Smartkarma Daily Briefs, Author at Smartkarma

Nov 21

Daily Brief Australia: PEXA Group and more

By Smartkarma Daily Briefs | Australia, Daily Briefs

In today’s briefing:

Link Admin’s In-Specie Distribution of PEXA: Active Selling Followed by Passive Buying

Link Admin’s In-Specie Distribution of PEXA: Active Selling Followed by Passive Buying

By Brian Freitas

Link Administration (LNK AU) is selling 10% of its shareholding in PEXA Group (PXA) and plans to proceed with an in-specie distribution of the remainder to Link shareholders in January.
The increased float will make PEXA Group (PXA AU) the highest ranked non-index constituent and that should result in inclusion to the S&P/ASX 200 (AS51 INDEX) in March.
There could be selling on PEXA Group (PXA AU) from Link Administration (LNK AU) shareholders following the distribution. Then the passive flows will kick in and support the stock.

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Nov 21

Daily Brief South Korea: Hyundai Motor and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Lowering Tick Sizes for KOSPI & KOSDAQ Starting Next January

Lowering Tick Sizes for KOSPI & KOSDAQ Starting Next January

By Sanghyun Park

KRX will lower the tick sizes for KOSPI and KOSDAQ starting next January to reduce actual transaction costs and increase market liquidity by attracting more high-frequency traders.
KRX’s acceptance of the market’s long-standing demand at this point can be seen as primarily driven by the purpose of resolving the problem of reduced market liquidity.
We need to design a setup that takes a tighter holding period of event and flow trading in the Korean local market from next year.

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Nov 21

Daily Brief United States: S&P 500, Bitcoin and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

SPX 4,100 Top Build Ahead of 3,300
The 2022 Crypto Debt Crisis

SPX 4,100 Top Build Ahead of 3,300

By Thomas Schroeder

SPX has another tactical leg up within our Q4 bull cycle toward 4,100-200 where a top is expected to form.
Lead warning signals are emerging in the RTY relative performance and well-defined rising wedge. NDX trading new key lows is a negative for growth.
SPX 4,100 wedge sell zone stands out for a final down leg to 3,300/200, that sets the stage for a macro low a new bull cycle.

The 2022 Crypto Debt Crisis

By Etherbridge

Over the past week and a half, we witnessed the unravelling of the $32 billion empire that was FTX and the fall of its “benevolent” leader Sam Bankman-Fried, otherwise known as SBF.
This story of overleveraging and outright fraud has formed a part of the bigger crypto debt crisis of 2022.
This article will explore how this debt crisis has unfolded and how all parties were closely interlinked.

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Nov 21

Daily Brief China: Haier Smart Home Co Ltd, Semiconductor Manufacturing International Corp (SMIC), China Construction Bank H, Weimob Inc., Bilibili, Galaxy Entertainment Group, Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

Hang Seng Index Dec22 Rebal – 3 IN, None Out (The March to 80 Continues)
Hang Seng TECH Index Rebalance: Float & Capping Changes
HSCEI Dec 2022 Rebalance – 4 IN, 4 OUT, 3% One-Way Flow
Weimob (2013 HK): Strategic Patience Will Be Rewarded (Part 2)
Hang Seng Tech Rebalance Dec 2022 – No Name Changes, Decent Flow
Galaxy Entertainment Group: Its 4.5% of Wynn Shares Key if the Stock Is in Play
Zhangzhou Pientzehuang Pharmaceutical (600436.CH) – Disappointing Performance Is Just the Beginning

Hang Seng Index Dec22 Rebal – 3 IN, None Out (The March to 80 Continues)

By Travis Lundy

Hang Seng Index continues its march to 80 names, after which it will commence a march, or a slog, to 100 names in an effort to gain more comprehensive coverage
Doing so will admit names which move to Hong Kong from New York and will make way for more dynamism and lower SOE weights.
The three ADDs are Tingyi Holding (322 HK), China Resources Mixc Lifestyle Services (1209 HK), and Haier Smart Home Co Ltd (6690 HK) with a pro-forma combined weight just <1%.

