Growth in connectors for AI data centres

Research evidence excerpt

Growth in connectors for AI data centres

Macquarie Equity Research Hirose Electric

Alpha Model Decomposition Key Quant Findings

The quant model currently holds a reasonably positive The Macquarie Alpha is decomposed into its sector and

view on Hirose Electric. The strongest style exposure is market relative factor & styles exposures (a higher/better

Quality, indicating this stock is likely to have a superior and percentile is coded in green, whilst lower in red).

more stable underlying earnings stream. The weakest style

exposure is Valuations, indicating this stock is over-priced relativePercentileto

in the market relative to its peers.

sectors market

Factors / Styles (/1234) (/1680) Core factors in definition

ALPHA 73% 79% Built from the styles below

Macquarie Alpha Model: Key rankings VALUE 53% 21% Book, CF, Yield, Earnings Multiples

The Macquarie Quant’s flagship Alpha model is a dynamic ANALYST 71% 61% Revisions (Earnings, Recommendations)

multi-factor model based on a staple of quant factors such MOMENTUM 94% 100% Price Momentum

as value, momentum, revisions, quality, and risk.

GROWTH 76% 72% EPS, Sales (Forecast, Historic)

Global Market (Country) Sector

Technology PROFITABILITY 88% 77% ROE, Margin, Asset Turnover

Whole Universe Japan Hardware & QUALITY 98% 98% Accruals, Earn Stability, Cash Conversion

Equipment

CAPITAL 43% 37% Investment/Capex, Net share issuance

Macquarie Alpha 3857/17948 345/1680 334/1234

Model LIQUIDITY 94% 94% Size, Turnover, Analyst Coverage

Fundamental 5733/17948 296/1680 330/1234 LOW RISK 54% 22% Beta, Volatility, Earn.Cert, Leverage (Consensus) *

TECHNICAL 58% 86% MACD, RSI, Bollinger, Williams R, etc

* based on Total Shareholder Return = Consensus Price target / Current Price

Factors driving the Alpha Model vs peers