Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Independent, Fundamental Quantitative Research

Propitious Research

Fully independent, fundamental and quantitative equity research, focused on companies in the Telecommunication, Media, Technology, Internet and Healthcare sectors in the Global Emerging Markets. Idea generation focused on Quality stocks, trading below their intrinsic Value, with sound Corporate Governance.

Thematic (Sector/Industry)

<ul>
<li>The Global Emerging Markets Weekly provides a summary of the key news and related developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.</li>
<li>
 Macro data points: South Korea GDP and export growth, China industrial profit growth</li>
<li>
 Companies mentioned:<a href="https://www.smartkarma.com/entities/hon-hai-precision-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:745:1" rel="noopener">Hon Hai Precision Industry (2317 TT)</a>, <a href="https://www.smartkarma.com/entities/foxconn-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:11950:1" rel="noopener">Foxconn Technology (2354 TT)</a>, <a href="https://www.smartkarma.com/entities/naver-corp" target="_blank" data-smartkarma-citation="entities:16029:1" rel="noopener">Naver Corp (035420 KS)</a>, <a href="https://www.smartkarma.com/entities/semiconductor-manufacturing-international-corp-smic" target="_blank" data-smartkarma-citation="entities:14231:1" rel="noopener">Semiconductor Manufacturing International Corp (SMIC) (981 HK)</a>
</li>
</ul>


The Global Emerging Markets Weekly provides a summary of the key news and related developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.

 Macro data points: South Korea GDP and export growth, China industrial profit growth

 Companies mentioned:Hon Hai Precision Industry (2317 TT), Foxconn Technology (2354 TT), Naver Corp (035420 KS), Semiconductor Manufacturing International Corp (SMIC) (981 HK)



GEMWeekly (27 Oct 2023): South Korea, China Macro; Hon Hai, Foxconn, Naver, SMIC

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>TSMC recorded in-line 3Q23 results and 4Q revenue guidance implies betterthan-expected FY23E outlook, driven by stabilised demand of smartphone &amp; PC and inventory restocking.</li><li>Auto segment may slow down in 2H23E, but it is set to rebound in 2024 driven by the NEV market.</li><li>Looking ahead, we expect market will react positively to 3Q23 results, demand stabilisation and inventory restocking. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

TSMC recorded in-line 3Q23 results and 4Q revenue guidance implies betterthan-expected FY23E outlook, driven by stabilised demand of smartphone &amp; PC and inventory restocking.Auto segment may slow down in 2H23E, but it is set to rebound in 2024 driven by the NEV market.Looking ahead, we expect market will react positively to 3Q23 results, demand stabilisation and inventory restocking. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Technology – Implications of TSMC 3Q23: Cycle Nearing the Bottom

<ul><li>ASML and LAM posted in-line 3Q23 results, and a higher China sales mix is the bright spot, leading to better profitability.</li><li>Looking ahead, both believe that memory market recovery remains slow given low UTR and on-going inventory digestion, and cycle inflection visibility could be delayed to end-2023.</li><li>However, both remain positive on China demand for capacity expansion of domestic mature &amp; specialty nodes. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ASML and LAM posted in-line 3Q23 results, and a higher China sales mix is the bright spot, leading to better profitability.Looking ahead, both believe that memory market recovery remains slow given low UTR and on-going inventory digestion, and cycle inflection visibility could be delayed to end-2023.However, both remain positive on China demand for capacity expansion of domestic mature &amp; specialty nodes. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Technology – Implications of ASML/LAM Research 3Q23 Results

<ul><li>The US Department of Commerce announced a new set of restrictions on 17 Oct that strengthens 1) export controls on advanced chips with new “parameters” and expansion to 40 more countries</li><li>2) export controls of chip manufacturing equipment to 21 more countries, and 3) addition of 13 Chinese entities onto the US Entity List.</li><li>We believe new rules are largely in-line with expectations and news media on 3 Oct.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The US Department of Commerce announced a new set of restrictions on 17 Oct that strengthens 1) export controls on advanced chips with new “parameters” and expansion to 40 more countries2) export controls of chip manufacturing equipment to 21 more countries, and 3) addition of 13 Chinese entities onto the US Entity List.We believe new rules are largely in-line with expectations and news media on 3 Oct.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Implications of the US’s Updated Chip Restrictions to Global/Domestic SPE and GPU Companies

