Latest news with #EmergingMarkets
Bloomberg
4 days ago
- Business
- Bloomberg
EM Lens: Dusting Off the Global Macro Playbook With Citi's Willer
Emerging market economies are benefiting from better-than-expected growth and inflation expectations, with local rates looking set to outperform amid a more dovish US Federal Reserve. Dirk Willer, managing director and global head of macroeconomic research at Citigroup, joins Damian Sassower, Bloomberg Intelligence's chief emerging-market fixed-income strategist, to assess the fixed-income landscape, with implications for interest rate and currency markets across the globe. Willer and Sassower touch on topics ranging from systematic drivers and foreign positioning to FX-hedge flows and central bank reserves. Listen to this episode on Apple Podcasts and Spotify.
Yahoo
4 days ago
- Business
- Yahoo
Cochlear Ltd (CHEOF) (FY25) Earnings Call Highlights: Navigating Growth and Challenges
Revenue Growth: 4% overall revenue growth. Net Profit Growth: 1% net profit growth. Cochlear Implant Revenue: 9% growth in cochlear implant revenue, with 12% growth in systems. Developed Markets Unit Growth: 6% increase in units. Emerging Markets Growth: Over 20% growth, with a shift towards lower-priced, lower-tier products. Services Revenue: Declined by 10%, with expectations for growth in FY26. Acoustics Revenue Growth: 6% growth, with Osia growing 30%. Gross Margin: Declined by 1 percentage point to 74%. Operating Expenses: Increased by 5%, with a focus on long-term growth and R&D. Inventory Levels: Increased by $108 million ahead of new product launches. Operating Cash Flow: Declined by $150 million due to increased working capital and higher income taxes paid. CapEx: $103 million, including capacity expansion investments. FY26 Guidance: Net profit guidance range of $435 million to $460 million, reflecting 11% to 17% growth. Warning! GuruFocus has detected 2 Warning Sign with CHEOF. Release Date: August 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Cochlear Ltd (CHEOF) has consistently increased its R&D investment year on year, even when sales have declined, ensuring the protection of its market leadership position. The launch of the Nexa system, a breakthrough product, is expected to drive growth with its advanced features, including the world's first smart cochlear implant. The company is seeing strong growth in emerging markets, with over 20% growth in cochlear implant revenue. Cochlear Ltd (CHEOF) is confident in the future growth potential due to the increasing awareness of the link between hearing loss and cognitive decline. The company is actively working on expanding its product pipeline, including the development of a drug-eluting electrode, which could further enhance hearing preservation. Negative Points Sales for FY25 were below expectations, leading to a need for strategic adjustments. The services segment experienced a 10% decline, attributed to factors such as COVID-19 impacts and economic uncertainty, particularly in the US. The gross margin declined by 1 percentage point to 74%, partly due to a shift to lower-margin emerging markets and increased production costs at the Chengdu facility. There is uncertainty in the services segment due to economic conditions and consumer hesitancy, especially in the US market. The volume-based pricing in China presents a headwind for revenue and profit in FY26, impacting the overall financial outlook. Q & A Highlights Q: Can you elaborate on the second-half weighting of sales and the decision to maintain a net profit margin slightly below 18%? A: Sales will be significantly weighted to the second half due to the rollout of the Nexa system, which will not be fully available in all countries in the first half. We expect some surgery holds as people anticipate the new product, which will shift sales to the second half. Regarding the net profit margin, it will be above 17.5%, but we want flexibility to ensure continued investment in R&D and growth, smoothing the path back to 18% without compromising future prospects. - Diggory Howitt, CEO Q: What response are you seeing in markets where the Nexa system has launched, and does this support your growth outlook? A: We are seeing a very positive response, with surgeons describing it as a game changer. The Nexa system's new technology and potential for long-term benefits are recognized, supporting our confidence in achieving over 10% growth in developed markets. We are also pursuing price increases across