Key Points **Industry Overview** * **Semiconductor Sector Underperformed in 2024**: The Semiconductor sector underperformed the broader market in 2024, driven by moderation in AI stocks and underperformance in Semiconductor Capital Equipment and Analog/MCU. * **Outlook for 2025**: Goldman Sachs expects the Semiconductor and Semiconductor Capital Equipment sectors to outperform the broader market in 2025, driven by sustained outperformance in AI-enablers and a cyclical recovery in areas like Analog Semiconductors, MCUs, and Wafer Fab Equipment. * **Macroeconomic Backdrop**: The firm expects a favorable macroeconomic backdrop in 2025, with global GDP growth forecasted at 2.7%, supporting a cyclical recovery. **Sub-Sector Views** * **Compute/Networking**: AI-enablers like CRDO, NVDA, AVGO, MRVL, and ARM significantly outperformed in 2024. The firm expects demand for Compute and Networking to grow further in 2025/26 as model sizes and complexity evolve. * **Accelerated Computing**: The firm expects high demand for Accelerated Computing in 2025, driven by the ramp of next-generation accelerators and the low base. * **Networking**: Networking companies are expected to benefit from increased data rates and higher attach rates of Networking devices. * **Server CPU**: The general server market is expected to grow modestly in 2025, with AMD gaining share in server CPUs and Arm-based CPUs growing their presence in the Cloud. * **PC CPU**: The firm expects PC CPU shipments to remain soft in the near-term but improve in 2H25 driven by the end of life of Windows 10 and the proliferation of AI PCs. * **Broad-Based Semiconductors**: The firm expects another round of estimate cuts heading into and coming out of 4Q24 earnings season, but believes this will mark the 'last cut' this downturn. * **Automotive Semiconductors**: The firm remains positive on the long-term drivers of through-cycle growth in Automotive semiconductors, including Electrification and ADAS. * **Memory/Storage**: The firm expects industry bits to grow mid-teens (%) yoy in 2025 and pricing to stay relatively soft in the first half with a potential recovery in 2H. * **Semiconductor Capital Equipment**: The firm remains optimistic on the Wafer Fab Equipment market outlook for 2025 and 2026, driven by the transition to N2 at TSMC, continued strength in HBM, and a mild recovery in NAND. * **Semiconductor Materials**: The firm remains optimistic on the sub-sector as a whole and Entegris more specifically over the next 12 months, driven by factors like N2 ramp at TSMC and recovery in traditional end-markets. **Best Positioned Single Stock Ideas** * **NVDA**: The firm reiterates its Buy rating on NVDA, with a 12-month price target of $165 representing 18% potential upside. * **AVGO**: The firm reiterates its Buy rating on AVGO, with a 12-month price target of $255. * **MU**: The firm reiterates its Buy rating on MU, with a 12-month price target of $128. * **LRCX**: The firm maintains its Buy rating on LRCX, with an updated 12-month price target of $85. * **TER**: The firm maintains its Buy rating on TER, with a 12-month price target of $151. * **ENTG**: The firm maintains its Buy rating on ENTG, with an updated 12-month price target of $128. **Downgrades and Upgrades** * **Downgrade AMD to Neutral**: The firm downgrades AMD to Neutral from Buy, with a 12-month price target of $129. * **Upgrade NXPI to Buy**: The firm upgrades NXPI to Buy from Neutral, with an updated 12-month price target of $257. **Key Risks** * **Weaker-than-expected demand**: A weaker-than-expected demand for semiconductors could lead to downside risks for the industry. * **Supply chain disruptions**: Supply chain disruptions could impact production and lead to higher prices. * **Competition**: Intensified competition could impact pricing and margins. * **Regulatory changes**: Regulatory changes could impact the industry and its participants.