Semiconductors, Memory and SSDs Specialist, Objective Analysis

Jim Handy

Semiconductors, Memory and SSDs Specialist

Objective Analysis

Objective Analysis offers third-party independent market research and data for the semiconductor industry and investors in the semiconductor industry.

Semiconductors, Memory and SSDs

<ul>
<li>There are signs of a recovery in the chip sector</li>
<li>Memory spot prices are up, and revenues have risen for six consecutive months</li>
<li>Growth is higher than average, indicating the start of another super-cycle</li>
</ul>


There are signs of a recovery in the chip sector
Memory spot prices are up, and revenues have risen for six consecutive months
Growth is higher than average, indicating the start of another super-cycle


China

Semiconductor Manufacturing International Corporation operates as a semiconductor foundry. The Company provides integrated circuit foundry and technology services including the testing, development, design, manufacturing, packaging, and sale of integrated circuits. Semiconductor Manufacturing International offers its products and services around the world.

SMIC (Semiconductor Manufacturing International Corp) (981 HK)

SMIC (Semiconductor Manufacturing International Corp)

Price Gauge
52-week Range	0.00 - 0.00
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SMIC (Semiconductor Manufacturing International Corp) (981 HK)

GEMWeekly (27 Oct 2023): South Korea, China Macro; Hon Hai, Foxconn, Naver, SMIC

The Global Emerging Markets Weekly provides a summary of the key news and related developments impacting the largest countries and constituents of...

Wium Malan, CFA

China Technology – Implications of TSMC 3Q23: Cycle Nearing the Bottom

TSMC recorded in-line 3Q23 results and 4Q revenue guidance implies betterthan-expected FY23E outlook, driven by stabilised demand of smartphone &...

CMB International

China Technology – Implications of ASML/LAM Research 3Q23 Results

Looking ahead, both believe that memory market recovery remains slow given low UTR and on-going inventory digestion, and cycle inflection...

CMB International

Implications of the US’s Updated Chip Restrictions to Global/Domestic SPE and GPU Companies

The US Department of Commerce announced a new set of restrictions on 17 Oct that strengthens 1) export controls on advanced chips with new...

CMB International

Are Semiconductors Finally Recovering?

The chip sector is beginning to recover with rising memory prices and six consecutive months of above-average revenue growth, suggesting the onset...

Jim Handy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

GEMWeekly (27 Oct 2023): South Korea, China Macro; Hon Hai, Foxconn, Naver, SMIC

The Global Emerging Markets Weekly provides a summary of the key news and related developments impacting the largest countries and constituents of...

Wium Malan, CFA

China Technology – Implications of TSMC 3Q23: Cycle Nearing the Bottom

TSMC recorded in-line 3Q23 results and 4Q revenue guidance implies betterthan-expected FY23E outlook, driven by stabilised demand of smartphone &...

CMB International

China Technology – Implications of ASML/LAM Research 3Q23 Results

Looking ahead, both believe that memory market recovery remains slow given low UTR and on-going inventory digestion, and cycle inflection...

CMB International

Implications of the US’s Updated Chip Restrictions to Global/Domestic SPE and GPU Companies

The US Department of Commerce announced a new set of restrictions on 17 Oct that strengthens 1) export controls on advanced chips with new...

CMB International

Are Semiconductors Finally Recovering?

​The chip sector is beginning to recover with rising memory prices and six consecutive months of above-average revenue growth, suggesting the onset...

Jim Handy

The chip sector is beginning to recover with rising memory prices and six consecutive months of above-average revenue growth, suggesting the onset...