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

Equity Bottom-Up

Hon Hai Precision Industry / Equity Bottom-Up

<ul>
<li>Hon Hai's 4Q23 profit beat consensus and management has become more bullish on 2024E revenue thanks to demand for AI servers.</li>
<li>Guided 40% YoY growth expected for AI servers; Separately, Hon Hai reportedly could have won a major AI server order from HP Enterprise according to Digitimes.</li>
<li>Hon Hai shares are finally moving; We see room for continued upside based on re-rating of the company's valuation. Positive news flow potential through Nvidia's GTC conference next week.</li>
</ul>


Hon Hai's 4Q23 profit beat consensus and management has become more bullish on 2024E revenue thanks to demand for AI servers.
Guided 40% YoY growth expected for AI servers; Separately, Hon Hai reportedly could have won a major AI server order from HP Enterprise according to Digitimes.
Hon Hai shares are finally moving; We see room for continued upside based on re-rating of the company's valuation. Positive news flow potential through Nvidia's GTC conference next week.


Hon Hai: Beat & Raise; Further Valuation Upside; AI Server Product Announcements Next Week

<ul>
<li>Hon Hai beat expectations yesterday when it reported thanks to higher than expected margins. Gross margin rose to its highest level since 2018, hitting 6.7%.</li>
<li>The company has maintained its 2025E 10% gross margin target and implied that 2024 will see significant margin improvement as new higher margin businesses ramp up revenue contribution.</li>
<li>Two key market concerns: News of Chinese government investigation and political risk given Mr. Gou running for president. Company said operations continue as normal. Hon Hai remains a Structural Long.</li>
</ul>


Hon Hai beat expectations yesterday when it reported thanks to higher than expected margins. Gross margin rose to its highest level since 2018, hitting 6.7%.
The company has maintained its 2025E 10% gross margin target and implied that 2024 will see significant margin improvement as new higher margin businesses ramp up revenue contribution.
Two key market concerns: News of Chinese government investigation and political risk given Mr. Gou running for president. Company said operations continue as normal. Hon Hai remains a Structural Long.


Hon Hai's Margin Expansion Story Finally Starting to Be Realized? Results Imply Yes

<ul>
<li>Mike Sayre previously co-founded KABAM Robotics, the Singapore-founded autonomous-robot business that operates as the advanced-engineering arm of Taiwan-listed PATEC Group (Patec Precision Industry (2236 TT)).</li>
<li>For Physical AI, the missing layer is a tactile-force data engine, not more compute. Billions are flowing into vision-only training, but high-fidelity interaction-force data that vision-language-tactile models need is scarce.</li>
<li>Taiwan already dominates the mechanical layers a robot needs to move and act. The sim-to-real gap is widest on contact physics -- sensors for material compliance, friction, and tactile feedback.</li>
</ul>


Mike Sayre previously co-founded KABAM Robotics, the Singapore-founded autonomous-robot business that operates as the advanced-engineering arm of Taiwan-listed PATEC Group (Patec Precision Industry (2236 TT)).
For Physical AI, the missing layer is a tactile-force data engine, not more compute. Billions are flowing into vision-only training, but high-fidelity interaction-force data that vision-language-tactile models need is scarce.
Taiwan already dominates the mechanical layers a robot needs to move and act. The sim-to-real gap is widest on contact physics -- sensors for material compliance, friction, and tactile feedback.


TechChain Insights Q&A: 'Force Blindness' Is Physical AI's Bottleneck - More Important Than Compute

Hedge Fund News, Information and Data, Hedge Fund Alpha

Hedge Fund Alpha

Hedge Fund News, Information and Data

We focus on hedge funds with a bias towards emerging managers, specifically fundamental long-short managers. We are known for a lot of insights and exclusives on hedge fund letters, coverage of industry conferences, and interviews with investors and interesting service providers.

Thematic (Sector/Industry)

<ul>
<li>The inaugural Sohn Tokyo conference is coming up on Oct.16 at the Roppongi Hills Club.</li>
<li>One of this year’s co-hosts and speakers is Masaki Gotoh of TriVista Capital, and Hedge Fund Alpha caught up with him prior to the conference.</li>
<li>He’s very proud to be able to co-host Sohn Tokyo with Oasis Management’s Seth Fischer, who had invited him to speak at a previous Sohn conference.</li>
</ul>


The inaugural Sohn Tokyo conference is coming up on Oct.16 at the Roppongi Hills Club.
One of this year’s co-hosts and speakers is Masaki Gotoh of TriVista Capital, and Hedge Fund Alpha caught up with him prior to the conference.
He’s very proud to be able to co-host Sohn Tokyo with Oasis Management’s Seth Fischer, who had invited him to speak at a previous Sohn conference.


