Technology / Semiconductor / Internet Research

Nicolas Baratte

Equity Bottom-Up

Samsung Electronics Pref Shares / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a> already released 1Q25 data, we knew it was a decent quarter on good Smartphone sales. What we didn’t know is how bad Memory was. </li>
<li>Memory revenues declined sharply -17% QoQ on poor 4.4% OP margins: loss of HBM 2/3 revenues (China ban), no HBM3E, ASP pressure for Commodity DRAM and NAND </li>
<li>Smartphone is seasonally down in 2Q and HBM3E will start very slowly. A small upside possible on pre-tariff demand but the bigger negative remains Samsung low exposure to AI growth.</li>
</ul>



Samsung Electronics (005930 KS) already released 1Q25 data, we knew it was a decent quarter on good Smartphone sales. What we didn’t know is how bad Memory was. 
Memory revenues declined sharply -17% QoQ on poor 4.4% OP margins: loss of HBM 2/3 revenues (China ban), no HBM3E, ASP pressure for Commodity DRAM and NAND 
Smartphone is seasonally down in 2Q and HBM3E will start very slowly. A small upside possible on pre-tariff demand but the bigger negative remains Samsung low exposure to AI growth.


Samsung 1Q25: Already Reported Was Decent, 2Q / 2H Outlook Uninspiring. The Stock Will Remain Cheap

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

<ul>
<li>
SK Hynix expects continued AI/server memory strength despite global uncertainty -- Expects 2025E HBM revenue to double YoY.</li>
<li>
PC and smartphone memory demand experienced moderate recovery -- Supported by China stimulus and AI-featured product cycles.</li>
<li>
Continue to view SK Hynix shares in more favorable position vs. Nana Tech shares -- Especially in a scenario of global economic weakness.</li>
</ul>



SK Hynix expects continued AI/server memory strength despite global uncertainty -- Expects 2025E HBM revenue to double YoY.

PC and smartphone memory demand experienced moderate recovery -- Supported by China stimulus and AI-featured product cycles.

Continue to view SK Hynix shares in more favorable position vs. Nana Tech shares -- Especially in a scenario of global economic weakness.


Memory Monitor: SK Hynix Signals Resilient AI Demand Ahead; Nanya More Exposed to Global Downturn

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>The <a href="https://www.smartkarma.com/entities/mirae-asset-tiger-top-10-etf" target="_blank" data-smartkarma-citation="entities:36042:1" rel="noopener">Mirae Asset Tiger Top 10 ETF (292150 KS)</a> tracks the FnGuide Top 10 Index and has an AUM of around US$660m.</li>
<li>We currently forecast two potential changes at the next rebalance in June - both are high probability changes.</li>
<li>The trade has performed well historically with positive performance till implementation followed by reversion post implementation in most cases.</li>
</ul>


The Mirae Asset Tiger Top 10 ETF (292150 KS) tracks the FnGuide Top 10 Index and has an AUM of around US$660m.
We currently forecast two potential changes at the next rebalance in June - both are high probability changes.
The trade has performed well historically with positive performance till implementation followed by reversion post implementation in most cases.


FnGuide Top10 Index Rebalance Preview: Big Flow in Large Cap Stocks

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 foreign holdings of KRX stocks as of Apr 25th which has an aggregated holding worth USD480.8bn.</li>
<li>We estimate that foreign flows to be inflows of USD322mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.</li>
<li>We highlight changes of foreign holdings in Shift Up, Leeno Industrial, SK Hynix, Samsung Electronics.</li>
</ul>


We analyzed the changes in foreign holdings of KRX stocks as of Apr 25th which has an aggregated holding worth USD480.8bn.
We estimate that foreign flows to be inflows of USD322mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight changes of foreign holdings in Shift Up, Leeno Industrial, SK Hynix, Samsung Electronics.


