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

Macronix International / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/macronix-international" target="_blank" data-smartkarma-citation="entities:3247:1" rel="noopener">Macronix International (2337 TT)</a>'s 11pt gross margin recovery shows the NOR Flash downcycle that began in 2022 has rebounded. Good news for <a href="https://www.smartkarma.com/entities/winbond-electronics-corp" target="_blank" data-smartkarma-citation="entities:9177:1" rel="noopener">Winbond Electronics (2344 TT)</a>, <a href="https://www.smartkarma.com/entities/gigadevice-semiconductor" target="_blank" data-smartkarma-citation="entities:46238:1" rel="noopener">GigaDevice Semiconductor (3986 HK)</a>.</li>
<li>AI infrastructure demand is reshaping specialty memory, with server and networking driving NOR growth while NAND supply tightens as fabs prioritize capacity</li>
<li>Product mix transformation and capex discipline have turned free cash flow positive, signaling improved health across the specialty memory sector. After a long downturn, profitability has rebounded significantly.</li>
</ul>



Macronix International (2337 TT)'s 11pt gross margin recovery shows the NOR Flash downcycle that began in 2022 has rebounded. Good news for Winbond Electronics (2344 TT), GigaDevice Semiconductor (3986 HK).
AI infrastructure demand is reshaping specialty memory, with server and networking driving NOR growth while NAND supply tightens as fabs prioritize capacity
Product mix transformation and capex discipline have turned free cash flow positive, signaling improved health across the specialty memory sector. After a long downturn, profitability has rebounded significantly.


Macronix Shows NOR Flash Cycle Turning as AI Infrastructure Reshapes Memory Demand

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyzed the changes in foreign holdings of TWSE Stocks as of Jan 16th. The aggregated holding was USD1,560.4bn.</li>
<li>We estimate that foreign flows to be inflows of USD1,435mln. We tabulate the league tables 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 TSMC, MediaTek, Delta Electronics, Nan Ya Plastics, UMC.</li>
</ul>


We analyzed the changes in foreign holdings of TWSE Stocks as of Jan 16th. The aggregated holding was USD1,560.4bn.
We estimate that foreign flows to be inflows of USD1,435mln. We tabulate the league tables for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight changes of foreign holdings in TSMC, MediaTek, Delta Electronics, Nan Ya Plastics, UMC.


TWSE Foreign Holding Weekly (Jan 16th): TSMC, MediaTek, Delta Electronics, Nan Ya Plastics, UMC

HK/China Equity Long-Short

Osbert Tang, CFA

GigaDevice Semiconductor  / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/gigadevice-semiconductor" target="_blank" data-smartkarma-citation="entities:46238:1" rel="noopener">GigaDevice Semiconductor (3986 HK)</a>'s grey market price of HK$224.8 is 38.8% higher than the IPO price. This means a PER of 53.5x for FY26, simply too stretched for us. </li>
<li>The grey market price represents a 68-77% FY26 PER premium to the most-expensive peers, namely <a href="https://www.smartkarma.com/entities/microchip-technology-inc" target="_blank" data-smartkarma-citation="entities:8788:1" rel="noopener">Microchip Technology (MCHP US)</a> and <a href="https://www.smartkarma.com/entities/texas-instruments-inc" target="_blank" data-smartkarma-citation="entities:18804:1" rel="noopener">Texas Instruments (TXN US)</a>. </li>
<li>Our fair value range is HK$204-238, based on the HA discount for 2025 IPOs and the current overall HA discount, implying limited upside potential.</li>
</ul>



GigaDevice Semiconductor (3986 HK)'s grey market price of HK$224.8 is 38.8% higher than the IPO price. This means a PER of 53.5x for FY26, simply too stretched for us. 
The grey market price represents a 68-77% FY26 PER premium to the most-expensive peers, namely Microchip Technology (MCHP US) and Texas Instruments (TXN US). 
Our fair value range is HK$204-238, based on the HA discount for 2025 IPOs and the current overall HA discount, implying limited upside potential.


GigaDevice (3986 HK): Its Just Too Demanding

<ul>
<li>We analyzed the changes in foreign holdings of TWSE Stocks as of Jan 9th. The aggregated holding was USD1,505.7bn.</li>
<li>We estimate that foreign flows to be outflows of USD1,877mln. We tabulate the league tables 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 TSMC, Hon Hai Precision, Delta Electronics, UMC, MediaTek.</li>
</ul>


We analyzed the changes in foreign holdings of TWSE Stocks as of Jan 9th. The aggregated holding was USD1,505.7bn.
We estimate that foreign flows to be outflows of USD1,877mln. We tabulate the league tables for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight changes of foreign holdings in TSMC, Hon Hai Precision, Delta Electronics, UMC, MediaTek.


