Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Equity Bottom-Up

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

<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

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 Sep 16th which has an aggregated short interest worth USD12.7bn.</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 China Airlines, Powerchip, Formasa Plastics, Hon Hai, Alchip, Asustek, Yageo, Innolux.</li>
</ul>


We analyzed the changes in short interest of TWSE Stocks as of Sep 16th which has an aggregated short interest worth USD12.7bn.
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 China Airlines, Powerchip, Formasa Plastics, Hon Hai, Alchip, Asustek, Yageo, Innolux.


TWSE Short Interest Weekly (Sep 16th): Short Spikes For Formosa Plastics, Hon Hai

<ul>
<li>We analyzed the changes in short interest of TWSE Stocks as of Sep 8th which has an aggregated short interest worth USD12.5bn.</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 Taiwan Cement, Realtek, Formosa Plastics, China Airlines, Innolux.</li>
</ul>


We analyzed the changes in short interest of TWSE Stocks as of Sep 8th which has an aggregated short interest worth USD12.5bn.
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 Taiwan Cement, Realtek, Formosa Plastics, China Airlines, Innolux.


TWSE Short Interest Weekly (Sep 8th): Taiwan Cement, Realtek, Formosa Plastics

<ul>
<li>We analyze analyst earnings revisions over the last month to identify key industry takeaways from stocks with major downward and upward revisions.</li>
<li>Innolux indicates there could be another year of pain ahead for LCD Panels, Wistron sees notebook weakness through year-end.</li>
<li>Signs of strong demand persist in Commercial IT, AI, and Medical. </li>
</ul>


We analyze analyst earnings revisions over the last month to identify key industry takeaways from stocks with major downward and upward revisions.
Innolux indicates there could be another year of pain ahead for LCD Panels, Wistron sees notebook weakness through year-end.
Signs of strong demand persist in Commercial IT, AI, and Medical. 


Taiwan Tech: Market Signals in the Latest Earnings Revisions

Taiwan Tech Focused Senior Analyst

Patrick Liao

Novatek Microelectronics Corp / Equity Bottom-Up

<ul>
<li>Novatek had reported a flattish sales outlook in 1Q22, and all of revenue, GM and OPM were expected to NT$35.8~36.8bn, 48~51% and 34~37% respectively, while revenue was at -1.92~+0.82% QoQ. </li>
<li>We think the high inventory days of supply chain is giving a good chance to expand into China foundry for production, especially SMIC.</li>
<li>We think Novatek would maintain its solid dividend policy for EPS NT$63.87 in 2021, and it’s pay-out ratio is 80% in the past.</li>
</ul>


Novatek had reported a flattish sales outlook in 1Q22, and all of revenue, GM and OPM were expected to NT$35.8~36.8bn, 48~51% and 34~37% respectively, while revenue was at -1.92~+0.82% QoQ. 
We think the high inventory days of supply chain is giving a good chance to expand into China foundry for production, especially SMIC.
We think Novatek would maintain its solid dividend policy for EPS NT$63.87 in 2021, and it’s pay-out ratio is 80% in the past.


Novatek (3034.TT): A Good Year Ahead, and Likely to Expand to SMIC for Wafer Foundry

Taiwan

Innolux Corporation manufactures TFT-LCD, LCD models and LCD monitors. The company also provides research, development, manufacturing and retails business.

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Innolux Corp (3481 TT)

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

TWSE Short Interest Weekly (Sep 16th): Short Spikes For Formosa Plastics, Hon Hai

We analyzed TWSE short interest report for the past week and highlight short interest changes in China Airlines, Powerchip, Formasa Plastics, Hon...

Ke Yan, CFA, FRM

TWSE Short Interest Weekly (Sep 8th): Taiwan Cement, Realtek, Formosa Plastics

We analyzed TWSE short interest report for the past week and highlight short interest changes in Taiwan Cement, Realtek, Formosa Plastics, China...

Ke Yan, CFA, FRM

Taiwan Tech: Market Signals in the Latest Earnings Revisions

We analyze analyst earnings revisions over the last month to identify key industry takeaways from stocks with major downward and upward revisions.

Vincent Fernando, CFA

Novatek (3034.TT): A Good Year Ahead, and Likely to Expand to SMIC for Wafer Foundry

In 1Q22, Novatek reported revenue, GM and OPM expected to NT$35.8~36.8bn, 48~51% and 34~37% respectively, which revenue was at -1.92~+0.82% QoQ. We...

Patrick Liao

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