Summary of Conference Call Notes on Shanghai Anlogic Infotech Co Ltd Company Overview - **Company**: Shanghai Anlogic Infotech Co Ltd (688107.SS) - **Industry**: Field Programmable Gate Arrays (FPGA) within the semiconductor sector Key Points and Arguments Industry Dynamics - The FPGA market is expected to return to growth in 2025 after experiencing a trough in mid-2024, with a projected YoY growth of 27% for Anlogic in 2025 due to localization trends in China [1][2] - The FPGA segment accounted for only 1.6% of total semiconductor revenue in 2023, indicating its niche status [6] - Communication demand remains weak, with a significant decline in newly built 5G base stations in Q3 2024, down 36% QoQ and 32% YoY [12][39] Financial Performance - Anlogic's revenue showed three consecutive quarters of growth in 2024, but overall demand remains weak due to ongoing inventory digestion [12] - The company's gross margin dropped from 50% in Q4 2023 to 27% in Q3 2024, primarily due to product mix and pricing declines [13] - Despite revenue growth forecasts, Anlogic is expected to remain loss-making in 2025, with EPS estimates swinging to a loss [10][13] Price Target and Valuation - The price target for Anlogic has been raised to Rmb34.40, reflecting a higher target P/S ratio of 15.7x, despite earnings cuts for 2024-2026 [3][23] - The valuation model is based on a P/S ratio due to the company's history of losses and the need for heavy R&D investment [47] - Anlogic's P/S ratio is in line with global peer Lattice, but profitability remains significantly lower [24][25] Risks and Challenges - High R&D expenses are expected to continue, remaining above 40% of sales for 2024 and 2025, which may hinder profitability [10][13] - The company faces challenges in achieving higher revenue scale and maintaining a double-digit P/S valuation, requiring a CAGR of 20-30% over the next five years [25][47] - Limited visibility on communication demand recovery poses a risk to future revenue growth [12][39] Other Important Insights - The localization trend in China is driving a shift towards local vendors, which may benefit Anlogic in the civilian FPGA market, although urgency is less compared to specialty FPGAs [2] - Inventory levels in the FPGA market are currently high, with Lattice's inventory days at 218 days, indicating a need for normalization [17] - The overall sentiment in the A-share market has improved, contributing to the revised price target [23] Conclusion - Anlogic is positioned to benefit from the localization trend in China, but faces significant challenges in terms of profitability and demand recovery in the communication sector. The company's future growth will depend on its ability to navigate these challenges while maintaining a focus on R&D and product competitiveness.

-20.0 -15.0 -10.0 -5.0 0.0 5.0 10.0 -40 -30 -20 -10 0 10 20 30 40 50 60 2008 2010 2012 2014 2016 2018 2020 2022 2024 ($bn) ($bn) Non-Dealer Positioning (4Wk Moving Average) All itraxx Main Series All iTraxx XO (RS) Net Sellers of Protection Net Buyers of Protection Global Credit: What We're Watching Asia Credit Demand December 23, 2024 Global Credit: What We're Watching | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |---------------------|------------ ...

December 23, 2024 12:52 PM GMT Weekly primary unit sales in 50 cities were +5.0% YoY (vs. +31% YoY last week) and +5.9% WoW for the week ended December 22: Tier 1 city sales were +3.3% YoY (vs. +71% YoY last week) but -34% WoW. Tier 2 city sales were +4.5% YoY (vs. +21% YoY last week) and +25% WoW. Tier 3 city sales were +10.3% YoY (vs. +29% YoY last week) but -10.1% WoW. M Update China Property | Asia Pacific Weekly primary unit sales were +5.0% YoY and +5.9% WoW. Weekly secondary unit sales were +58% YoY ...

