Technology
How long can HPQ keep raising ASPs while bleeding unit share? For the second quarter in a row PC revenue growth was driven far more by ASPs than volume. While management argues that this is the result of its strategy of targeting premium market segments, OWS notes that operating margins don’t appear to be benefiting. When supply chain problems become less of an issue, how will HPQ grow revenue or operating margin? Meanwhile, the Poly acquisition looks more like an attempt to forestall revenue declines than a brilliant strategic move. TP $19.50 (50% downside).
Edition: 132
- 01 April, 2022
2022 China New Energy and Machinery Investment Strategy
1) Wind & Power installations to enter a high growth stage after 1Q22 (Ningbo Orient Wires, Luoyang Xinqianglian).
2) PV installations to see strong demand this year. Alpha opportunity re. granular silicon (GCL-Poly); industry beta opportunity of PV EVA film is also clear (Hangzhou First Applied Material).
3) EV Supply Chain: Upstream lithium sector will be the only area that can justify the high valuation due to unbalanced demand/supply dynamics (Keda Industrial).
4) Two-Wheel EVs: New safety standards will see leading companies further increase market share (Yadea).
Edition: 128
- 04 February, 2022