Today's Key News Review | Dolphin Research

0329 Key focus of Changqiao Dolphin:

🐬 Macro/Industry

1. On March 28, the US Senate Banking Committee held the first hearing on the collapse of Silicon Valley Bank and Signature Bank. Before the hearing began, the stock prices of the two banks started a "crash-like" decline again. High-ranking officials from the Federal Reserve, the Treasury Department and the Federal Deposit Insurance Corporation (FDIC) all hinted that there will be changes in banking regulations, and stricter capital and liquidity new regulations are coming.

🐬 Individual Stocks

1. Alibaba.US ($Alibaba(BABA.US))

Alibaba announced a "1+6+N major organizational restructuring" last night, and the news stimulated the stock price of Alibaba to rise more than 14%. Dolphin pointed out in the analysis of the quarterly report that when valuing Alibaba, we could consider the value of sectors outside the core e-commerce business. The commentary on hot events yesterday also proposed that the logic of valuation release can be explained in the short term. The real impact is still on the enthusiasm and potential profits of employees that can be released after each department operates independently.

2. Tencent Holdings.HK ($0700)

The Tencent "Search" team announced yesterday that it will launch the "Ask" function on WeChat, and the operating mode seems to be closer to Zhihu: after entering a question, it gathers answers from answerers, and the original content of high-quality answerers will be presented first. Essentially, it encourages the production of high-quality content, allows high-quality content to have more exposure opportunities, and also expands WeChat's search ecology. As a "WeChat version of Zhihu," it may also pose certain competitive pressures on Zhihu in the future.

🐬 Financial Reports

1. Nongfu Spring.HK ($9633)

In the fourth quarter financial report of Nongfu Spring in 2022, the core profit is basically stable, and the gross profit is also within a controllable range. Overall, Nongfu Spring's performance in the second half of the year has proved that the company is gradually returning to normal from the brief haze of the past. Dolphin's detailed analysis can be found in the article "Nongfu Spring: Grasping Tea and Drinks" link in Chinese.

2. BYD.SZ ($002594)

BYD released its 2022 annual results last night, with annual revenue almost doubling and net profit more than quintupling. However, these have already been pre-announced. The value of this annual report lies mainly in understanding the quality of BYD's income and profit growth. Judging from the marginal incremental information, although much of the revenue that exceeded expectations is from the low-margin BYD Electronics, the information implied in the profit release is that, under the guarantee of booming sales, BYD has locked in a "money-making" physique. See the specific analysis in the article "BYD: "Windfall" Counterattack Buffett's Selling Pressure" link in Chinese. 3. Micron Technology, Inc. (MU.US)

Micron's Q2 FY23 revenue of $3.693 billion was slightly lower than market expectations. The significant decline in revenue was mainly due to the downturn in the storage industry, with net profit showing a significant loss. This was mainly due to the company's large inventory write-down in this quarter. However, given the industry's slump, the market has lowered its expectations, and the financial performance should be considered average, with indications of improvement in the guidance. Overall, signs of a bottoming out and turnaround in the company's business are expected. For specific analysis and conference call, please see "Micron's "Big Bleeding" May not be a Bad Thing" and "Semiconductor or Dawn: Micron FY23Q2 Conference Call" on Longportapp.cn.

4. Others

Tonight, Kuaishou Technology will release its financial report, and Dolphin Jun will provide analysis and interpretation. Stay tuned.

🐬 Leading Sectors

Shanghai and Shenzhen: Household and office software, semiconductor equipment and services, semiconductor manufacturing;

Hong Kong: Department stores and retail, commodity chemicals, other retail;

U.S.: Electronics and entertainment retail, metal mining, oil and gas operational support activities.

🐬 Focus Tomorrow

1. The final annualized quarterly real GDP, core PCE price index, and actual personal consumption expenditure quarterly rate of the United States;

2. China Duty-Free Group, Xindong Company, Era Electric, Yihai International will release their financial reports, and Dolphin Jun will track and provide analysis and interpretation. Stay tuned.

⚠️ The companies covered by Dolphin Jun's research in the above text are marked in red. You can search for "Dolphin Investment Research" on Longbridge App (click here to download) to enter the homepage, and search for the corresponding company name to obtain the company's complete research collection (including the company's past performance conference summary).

Risk Disclosure and Disclaimer for this article: Dolphin Investment Research Disclaimer and General Disclosure.