Summary of Datacenter Market Insights Industry Overview - The report focuses on the **Datacenter Market**, specifically the **server segment** within the **Asia Pacific** region, highlighting trends and insights for 2024 and 2025 [1][8]. Key Insights 1. **Server Shipment Growth**: - Total server shipments increased by **17%** in 2024, primarily driven by cloud demand. For 2025, cloud demand is expected to grow by an additional **5-10%**, while enterprise demand is projected to rise by **0-5%** [1][6]. 2. **Quarterly Performance**: - In **4Q24**, global server shipments reached **4.0 million units**, reflecting an **8%** quarter-over-quarter (q/q) increase and a **25%** year-over-year (y/y) increase. The growth was mainly attributed to cloud demand, with a notable acceleration from **1%** q/q in **3Q24** to **8%** q/q in **4Q24** [2][12]. 3. **AI Server Shipments**: - AI server shipments continued to rise in **4Q24**, but at a slower pace compared to **3Q24** due to a transition in GPU platforms. Notably, Super Micro reported a **3%** decline in shipments q/q, while Huawei's shipments surged by **93%** q/q [3][4]. 4. **ODM Direct Shipments**: - Aggregate ODM direct shipments totaled **1,474k units** in **4Q24**, marking an **11%** q/q increase and a **45%** y/y increase. ODMs regained market share in general server markets from OEMs, with ODM direct server average selling price (ASP) rising by **15%** q/q to **US$24.9k** [4][15]. 5. **Regional Performance**: - The **USA** outperformed other regions in **4Q24**, with shipments up **42%** y/y, followed by **APxJ** at **21%** y/y, **Japan** at **7%**, **Western Europe** at **2%**, and **Rest of World (RoW)** at **1%** [12][27]. 6. **Segment Performance**: - High-end server shipments grew by **310%** y/y in **4Q24**, mid-range servers increased by **109%** y/y, and entry-level servers saw a **17%** y/y growth. This trend aligns with the ongoing ramp of AI servers and general compute server demand [13][14]. 7. **Vendor Market Share**: - ODMs captured **37.3%** of the market share in **4Q24**, up **90 basis points** q/q. Dell's market share decreased to **9.6%**, while HP's share fell to **7.8%**. Huawei's market share increased to **2.3%**, reflecting a **100 basis point** increase q/q [16][12]. Stock Implications - The report suggests a preference for **component suppliers** with content share gains over ODMs/OEMs. Notable companies mentioned include **Delta**, **AVC**, **GCE**, and **Wistron**, among others [7][8]. Additional Insights - The **GB200 server racks** began ramping production in late February 2025, with expectations to deliver **2k racks** in **1Q25** and **5-8k racks** in **2Q25**. However, significant volumes for B300/GB300 will not be delivered until September at the earliest [5][6]. This summary encapsulates the critical insights and trends from the datacenter market, providing a comprehensive overview of the current state and future expectations within the server segment.

16 March 2025 | 2:20PM IST Asia Economics Analyst Beyond the centre: Can India's states sustain the capex cycle? Santanu Sengupta +91(22)6616-9042 | santanu.sengupta@gs.com Goldman Sachs India SPL Arjun Varma +91(22)6616-9043 | arjun.varma@gs.com Goldman Sachs India SPL Andrew Tilton +852-2978-1802 | andrew.tilton@gs.com Goldman Sachs (Asia) L.L.C. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see ...

