer to ...

Company Overview - PMGC Holdings Inc. is a diversified public holding company focused on strategic acquisitions and investments across various industries [7] - The company currently manages a portfolio consisting of three wholly owned subsidiaries: Northstrive Biosciences Inc., PMGC Research Inc., and PMGC Capital LLC [7] Acquisition Details - PMGC has signed a non-binding Letter of Intent to acquire a U.S.-based electronics contract manufacturing company with over 40 years of operational history [1] - The target company generated approximately $699,000 in revenue and $173,000 in adjusted EBITDA in 2024 [3] Target Company Profile - The target company is a full-service provider of high-precision electronics manufacturing and assembly services, established in the 1980s [2] - It offers capabilities such as electrical and mechanical assembly, printed circuit card assembly, functional testing, and electronic component testing, serving a range of commercial and industrial clients [2] Strategic Rationale - The acquisition aligns with PMGC's strategy of acquiring fundamentally strong U.S.-based businesses with durable cash flow and growth potential [4] - PMGC management highlights the target's longstanding customer relationships and strong operational control as key advantages [4] Industry Context - The acquisition occurs amid a renewed national focus on revitalizing domestic manufacturing, supported by federal initiatives like the CHIPS and Science Act [5] - The U.S. electronics manufacturing services sector is positioned for growth as industries prioritize secure, localized, and high-quality production partners [5] - PMGC believes this transaction places the company at the intersection of this movement, providing exposure to a high-integrity operator within the ecosystem [5] Future Outlook - The closing of the acquisition is subject to customary conditions, including due diligence and corporate approvals [6] - This acquisition marks PMGC's second pending acquisition since April, indicating that its M&A strategy is actively progressing [9]

Core Viewpoint - Shenzhen Dazhu CNC Technology Co., Ltd. (Dazhu CNC) has submitted a listing application to the Hong Kong Stock Exchange, with CICC as the exclusive sponsor [2]. Group 1: Company Overview - Dazhu CNC specializes in providing production equipment solutions for PCB manufacturing, focusing on the research, production, and sales of PCB-specific production equipment [4]. - As of June 3, 2023, Dazhu CNC's stock price was 35.54 CNY, with a total market capitalization of 15.123 billion CNY [4]. - According to data from Zhaoshang Consulting, Dazhu CNC is the largest manufacturer of PCB-specific production equipment globally, holding a market share of 6.5% as of 2024 [4]. Group 2: Financial Performance - Dazhu CNC's revenue for the years 2022, 2023, and 2024 is projected to be 2.786 billion CNY, 1.634 billion CNY, and 3.343 billion CNY, respectively [5]. - The net profit for the same years is expected to be 432 million CNY, 136 million CNY, and 300 million CNY, respectively [5]. - The gross profit margins for these years are 34.0%, 29.2%, and 27.2%, indicating a downward trend in profitability [5]. Group 3: Leadership - Gao Yunfeng holds approximately 83.63% of Dazhu CNC's issued share capital through Dazhu Laser, while Dazhu Holdings holds about 0.76% [6]. - Yang Chaohui, with over 20 years of experience in the PCB industry, serves as the Chairman and General Manager of Dazhu CNC, responsible for the company's daily operations and strategic decisions [9].