Core Insights - Investors are encouraged to focus on companies that deliver strong returns after accounting for all operating and non-operating expenses, emphasizing the importance of profitability over loss-making firms [1] Company Analysis - Intuit Inc. (INTU), Dave Inc. (DAVE), and Nova Ltd. (NVMI) are highlighted as top investment picks for the second half of the year due to their high net income ratios [2] - The net income ratio is a critical measure of a company's profitability, indicating the percentage of net income relative to total sales revenues, with higher ratios suggesting better revenue generation and expense management [3] - The 12-month net profit margins for the selected companies are as follows: NVMI at 28.5%, INTU at 19.1%, and DAVE at 13.8%, all demonstrating strong sales and income growth compared to industry averages [9][10] Screening Criteria - Additional screening parameters include: - Zacks Rank of 1, indicating a strong buy recommendation based on historical performance [4] - Trailing 12-month sales and net income growth exceeding industry averages [5] - A net income ratio higher than the industry average, reflecting solid profitability [5] - A strong buy percentage rating greater than 70%, indicating a majority of broker recommendations are positive [5]

Good morning and good afternoon, everyone. It is July 11th, Thursday. Welcome to Morgan Stanley Asia Micro webcast. My name is Crystal Ji, Asian EM, equity strategist. Before we start, please note that this event is for Morgan Stanley institutional clients and financial advisors only. It is not for members of press. If you're a member of the press, please log off and reach out separately. Please also note that this broadcast, your questions may be recorded. Today, we have Chetan Iyer, Chief Asia Economist, ...

Core Insights - MKS Inc. has been recognized as one of America's Best Mid-Sized Companies for 2025 by Time and Statista, Inc. [1][2] - The recognition is attributed to employee satisfaction, revenue growth, and sustainability transparency, evaluated through over 15 criteria [2] Company Overview - MKS Inc. is a global provider of enabling technologies that transform various industries, particularly in semiconductor manufacturing, electronics, and specialty industrial applications [3] - The company focuses on delivering foundational technology solutions, including instruments, subsystems, systems, process control solutions, and specialty chemicals technology [3] - MKS's solutions address challenges in miniaturization and complexity in advanced device manufacturing, enhancing power, speed, feature enhancement, and connectivity [3]

Core Insights - TSMC reported June revenue of NT$263.71 billion, a decrease of 17.7% month-over-month but an increase of 26.9% year-over-year [1] - For the first half of the year, TSMC's revenue reached NT$1,773.046 billion, a 40.0% increase compared to the same period last year [1] - Q2 revenue was NT$933.796 billion (approximately US$31.95 billion), up 38.6% year-over-year, exceeding company guidance and market expectations [1] - Analysts had predicted Q2 revenue of NT$927.831 billion, while JPMorgan expected US$29.95 billion, with a quarter-over-quarter growth of 17% [1] - Strong demand for 3nm and 5nm processes, along with urgent orders for older process nodes, contributed to the revenue growth despite significant appreciation of the New Taiwan Dollar [1] - TSMC's gross margin for Q2 is expected to remain at 57.9% [1] Company Outlook - TSMC's CEO, C.C. Wei, indicated that while U.S. tariffs have had some impact, demand for AI remains strong and continues to exceed supply [2] - The company forecasts a mid-teens percentage growth in revenue for 2025 [1][2] - TSMC expects full-year revenue growth in USD to be close to the mid-20% range (24%-26%) [2] - The company plans to hold an earnings call on July 17, focusing on order outlook for the second half, capital expenditure plans for 2026, and progress on 2nm process technology [2] - TSMC benefits from the AI boom as the largest chip foundry, producing high-end processors for companies like NVIDIA and AMD [2] - The company announced plans to invest an additional US$100 billion in the U.S., following a previous commitment of US$65 billion for three factories [2]

