Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Commodities

<ul>
<li>A review of recent events/data impacting our investment themes and outlook</li>
<li>Negotiations between the US and China are not going well, to say the least!</li>
<li>We review the short-term outlook for some of the sectors we focus on.</li>
</ul>


A review of recent events/data impacting our investment themes and outlook
Negotiations between the US and China are not going well, to say the least!
We review the short-term outlook for some of the sectors we focus on.


OV #37 – From Chips to Ships: Markets Rattle as Trade War Escalates

Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Kokusai Electric deal yesterday with AMAT selling a 10.7m clip is a mere morsel for the market and helps clear overhead risk.</li>
<li>This creates a good setup for long Kokusai short Advantest which should see some reticence creep in as it hits the NKY CPAF cap.</li>
<li>Trump is trying to force homebuilders to build more as a panacea for the housing affordability crisis. Not good for margins.</li>
</ul>


Kokusai Electric deal yesterday with AMAT selling a 10.7m clip is a mere morsel for the market and helps clear overhead risk.
This creates a good setup for long Kokusai short Advantest which should see some reticence creep in as it hits the NKY CPAF cap.
Trump is trying to force homebuilders to build more as a panacea for the housing affordability crisis. Not good for margins.


Japan Morning Connection: Intel Announces Its Long Awaited 18A Process

<ul>
<li>Lawmakers accuse semi-caps for helping make China make chips. What else would their equipment do?</li>
<li>HDD names swoon yet pure play Sandisk stays firm. Wafers down after small-cap Aehr somehow rattles markets.</li>
<li>Mixed tape for Homebuilders with James Hardie surging on numbers while rest of sector sags on a downgrade.</li>
</ul>


Lawmakers accuse semi-caps for helping make China make chips. What else would their equipment do?
HDD names swoon yet pure play Sandisk stays firm. Wafers down after small-cap Aehr somehow rattles markets.
Mixed tape for Homebuilders with James Hardie surging on numbers while rest of sector sags on a downgrade.


Japan Morning Connection: Semi's Correct Finally, but Already Seeing Dip Buying off Lows Overnight

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Sunwoda Electronic Co Ltd A / Technical Analysis

<ul>
<li>We remain near-term bullish since our 4/22/25 Compass, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass), with Int’l Compass reports all echoing this sentiment.</li>
<li>Market dynamics remain overwhelmingly risk-on; with plenty of global liquidity, we expect upside to continue into year-end and the early part of 2026.</li>
<li>Remain Overweight Taiwan, China, Korea, U.S., and Greece. Many buys in these countries, and also Europe and Japan. EURO STOXX 50 on the cusp of major breakout above 5500</li>
</ul>


We remain near-term bullish since our 4/22/25 Compass, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass), with Int’l Compass reports all echoing this sentiment.
Market dynamics remain overwhelmingly risk-on; with plenty of global liquidity, we expect upside to continue into year-end and the early part of 2026.
Remain Overweight Taiwan, China, Korea, U.S., and Greece. Many buys in these countries, and also Europe and Japan. EURO STOXX 50 on the cusp of major breakout above 5500


Buys Focused in China, Taiwan, and Korea; Bullish Outlook Intact

Global Materials | Industrials | Commodities

Rahul Jain

<ul>
<li>Nvidia–OpenAI tie-up: A US$100bn LOI to deploy 10 GW of GPUs by 2026 highlights the unprecedented scale of AI compute build-out, anchored in Asia’s memory, packaging, substrate, and testing ecosystem.</li>
<li>SK hynix (HBM leader, backlog sold out to 2027), TSMC (CoWoS packaging), Ibiden/Ajinomoto (substrates), and Advantest/TEL/Disco (test/tools) are positioned as key winners.</li>
<li>While the deal confirms multi-year order visibility, much of the “good news” may be priced in — execution of capacity ramps and sustained demand will determine further upside.</li>
</ul>


Nvidia–OpenAI tie-up: A US$100bn LOI to deploy 10 GW of GPUs by 2026 highlights the unprecedented scale of AI compute build-out, anchored in Asia’s memory, packaging, substrate, and testing ecosystem.
SK hynix (HBM leader, backlog sold out to 2027), TSMC (CoWoS packaging), Ibiden/Ajinomoto (substrates), and Advantest/TEL/Disco (test/tools) are positioned as key winners.
While the deal confirms multi-year order visibility, much of the “good news” may be priced in — execution of capacity ramps and sustained demand will determine further upside.


Nvidia–OpenAI US$100bn Partnership: Asia Hardware Supply Chain Implications

Japan

ADVANTEST CORPORATION produces semiconductor testing devices and electronic measuring instruments.  The Company's products include large-scale integration (LSI) test systems, memory test systems, dynamic test handlers, network analyzers, electronic meters, optical testing devices, and signal sources.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Advantest Corp (6857 JP)

OV #37 – From Chips to Ships: Markets Rattle as Trade War Escalates

A review of recent events/data impacting our investment themes and outlook. We look at the fallout from the recent escalation of the trade war

Rikki Malik

Japan Morning Connection: Intel Announces Its Long Awaited 18A Process

Intel's 18A process lauded as the most advanced chip production technology developed in the US. Wolfspeed continues higher on the rumour that the...

Andrew Jackson

Japan Morning Connection: Semi's Correct Finally, but Already Seeing Dip Buying off Lows Overnight

Advantest may emerge as an SPE sector relative short. May be a chance to double dip on wafer companies after a US wafer testing firm dropped 17.4%.

Andrew Jackson

Buys Focused in China, Taiwan, and Korea; Bullish Outlook Intact

Buys Focused in China, Taiwan, and Korea; Bullish Outlook Intact. Actionable Themes: Communications, Manufacturing (Robotics and Batteries),...

Vermilion Research

Nvidia–OpenAI US$100bn Partnership: Asia Hardware Supply Chain Implications

Nvidia's $100bn LOI with OpenAI for 10 GW of GPUs by 2026 highlights the massive AI compute build-out in Asia, benefiting key players like SK...

Rahul Jain

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

OV #37 – From Chips to Ships: Markets Rattle as Trade War Escalates

A review of recent events/data impacting our investment themes and outlook. We look at the fallout from the recent escalation of the trade war

Rikki Malik

Japan Morning Connection: Intel Announces Its Long Awaited 18A Process

Intel's 18A process lauded as the most advanced chip production technology developed in the US. Wolfspeed continues higher on the rumour that the...

Andrew Jackson

Japan Morning Connection: Semi's Correct Finally, but Already Seeing Dip Buying off Lows Overnight

Advantest may emerge as an SPE sector relative short. May be a chance to double dip on wafer companies after a US wafer testing firm dropped 17.4%.

Andrew Jackson

Buys Focused in China, Taiwan, and Korea; Bullish Outlook Intact

Buys Focused in China, Taiwan, and Korea; Bullish Outlook Intact. Actionable Themes: Communications, Manufacturing (Robotics and Batteries),...

Vermilion Research

Nvidia–OpenAI US$100bn Partnership: Asia Hardware Supply Chain Implications

​Nvidia's $100bn LOI with OpenAI for 10 GW of GPUs by 2026 highlights the massive AI compute build-out in Asia, benefiting key players like SK...

Rahul Jain

Nvidia's $100bn LOI with OpenAI for 10 GW of GPUs by 2026 highlights the massive AI compute build-out in Asia, benefiting key players like SK...