22 Dec 2024 21:29:36 ET │ 29 pages | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------- ...

Summary of Wuliangye (000858 CH) Earnings Call Company Overview - **Company**: Wuliangye - **Industry**: Beverages (Baijiu sector) - **Current Share Price**: RMB 143.55 - **Target Price**: RMB 173.00 (previously RMB 180.00) [6][24][32] Key Financial Highlights - **2024 Revenue Growth**: Expected to grow by 6% year-on-year [6][24] - **2024-2026 Net Profit Estimates**: Lowered by approximately 3-5% [6][24] - **2024 Revenue Estimates**: Adjusted from RMB 90,070 million to RMB 88,315 million, a decrease of 1.9% [6][24] - **2025 Revenue Estimates**: Adjusted from RMB 96,162 million to RMB 92,342 million, a decrease of 4.0% [6][24] - **2026 Revenue Estimates**: Adjusted from RMB 101,852 million to RMB 98,122 million, a decrease of 3.7% [6][24] - **2024-2026 EPS Growth**: Expected to grow at a CAGR of 7% [6][24] Market Performance - **YTD Share Price Performance**: Wuliangye's share price has dropped 2.5% since November, while the CSI 300 index has increased by 1% [6][24] - **YTD Performance Against Peers**: Wuliangye's share price has gained 6% YTD, outperforming the Wind Baijiu Index, which is down 13% [6][24] Strategic Initiatives - **Distribution Channel Expansion**: Plans to add 120 specialty stores and expand into emerging distribution channels such as group buying and new retail in 2025 [6][24] - **Product Strategy**: Focus on controlling the balance between sales volume and price for Puwu products, and promoting 1618 and low-alcohol content products [6][24] - **New Product Launches**: Plans to launch 1-2 strategic blockbuster products in mid-end markets priced at RMB 350-800 per bottle [6][24] Financial Ratios and Estimates - **2024-2026 EBITDA Margin**: Expected to remain stable around 47-48% [6][24] - **2025 Revenue and Net Profit Growth**: Expected to grow by 4.6% and 5.3% year-on-year, respectively [6][24] - **2025 PE Multiple**: Trading at a 16x 2025e PE multiple, below the peer group average [6][24] Risks and Catalysts - **Key Risks**: Macroeconomic slowdown, changes in consumer preferences, policy risk, limited ASP growth, and food safety risks [6][32] - **Potential Catalysts**: Growth in wholesale prices of eighth generation Puwu and better-than-expected sales volume growth of Wuliangye products [6][32] Conclusion - **Investment Rating**: Maintain Buy rating with a target price of RMB 173, implying approximately 21% upside from the current share price [6][32] - **Market Position**: Wuliangye remains a preferred stock in the baijiu sector, expected to benefit from potential recovery in demand driven by macro stimulus policies in 2025 [6][32]

Summary of Key Points from the Conference Call Industry Overview - The conference call primarily discusses the bond market dynamics across various countries, including Germany, the United States, the United Kingdom, Japan, Australia, and New Zealand, focusing on index extensions and contractions for December 2024. Core Insights and Arguments - **Eurozone Index Extension**: The Eurozone index is expected to extend by 0.028 years in December, which is marginally higher than the average December extension of 0.025 years but lower than the average monthly extension of 0.055 years [25][33]. - **Germany's Performance**: Germany is projected to have the largest extension at 0.069 years, followed by Italy at 0.065 years and Austria at 0.025 years. This is attributed to notable sector-wise extensions due to bonds falling out and changing indices [25][34]. - **UK Index Contraction**: The UKT index is expected to contract by 0.012 years, which is lower than the average December contraction of 0.01 years and the average monthly extension of 0.054 years. A total of £14.6 billion of issuance will affect this extension [14][60]. - **Japan's JGB Index**: The 1-year and above JGB index is expected to extend by 0.013 years, which is below the average monthly extension range of 0.02-0.06 years. Approximately ¥9.4 trillion of issuance will impact this extension [9][31]. - **Australia's ACGB Index**: The 1-year and above ACGB index is expected to extend by 0.005 years, compared to an average December extension of 0.016 years and an average monthly extension of 0.074 years [17][22]. Additional Important Information - **Market Value Impact**: In the Eurozone, about €23 billion of issuance will affect the extension, with approximately €39.6 billion worth of market value of bonds falling out of the index [33][34]. - **Sector-wise Extensions**: The largest extension in the Eurozone is observed in the 1-5 year sector, with an extension of 0.034 years, indicating a shift in market dynamics [34][36]. - **TIPS Index**: The 1-year and above TIPS index is expected to contract by 0.043 years, which is an improvement compared to the average December contraction of 0.048 years [36][60]. - **Reinvestment Estimates**: The estimated reinvestment amounts for various maturities in the JGB market are detailed, indicating a strategic approach to managing bond portfolios [11][9]. This summary encapsulates the key points discussed in the conference call, highlighting the performance of various bond indices across different countries and the implications for investors.

c45a43530f604d12bcb9a82b5aa6b9f6 Buy c45a43530f604d12bcb9a82b5aa6b9f6 Pony AI Inc. (PONY) c45a43530f604d12bcb9a82b5aa6b9f6 Goldman Sachs Pony AI Inc. (PONY) - 5,000 10,000 15,000 20,000 25,000 2025E 2026E 2027E 2028E 2029E 2030E Remote assistant cost TNC cut Depreciation - Vehicle Depreciation - ADK Fleet operation and maintenance (US$)Segment Partners/ Clients 124 396 1,490 3,441 11,401 58,237 180,790 - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 2024E 2025E 2026E 2027E 2028 ...

