Daily Briefs

We knew this was coming. We did not know HOW it was coming. The news today has to be seen as a bit of a disappointment.
Why is it a disappointment? Toyota Industries (6201 JP) is not buying back a big chunk, and there is no offering to oblige new investors to take a look.
This is long, slow, leakage on a company which is not overwhelmingly cheap, where it requires good governance to get out well, and even then…

SciClone Pharma (6600 HK): Privatisation At IPO Price

By David Blennerhassett

After Sciclone Pharmaceuticals (6600 HK) was suspended on the 19th March pursuant to the Takeovers Code, I speculated a Scheme at the March 2021 IPO Price. And that’s what unfolded.
Li Zhenfu (SciClone’s NED), Assicurazioni Generali (G IM) and concert parties (collectively controlling 36.61%) have made an Offer at $18.80/share, a 33.9% premium to last close. Terms are final.
The long stop date is the 31 October. That’s too conservative. This could be wrapped up late July.

Lee Seo-Hyun’s Unexpected Return: Implications for Samsung’s Conglomerate Dynamics

By Sanghyun Park

Today, Lee Seo-hyun returned as the top executive at Samsung C&T, which officially announced her as the head of its Strategic Planning Division.
Her return to Samsung C&T might not just be a simple comeback – it could be seen as a setup for some big changes within the company.
Considering Samsung C&T’s Value-up Momentum, aligning with Lee Seo-hyun’s return, we must position for potential price impact, focusing on portfolio streamlining.

If Rakuten (4755) Combines Financial Units… Who Wins and How? Well… It’s Complicated

A couple of years ago, Rakuten (4755 JP) – burning through cash to start its mobile business – announced it would its Bank and Securities units. Bank listed. Securities didn’t.
Mizuho ended up buying 49% of Securities. Today, it was announced there would be discussions to put Bank, Securities, Card, and Insurance in a new listed Holdco.
How this works will end up being complicated. More complicated than it should be. But the complexity would make this more of a win-win for everyone.

Updated Tool (31Mar24) & “Diff File Generator” For TSE “Mgmt Conscious of Capital Cost/Stock Price”

In mid-January, the TSE announced a “name-and-shame” list where they listed all the companies which had put forth a disclosure about 【資本コストや株価を意識した経営の実現に向けた対応】. But they did not actually shame.
The list shows which companies have disclosed a policy/consideration. But no data/links. We have the links, and we are weeks ahead of the TSE. Working to get months ahead.
We created a tool to name everyone, show their reports, provide links, and now a new tool. Put in a name, see the difference between the Old/New Reports.

KRX Imposes a 20% Cap on Weight Ceiling in Sector ETFs with Few Constituents

By Sanghyun Park

KRX limits individual stock weight to 20% in ETFs with few constituents. KRX confirms working on it, with an official announcement expected soon.
Excludes index ETFs like KOSPI 200. KRX hasn’t finalized criteria for constituent number but expected to involve fewer than 30 stocks.
This could open new passive trading opportunities. Sector ETF cap at 30%, large AUM ones offer noteworthy trading potential.

Isetan Singapore (ISET SP): Isetan Mitsukoshi (3099 JP)’s 154% Premium Scheme Offer

Isetan Singapore (ISET SP) disclosed privatisation through a scheme of arrangement from Isetan Mitsukoshi Holdings Ltd (3099 JP) at S$7.20 per share, a 153.5% premium to the last close.
The high takeover premium reflects the fair value of investment properties of S$300.4 million, i.e., S$7.28 per share, marginally above the offer price.
The offer is attractive and 2.1% higher than the all-time high. The vote should comfortably get up. The scheme meeting is from early to mid-July.

Gap Trades in Korean Prefs Vs Common Share Pairs in 2Q 2024

In this insight, we discuss numerous gap trades involving Korean preferred and common shares in 2Q 2024.
Although the discount on the preferred shares versus the common shares has been gradually narrowing in the past decade, this discount increased from end of 2021 to 1 April 2024.
On a longer timeframe (3-4 years), we believe this discount could narrow further to the 20-25% range, which provides additional opportunities for the Korean preferred shares to further make gains.