Core Viewpoint - Wolfspeed's stock has experienced significant volatility, with a notable rally following the announcement of a new CFO, Gregor van Issum, amidst ongoing Chapter 11 bankruptcy proceedings [2][4]. Group 1: Stock Performance - Wolfspeed's share price increased by 9.1% in a recent trading session, having peaked at 44.2% earlier in the day [1]. - The stock saw a massive rally on Monday, driven by the announcement of the new CFO, with continued bullish momentum observed in subsequent trading [2]. Group 2: Corporate Restructuring - Gregor van Issum will lead Wolfspeed through its Chapter 11 bankruptcy filing and restructuring, with hopes from some investors that he can negotiate favorable terms for current shareholders [4]. - The current corporate entity of Wolfspeed will be disbanded, and a new company will be formed around its assets, allowing for debt clearance and continuation of core operations [5]. Group 3: Shareholder Impact - Current common stock shareholders are expected to receive only 3% to 5% of the new company's common equity post-restructuring, indicating a significant dilution of their holdings [6]. - While there is potential for short covering and momentum from retail investors to push shares higher in the near term, the overall risk for investors remains high [6].

Core Viewpoint - TSMC's recent technology forum in Shanghai highlighted the company's advancements in semiconductor technology and its market outlook, particularly focusing on the growth of the semiconductor market driven by high-performance computing (HPC) and AI integration, despite limitations in advanced process offerings to Chinese clients [3][4][5]. Market Outlook - The global semiconductor market is projected to exceed $1 trillion by 2030, with HPC accounting for 45%, smartphones for 25%, automotive for 15%, and IoT for 10% [5][6]. Advanced Process Technology - TSMC's 3nm family continues to evolve, with N3P expected to enter mass production in Q4 2024, enhancing performance by 5% or reducing power consumption by 5-10% compared to N3E [6][9]. - N2P is anticipated to begin production in H2 2026, offering an 18% performance increase at the same power level and a 36% reduction in power at the same performance level [11][13]. - The A16 process, set for mass production in H2 2026, integrates three innovative technologies, promising an 8-10% performance boost or a 15-20% reduction in power consumption compared to N2P [14][19][22]. - The A14 process, based on second-generation GAA technology, is expected to start production in 2028, with significant improvements in speed and energy efficiency [20][22]. Advanced Packaging Technology - TSMC's 3DFabric® technology includes SoIC platforms for 3D silicon stacking, with N3-on-N4 stacking expected to enter mass production in 2025 [23][25]. - The SoW-X platform, set for 2027, aims to enhance computational capabilities significantly, integrating essential components for AI training [30]. Special Process Technologies - TSMC is advancing automotive technology with its latest logic technologies, which enhance performance by approximately 20% per generation while reducing power consumption by 30-40% [32]. - The company is also focusing on IoT applications, with developments in ultra-low leakage SRAM and logic circuits to extend battery life [38]. Manufacturing Excellence - TSMC anticipates a twelvefold increase in wafer shipments for AI-related products by 2025 compared to 2021 [44]. - The company plans to add nine new facilities by 2025 to expand capacity, including six wafer fabs in Taiwan and two overseas [45]. - TSMC is committed to sustainable manufacturing, aiming for net-zero emissions by 2050 and a 98% resource recovery rate by 2030 [46][48].

Group 1 - The company plans to issue shares and pay cash to acquire a 72.33% stake in ChipLink Integrated Circuit Manufacturing (Shaoxing) Co., Ltd. from 15 transaction parties, including Shaoxing Binhai New Area ChipXing Equity Investment Fund Partnership and Shenzhen Yuan Zhi No.1 Private Equity Investment Fund Partnership [1][2] - The Shanghai Stock Exchange's M&A Review Committee approved the transaction on June 23, 2025, confirming that it meets restructuring conditions and information disclosure requirements [1][2] - The company has revised the restructuring report to reflect updates on decision-making processes and approval status, as well as to address risks related to high customer concentration and the feasibility of performance forecasts for the target company [2] Group 2 - The revised restructuring report includes updates on the decision-making process and approval status of the transaction, as well as supplementary financial information and operational status following the audit cutoff date [2] - The company conducted a thorough review and self-check of the draft report, making minor adjustments to expressions without affecting the restructuring plan [2]

Final traits, Mr. . Weiss, what do you got. Taiwan Semi, you know, it's on also a lot of these lists that are quality companies to buy.The future is extremely bright. They are the go-to for semiconductor manufacturing and design. Who's got AMX.I do. So, AMX breaking out above its 100 day moving average. Consumers spending and travel strong.Who's got AMD. Nvidia is not the only game in town. I like AMD here.I like the partnership with AWS for GPUs and CPUs. Watch this stop. Wow.Where's yours. Uh Jason just t ...