Summary of Key Points from the Conference Call Industry Overview - The conference call primarily discusses the **container shipping industry** and its current market dynamics, including freight rates, seasonal trends, and the impact of labor agreements on shipping lines. Core Insights and Arguments 1. **Freight Rate Trends**: The Shanghai Container Freight Index (SCFI) dropped by **8.6% week-on-week** due to averted strikes, with expectations of continued downward pressure from weaker seasonal demand [3][10][22]. 2. **General Rate Increases (GRIs)**: Two rounds of GRIs, ranging from **USD 1,000 to USD 3,000 per FEU**, are scheduled for January 15 and February 1, 2025. However, the likelihood of these increases being implemented is low due to the recent labor agreement [3][21][34]. 3. **Seasonal Patterns**: Historically, freight rates decline by an average of **12%** four weeks after the Lunar New Year (LNY). The industry anticipates similar softness in rates in the upcoming months [4][22]. 4. **Capacity Management**: Shipping lines are adopting blank sailings to manage capacity, with a reported **12% cancellation rate** of sailings from December 30 to February 2 [4][22]. 5. **Profitability Outlook**: Despite the anticipated decline in rates, preliminary results from major liners indicate profitability in Q4 2024, with CSH's profit increasing **1.7x year-on-year** to **RMB 49 billion** [5][10]. 6. **Market Sentiment**: Futures for SCFIS (Shanghai-Europe) are trading at a **30-51% discount** to spot rates, reflecting market expectations of weakening demand and overcapacity [3][25][29]. Additional Important Insights 1. **Impact of Labor Agreements**: The recent labor agreement averted a potential strike at US East Coast ports, which could have significantly disrupted shipping operations [20]. 2. **Tanker Market Conditions**: The tanker market is experiencing soft rates, with VLCC rates falling to approximately **USD 20,000 per day** due to weak demand and ongoing OPEC+ cuts [6]. 3. **Geopolitical Factors**: Sanctions on US-sanctioned tankers by Shandong Port Group may influence the inflow of Middle Eastern oil to China, potentially supporting VLCC rates [6]. 4. **Future Considerations**: Key factors to monitor include the extent of blanked sailings, cargo recovery post-CNY, and the timing of frontloading ahead of any punitive tariffs [23]. Conclusion The container shipping industry is currently facing challenges with declining freight rates and overcapacity, but there are signs of resilience in profitability among major shipping lines. The impact of labor agreements and geopolitical factors will be crucial in shaping the market dynamics in the near term.

Summary of Goldman Sachs Weekly Fund Flows (January 10, 2025) Industry Overview - The report focuses on global fund flows, particularly in equity and fixed income markets, for the week ending January 8, 2025 - It highlights trends in mutual funds, including strong inflows across various sectors and regions Key Points Global Fund Flows - **Equity Funds**: Net inflows into global equity funds were robust, totaling $26 billion, an increase from $25 billion in the previous week, with strong demand for global equity benchmark funds, US equities, and mainland China equity funds [4][8] - **Fixed Income Funds**: Global fixed income funds saw inflows of $22 billion, a significant rise from $3 billion in the previous week, driven by government, Agg-type, and bank loan funds [4][8] - **Money Market Funds**: Assets in money market funds increased by $143 billion, indicating a strong preference for liquidity [4][8] Sector Performance - **Technology and Telecom**: These sectors experienced the strongest inflows among equity funds, while real estate and energy sectors faced the largest outflows [4][8] - **Emerging Markets (EM)**: Local currency bond funds in EM saw net inflows of $2.3 billion, while hard currency bond funds experienced outflows of $3.995 billion [8][10] Currency Flows - **G10 FX Flows**: Cross-border FX flows were firm, totaling $39.067 billion, with strong demand for G10 currencies, particularly the USD, which accounted for $36.994 billion of the total [10][11] - **Emerging Market Currencies**: Notably, the Chinese Yuan (CNY) saw outflows of $3.534 billion, indicating a shift in investor sentiment towards EM currencies [10][11] Investment Trends - **Short-Duration vs. Long-Duration Bonds**: Investors showed a preference for short-duration bond funds, which saw inflows of $18.052 billion, compared to outflows from long-duration funds [8][19] - **Sector Allocations**: Financials and healthcare sectors saw positive inflows, while energy and real estate sectors faced significant outflows, reflecting changing investor preferences [8][21] Additional Insights - The report emphasizes the importance of considering these fund flows as part of a broader investment strategy, highlighting the dynamic nature of market conditions and investor behavior [3][4] - The data indicates a potential shift in market sentiment, with investors favoring sectors and asset classes that offer stability and growth potential in the current economic environment [4][8] Conclusion - The Goldman Sachs Weekly Fund Flows report provides a comprehensive overview of current trends in global fund flows, highlighting significant inflows into equity and fixed income markets, sector performance, and currency trends, which are crucial for understanding the investment landscape as of January 2025.