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Key Points WPP * **Inorganic Growth Limited**: WPP's focus on organic growth and integration of AI (WPP Open) to enhance operational efficiencies, limiting major inorganic moves due to increased leverage. * **2024 Guidance Downgrade**: Impacted by challenges in the TMT sector and loss of Pfizer contract, but optimism for 2025. * **Shift in Focus**: Moving beyond restructuring efforts, concentrating on competition and expansion. Telecoms * **Market Structure Improvements**: BT Group and Vodafone may benefit from improved market structure in the UK and Italy, while Orange and Telefonica may see improvements in Spain. * **Telenor and CK Hutchison**: Telenor as a potential consolidator in Denmark and Sweden, CK Hutchison potentially exiting these markets. * **German Regulatory Decisions**: Telefonica may increase market presence in Germany depending on regulatory decisions. * **Recommendation**: Switch out of low-BBB rated TELEFO 2.592% 2031s into better-rated BRITEL 3.75% 2031s for a 2bp pick. Advertising Agencies * **Scale and Efficiency**: Scale becoming increasingly important for media buying and negotiations with digital platforms and ad tech vendors. * **Omnicom/Interpublic Deal**: Targets $750m of annual cost synergies, with WPP focusing on restoring balance sheet metrics. * **Publicis**: May have flexibility to consider inorganic options, with potential for headline risk. Broadcasting and Streaming * **Netflix**: Well-positioned to navigate fragmented content landscape, with increasing demand for on-demand content. * **Content Spending**: Netflix expects to spend $17bn in 2024 on content, expanding its library and local language content. * **Broadcasters**: Facing challenges from streaming platforms, with some broadcasters expanding into AVOD space. Satellite * **Intelsat and SES**: SES acquired Intelsat for $5bn, aiming to maintain investment grade credit metrics and return cash to shareholders. * **Satcom Market**: Expected to grow rapidly, with lower orbits (MEO and LEO) showing particularly high growth rates. * **Starlink**: Challenging legacy operators in Aviation and Maritime markets. Payments * **FIS and Fiserv**: Both companies saw robust earnings in 2024, with outlook upgrades and strong cash flow generation. * **FIS**: Completed sale of 55% stake in Worldpay, with proceeds designated for debt reduction. * **Fiserv**: Continued to reduce leverage while investing in growth and generating strong cash flow. * **Digital Payments**: Expected to drive growth in payments industry, with mobile wallets and real-time payments increasing. Equipment Makers * **Ericsson and Nokia**: Both companies saw improved performance in 2024, with Ericsson focusing on cost actions and Nokia on restructuring plans. * **RAN Demand**: Expected to remain soft in 2025, with investment needs underpinning the equipment sector in the mid/longer term. * **AI and Cloud**: Expected to drive demand for higher capacity, lower latency, denser, more resilient, and more energy efficient digital networks. IT Services and Software * **SAP**: Upgraded to Overweight, with strong positioning in the market, good operational leverage, and robust growth prospects from cloud and Gen-AI streams. * **Capgemini**: Downgraded revenue growth expectations for the remainder of the year, but expected to return to organic growth in 2025. * **Gartner**: Worldwide software spending expected to grow +14% to $1.23tn in 2025, with IT services expected to increase +9.4% to $1.73tn. Media * **Omnicom**: Merged with Interpublic, creating the largest advertising holding company and a stronger competitor. * **ITV**: Potential takeover candidate, with strong balance sheet and low leverage, but facing strategic uncertainties and muted earnings in 2025. * **Bertelsmann**: Continues to exhibit a steady craving for M&A, with investments in Penguin Random House and BMG. * **Netflix**: Initiated with an Overweight recommendation, with strong competitive positioning and ongoing top-line growth supported by operational leverage benefits.

Industry and Company * **Industry**: Semiconductor and automotive industry, specifically focusing on autonomous driving (AD) and advanced driver-assistance systems (ADAS) chips. * **Company**: Horizon Robotics (9660.HK), a Chinese company specializing in intelligent driving solutions. Core Views and Arguments * **Positive Outlook**: Goldman Sachs maintains a "Buy" rating on Horizon Robotics, expecting the company to benefit from the growing demand for ADAS and AD SoC chips in the automotive industry. * **Journey 6 Series**: Horizon Robotics's Journey 6 series, with computing power ranging from 10 TOPS to 560 TOPS, is expected to drive significant revenue growth starting from 2025E. * **New Design Wins**: The company has secured new design wins from Chery, Dongfeng Voyah, and BYD, further diversifying its customer base and validating its technology. * **Customer Diversification**: Horizon Robotics is working to reduce its reliance on its top clients by expanding its customer base and targeting more clients with its Journey 6 series. * **Valuation**: Goldman Sachs sets a 12-month target price of HK$6.1 for Horizon Robotics, based on a EV/EBITDA multiple of 18.3x, which is in line with the global sector average. Other Important Points * **Competition**: The report highlights the potential risks of fiercer-than-expected competition and auto supply chain pricing pressure amid slow demand. * **Product Mix Upgrade**: There is a risk that the upgrade of the product mix towards AD may be slower than expected. * **Customer Base Expansion**: The expansion of the customer base may be slower than expected. * **Supply Chain Risks**: There are risks related to the supply chain amid geopolitical tension. * **M&A Rank**: Horizon Robotics has a M&A rank of 2, indicating a medium probability of the company becoming an acquisition target.