Group 1: Market Overview - High volatility in markets throughout 2025 has created opportunities for momentum investors to capture gains when target stocks rise [1] - Timing momentum plays can be challenging, but early identification of targets in a sustained rally can provide an advantage [1] Group 2: EyePoint Pharmaceuticals (EYPT) - EyePoint Pharmaceuticals, a clinical-stage biopharma firm, has seen its stock price forecasted to reach $25.38, indicating a potential upside of 188.39% from the current price of $8.80 [2] - The company reported first-quarter revenue of nearly $25 million, significantly exceeding analyst expectations of just under $9 million [3] - EyePoint's lead drug candidate, DURAVYU, is in a critical Phase 3 clinical trial, with top-line data expected in 2026 [4] - The company ended the first quarter with over $318 million in cash and investments, sufficient to sustain operations through 2027 [4] - EYPT shares have increased by more than 19% in the last month, with analysts suggesting that growth is just beginning [5] Group 3: Nova Ltd. (NVMI) - Nova Ltd., which designs process control systems for semiconductor manufacturing, has a stock price forecast of $277, representing a 26.02% upside from the current price of $219.81 [6] - The company reported quarterly revenue growth of over 50% year-over-year, with earnings per share of $2.18 beating analyst estimates by 10 cents [7] - Analysts project Nova's earnings growth could exceed 7% in the future, supported by a year-over-year cash flow growth of about 32% [8] - NVMI shares have risen by more than 10% in the last month, with a consensus price target suggesting over 27% upside potential [9] Group 4: Ouster Inc. (OUST) - Ouster Inc. specializes in LiDAR technology for 3D mapping and imaging, with a stock price forecast of $14.10, indicating a 2.45% upside from the current price of $13.76 [10] - The company reported first-quarter revenue of $33 million, a 26% year-over-year increase, and a GAAP gross margin improvement to 41% from 29% [11] - Ouster projects second-quarter revenue between $32 million and $35 million, indicating significant upside potential [11] - The company's stock has rallied over 71% in the last year, with analysts optimistic about further growth due to increasing demand for robotics and automation services [12]

Financial Data and Key Metrics Changes - The company has grown margins by almost 400 basis points from 2018 to now and is on track to increase its margin profile by another 300 basis points over the next four years [22][23] - The company reaffirmed a revenue growth of 5% to 7% for Q3 and expects a margin profile of approximately 14% [75][76] Business Line Data and Key Metrics Changes - The advanced facilities and advanced manufacturing sectors, which include life sciences and semiconductor industries, represent about 25% of the company's business [40] - The industrial water space is at an inflection point, with significant growth potential due to increasing water scarcity and the need for treatment systems [47] Market Data and Key Metrics Changes - The private sector continues to move forward with capital projects, particularly in life sciences and chip manufacturing, despite uncertainties like tariffs [30][31] - State and local governments have not paused projects, continuing to utilize appropriated funds [33] - The federal sector, which represents about 9% of the business, has seen some pausing but is now starting to resume projects [34][35] Company Strategy and Development Direction - The company has redefined its asset life cycle approach, engaging earlier in clients' business to optimize capital and enhance project outcomes [17][18] - The company aims to increase its global delivery model from 10% of overall delivery to potentially doubling it in the next three to five years [49][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline for the pharma sector, driven by advancements in AI for drug discovery, which allows for faster R&D processes [68][69] - The company is optimistic about the future, citing strong secular tailwinds across various markets, including water, environmental, and advanced facilities [12][13] Other Important Information - The company has a diverse project portfolio with 29,000 engagements, reducing exposure to any single client [79] - The company is focusing on enhancing its tech platforms to improve efficiency and develop unique solutions for clients [82][83] Q&A Session Summary Question: How are customers responding to the current economic environment? - Management noted that private sector clients are moving forward with capital projects, while state and local governments continue to utilize appropriated funds without pausing projects [30][33] Question: What is the company's strategy regarding the global delivery model? - The company aims to increase its global delivery model from 10% to potentially doubling it in the next three to five years, emphasizing the importance of trust built over decades with clients [49][51] Question: How does the company plan to balance M&A, buybacks, and dividends? - Management indicated that in the near term, M&A is not a focus, and the company plans to continue returning a significant portion of free cash flow to shareholders while reinvesting in itself [86]