Summary of the Conference Call Transcript Industry Overview - The report focuses on the **energy sector** in the **Asia Pacific**, specifically on **gas pipeline, coal haulage, refining, and convenience retail companies** referred to as "energy movers" [1][3][6]. - The **Future of Energy** is identified as one of four key themes for **Morgan Stanley Research** in 2025, highlighting the underperformance of Australian midstream and downstream energy stocks compared to the **ASX200** [3][6]. Company Analysis - **Preferred Companies**: - **Ampol Ltd (ALD)**: Upgraded to **Overweight (OW)** with a projected total shareholder return (TSR) of **33%** [1][22]. - **APA Group (APA)**: Rated **Equal-Weight (EW)** with a TSR estimate of **10.5%** [1][22]. - **Downgraded Companies**: - **Aurizon Holdings (AZJ)**: Downgraded to **Underweight (UW)** with a TSR estimate of **7%** [1][22]. - **Viva Energy Group Ltd (VEA)**: Rated **Equal-Weight (EW)** with a TSR estimate of **35%** [1][22]. Performance Metrics - **Stock Performance**: - APA has shown a total shareholder return of **13.5%** year-to-date (CYTD) in 2025, while ALD has a return of **-10.3%** [5][20]. - AZJ has underperformed with a **1.6%** return CYTD, and VEA has a **-30.4%** return [5][20]. - **Financial Metrics**: - APA's **debt/EBITDA** ratio is **7.0x**, indicating a highly leveraged balance sheet [44]. - ALD has the least leverage with a **debt/EBITDA** of **3.3x** [44]. Investment Framework - The investment framework integrates various metrics including **macro, operating, balance sheet, return, energy transition, and valuation metrics** to rank the energy mover stocks [9][10]. - The report emphasizes the importance of **energy transition** and its impact on stock valuations, with a focus on **Climate Transition Action Plans (CTAPs)** and investment in new energy projects [11][13][32]. Key Risks and Opportunities - **Regulatory Risks**: The upcoming **Australian Federal Election** and reviews of the **Gas Code of Conduct** present uncertainties but could also provide opportunities for the fossil fuel sector [9][43]. - **Tobacco Excise Impact**: ALD and VEA face headwinds from tobacco-related sales due to high excise charges and increased black market activity [43]. Conclusion - The report concludes with a recommendation to favor ALD and APA while being cautious with AZJ and VEA due to their respective challenges and market conditions [22][28]. - The analysis suggests that the energy sector's performance will be influenced by regulatory changes, market dynamics, and the ongoing energy transition [16][43].

Flash | 16 Mar 2025 16:03:30 ET │ 16 pages CATL (300750.SZ) 2024 NP +15% YoY, Maintain as Top Pick CITI'S TAKE CATL reported 2024 net profit at Rmb50.7bn, up 15% YoY, and core net profit at Rmb45.0bn, up 12% YoY, both in line with the results pre- announcement. 4Q24 bottom line came in at Rmb14.7bn, up 13.6% YoY and up 12.2% QoQ, and core net profit at Rmb12.8bn, -2.2% YoY and +5.7% QoQ. Adjusted 4Q GP margin at 26.1%, down 4.5ppt QoQ while still 0.9ppt higher YoY. The company proposed Rmb4.553/sh cash divi ...

Summary of Key Points from the Conference Call Industry Overview - The conference call primarily discusses the **China and Hong Kong equity markets** and their performance metrics, including sector performance and investment recommendations. Core Insights and Arguments - **Market Performance**: The MXCN index ended down by **0.1% week-over-week**, influenced by mixed macroeconomic data for January and February, leading to a rotation into high-yield defensives and hard assets [6][9]. - **Sector Performance**: - **Consumer Discretionary**: Decreased by **1.1%** over the week but showed a year-to-date increase of **29.9%**. - **Financials**: Increased by **2.3%** week-over-week, with banks up **1.6%** and insurance up **3.5%** [5]. - **Information Technology**: Decreased by **1.7%** week-over-week, with software down **5.6%** [5]. - **Consumer Staples**: Increased by **3.8%** week-over-week, with food and beverage up **4.7%** [5]. - **Investment Flows**: Significant inflows into the stock market were noted, with record inflows of **Rmb29.6 billion** and **Rmb26.2 billion** on specific days [7]. - **Tariff Impact**: The US imposed a **25% tariff** on steel and aluminum imports, affecting trade dynamics [8]. Important but Overlooked Content - **China QMI Reading**: The JPMorgan China QMI softened, indicating a borderline contraction in January but a return to borderline expansion in February, influenced by seasonal factors and US tariff impacts [6]. - **ETF Flows**: Offshore inflows accelerated while onshore outflows decelerated, indicating a shift in investor sentiment towards offshore listings [52]. - **Active Fund Movements**: Active funds showed significant selling in major Chinese companies like Tencent and Meituan, while top buys included Alibaba and Geely Auto [52]. Future Outlook - **Index Targets**: - The **MSCI-China 2025 target** is set at **HK$77**, with a potential downside of **14%** from current levels [13]. - The **CSI-300 2025 target** is projected at **4,007 Rmb**, with a potential upside of **5%** [14]. - **Sector Recommendations**: - **Communication Services**: Underweight (UW) - **Consumer Discretionary**: Overweight (OW) - **Financials**: Underweight (UW) - **Industrials**: Overweight (OW) [21]. This summary encapsulates the key points discussed in the conference call, providing insights into market performance, sector dynamics, and future outlooks for investors.