Hang Seng TECH Index Rebalance: Float & Capping Changes

By Brian Freitas

As expected, there are no adds or deletes for the Hang Seng Tech Index (HSTECH INDEX) in December. However, there are plenty of capping and float changes to drive flows.
The December rebalance is expected to have a one-way turnover of 2.3% resulting in a one-way trade of HK$1.9bn.
Short interest is greater than 5% of float on a few stocks and a continued recovering in markets could lead to a squeeze higher.

HSCEI Dec 2022 Rebalance – 4 IN, 4 OUT, 3% One-Way Flow

By Travis Lundy

The HSCEI sees 4 names out, 4 names in. The ADDs are PetroChina (857 HK), Zhongsheng Group (881 HK), Li Auto (2015 HK), Haier Smart Home Co Ltd (6690 HK).
The DELETEs are Alibaba Health Information Technology (241 HK), China Gas Holdings (384 HK), Innovent Biologics Inc (1801 HK), and Bilibili (9626 HK).
One way volume is just under 4.7% with all the name changes, FAF changes, and capping flows.

Weimob (2013 HK): Strategic Patience Will Be Rewarded (Part 2)

By Eric Chen

Weimob has emerged from the pandemic stronger and leaner, further consolidating its leadership in China’s e-commerce SaaS market.
Drawing insights into the supply side (merchants/brands) on Alibaba platform, our bottom-up analysis suggests that Weimob potentially has a US$600mn revenue opportunity by 2025.
We value Weimob at US$3bn assigning 5xPS on its US$600mn revenue by 2025, implying 25% CAGR over 3-year period. Patience needed to navigate high-inflation environment which pressures growth assets.

Hang Seng Tech Rebalance Dec 2022 – No Name Changes, Decent Flow

By Travis Lundy

The Hang Seng Tech Index Review was announced on Friday after the close. There are no name changes but there is decent flow. 3% one-way turnover.
There are five capping changes and one very large share count change making things interesting.
All told, this is less impactful than it was last time, and less impactful than the other index rebalances announced.

Galaxy Entertainment Group: Its 4.5% of Wynn Shares Key if the Stock Is in Play

By Howard J Klein

In 2018, shortly after the departure of Wynn founder Steve Wynn, Galaxy bought 4.9% of his shares atUS$175. The shares have been under water. But a new player has entered.
Gaming, restaurant and sports entrepreneur Tillman Fertitta has just bought 6.1% of Wynn shares setting up a possible play on the shares, or a total takeover move.
There are three scenarios that could play bullish for Galaxy if Wynn is in play. All auger well for movement on the stock.

Zhangzhou Pientzehuang Pharmaceutical (600436.CH) – Disappointing Performance Is Just the Beginning

By Xinyao (Criss) Wang

Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. (600436 CH)’s 22Q3 performance was disappointing because its strategy of “stabilizing” performance growth by raising prices has been ineffective.
Endogenous growth problem would finally be reflected in the decline of company’s valuation. We recommend to think about long-term logic from a broader perspective,not simply tracking performance of individual companies.
Pien Tze Huang’s valuation still has a lot of downward space. When the bubble bursts or its valuation is lower than Kweichow Moutai, it’s time to go long again.

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Nov 21

Daily Brief Japan: Sapporo Holdings, Alfresa Holdings and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

Sapporo Holdings: Activist Investor, 3D Investment Partners Is Just A Few Steps From Turning Hostile
Alfresa Holdings (2784 JP): H1FY23 Review- Better-Than-Expected Performance; Outlook Is Positive

Sapporo Holdings: Activist Investor, 3D Investment Partners Is Just A Few Steps From Turning Hostile

By Oshadhi Kumarasiri

Following a couple of investor-activism campaigns against Toshiba Corp (6502 JP) and Fuji Soft Inc (9749 JP), Singapore-based Japan-focused activist investor, 3D-Investment-Partners seems to be turning its attention towards Sapporo.
Earlier this month, 3D Investment Partners requested Sapporo’s outside directors to postpone the announcement of the new Medium Term Plan until they hear out opinions and new ideas from shareholders.
We believe that there’s a chance that 3D Investment Partners could turn hostile as Sapporo Holdings (2501 JP) seems to be completely ignoring the activist investor’s requests and proposals.

