Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

Equity Bottom-Up

<ul><li>Fujitsu launches GenAI platform for advanced AI capabilities, enhancing customization options for users.</li><li>CuspAI receives US$30M funding, partners with Geoffrey Hinton to address climate change using advanced materials.</li><li>Global IC fab capacity expected to grow by 6% in 2024 and 7% in 2025, with Taiwan playing a key role in AI innovation.</li></ul>

Fujitsu launches GenAI platform for advanced AI capabilities, enhancing customization options for users.CuspAI receives US$30M funding, partners with Geoffrey Hinton to address climate change using advanced materials.Global IC fab capacity expected to grow by 6% in 2024 and 7% in 2025, with Taiwan playing a key role in AI innovation.

Tech Supply Chain Tracker (20-Jun-2024): Fujitsu launches new AI customization platform.

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Shinko Electric Industries / Event-Driven

<ul>
<li>When this deal was announced, it was light. But the timing, JSR influence, large-ish float, ensured FUD would make this trade wide. It traded wider.</li>
<li>Nearly 5mos ago, Shinko had much-underperformed peer Ibiden, meaning downside gap risk from undisturbed was negative as spreads were wide. I reco'd a buy. Then 12wks ago, recommended taking profits.</li>
<li>Shinko had outperformed Ibiden, gross spreads had narrowed 5+% on JSR approval. Spreads are now 2.6% wider than at narrowest. In May, gap risk narrowed as Shinko underperformed Ibiden.</li>
</ul>


When this deal was announced, it was light. But the timing, JSR influence, large-ish float, ensured FUD would make this trade wide. It traded wider.
Nearly 5mos ago, Shinko had much-underperformed peer Ibiden, meaning downside gap risk from undisturbed was negative as spreads were wide. I reco'd a buy. Then 12wks ago, recommended taking profits.
Shinko had outperformed Ibiden, gross spreads had narrowed 5+% on JSR approval. Spreads are now 2.6% wider than at narrowest. In May, gap risk narrowed as Shinko underperformed Ibiden.


Shinko Electric (6967) - Break/Gap Risk Early June 2024 Update

<ul>
<li>When this deal was announced, it was light. But the timing, JSR influence, large-ish float, ensured FUD would make this trade wide. It traded wider.</li>
<li>15wks ago, Shinko had much-underperformed peer Ibiden, meaning downside gap risk from undisturbed was negative as spreads were wide. I reco'd a buy. Then 8wks ago, recommended taking profits.</li>
<li>Shinko had outperformed Ibiden, gross spreads had narrowed 5+% on JSR approval. Spreads are now 3.6% wider than at narrowest, but gap risk has widened as Shinko outperforms, Ibiden.</li>
</ul>


When this deal was announced, it was light. But the timing, JSR influence, large-ish float, ensured FUD would make this trade wide. It traded wider.
15wks ago, Shinko had much-underperformed peer Ibiden, meaning downside gap risk from undisturbed was negative as spreads were wide. I reco'd a buy. Then 8wks ago, recommended taking profits.
Shinko had outperformed Ibiden, gross spreads had narrowed 5+% on JSR approval. Spreads are now 3.6% wider than at narrowest, but gap risk has widened as Shinko outperforms, Ibiden.


Shinko Electric (6967) - Break/Gap Risk Early May 2024 Update

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shinko-electric-industries" target="_blank" data-smartkarma-citation="entities:15066:1" rel="noopener">Shinko Electric Industries (6967 JP)</a>'s pre-conditional tender offer from the JIC alliance is JPY5,920 per share. The gross spread widened from a low of 3.1% on 14 March to 7.0%. </li>
<li>The widening spread can be attributed to China SAMR approval timing, earnings risk, <a href="https://www.smartkarma.com/entities/ibiden-co-ltd" target="_blank" data-smartkarma-citation="entities:16630:1" rel="noopener">Ibiden Co Ltd (4062 JP)</a>’s material underperformance lowering the break price and a large fund liquidating positions. </li>
<li>The deal break risks remain low with the timing remaining the key risk. The current 7.0% spread is an attractive opportunity to add. </li>
</ul>



Shinko Electric Industries (6967 JP)'s pre-conditional tender offer from the JIC alliance is JPY5,920 per share. The gross spread widened from a low of 3.1% on 14 March to 7.0%. 
The widening spread can be attributed to China SAMR approval timing, earnings risk, Ibiden Co Ltd (4062 JP)’s material underperformance lowering the break price and a large fund liquidating positions. 
The deal break risks remain low with the timing remaining the key risk. The current 7.0% spread is an attractive opportunity to add. 


Shinko Electric (6967 JP): Widening Spread Is an Opportunity

<ul>
<li>When this deal was announced, it was light. But the timing, JSR influence, large-ish float, ensured FUD would make this trade wide. It traded wider. </li>
<li>12wks ago, Shinko had much-underperformed peer Ibiden, meaning downside gap risk from undisturbed was negative as spreads were wide. I reco'd a buy. Then 5wks ago, reco'd trimming.</li>
<li>Shinko had outperformed Ibiden, and gross spreads had come in 5+% on JSR's approval. Spreads are now 3% wider than their narrowest, but gap risk has widened as Shinko outperforms.</li>
</ul>


When this deal was announced, it was light. But the timing, JSR influence, large-ish float, ensured FUD would make this trade wide. It traded wider. 
12wks ago, Shinko had much-underperformed peer Ibiden, meaning downside gap risk from undisturbed was negative as spreads were wide. I reco'd a buy. Then 5wks ago, reco'd trimming.
Shinko had outperformed Ibiden, and gross spreads had come in 5+% on JSR's approval. Spreads are now 3% wider than their narrowest, but gap risk has widened as Shinko outperforms.


Shinko Electric (6967) - Break/Gap Risk Update

Japan

Fujitsu Ltd manufactures semiconductor, computer, and communication equipment. The Company provides comprehensive information technology, network and telecommunication solutions, and Internet services.

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Fujitsu Ltd (6702 JP)

Tech Supply Chain Tracker (20-Jun-2024): Fujitsu launches new AI customization platform.

Fujitsu launches GenAI platform for advanced AI, CuspAI secures funding for climate change efforts, IC fab capacity to grow, Lumai boosts AI with...

Tech Supply Chain Tracker

Shinko Electric (6967) - Break/Gap Risk Early June 2024 Update

Ibiden outperformed Shinko quite sharply in the last few weeks bringing the Shinko/Ibiden ratio back below their forward EPS ratio. Gap Risk is...

Travis Lundy

Shinko Electric (6967) - Break/Gap Risk Early May 2024 Update

Time has passed, lifting annualised return to deal completion, but Shinko Electric has still larger gap risk as Ibiden's price/guidance has fallen...

Travis Lundy

Shinko Electric (6967 JP): Widening Spread Is an Opportunity

The deal break risks remain low, with the China SAMR timing remaining the key risk. The current 7.0% spread is an attractive opportunity to add.

Arun George

Shinko Electric (6967) - Break/Gap Risk Update

The JIC deal for Shinko Electric still has ~6mos to go until it gets settled. And that is if the schedule goes to plan. China delay risk is real,...

Travis Lundy

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