Summary of the China Infant Milk Formula Conference Call Industry Overview - The report focuses on the **China Infant Milk Formula (IMF)** industry and its outlook in light of changing birth rates and government policies regarding fertility subsidies [1][4][11]. Key Insights 1. **Birth Rate Projections**: - A moderate decline in birth rates is expected in **2025** after the Year of the Dragon in **2024**. The anticipated year-on-year changes in birth rates for **2026-2028** are projected as follows: - Bull case: **1%** increase - Base case: **-3%** decrease - Bear case: **-5%** decrease [1][2]. 2. **Infant Population Trends**: - The decline in the infant population (ages 0-3) is expected to narrow in **2025** and **2026** compared to a **-4%** decline in **2024**. Projections for **2027** and **2028** indicate stabilization in the bull case, a **-3%** decline in the base case, and a **-5%** decline in the bear case [3]. 3. **IMF Market Dynamics**: - The IMF market is experiencing a trend of **premiumization**, with ultra-premium product sales growing despite a weak macroeconomic environment. The sales value decline narrowed from **-10%** in **2023** to **-7%** in **2024**. The average selling price (ASP) has remained stable, indicating a better product mix that offsets price competition [4][5]. 4. **Sales Forecasts**: - Sales decline in the IMF market is expected to further narrow in the following scenarios: - Base case: **-1% to -4%** - Bear case: **-2% to -6%** - Bull case: stabilization [4]. 5. **Stock Implications**: - Companies like **Feihe** and **A2 Milk** are expected to gain market share due to their strong positioning in lower-tier markets and effective execution strategies. Feihe is particularly well-positioned to benefit from the birth subsidy in lower-tier cities [5][14][18]. Additional Considerations - **Demographic Challenges**: - The female population of childbearing age (20-39 years) is projected to decline by **2-3%** annually from **2025-2028**, which poses a long-term challenge for birth rates and, consequently, the IMF market [2][8]. - **Risks**: - Key risks affecting the IMF industry include potential food safety issues, lower-than-expected gross profit margins, and a decline in the infant population size. These factors could impede stock performance and market recovery [15][21]. - **Valuation Metrics**: - Target prices for Feihe and Health and Happiness (H&H) are set based on P/E ratios and sum-of-the-parts (SOTP) approaches, reflecting the expected recovery in the market [14][16]. This summary encapsulates the critical insights and projections regarding the China Infant Milk Formula industry, highlighting both opportunities and risks for investors.

Summary of China Equity Strategy Conference Call Industry Overview - **Industry**: Chinese Stock Market - **Key Focus**: US investors' interest in Chinese stocks and the impact of US tariffs on the Chinese economy Core Insights and Arguments 1. **Investor Interest**: US investors are showing significant interest in Chinese stocks, with the highest level of inquiries in the last three years. However, only 20% of US investors have overweight or neutral positions in Chinese stocks, indicating potential upside [1][4] 2. **Impact of US Tariffs**: A 10% rise in US tariffs is estimated to reduce China's GDP growth by 0.6% [3] 3. **Market Rally Sustainability**: Questions were raised about the sustainability of the recent rally in the Hong Kong and Chinese stock markets, particularly driven by the tech sector [2][3] 4. **Government Policies**: Anticipation of new government policies aimed at stimulating the Chinese economy, especially in response to US tariff increases [5][6] 5. **Sector Recommendations**: Positive outlook on sectors such as technology, internet, transportation (tourism-related), and certain consumer sub-sectors. Traditional sectors may benefit from state-owned enterprise (SOE) reforms [6][4] Additional Important Points 1. **Geopolitical Concerns**: US investors remain cautious due to geopolitical risks associated with investing in China [4] 2. **Domestic Consumption**: Expected deceleration in domestic consumption growth in the second half of 2025 due to high base effects from the previous year [5] 3. **Investor Segmentation**: Chinese investors and certain value-oriented funds have a higher exposure to Chinese stocks compared to global investors, who are generally underweight [4] 4. **Upcoming Events**: Potential announcements regarding trade policies and supply-side reforms in industries such as steel and solar energy [5] 5. **Valuation Metrics**: Current valuations of the Hang Seng Index (HSI) and CSI300 are around historical means, suggesting potential for investment [6] Key Questions from Investors 1. What is the expected impact of US tariffs on the PRC economy? 2. How will the PRC government respond to US tariff increases? 3. Is the recent stock market rally sustainable? 4. What are the expected government policies to stimulate domestic consumption? 5. What is the outlook for the PRC property market and interest rates? [3]