Summary of US Gaming Industry Conference Call Industry Overview - The report focuses on the US online sports betting (OSB) and iGaming sectors, analyzing data from 29 states to provide insights into market dynamics, growth trends, and competitive landscape [2][21][22]. Key Insights - **Market Growth**: November 2024 saw a year-over-year (YoY) growth of +78% in same-state OSB GGR, rebounding from a -14% decline in October. Including new state launches, the growth was +89% YoY [3][12]. - **iGaming Performance**: iGaming same-state GGR growth was +30% YoY, outperforming the 2024 year-to-date average of +27% YoY [7][12]. - **Market Share Dynamics**: - Flutter's market share increased by approximately +2 percentage points (pp) YoY, while DraftKings remained stable YoY. DraftKings gained +4pp month-over-month (MoM) in November, while FanDuel's market share contracted by -3pp MoM [3][10][54]. - Flutter and DraftKings together hold about 77% of the OSB GGR market share year-to-date (YTD) [10]. Competitive Landscape - **Flutter**: Despite unfavorable sports results impacting EBITDA expectations by $205 million for FY24, Flutter's underlying trends remain strong. The company has improved customer acquisition and product offerings, maintaining a stable market share of 28% in iGaming [9][12]. - **DraftKings**: The company has shown resilience with stable market share and strong customer acquisition metrics. DraftKings' NGR market share was reported at 34% in November [10][12]. - **BetMGM**: After experiencing share losses, BetMGM has begun to stabilize its market share, with a +1pp increase in OSB GGR market share in November. However, it still lags behind Flutter and DraftKings in customer perception metrics [12][13]. Promotional Intensity and Customer Perception - The report highlights the impact of promotional intensity on market dynamics, noting that higher promotional activities can inflate market share figures for smaller operators [12][13]. - Customer feedback indicates that FanDuel and DraftKings maintain a strong lead in Net Promoter Score (NPS) and Net Purchase Intent (NPI) metrics, while BetMGM's scores have softened in the fourth quarter [12][13]. Future Outlook - The US gaming market is projected to grow significantly, with GGR expected to reach over $16 billion in 2023 and forecasted to approach $40 billion by 2028 [21]. - The competitive landscape remains concentrated, with Flutter and DraftKings dominating the market. New entrants like ESPN Bet and Fanatics are beginning to gain traction, but they still hold less than 5% of the GGR market share [12][13]. Conclusion - The US gaming industry is experiencing robust growth, driven by favorable market conditions and competitive dynamics. Flutter and DraftKings continue to lead the market, while BetMGM is working to regain its footing. The focus on customer acquisition and product innovation will be crucial for sustaining growth in this rapidly evolving sector [2][21][22].

Equity Market Review Summary Industry Overview - The report focuses on the equity market dynamics influenced by political, economic, and technological factors, particularly in the context of the upcoming Trump administration and its potential impact on the market in 2025 [1][2]. Key Points and Arguments Political Influence - The rhetoric surrounding Trump's second term is expected to create volatility in the markets, similar to his first term from 2016-2020, where daily updates and tweets influenced investor sentiment [2]. - The report suggests that while Trump may initially adhere to his election promises, a pragmatic approach may emerge, focusing on supporting equity markets and controlling yields and inflation [2]. Economic Indicators - Rising interest rates are highlighted as a significant factor affecting equity market performance, with US and UK yields nearing 5%, which could negatively impact valuations of long-duration stocks and rate-sensitive equities [7]. - The report notes that the fiscal deficit for major EU countries and the US is expected to remain high, with growth being a critical differentiating factor in 2025 [11][12]. Technology and AI Impact - AI and technology spending are identified as key drivers of US market outperformance, with significant investments from major companies like Microsoft and Nvidia [13]. - Concerns about a valuation bubble in the tech sector are raised, especially after a strong performance in 2024, indicating potential risks for investors [13]. Market Dynamics - The report indicates that equity flows are expanding outside the US, with a notable $26 billion in overall equity flows, driven primarily by US and global funds [21]. - All sectors saw inflows, with technology maintaining dominance, while energy and utilities lagged behind [22]. Regional Performance - The US equity market has shown extreme concentration in performance, particularly among the largest tech companies, which poses risks for diversified portfolios [15]. - The report suggests that while Europe may have a low bar for positive surprises, expecting it to outperform the US is challenging due to the dominance of Big Tech in the US indices [13]. Additional Important Content - The report emphasizes the need for caution in the UK market due to rising concerns over government growth, inflation, and fiscal policies, which have led to underperformance in rate-sensitive equities [7]. - Upcoming key economic events, such as US CPI and retail sales, are highlighted as potential market movers [17][19]. This summary encapsulates the critical insights from the equity market review, focusing on the interplay of political, economic, and technological factors shaping market dynamics in 2025.