Alfresa Holdings (2784 JP): H1FY23 Review- Better-Than-Expected Performance; Outlook Is Positive

By Tina Banerjee

Alfresa Holdings (2784 JP) reported better-than-expected H1FY23 results, with sales growth of 3% to ¥1,332 billion, 2% ahead of guidance of ¥1,304 billion, mainly driven by pharmaceutical wholesaling business.
With a revenue growth of 4.3% y/y, pharmaceutical wholesaling business outpaced the broad market growth of 2.7% and improved its market share to 23.3% at the end of H1FY23.
The company has announced an interim dividend of ¥28 per share. Despite reporting encouraging H1FY23 performance, Alfresa has reiterated its FY23 guidance, implying accelerated growth in H2FY23.

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Nov 21

Most Read: Zhongsheng Group, Haier Smart Home Co Ltd, Golden Agri Resources, Tata Motors Ltd, Semiconductor Manufacturing International Corp (SMIC), China Construction Bank H, Meituan, Monadelphous and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

HSI Index Rebalance: Baby Steps; Double Inclusion for Haier Smart Home
HSCEI Index Rebalance: Four Sets of Changes; And Some Close Calls
Hang Seng Index Dec22 Rebal – 3 IN, None Out (The March to 80 Continues)
FTSE All-World/All-Cap Index Rebalance: Watch Golden Agri-Resources & Delhivery
SENSEX Dec 22 Index Rebalance: Tata Motors (TTMT) To Replace Dr Reddy (DRRD)
Hang Seng TECH Index Rebalance: Float & Capping Changes
HSCEI Dec 2022 Rebalance – 4 IN, 4 OUT, 3% One-Way Flow
Index Rebalance & ETF Flow Recap: HSCI, S&P/ASX, HSI, HSCEI, KOSPI2, KOSDAQ150, Wharf, Meituan
ECM Weekly (20th Nov 2022) – I-Tail, Growatt, Lygend, SinoHytech, Meituan/Tencent, Olympus, Paytm
S&P/ASX Quiddity Final Expectations Dec 22: Mostly Mining Companies, Avoid Short Buildup!

HSI Index Rebalance: Baby Steps; Double Inclusion for Haier Smart Home

By Brian Freitas

The inclusion of Tingyi Holding (322 HK), China Resources Mixc Lifestyle Services (1209 HK) and Haier Smart Home Co Ltd (6690 HK) gets us to 76 index constituents.
Changes to the stocks, number of shares, float and capping result in an estimated one-way turnover of 2.01% and will result in a one-way trade of HK$3,845m.
Shorts on Haier Smart Home Co Ltd (6690 HK) and Tingyi Holding (322 HK) are around 5% of float and covering could take the stocks higher.

HSCEI Index Rebalance: Four Sets of Changes; And Some Close Calls

By Brian Freitas

There are 4 adds and 4 deletes for the Hang Seng China Enterprises Index (HSCEI INDEX) at the December rebalance. The only surprises are some non-adds and non-deletes.
Using prices from the close on 18 November, estimated one-way turnover is 4.64% and will result in a one-way trade of HK$2,612m at the close on 2 December.
Short interest is larger on the deletes than the adds. However, at 17 days of ADV to cover and 11.7% of float, short interest on Zhongsheng Group is huge.

Hang Seng Index Dec22 Rebal – 3 IN, None Out (The March to 80 Continues)

By Travis Lundy

Hang Seng Index continues its march to 80 names, after which it will commence a march, or a slog, to 100 names in an effort to gain more comprehensive coverage
Doing so will admit names which move to Hong Kong from New York and will make way for more dynamism and lower SOE weights.
The three ADDs are Tingyi Holding (322 HK), China Resources Mixc Lifestyle Services (1209 HK), and Haier Smart Home Co Ltd (6690 HK) with a pro-forma combined weight just <1%.

FTSE All-World/All-Cap Index Rebalance: Watch Golden Agri-Resources & Delhivery

By Brian Freitas

For Asia Pacific, there are 2 adds to the FTSE All-World Index, 2 adds to the FTSE All-Cap Index and 2 deletions from the FTSE All-World Index.
All changes are on expected lines. The one surprise is the non-inclusion of Rainbow Children’s Hospital (RAINBOW IN) to the All-Cap Index where it likely just failed investable market cap.
Sungeel Hitech (365340 KS) is also an add to the KOSDAQ 150 Index at the close on 8 December, while there is a huge lock-up expiry for Delhivery (DELHIVER IN).

