Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Equity Bottom-Up

Hon Hai Precision Industry / Equity Bottom-Up

<ul>
<li>U.S. chip restrictions have hobbled Hon Hai's China EV competition.</li>
<li>AI and advanced semiconductors will become a necessity for a globally competitive EV platform and Hon Hai appears to be moving aggressively to capture this opportunity.</li>
<li>The shares should see topline growth and major margin expansion into 2025, and the market appears to have not yet priced-in Hon Hai's latest advantageous position.</li>
</ul>


U.S. chip restrictions have hobbled Hon Hai's China EV competition.
AI and advanced semiconductors will become a necessity for a globally competitive EV platform and Hon Hai appears to be moving aggressively to capture this opportunity.
The shares should see topline growth and major margin expansion into 2025, and the market appears to have not yet priced-in Hon Hai's latest advantageous position.


Hon Hai: U.S. Chip Restrictions Vs. China Have Put Hon Hai in a Stronger Than Ever Position

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of TWSE Stocks as of Oct 21st which has an aggregated short interest worth USD11.6bn.</li>
<li>We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in AUO Corp, Innolux, Hon Hai, Taiwan Cement, Wiwynn. </li>
</ul>


We analyzed the changes in short interest of TWSE Stocks as of Oct 21st which has an aggregated short interest worth USD11.6bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in AUO Corp, Innolux, Hon Hai, Taiwan Cement, Wiwynn. 


TWSE Short Interest Weekly (Oct 21st): AUO Corp, Innolux, Hon Hai, Taiwan Cement, Wiwynn

<ul>
<li>Major milestones for Hon Hai's EV platform could be unveiled at today's Hon Hai Tech Day.</li>
<li>Apple's dropping of a key China supplier shows how international players may want to just avoid even non-restricted products from China.</li>
<li>Senior semiconductor executives across the industry are halting work for China-based firms, including some leading Chinese execs.</li>
</ul>


Major milestones for Hon Hai's EV platform could be unveiled at today's Hon Hai Tech Day.
Apple's dropping of a key China supplier shows how international players may want to just avoid even non-restricted products from China.
Senior semiconductor executives across the industry are halting work for China-based firms, including some leading Chinese execs.


Taiwan Tech Weekly: Hon Hai Tech Day Today, Apple Drops China Supplier; Shows Severity of New Rules

TSMC (Taiwan Semiconductor Manufacturing) - ADR / Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing) - ADR

<ul>
<li>Taiwan’s tech space fell hard last week, with the tech sector down 5.4%, compared to a 4.9% drop for the overall market. Semiconductors performed the worst, down 6.2%.</li>
<li>Hon Hai, Delta, Lite-On -- EV a major theme for the first-ever Taiwan Expo USA coming October 12th.</li>
<li>Taiwan wafer exports were at an all-time high in August. We note that wafer names have underperformed TSMC.</li>
</ul>


Taiwan’s tech space fell hard last week, with the tech sector down 5.4%, compared to a 4.9% drop for the overall market. Semiconductors performed the worst, down 6.2%.
Hon Hai, Delta, Lite-On -- EV a major theme for the first-ever Taiwan Expo USA coming October 12th.
Taiwan wafer exports were at an all-time high in August. We note that wafer names have underperformed TSMC.


Taiwan Tech Weekly: Trying to Recover After a Week of Deep Declines

TSMC (Taiwan Semiconductor Manufacturing) / Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing)

<ul>
<li>Micron's outlook for next quarter's margin will be key, provides good color on future margin for key Taiwan names</li>
<li>Intel conference could be catalyst for Intel Long/Short, CEO will be giving a keynote on company's new direction</li>
<li>AMD meeting many Taiwan-listed companies, Hon Hai EV platform closes new deal in Indonesia</li>
</ul>


Micron's outlook for next quarter's margin will be key, provides good color on future margin for key Taiwan names
Intel conference could be catalyst for Intel Long/Short, CEO will be giving a keynote on company's new direction
AMD meeting many Taiwan-listed companies, Hon Hai EV platform closes new deal in Indonesia


Taiwan Tech Weekly: Micron Forecasts This Week, Intel Conference, AMD CEO to Visit Taiwan Suppliers

Taiwan

Hon Hai Precision Industry Co., Ltd. provides electronic manufacturing services for computers, communications, and consumer electronic products.  The Company's business operations include desktop and notebook PC assembly, connector production, cable assembly, PCB assembly, handset manufacturing, networking equipment, and other consumer electronic devices manufacturing.

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Hon Hai Precision Industry (2317 TT)

Hon Hai: U.S. Chip Restrictions Vs. China Have Put Hon Hai in a Stronger Than Ever Position

AI and advanced semiconductors will become a necessity for a globally competitive EV platform -- This means that U.S. chip restricitons for China...

Vincent Fernando, CFA

TWSE Short Interest Weekly (Oct 21st): AUO Corp, Innolux, Hon Hai, Taiwan Cement, Wiwynn

We analyzed TWSE short interest report for the past week and highlight short interest changes in AUO Corp, Innolux, Hon Hai, Taiwan Cement, Wiwynn.

Ke Yan, CFA, FRM

Taiwan Tech Weekly: Hon Hai Tech Day Today, Apple Drops China Supplier; Shows Severity of New Rules

Major Hon Hai EV developments could be unveiled today. Also, Apple's dropping of a key China supplier shows how international players may want to...

Vincent Fernando, CFA

Taiwan Tech Weekly: Trying to Recover After a Week of Deep Declines

AU Optronics stock suspended, Intel's Mobileye IPO is back, Samsung takes share from TSMC, Taiwan wafer exports are at an all-time high.

Vincent Fernando, CFA

Taiwan Tech Weekly: Micron Forecasts This Week, Intel Conference, AMD CEO to Visit Taiwan Suppliers

Micron's outlook for next quarter's margin will be key, provides good color on future margin for key Taiwan names. AMD CEO to meet with many Taiwan...

Vincent Fernando, CFA

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