various markets, contributing to our growth outlook. - Diggory Howitt, CEO Q: Can you clarify the expected growth in services and the factors influencing it? A: We anticipate single-digit growth in services. While there is some caution due to US consumer uncertainty, the long-term growth is driven by the expanding recipient base. Although upgrades are discretionary, they are necessary within a time window as processors wear out, ensuring eventual growth. - Diggory Howitt, CEO Q: How does the Nexa system's multipolar stimulation compare to competitors, and what is the potential for reducing sound processor size? A: Medel does not offer multipolar stimulation, and Advanced Bionics' technology is less advanced. Our Slim Modiolar electrode's proximity to the auditory nerve enhances the benefits of focused stimulation. We foresee further reductions in sound processor size through improved power efficiency and potential advancements in electrode technology. - Diggory Howitt, CEO Q: What impact will the volume-based pricing in China have on revenue and gross margin? A: The volume-based pricing in China will result in a revenue and profit headwind for FY26 compared to FY25. While overall volume has increased, much of the middle-tier pricing has shifted to the low tier, impacting revenue. We are cautious about quantifying the exact impact as the situation is still evolving. - Diggory Howitt, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Matthews Emerging Markets Small Companies Fund Makes Significant Moves with HD Hyundai
Insights into the Fund's Strategic Portfolio Adjustments Matthews Emerging Markets Small Companies Fund (Trades, Portfolio) recently submitted its N-PORT filing for the second quarter of 2025, revealing strategic investment decisions. The fund, under normal market conditions, aims to invest at least 80% of its total assets in small companies across Asia, excluding Japan. The fund's strategy focuses on identifying smaller companies with sustainable growth potential, based on fundamental characteristics such as balance sheet strength, cash flow stability, and management quality. Matthews employs a bottom-up, fundamental investment philosophy, emphasizing long-term performance. The fund's active management approach seeks to identify companies whose potential is not yet fully recognized by the market, leveraging Matthews' extensive experience in Asia since 1991. Warning! GuruFocus has detected 2 Warning Signs with BOM:541153. Summary of New Buy Matthews Emerging Markets Small Companies Fund (Trades, Portfolio) added a total of 7 stocks, among them: The most significant addition was HD Hyundai (XKRX:267250), with 82,304 shares, accounting for 1.52% of the portfolio and a total value of ?7,886,270 million. The second largest addition to the portfolio was Piraeus Financial Holdings SA (ATH:TPEIR), consisting of 1,082,401 shares, representing approximately 1.45% of the portfolio, with a total value of 7,498,640. The third largest addition was Banco Latinoamericano de Comercio Exterior SA (NYSE:BLX), with 106,621 shares, accounting for 0.83% of the portfolio and a total value of $4,296,830. Key Position Increases Matthews Emerging Markets Small Companies Fund (Trades, Portfolio) also increased stakes in a total of 19 stocks, among them: The most notable increase was Legend Biotech Corp (NASDAQ:LEGN), with an additional 124,632 shares, bringing the total to 717,147 shares. This adjustment represents a significant 21.03% increase in share count, a 0.86% impact on the current portfolio, with a total value of $25,451,550. The second largest increase was TBC Bank Group PLC (LSE:TBCG), with an additional 28,556 shares, bringing the total to 123,329. This adjustment represents a significant 30.13% increase in share count, with a total value of 7,857,660. Summary of Sold Out Matthews Emerging Markets Small Companies Fund (Trades, Portfolio) completely exited 8 holdings in the second quarter of 2025, as detailed below: Seera Group Holding (SAU:1810): Matthews Emerging Markets Small Companies Fund (Trades, Portfolio) sold all 583,525 shares, resulting in a -0.8% impact on the portfolio. Ecopro BM Co Ltd (XKRX:247540): Matthews Emerging Markets Small Companies Fund (Trades, Portfolio) liquidated all 24,910 shares, causing a -0.35% impact on the portfolio. Key Position Reduces Matthews Emerging Markets Small Companies Fund (Trades, Portfolio) also reduced positions in 32 stocks. The most significant changes include: Reduced Hugel Inc (XKRX:145020) by 22,778 shares, resulting in a -19.99% decrease in shares and a -1.09% impact on the portfolio. The stock traded at an average price of ?352,553 during the quarter and has returned -7.56% over the past 3 months and 13.37% year-to-date. Reduced Military Commercial Joint Stock Bank (STC:MBB) by 4,063,500 shares, resulting in a -43.53% reduction in shares and a -0.81% impact on the portfolio. The stock traded at an average price of ?18,234.0391 during the quarter and has returned 81.96% over the past 3 months and 98.42% year-to-date. Portfolio Overview At the second quarter of 2025, Matthews Emerging Markets Small Companies Fund (Trades, Portfolio)'s portfolio included 74 stocks. The top holdings included 7.87% in Bandhan Bank Ltd (BOM:541153), 5.05% in Hugel Inc (XKRX:145020), 4.92% in Legend Biotech Corp (NASDAQ:LEGN), 2.69% in YDUQS Participacoes SA (BSP:YDUQ3), and 2.5% in We Buy Cars Holding Ltd (JSE:WBC). The holdings are mainly concentrated in 10 of the 11 industries: Technology, Financial Services, Consumer Cyclical, Industrials, Healthcare, Consumer Defensive, Real Estate, Communication Services, Energy, and Basic Materials. This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data
Globe and Mail
07-08-2025
- Business
- Globe and Mail
Templeton Emerging Markets Income Fund ('TEI' or the 'Fund') Announces Distribution
Templeton Emerging Markets Income Fund [NYSE: TEI] today announced a monthly distribution from net investment income of $0.0475 per share, payable on August 29, 2025, to shareholders of record on August 18, 2025 (Ex-Dividend Date: August 18, 2025). The Fund's Board of Trustees (the 'Board') has authorized a managed distribution plan (the 'Plan') pursuant to which the Fund makes monthly distributions to shareholders at the fixed rate of $0.0475 per share. The Plan is intended to provide shareholders with consistent distributions each month and is intended to narrow the discount between the market price and the net asset value ('NAV') of the Fund's common shares, but there can be no assurance that the Plan will be successful in doing so. The Fund is managed with a goal of generating as much of the distribution as possible from net ordinary income and short-term capital gains, that is consistent with the Fund's investment strategy and risk profile. To the extent that sufficient distributable income is not available on a monthly basis, the Fund will distribute long-term capital gains and/or return of capital in order to maintain its managed distribution rate. A return of capital may occur, for example, when some or all of the money that was invested in the Fund is paid back to shareholders. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with 'yield' or 'income'. Even though the Fund may realize current year capital gains, such gains may be offset, in whole or in part, by the Fund's capital loss carryovers from prior years. The Board may amend the terms of the Plan or terminate the Plan at any time without prior notice to the Fund's shareholders. The amendment or termination of the Plan could have an adverse effect on the market price of the Fund's common shares. The Plan will be subject to the periodic review by the Board, including a yearly review of the fixed rate to determine if an adjustment should be made. Shareholders should not draw any conclusions about the Fund's investment performance from the amount of the current distribution or from the terms of the Plan. The amounts and sources of distributions reported herein are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send a Form 1099-DIV to shareholders for the calendar year that will describe how to report the Fund's distributions for federal income tax purposes. For further information on Templeton Emerging Markets Income Fund, please visit our web site at: Franklin Resources, Inc. is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton's mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and $1.61 trillion in assets under management as of June 30, 2025. For more information, please visit
Bloomberg
07-08-2025
- Business
- Bloomberg
Emerging-Market Rally Accelerates on Tariff News, Russia Talks
Emerging-market assets rallied on Thursday after positive signals on global trade and steps toward a truce in Ukraine lifted sentiment. The MSCI EM Index was up 1.2%, the most in two weeks, as chip manufacturer Taiwan Semiconductor Manufacturing Co. rose to a record on the prospect of being exempted from US semiconductor tariffs.