SENSEX Dec 22 Index Rebalance: Tata Motors (TTMT) To Replace Dr Reddy (DRRD)

By Brian Freitas

As forecast, Tata Motors Ltd (TTMT IN) will be added to the S&P BSE SENSEX Index (SENSEX INDEX) in December to replace Dr. Reddy’s Laboratories (DRRD IN).
We estimate passive trackers will need to buy 2.3x ADV (7.2x delivery volume) on Tata Motors Ltd (TTMT) while selling 5x ADV (10.5x delivery volume) on Dr. Reddy’s Laboratories (DRRD).
The HDFC Limited (HDFC IN) / HDFC Bank (HDFCB IN) merger should see Adani Enterprises (ADE IN) added to the S&P BSE SENSEX Index (SENSEX INDEX) prior to the June rebalance.

Hang Seng TECH Index Rebalance: Float & Capping Changes

By Brian Freitas

As expected, there are no adds or deletes for the Hang Seng Tech Index (HSTECH INDEX) in December. However, there are plenty of capping and float changes to drive flows.
The December rebalance is expected to have a one-way turnover of 2.3% resulting in a one-way trade of HK$1.9bn.
Short interest is greater than 5% of float on a few stocks and a continued recovering in markets could lead to a squeeze higher.

HSCEI Dec 2022 Rebalance – 4 IN, 4 OUT, 3% One-Way Flow

By Travis Lundy

The HSCEI sees 4 names out, 4 names in. The ADDs are PetroChina (857 HK), Zhongsheng Group (881 HK), Li Auto (2015 HK), Haier Smart Home Co Ltd (6690 HK).
The DELETEs are Alibaba Health Information Technology (241 HK), China Gas Holdings (384 HK), Innovent Biologics Inc (1801 HK), and Bilibili (9626 HK).
One way volume is just under 4.7% with all the name changes, FAF changes, and capping flows.

Index Rebalance & ETF Flow Recap: HSCI, S&P/ASX, HSI, HSCEI, KOSPI2, KOSDAQ150, Wharf, Meituan

By Brian Freitas

Plenty of index change announcements in the last week – Kospi 200 Index, KOSDAQ 150 Index, Hang Seng Index, HSCEI, HSTECH, S&P BSE SENSEX Index and FTSE AW/AC Index.
There are a bunch of indices that have the end of their review periods in the coming week while announcements for China indices are expected post market close on Friday.
There were outflows from ETFs for most Asian markets over the week with China and Hong Kong ETFs taking the biggest hits.

ECM Weekly (20th Nov 2022) – I-Tail, Growatt, Lygend, SinoHytech, Meituan/Tencent, Olympus, Paytm

By Sumeet Singh

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
On the IPO front, Indian IPOs delivered some decent performance while HK IPOs are likely to pick up as well.
There were a number of placement and blocks this week, after the expiry of lockups in a few Indian names.

S&P/ASX Quiddity Final Expectations Dec 22: Mostly Mining Companies, Avoid Short Buildup!

By Janaghan Jeyakumar, CFA

In this insight, we take a look at the potential index changes for S&P ASX 200, 100, 50, and 20 in the run up to the December 2022 Rebalance.
The 6-month reference period for the December 2022 Rebalance is now complete.
I do not see any changes for ASX 20 or ASX 100. I see one ADD/DEL for ASX 50 and three ADDs/DELs for ASX 200.

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Nov 21

Daily Brief Financials: China Construction Bank H, PEXA Group, S&P 500, Bitcoin and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

HSCEI Dec 2022 Rebalance – 4 IN, 4 OUT, 3% One-Way Flow
Link Admin’s In-Specie Distribution of PEXA: Active Selling Followed by Passive Buying
SPX 4,100 Top Build Ahead of 3,300
The 2022 Crypto Debt Crisis

HSCEI Dec 2022 Rebalance – 4 IN, 4 OUT, 3% One-Way Flow

By Travis Lundy

The HSCEI sees 4 names out, 4 names in. The ADDs are PetroChina (857 HK), Zhongsheng Group (881 HK), Li Auto (2015 HK), Haier Smart Home Co Ltd (6690 HK).
The DELETEs are Alibaba Health Information Technology (241 HK), China Gas Holdings (384 HK), Innovent Biologics Inc (1801 HK), and Bilibili (9626 HK).
One way volume is just under 4.7% with all the name changes, FAF changes, and capping flows.

