Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>The upcoming rebalance of the MVIS US Listed Semiconductor 25 Index will be implemented on 17 March. There are no constituent changes, but there are float and capping changes.</li>
<li>The <a href="https://www.smartkarma.com/entities/vaneck-vectors-semiconductor" target="_blank" data-smartkarma-citation="entities:32807:1" rel="noopener">VanEck Vectors Semiconductor (SMH US)</a> ETF tracks the index and has an AUM of US$7.2bn.</li>
<li>Estimated one-way turnover is 4.8% resulting in a one-way trade of US$356m. The stocks are extremely liquid, the impact on the stocks in terms of ADV to trade is small.</li>
</ul>


The upcoming rebalance of the MVIS US Listed Semiconductor 25 Index will be implemented on 17 March. There are no constituent changes, but there are float and capping changes.
The VanEck Vectors Semiconductor (SMH US) ETF tracks the index and has an AUM of US$7.2bn.
Estimated one-way turnover is 4.8% resulting in a one-way trade of US$356m. The stocks are extremely liquid, the impact on the stocks in terms of ADV to trade is small.


MVIS US Listed Semiconductor 25 Index Rebalance: Big Flow, Small Impact

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Thematic (Sector/Industry)

<ul><li>Following prelim results released in Jan 2023, the sector started to rally substantially despite a mixed or disappointing set of results.</li><li>In our view, the rebound is mainly due to: 1) a relief rally with better-than-feared results; 2) rising expectation for economy rebound on China reopening; 3) accelerated localization trend under the backdrop of Sino-US tensions.</li><li>However, based on our checks with semi contacts in China and analysis of recent results from major global/ Chinese semi companies, we think the consumer electronic market will remain challenging in 1H23, and recovery may come in 2H23 the earliest. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Following prelim results released in Jan 2023, the sector started to rally substantially despite a mixed or disappointing set of results.In our view, the rebound is mainly due to: 1) a relief rally with better-than-feared results; 2) rising expectation for economy rebound on China reopening; 3) accelerated localization trend under the backdrop of Sino-US tensions.However, based on our checks with semi contacts in China and analysis of recent results from major global/ Chinese semi companies, we think the consumer electronic market will remain challenging in 1H23, and recovery may come in 2H23 the earliest. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Hardware/Semi – Reality Check on Smartphone Supply Chain

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Credit

<ul><li>Skyworks Solutions is a major supplier in the field of radio frequency (RF) components.</li><li>The company has been performing well financially off-late with its growth driven by its diversified portfolio and expanding set of customers.</li><li>Furthermore, the management delivered strong earnings in the automotive industry, with revenue strength emphasizing their connectivity and power isolation portfolio.</li></ul>

Skyworks Solutions is a major supplier in the field of radio frequency (RF) components.The company has been performing well financially off-late with its growth driven by its diversified portfolio and expanding set of customers.Furthermore, the management delivered strong earnings in the automotive industry, with revenue strength emphasizing their connectivity and power isolation portfolio.

Skyworks Solutions Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

Equity Bottom-Up

<ul><li>This is our first report on Skyworks, one of the leading suppliers of radio frequency (RF) components to the electronics industry.</li><li>The company delivered another all-around beat in the last quarter driven by its diversified portfolio and expanding set of customers.</li><li>Furthermore, the management delivered strong earnings in the automotive industry, with revenue strength emphasizing their connectivity and power isolation portfolio.</li></ul>

This is our first report on Skyworks, one of the leading suppliers of radio frequency (RF) components to the electronics industry.The company delivered another all-around beat in the last quarter driven by its diversified portfolio and expanding set of customers.Furthermore, the management delivered strong earnings in the automotive industry, with revenue strength emphasizing their connectivity and power isolation portfolio.

Skyworks Solutions Inc.: Initiation of Coverage – Business Strategy & Key Drivers

Taiwan Tech Focused Senior Analyst

Patrick Liao

<ul>
<li>For 2Q22 guidance, the revenue declines high single digits % QoQ, and GM falls between high twenties to low-thirties.</li>
<li>The current China smartphone inventory digestion won’t influence WinSemi's expansion plan because it’s in construction phase now.</li>
<li>It is due to cellular for 2Q22 decline, which is not easy to clarify whether it’s 4G, or 5G.</li>
</ul>


For 2Q22 guidance, the revenue declines high single digits % QoQ, and GM falls between high twenties to low-thirties.
The current China smartphone inventory digestion won’t influence WinSemi's expansion plan because it’s in construction phase now.
It is due to cellular for 2Q22 decline, which is not easy to clarify whether it’s 4G, or 5G.


WinSemi (3105.TT): 1Q22 Review/ 2Q22 Preview- To Be Further Downside

United States

Skyworks Solutions, Inc., a wireless semiconductor company, designs and manufactures radio frequency and complete semiconductor system solutions for mobile communications applications.  The Company provides front-end modules, radio frequency subsystems, and system solutions to wireless handset and infrastructure customers worldwide.

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Skyworks Solutions (SWKS US)

MVIS US Listed Semiconductor 25 Index Rebalance: Big Flow, Small Impact

No constituent changes, but there are float/capping changes. Estimated one-way turnover is 4.8% resulting in a one-way trade of US$356m. Stocks are...

Brian Freitas

China Hardware/Semi – Reality Check on Smartphone Supply Chain

Following prelim results released in Jan 2023, the sector started to rally substantially despite a mixed or disappointing set of results.

CMB International

Skyworks Solutions Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

Skyworks Solutions is a major supplier in the field of radio frequency (RF) components. The company has been performing well financially off-late...

Baptista Research

Skyworks Solutions Inc.: Initiation of Coverage – Business Strategy & Key Drivers

This is our first report on Skyworks, one of the leading suppliers of radio frequency (RF) components to the electronics industry. The company...

Baptista Research

WinSemi (3105.TT): 1Q22 Review/ 2Q22 Preview- To Be Further Downside

For 2Q22 guidance, the revenue declines high single digits % QoQ, and GM falls between high twenties to low-thirties. The current China smartphone...

Patrick Liao

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