Sohn Tokyo Preview: TriVista’s Masaki Gotoh – What Traditional Stock Pickers Often Miss, and More

AI and Energy Infrastructure, Explained Plainly, The Physical Layer

The Physical Layer

AI and Energy Infrastructure, Explained Plainly

A journal on the physical constraints behind the AI buildout: power, grid connection, data centres, cooling and the supply chains that gate them. Written to be understood by anyone.

<ul><li>Schneider Electric makes the electrical and cooling equipment inside data centres.</li><li>More and more of what it sells them now arrives as whole units, assembled and tested in a factory, rather than as separate parts for workers to fit on site.</li><li>The reason is that skilled people on the building site, not just the equipment, now set how fast an AI data centre can switch on.</li></ul>

Schneider Electric makes the electrical and cooling equipment inside data centres.More and more of what it sells them now arrives as whole units, assembled and tested in a factory, rather than as separate parts for workers to fit on site.The reason is that skilled people on the building site, not just the equipment, now set how fast an AI data centre can switch on.

Schneider Electric sells AI data centres the finished system, not the parts

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.

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

Hon Hai Precision Industry (2317 TT)

Hon Hai: Beat & Raise; Further Valuation Upside; AI Server Product Announcements Next Week

Hon Hai's delivers strong 4Q23 profit and bullish outlook on 2024 revenue driven by demand for AI servers. Potential major order from HP...

Vincent Fernando, CFA

Hon Hai's Margin Expansion Story Finally Starting to Be Realized? Results Imply Yes

Two key market concerns: News of Chinese government investigation and political risk given Mr. Gou running for president. Key Event: Foxtron EV JV...

Vincent Fernando, CFA

TechChain Insights Q&A: 'Force Blindness' Is Physical AI's Bottleneck - More Important Than Compute

Mike Sayre co-founded KABAM Robotics, the advanced-engineering arm of Taiwan-listed PATEC Group. The missing layer in robotics now is tactile...

Vincent Fernando, CFA

Sohn Tokyo Preview: TriVista’s Masaki Gotoh – What Traditional Stock Pickers Often Miss, and More

The inaugural Sohn Tokyo conference is coming up on Oct. 16 at the Roppongi Hills Club. One of this year’s co-hosts and speakers is Masaki Gotoh...

Hedge Fund Alpha

Schneider Electric sells AI data centres the finished system, not the parts

Schneider Electric makes the electrical and cooling equipment inside data centres. More and more of what it sells them now arrives as whole units,...

The Physical Layer

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Hon Hai: Beat & Raise; Further Valuation Upside; AI Server Product Announcements Next Week

​Hon Hai's delivers strong 4Q23 profit and bullish outlook on 2024 revenue driven by demand for AI servers. Potential major order from HP...

Vincent Fernando, CFA

Hon Hai's Margin Expansion Story Finally Starting to Be Realized? Results Imply Yes

Two key market concerns: News of Chinese government investigation and political risk given Mr. Gou running for president. Key Event: Foxtron EV JV...

Vincent Fernando, CFA

TechChain Insights Q&A: 'Force Blindness' Is Physical AI's Bottleneck - More Important Than Compute

​Mike Sayre co-founded KABAM Robotics, the advanced-engineering arm of Taiwan-listed PATEC Group. The missing layer in robotics now is tactile...

Vincent Fernando, CFA

Sohn Tokyo Preview: TriVista’s Masaki Gotoh – What Traditional Stock Pickers Often Miss, and More

The inaugural Sohn Tokyo conference is coming up on Oct. 16 at the Roppongi Hills Club. One of this year’s co-hosts and speakers is Masaki Gotoh...

Hedge Fund Alpha

Schneider Electric sells AI data centres the finished system, not the parts

Schneider Electric makes the electrical and cooling equipment inside data centres. More and more of what it sells them now arrives as whole units,...

The Physical Layer

Hon Hai's delivers strong 4Q23 profit and bullish outlook on 2024 revenue driven by demand for AI servers. Potential major order from HP...

Mike Sayre co-founded KABAM Robotics, the advanced-engineering arm of Taiwan-listed PATEC Group. The missing layer in robotics now is tactile...