Link Admin’s In-Specie Distribution of PEXA: Active Selling Followed by Passive Buying

By Brian Freitas

Link Administration (LNK AU) is selling 10% of its shareholding in PEXA Group (PXA) and plans to proceed with an in-specie distribution of the remainder to Link shareholders in January.
The increased float will make PEXA Group (PXA AU) the highest ranked non-index constituent and that should result in inclusion to the S&P/ASX 200 (AS51 INDEX) in March.
There could be selling on PEXA Group (PXA AU) from Link Administration (LNK AU) shareholders following the distribution. Then the passive flows will kick in and support the stock.

SPX 4,100 Top Build Ahead of 3,300

By Thomas Schroeder

SPX has another tactical leg up within our Q4 bull cycle toward 4,100-200 where a top is expected to form.
Lead warning signals are emerging in the RTY relative performance and well-defined rising wedge. NDX trading new key lows is a negative for growth.
SPX 4,100 wedge sell zone stands out for a final down leg to 3,300/200, that sets the stage for a macro low a new bull cycle.

The 2022 Crypto Debt Crisis

By Etherbridge

Over the past week and a half, we witnessed the unravelling of the $32 billion empire that was FTX and the fall of its “benevolent” leader Sam Bankman-Fried, otherwise known as SBF.
This story of overleveraging and outright fraud has formed a part of the bigger crypto debt crisis of 2022.
This article will explore how this debt crisis has unfolded and how all parties were closely interlinked.

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Nov 21

Daily Brief Industrials: Halcyon Agri, Selamat Sempurna, Somfy SA and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Merger Arb Mondays (21 Nov) – Halcyon, Lifestyle, OZ Minerals, Perpetual/Pendal, Nearmap, Nitro
Selamat Sempurna (SMSM IJ) – Filters and Radiators Leading the Recovery
Despature Family/Somfy: Lowball Simplified Takeout, Timetable

Merger Arb Mondays (21 Nov) – Halcyon, Lifestyle, OZ Minerals, Perpetual/Pendal, Nearmap, Nitro

By Arun George

We summarise the latest spreads and newsflow of merger arb situations covered by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
Highest spreads 21Vianet Group (VNET US), Alliance Aviation Services (AQZ AU), Genex Power Ltd (GNX AU), Golden Energy & Resources (GER SP), 111 Inc (YI US), Perpetual Ltd (PPT AU).
Lowest spreads – Tyro Payments (TYR AU), Warrego Energy (WGO AU), Jinke Smart Services (9666 HK), Nitro Software Ltd (NTO AU), Uzabase Inc (3966 JP), PTB Group Ltd (PTB AU).

Selamat Sempurna (SMSM IJ) – Filters and Radiators Leading the Recovery

By Angus Mackintosh

Selamat Sempurna (SMSM IJ) remains one of the best quality Indonesian industrial companies, as the leading auto and heavy equipment filter producers for both OEM and the aftermarket.
The company booked a strong set of 9M2022 results, with sales up +21% YoY and net profit increasing +30% YoY, driven by both domestic and export markets.
Selamat Sempurna (SMSM IJ) maintains it FY2022 target for 15% sales and profits growth for FY2022, which looks conservative after the performance at 9M stage despite potential global headwinds.

Despature Family/Somfy: Lowball Simplified Takeout, Timetable

By Jesus Rodriguez Aguilar

Majority shareholders Despatures (73.9%) plan to use the abundant cash holdings of Somfy to finance a simplified cash offer at €143/share (16.8x EV/23e EBIT, 21.1x P/23e E, 20.6% premium).
In case of squeeze-out, Somfy intends to distribute afterwards an extraordinary dividend up to €620m (source: draft memo). The market believes the offer is low (gross spread is +0.98%).
I believe there are grounds for an offer sweetening (base-case valuation throws €150.98/share) and the risk-reward seems favorable considering a very motivated (and opportunistic) buyer. Long.