TWSE Foreign Holding Weekly (Jan 9th): TSMC, Hon Hai Precision, Delta Electronics, UMC, MediaTek

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 huge up, up and away for <a href="https://www.smartkarma.com/entities/phison-electronics-corp" target="_blank" data-smartkarma-citation="entities:18126:1" rel="noopener">Phison Electronics (8299 TT)</a> should lead to one global index inclusion in February and then another in March.</li>
<li>While there is over US$750m to buy across the indices, the recent jump in trading volume results in a small impact of 1.9 days of ADV.</li>
<li>
<a href="https://www.smartkarma.com/entities/phison-electronics-corp" target="_blank" data-smartkarma-citation="entities:18126:1" rel="noopener">Phison Electronics (8299 TT)</a> trades more expensive compared to its peers and positioning appears to have run ahead of the index inclusions.</li>
</ul>


The huge up, up and away for Phison Electronics (8299 TT) should lead to one global index inclusion in February and then another in March.
While there is over US$750m to buy across the indices, the recent jump in trading volume results in a small impact of 1.9 days of ADV.

Phison Electronics (8299 TT) trades more expensive compared to its peers and positioning appears to have run ahead of the index inclusions.


Phison Electronics (8299 TT): Double Index Inclusion <-> Huge Run Up

Taiwan

Winbond Electronics Corporation designs, manufactures, and sells integrated circuits (IC) and related products.  The Company sells its products in Taiwan, the United States, and Hong Kong.

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Winbond Electronics (2344 TT)

Macronix Shows NOR Flash Cycle Turning as AI Infrastructure Reshapes Memory Demand

Macronix's gross margin recovery signals NOR Flash downcycle rebound, benefiting Winbond Electronics and GigaDevice Semiconductor. AI...

Vincent Fernando, CFA

TWSE Foreign Holding Weekly (Jan 16th): TSMC, MediaTek, Delta Electronics, Nan Ya Plastics, UMC

We analyzed TWSE foreign holding data for the past week and highlighted foreign holding changes in TSMC, MediaTek, Delta Electronics, Nan Ya...

Ke Yan, CFA, FRM

GigaDevice (3986 HK): Its Just Too Demanding

GigaDevice's grey market price is 38.8% higher than IPO, leading to a FY26 PER of 53.5x, with limited upside potential compared to peers, even...

Osbert Tang, CFA

TWSE Foreign Holding Weekly (Jan 9th): TSMC, Hon Hai Precision, Delta Electronics, UMC, MediaTek

We analyzed TWSE foreign holding data for the past week and highlighted foreign holding changes in TSMC, Hon Hai Precision, Delta Electronics, UMC,...

Ke Yan, CFA, FRM

Phison Electronics (8299 TT): Double Index Inclusion <-> Huge Run Up

Phison could be added to one global index in Feb and another in March. The stock has run up and outperformed most peers. Valuations are now at a...

Brian Freitas

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52-week Range

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Macronix Shows NOR Flash Cycle Turning as AI Infrastructure Reshapes Memory Demand

​Macronix's gross margin recovery signals NOR Flash downcycle rebound, benefiting Winbond Electronics and GigaDevice Semiconductor. AI...

Vincent Fernando, CFA

TWSE Foreign Holding Weekly (Jan 16th): TSMC, MediaTek, Delta Electronics, Nan Ya Plastics, UMC

We analyzed TWSE foreign holding data for the past week and highlighted foreign holding changes in TSMC, MediaTek, Delta Electronics, Nan Ya...

Ke Yan, CFA, FRM

GigaDevice (3986 HK): Its Just Too Demanding

​GigaDevice's grey market price is 38.8% higher than IPO, leading to a FY26 PER of 53.5x, with limited upside potential compared to peers, even...

Osbert Tang, CFA

TWSE Foreign Holding Weekly (Jan 9th): TSMC, Hon Hai Precision, Delta Electronics, UMC, MediaTek

We analyzed TWSE foreign holding data for the past week and highlighted foreign holding changes in TSMC, Hon Hai Precision, Delta Electronics, UMC,...

Ke Yan, CFA, FRM

Phison Electronics (8299 TT): Double Index Inclusion <-> Huge Run Up

Phison could be added to one global index in Feb and another in March. The stock has run up and outperformed most peers. Valuations are now at a...

Brian Freitas

Macronix's gross margin recovery signals NOR Flash downcycle rebound, benefiting Winbond Electronics and GigaDevice Semiconductor. AI...

GigaDevice's grey market price is 38.8% higher than IPO, leading to a FY26 PER of 53.5x, with limited upside potential compared to peers, even...