11 January 2025 | 3:04AM HKT Global Economics Wrap-Up: January 10, 2025 Global Economics US Economics Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to www.gs.com/research/hedge.html. Andrew Tilton +852-2978-1802 | andrew.tilton@gs.com Goldman Sachs (Asia) L.L.C. David Mericle +1(212)357-2619 | david.mericle@gs.com Goldman Sachs & Co. LLC Joseph Briggs +1(212)902-2 ...

Summary of Shenzhen Inovance Technology Conference Call Company Overview - **Company**: Shenzhen Inovance Technology (Ticker: 300124.SZ) - **Industry**: Automation and New Energy Vehicles (NEV) - **Market Capitalization**: Rmb153,107 million - **Current Share Price**: Rmb57.20 (as of January 9, 2025) - **Price Target**: Rmb65.00, indicating a 14% upside potential [5][8] Key Insights from the Conference Call Automation Market Outlook - Management expects the automation market to stabilize in 2025, driven by: - Ongoing consumption stimulus - Equipment upgrades - Energy-saving transformations - Emerging market demands, including humanoid robots and electric vertical takeoff and landing (eVTOL) vehicles [1][2] - New energy vehicle (NEV) orders in Q4 2024 accounted for approximately 10% of total orders, indicating stabilization [1] Product Development and Launches - Inovance plans to launch humanoid robot component products in 2025, focusing on upper limb applications [2] - The NEV powertrain business is projected to grow faster than the industry average, with the top five clients contributing around 60% of total NEV revenue [2] International Expansion - The company aims to accelerate overseas growth to 20-30% year-on-year in 2025, up from approximately 20% in 2024 [3] - Key markets include Southeast Asia, Korea, Turkey, and the Middle East, with negotiations ongoing for a potential plant in the US [3] Financial Projections - **Revenue Growth**: - 2024 Estimated Revenue: Rmb38,754 million - 2025 Estimated Revenue: Rmb46,408 million - 2026 Estimated Revenue: Rmb55,083 million [5] - **Earnings Per Share (EPS)**: - 2024 Estimated EPS: Rmb1.87 - 2025 Estimated EPS: Rmb2.17 - 2026 Estimated EPS: Rmb2.49 [5] Risks and Challenges Upside Risks - A stronger-than-expected macroeconomic environment could boost demand for automation products [9] - Enhanced sales of electric powertrains equipped with Inovance's EV control systems in 2024 [9] Downside Risks - Potential failure to develop high-end automation products, leading to declining average selling prices (ASP) for low-end products due to competition [10] - Larger-than-expected declines in gross margins due to raw material price increases [10] Conclusion Shenzhen Inovance Technology is positioned for growth in the automation and NEV sectors, with a focus on product innovation and international expansion. However, the company faces risks related to product development and market competition that could impact its financial performance.

10 January 2025 | 6:59AM EST Global Healthcare: Pharmaceuticals Framing the 2025 M&A landscape for biopharma We are optimistic on the set-up for biopharma M&A in 2025, following subdued deal activity in 2024 (~$46bn vs. ~$143bn in 2023 and ~$72bn in 2022) given: (1) end-of-decade losses-of-exclusivity (LOEs) continues to weigh on growth outlooks and valuations of most large-cap biopharma (ex-LLY/NOVO, the group trades at an average of ~10.75x FY25E consensus EPS; Exhibit 1); (2) potential buyers' ~$500bn+ ( ...

