Mostly Borrowed Ideas Deep Dives, MBI Deep Dives

MBI Deep Dives

Mostly Borrowed Ideas Deep Dives

MBI is the abbreviation for “Mostly Borrowed Ideas”. Why “Mostly Borrowed Ideas?” As a generalist, I do not have a background in any particular sector. I enjoy navigating across industries, businesses, and countries to learn, understand, and connect the dots. In any case, most ideas and innovations are incremental in nature. Very few of us are smart enough to come up with truly original or groundbreaking ideas. I am Abdullah Al-Rezwan. I was born and brought up in Bangladesh. I went to University of Dhaka for my undergrad and majored in Finance. After working three and half years in Equity Research (Sell-side) covering Financial Sector in Bangladesh, I left Bangladesh to pursue my MBA in the US. I graduated within top 10% of the class from Cornell University's two-year MBA program and worked on the buy-side following my graduation. During my time at Cornell, I won two stock pitch competitions and also became finalists in four other competitions. I thoroughly enjoyed my stint as a generalist in the US large cap team at Madison Investments and covered a wide range of companies from UnitedHealth to Amazon and Boeing before US immigration reality paused my career in investment management. As my work authorization expired, I moved to Canada in January, 2021. Then in early 2022, I was able to return to the US.

Equity Bottom-Up

Aon PLC is a professional services provider. The Company is comprised of risk and insurance brokerage consulting. Aon's services include helping manage risk for clients, negotiating and placing insurance risk with other carriers, and advising clients related to health and benefits, retirement, compensation, strategic human capital, and human resource outsourcing.

<ul><li>This month's Deep Dive will be on <strong>TSMC </strong>which I'm hoping to publish sometime in the last week of this month.</li><li>Following TSMC, I will spend some time out of semis for a few months and then come back to semis later in the year.</li><li>I also wanted to share some brief notes on why I have started buying Aon today.</li></ul>

This month's Deep Dive will be on TSMC which I'm hoping to publish sometime in the last week of this month.Following TSMC, I will spend some time out of semis for a few months and then come back to semis later in the year.I also wanted to share some brief notes on why I have started buying Aon today.

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

Jusung Engineering Co., Ltd. manufactures semiconductor, flat panel display, and solar cell production equipment.  The Company produces space divided CVD-ALD thin film machines for semiconductor manufacture; equipment for producing liquid crystal display panels; and equipment for manufacturing crystalline silicon and thin film silicon tandem solar cells.

<ul>
<li>On 2 May, Jusung Engineering (036930 KS) announced an equity spin-off as well as a physical division split.</li>
<li>We are negative on this combination of equity spin-off and physical division split of Jusung Engineering. </li>
<li>After the two units are listed on 6 December 2024, it is likely that the semiconductor unit (Jusung Engineering Co) will rise while Jusung Holdings Co is likely to decline.</li>
</ul>


On 2 May, Jusung Engineering (036930 KS) announced an equity spin-off as well as a physical division split.
We are negative on this combination of equity spin-off and physical division split of Jusung Engineering. 
After the two units are listed on 6 December 2024, it is likely that the semiconductor unit (Jusung Engineering Co) will rise while Jusung Holdings Co is likely to decline.


Jusung Engineering: Announces Equity Spin Off + Physical Division Split

Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

MediaTek Inc. is a fabless semiconductor company for wireless communications and digital multimedia solutions. The company provides SOC system solutions for wireless communications, high-definition TV, optical storage, DVD and Blu-ray products.

<ul>
<li>Qualcomm's latest earnings came in at the high end of guidance with automotive revenue surging and mobile steady. We analyze QCOM results' key implications for Mediatek.</li>
<li>Qualcomm's 2024E global handset market volume guidance remained unchanged vs. last quarter; however we believe Mediatek may have taken some market share in CY1Q24.</li>
<li>Qualcomm confirmed Mediatek's view regarding high-end phone demand strength right now, with AI capabilities the likely driver. Combining QCOM + Mediatek color suggests an AI-driven handset upgrade cycle ahead.</li>
</ul>


Qualcomm's latest earnings came in at the high end of guidance with automotive revenue surging and mobile steady. We analyze QCOM results' key implications for Mediatek.
Qualcomm's 2024E global handset market volume guidance remained unchanged vs. last quarter; however we believe Mediatek may have taken some market share in CY1Q24.
Qualcomm confirmed Mediatek's view regarding high-end phone demand strength right now, with AI capabilities the likely driver. Combining QCOM + Mediatek color suggests an AI-driven handset upgrade cycle ahead.


Key Insights from Qualcomm's Latest Data; Mediatek Taking Market Share?

Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

SK Hynix Inc. provides products and services for the electronic components industry. The Company manufactures semiconductors, such as dynamic random access memory (DRAM), NAND flash memory, and static random access memory (SRAM) chips.

<ul><li>Geopolitical shifts are impacting Taiwanese businesses in China, leading to strategic adjustments and shifts in orders to specialty IC foundries.</li><li>CHPT anticipates a surge in probe card orders in the second half of 2024, while SK Hynix expects high demand for HBM in 2025 with production nearly sold out.</li><li>Meredot's technology allows for micromobility vehicles and robots to charge wirelessly simultaneously, while Taiwan's Compal will have its first foreign CEO in the electronics industry.</li></ul>

Geopolitical shifts are impacting Taiwanese businesses in China, leading to strategic adjustments and shifts in orders to specialty IC foundries.CHPT anticipates a surge in probe card orders in the second half of 2024, while SK Hynix expects high demand for HBM in 2025 with production nearly sold out.Meredot's technology allows for micromobility vehicles and robots to charge wirelessly simultaneously, while Taiwan's Compal will have its first foreign CEO in the electronics industry.

Tech Supply Chain Tracker (02-May-2024): Global changes affect Taiwan-China relations; business strategies evolve.

Independent Insight Provider, Japanese equities, LightStream Research

Scott Foster

Independent Insight Provider, Japanese equities

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Lasertec Corporation develops, designs, manufactures and markets photomask inspection systems to make semiconductor devices, confocal scanning laser microscopes and liquid crystal display (LCD) inspection systems.

<ul>
<li>The share price has bounced back on strong 3Q orders and long-term optimism, but weak 4Q guidance calls the growth trajectory into question.</li>
<li>Guidance, which has sales dropping to about half what they were a year earlier, is based on the expected timing of customer acceptance of delivered equipment. It could be conservative.</li>
<li>At 75X EPS guidance for FY Jun-24, a rate of growth not visible in current trends has already been discounted. Current orders should translate into sales in 2026.</li>
</ul>


The share price has bounced back on strong 3Q orders and long-term optimism, but weak 4Q guidance calls the growth trajectory into question.
Guidance, which has sales dropping to about half what they were a year earlier, is based on the expected timing of customer acceptance of delivered equipment. It could be conservative.
At 75X EPS guidance for FY Jun-24, a rate of growth not visible in current trends has already been discounted. Current orders should translate into sales in 2026.


Lasertec (6920 JP): Orders Up, Guidance Down

Semiconductors
Insights on Semiconductor Supply Chain

May, 2024 Update

Following TSMC, I will spend some time out of semis for a few months and then come back to semis later in the year. I also wanted to share some...

MBI Deep Dives

Jusung Engineering: Announces Equity Spin Off + Physical Division Split

On 2 May, Jusung Engineering (036930 KS) announced an equity spin-off as well as a physical division split. We are Negative on Jusung Engineering.

Douglas Kim

Tech Supply Chain Tracker (02-May-2024): Global changes affect Taiwan-China relations; business strategies evolve.

Geopolitical shifts affect Taiwanese businesses in China, leading to strategic adjustments; CHPT anticipates increased probe card orders, SK Hynix...

Tech Supply Chain Tracker

Lasertec (6920 JP): Orders Up, Guidance Down

Orders up in Q3 to a good but not outstanding level. Q4 guidance for a sharp decline in sales and profit based on expected timing of customer...

Scott Foster

May, 2024 Update

Following TSMC, I will spend some time out of semis for a few months and then come back to semis later in the year. I also wanted to share some...

MBI Deep Dives

Jusung Engineering: Announces Equity Spin Off + Physical Division Split

On 2 May, Jusung Engineering (036930 KS) announced an equity spin-off as well as a physical division split. We are Negative on Jusung Engineering.

Douglas Kim

Key Insights from Qualcomm's Latest Data; Mediatek Taking Market Share?

We deep dive into Qualcomm's latest results and the key take-aways relative to Mediatek. Overall, we find the latest QCOM results as positive for...

Vincent Fernando, CFA

Tech Supply Chain Tracker (02-May-2024): Global changes affect Taiwan-China relations; business strategies evolve.

Geopolitical shifts affect Taiwanese businesses in China, leading to strategic adjustments; CHPT anticipates increased probe card orders, SK Hynix...

Tech Supply Chain Tracker

Lasertec (6920 JP): Orders Up, Guidance Down

Orders up in Q3 to a good but not outstanding level. Q4 guidance for a sharp decline in sales and profit based on expected timing of customer...

Scott Foster