KRX Foreign Holding Weekly (Apr 25th): Shift Up, Leeno Industrial, SK Hynix, Samsung Electronics

<ul>
<li>Same as last quarter: very strong AI / Server demand, capacity sold out for 12 months, HBM3E 12Hi becomes majority in 2Q25. HBM is the only driver. </li>
<li>Everything else remains weak. The conundrum remains: there is only 1 driver: AI / HBM. SK Hynix is the leading vendor, 12-18 months ahead of competitors. Is it sustainable? </li>
<li>The market thinks not sustainable and the stock is very cheap at 5x 2025 4x 2026 EPS. SK Hynix still trades like a cyclical stock – is it?</li>
</ul>


Same as last quarter: very strong AI / Server demand, capacity sold out for 12 months, HBM3E 12Hi becomes majority in 2Q25. HBM is the only driver. 
Everything else remains weak. The conundrum remains: there is only 1 driver: AI / HBM. SK Hynix is the leading vendor, 12-18 months ahead of competitors. Is it sustainable? 
The market thinks not sustainable and the stock is very cheap at 5x 2025 4x 2026 EPS. SK Hynix still trades like a cyclical stock – is it?


SK Hynix: Record-High Profits, the Stock Gets Cheaper.

South Korea

Samsung Electronics Co., Ltd. manufactures a wide range of consumer and industrial electronic equipment and products such as semiconductors, personal computers, peripherals, monitors, televisions, and home appliances including air conditioners and microwave ovens. The Company also produces Internet access network systems and telecommunications equipment including mobile phones.

Samsung Electronics Pref Shares (005935 KS)

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Samsung Electronics Pref Shares (005935 KS)

Samsung 1Q25: Already Reported Was Decent, 2Q / 2H Outlook Uninspiring. The Stock Will Remain Cheap

Samsung Electronics had a decent quarter with good smartphone sales, but suffered a sharp decline in memory revenues. Upside potential in pre...

Nicolas Baratte

Memory Monitor: SK Hynix Signals Resilient AI Demand Ahead; Nanya More Exposed to Global Downturn

SK Hynix anticipates strong AI/server memory demand despite global uncertainty. SK Hynix shares positioned favorably vs. Nanya Tech shares,...

Vincent Fernando, CFA

FnGuide Top10 Index Rebalance Preview: Big Flow in Large Cap Stocks

There could be two changes for the FnGuide Top 10 Index in June. The forecast adds have outperformed the forecast deletes and history indicates...

Brian Freitas

KRX Foreign Holding Weekly (Apr 25th): Shift Up, Leeno Industrial, SK Hynix, Samsung Electronics

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in Shift Up, Leeno Industrial, SK Hynix, Samsung...

Ke Yan, CFA, FRM

SK Hynix: Record-High Profits, the Stock Gets Cheaper.

Strong AI and server demand driving SK Hynix's success, but market questions sustainability of HBM as stock remains undervalued.

Nicolas Baratte

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Samsung 1Q25: Already Reported Was Decent, 2Q / 2H Outlook Uninspiring. The Stock Will Remain Cheap

​Samsung Electronics had a decent quarter with good smartphone sales, but suffered a sharp decline in memory revenues. Upside potential in pre...

Nicolas Baratte

Memory Monitor: SK Hynix Signals Resilient AI Demand Ahead; Nanya More Exposed to Global Downturn

​SK Hynix anticipates strong AI/server memory demand despite global uncertainty. SK Hynix shares positioned favorably vs. Nanya Tech shares,...

Vincent Fernando, CFA

FnGuide Top10 Index Rebalance Preview: Big Flow in Large Cap Stocks

There could be two changes for the FnGuide Top 10 Index in June. The forecast adds have outperformed the forecast deletes and history indicates...

Brian Freitas

KRX Foreign Holding Weekly (Apr 25th): Shift Up, Leeno Industrial, SK Hynix, Samsung Electronics

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in Shift Up, Leeno Industrial, SK Hynix, Samsung...

Ke Yan, CFA, FRM

SK Hynix: Record-High Profits, the Stock Gets Cheaper.

​Strong AI and server demand driving SK Hynix's success, but market questions sustainability of HBM as stock remains undervalued.

Nicolas Baratte

Samsung Electronics had a decent quarter with good smartphone sales, but suffered a sharp decline in memory revenues. Upside potential in pre...

SK Hynix anticipates strong AI/server memory demand despite global uncertainty. SK Hynix shares positioned favorably vs. Nanya Tech shares,...

Strong AI and server demand driving SK Hynix's success, but market questions sustainability of HBM as stock remains undervalued.