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Nov 21

Daily Brief Health Care: Alfresa Holdings, Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Alfresa Holdings (2784 JP): H1FY23 Review- Better-Than-Expected Performance; Outlook Is Positive
Zhangzhou Pientzehuang Pharmaceutical (600436.CH) – Disappointing Performance Is Just the Beginning

Alfresa Holdings (2784 JP): H1FY23 Review- Better-Than-Expected Performance; Outlook Is Positive

By Tina Banerjee

Alfresa Holdings (2784 JP) reported better-than-expected H1FY23 results, with sales growth of 3% to ¥1,332 billion, 2% ahead of guidance of ¥1,304 billion, mainly driven by pharmaceutical wholesaling business.
With a revenue growth of 4.3% y/y, pharmaceutical wholesaling business outpaced the broad market growth of 2.7% and improved its market share to 23.3% at the end of H1FY23.
The company has announced an interim dividend of ¥28 per share. Despite reporting encouraging H1FY23 performance, Alfresa has reiterated its FY23 guidance, implying accelerated growth in H2FY23.

Zhangzhou Pientzehuang Pharmaceutical (600436.CH) – Disappointing Performance Is Just the Beginning

By Xinyao (Criss) Wang

Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. (600436 CH)’s 22Q3 performance was disappointing because its strategy of “stabilizing” performance growth by raising prices has been ineffective.
Endogenous growth problem would finally be reflected in the decline of company’s valuation. We recommend to think about long-term logic from a broader perspective,not simply tracking performance of individual companies.
Pien Tze Huang’s valuation still has a lot of downward space. When the bubble bursts or its valuation is lower than Kweichow Moutai, it’s time to go long again.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

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Nov 21

Daily Brief TMT/Internet: Semiconductor Manufacturing International Corp (SMIC), Weimob Inc., Bilibili, Taiwan Semiconductor (TSMC) – ADR and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Hang Seng TECH Index Rebalance: Float & Capping Changes
Weimob (2013 HK): Strategic Patience Will Be Rewarded (Part 2)
Hang Seng Tech Rebalance Dec 2022 – No Name Changes, Decent Flow
Taiwan Tech Weekly: AMAT Results Buoy Market, But Nanya at Risk, Foreigners Massively Buy Taiwan

Hang Seng TECH Index Rebalance: Float & Capping Changes

By Brian Freitas

As expected, there are no adds or deletes for the Hang Seng Tech Index (HSTECH INDEX) in December. However, there are plenty of capping and float changes to drive flows.
The December rebalance is expected to have a one-way turnover of 2.3% resulting in a one-way trade of HK$1.9bn.
Short interest is greater than 5% of float on a few stocks and a continued recovering in markets could lead to a squeeze higher.

Weimob (2013 HK): Strategic Patience Will Be Rewarded (Part 2)

By Eric Chen

Weimob has emerged from the pandemic stronger and leaner, further consolidating its leadership in China’s e-commerce SaaS market.
Drawing insights into the supply side (merchants/brands) on Alibaba platform, our bottom-up analysis suggests that Weimob potentially has a US$600mn revenue opportunity by 2025.
We value Weimob at US$3bn assigning 5xPS on its US$600mn revenue by 2025, implying 25% CAGR over 3-year period. Patience needed to navigate high-inflation environment which pressures growth assets.

Hang Seng Tech Rebalance Dec 2022 – No Name Changes, Decent Flow

By Travis Lundy

The Hang Seng Tech Index Review was announced on Friday after the close. There are no name changes but there is decent flow. 3% one-way turnover.
There are five capping changes and one very large share count change making things interesting.
All told, this is less impactful than it was last time, and less impactful than the other index rebalances announced.

Taiwan Tech Weekly: AMAT Results Buoy Market, But Nanya at Risk, Foreigners Massively Buy Taiwan

By Vincent Fernando, CFA

Applied Materials (AMAT US) guidance buoyed the overall industry, but negative Memory news from AMAT and Micron make Nanya Technology (2408 TT) shares look at risk of near-term pullback.
Foreigners massively net-bought Taiwan over the last two weeks, and United Microelectronics Corp (2303 TT) has been a major recipient of capital. ADR premium still has legs.
Hon Hai Precision Industry (2317 TT) received 100,000+ new worker applications but now has trouble finding space for them! We remain structurally bullish on the company.

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