Company-Specific Information * **Product Rollout**: Guangzhou Automobile Group (GAC) plans to launch 6 new products under its Aion and Trumpchi brands in 2025. This includes 3 brand new products and 3 facelifts for Aion, and 4 new products for Trumpchi. Sales contribution from these new products is expected to start from Q1 2024. [1] * **Huawei Partnership**: GAC has partnered with Huawei for product design and customer management. The first B-class luxury SUV under this partnership is expected to be launched in the second half of 2026. GAC aims to launch 4-5 new products in the near future, which management expects will support stable annual sales of 400-500k units. [2] * **GAC-Honda JV**: GAC-Honda's decision to reduce total capacity in 2024 resulted in a one-off impairment cost of approximately Rmb1.5bn for the joint venture. However, this move improved the total capacity utilization to a healthier level of around 70%, similar to the utilization rate of GAC-Toyota. Management expects both joint ventures to achieve decent profitability at this level of production. [3] Industry Information * **Economic Sanctions**: The research notes that the data and analysis are for informational purposes only and do not represent Morgan Stanley's view on the potential application of sanctions to any entities or securities mentioned. Users are responsible for ensuring compliance with applicable sanctions. [4] * **Export Controls**: The research mentions that certain items covered by the Export Administration Regulations (EAR) may be subject to export control restrictions. Users are responsible for ensuring compliance with applicable export control laws. [5] * **Industry View**: The research provides a detailed analysis of the China Autos & Shared Mobility industry, including stock ratings, price targets, and industry views. [7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78]

Summary of Key Points from the Conference Call Industry Overview - The focus is on the banking industry in Japan, with a bullish outlook on bank stocks due to favorable business conditions and management's focus on Return on Equity (ROE) [1][6][9]. Core Insights - **Interest Rates and Profitability**: The market will become more selective regarding banks' strategies for profit expansion. Only banks with differentiated strategies are expected to improve ROE, potentially reaching double-digit ROE over a 5-10 year span, leading to valuation premiums [3][15]. - **Market Dynamics**: Interest rate-sensitive stocks, including banks and life insurers, typically perform well during periods of rising interest rates. However, share prices are expected to align with earnings over time [3][15]. - **Short-term Price Adjustments**: A hypothetical short-term correction in share prices could present buying opportunities, particularly for mega banks, due to potential net interest income (NII) overshoots and credit cost undershoots [4][9]. Key Stock Preferences - **Focus Stocks**: The preferred stocks include Sumitomo Mitsui Financial Group (8316.T), Mizuho Financial Group (8411.T), and Japan Post Bank (7182.T), all rated as Overweight [5][10]. - **Price Targets and Upside Potential**: - Sumitomo Mitsui FG: Price target of JPY 4,420.0 with a 15% upside. - Mizuho FG: Price target of JPY 4,570.0 with a 15% upside. - Japan Post Bank: Price target of JPY 1,800.0 with a 19% upside [10]. Business Dynamics - **Digitalization and Strategy**: Key changes in the banking sector include accelerated digitalization, retail finance strategies, and overseas development, which are expected to enhance profitability [9][15]. - **Self-help Efforts**: Banks with a proactive approach to share buybacks and capital allocation are expected to improve their price-to-book (P/B) ratios, particularly those with P/B below 1x [16][19]. Wealth Management Market - The wealth management market in Japan is projected to grow, with financial assets of the mass affluent segment estimated at approximately JPY 930 trillion (about $6.6 trillion) by the end of 2024, growing at an average rate of 5% until 2030 [19][20]. Key Debates - **Sustainability of Bank Stock Popularity**: The banking environment has shifted to higher interest rates, necessitating a redefinition of strategies for profit expansion. The performance of bank stocks is expected to vary significantly based on individual strategies [15]. - **Wealth Transition**: The introduction of new tax-exempt investment systems is expected to increase individual investors' focus on stock management and investment trusts, presenting opportunities for banks [19][20]. Conclusion - The Japanese banking sector is poised for growth, driven by favorable interest rates, strategic differentiation, and an expanding wealth management market. Investors are encouraged to focus on banks with strong management strategies and proactive capital allocation to capitalize on these trends [1][4][9].