March 16, 2025 09:00 PM GMT Investor Presentation | Asia Pacific M Foundation China Equity Strategy: Getting Out of the Woods Morgan Stanley does and seeks to do business with companies covered in Morgan Stanley Research. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Research. Investors should consider Morgan Stanley Research as only a single factor in making their investment decision. For analyst certification and ot ...

Summary of Phison Electronics Corp Conference Call Company and Industry - **Company**: Phison Electronics Corp - **Industry**: Greater China Technology Semiconductors, specifically focusing on NAND flash memory Key Points and Arguments 1. **NAND Price Increase**: YMTC's retail brand, Zhitai, plans to raise its channel price in April, potentially exceeding 10%, marking the third NAND player to announce a price hike since January, following SanDisk and Micron Technology [1][3] 2. **Market Response**: Following the news of the price hike, Phison's stock rose by 6%, while the TAIEX index remained flat, indicating positive market sentiment towards Phison amidst the price increase [1][3] 3. **Supply and Demand Dynamics**: The anticipated price hike is attributed to disciplined supply management, increasing demand for NAND in AI applications, and early pull-in due to US tariffs [1][3] 4. **TrendForce Estimates**: TrendForce revised its NAND pricing estimate for 2Q25 from a projected decline of 2.5% Q/Q to an increase of 2.5% Q/Q, reflecting a more optimistic outlook for NAND pricing [1][3] 5. **Financial Metrics**: - Phison's stock rating is Overweight with a price target of NT$688.00, representing a 14% upside from the closing price of NT$605.00 on March 14, 2025 [4] - Revenue projections for Phison are NT$58,936 million for FY24 and NT$69,404 million for FY25, with an expected EPS of NT$35.68 and NT$35.72 respectively [4] 6. **Valuation Methodology**: The valuation is based on a residual income model with key assumptions including a cost of equity of 9.0% and a medium-term growth rate of 7.5% [7] 7. **Risks**: - Upside risks include faster-than-expected growth in the SSD market and market share gains in ultrabooks [9] - Downside risks involve weaker-than-expected NAND demand and potential non-acceptance of price hikes on NAND modules [9] Additional Important Information - **Market Capitalization**: Phison's current market cap is NT$136,614 million [4] - **Average Daily Trading Value**: NT$1,418 million [4] - **52-Week Stock Range**: NT$403.00 to NT$785.00 [4] - **Analyst Coverage**: The report includes multiple analysts from Morgan Stanley, indicating a collaborative research effort [3][4] This summary encapsulates the essential insights from the conference call regarding Phison Electronics Corp and the NAND flash memory market dynamics.

Flash | 16 Mar 2025 15:16:09 ET │ 9 pages China Materials Takeaways from On-ground Demand Monitor Call Series #5- Aluminum product CITI'S TAKE In our China Materials On-ground Demand Monitor Call Series, we aim to track and analyze high-frequency demand trends to see the demand recovery pace post CNY. Our market update call with Mr. Tong Yilai, Aluminum Product Research Analyst of Mysteel. Due to low processing fee currently, the aluminum profile producers are less incentivized to fill the orders from solar ...