IntelliCentrics (6819 HK): Special Dividend Vote on 18 April

The IntelliCentrics Global Holding (6819 HK) IFA considers the terms for the disposal of assets to symplr software as fair and reasonable. The EGM vote is on 18 April.
The consideration will be distributed to shareholders as a special dividend with a minimum and maximum of US$0.52 (HK$4.07) and US$0.55 (HK$4.30), respectively.
Irrevocables ensure that the EGM vote will pass. At the last close and for a 7 May payment, the gross and annualised spread of the minimum dividend is 2.8%/33.6%.

Korean Holdcos Vs Opcos Gap Trading Opportunities in 2Q 2024

In this insight, we highlight the recent pricing gap divergences of the major Korean holdcos and opcos which could provide trading opportunities in 2Q 2024.
Of the 38 pair trades, 26 of them involved holdcos outperforming opcos in the past six months, suggesting increased capital allocation to Korean holdcos relative to their opcos.
These pairs could generate trading opportunities in terms of their pricing gaps closing reversal. [CJ Corp vs CJ Cheiljedang & Hanjin KAL Corp vs Korean Air Lines].

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Apr 02

Daily Brief ESG: Solving the Issue of Increasing Trading Liquidity in Japanese Stocks Is More Than Analyst Coverage.. and more

By Smartkarma Daily Briefs | Daily Briefs, ESG

In today’s briefing:

Solving the Issue of Increasing Trading Liquidity in Japanese Stocks Is More Than Analyst Coverage..

Solving the Issue of Increasing Trading Liquidity in Japanese Stocks Is More Than Analyst Coverage..

By Aki Matsumoto

Market structure is the main factor hindering trading liquidity. In addition to the cross-holdings that remain, ETFs held by the Bank of Japan cast a shadow over trading liquidity.
Companies are key on this issue. In addition to accelerating to reducte cross-shareholdings, English-language disclosure of annual securities reports, which are in high demand by long-term investors, should be promoted.
If long-term overseas investors get serious about investing in Japanese equities, the increase in trading liquidity in Japanese equities will be sustainable, and broker coverage will naturally expand.

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Apr 02

Daily Brief Thematic (Sector/Industry): Ohayo Japan | No Hurry to Cut Rates and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Ohayo Japan | No Hurry to Cut Rates
Mining Monthly: March Edition
Weekly Sustainable Investing Surveyor – Week Ended March 28, 2024
The Highlights – Cannabis News for the Week Ending March 29, 2024

Ohayo Japan | No Hurry to Cut Rates

By Mark Chadwick

US stocks closed mixed to start the second quarter of 2024 amid rising US treasury yields
In Japan, 191 companies announced stock splits in the fiscal year, up 60% from last year, aiming to attract retail investors by lowering prices
Tokyo Electron Ltd. [8035] will provide an additional 590 billion yen ($3.89 billion) in support to chipmaker Rapidus in fiscal 2024

Mining Monthly: March Edition

By Atrium Research

Following a long period of consolidation, gold broke out in March, hitting record highs, and continuing to push higher as we enter April.
Silver and copper also had strong months up 10% and 4%, respectively.
More notably, we are finally seeing the equities outperform their underlying metal price with the GDX, SIL, and COPX up 22.7%, 21.1% and 19.4%, respectively, significantly outperforming broader markets.

Weekly Sustainable Investing Surveyor – Week Ended March 28, 2024

By Water Tower Research

The WTR Sustainable Index was up by 1.5% W/W versus the S&P 500 Index (up 0.4%), the Russell 2000 Index (up 2.5%), and the Nasdaq Index (down 0.5%).
Energy Technology (13.2% of the index) was up by 4.1%, while Industrial Climate and Ag Technology (56.8% of the index) was up by 1.3%, ClimateTech Mining was down 3.5%, and Advanced Transportation Solutions (24.0% of index) was up 1.0%.
Top 10 Performers: KULR, OUST, NKLA, CRGE, SUNW, SX, NVVE, REX, SLDP, EXRO

The Highlights – Cannabis News for the Week Ending March 29, 2024

By Water Tower Research

It was another strong week for cannabis stocks, with the US cannabis MSOS ETF gaining 4.05%.
The fund added $3.6 million in inflows last week. The global YOLO ETF climbed 6.22%, as several Canadian companies outperformed.
AYR Wellness (CSE: AYR, OTCQX: AYWRF) had the best week, rising 23.64%. CEO David Goubert will be joining us on Higher Exchanges on Thursday.

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Apr 02

Daily Brief ECM: ECM Weekly (1st Apr 2024) – Shinhan and more

By Smartkarma Daily Briefs | Daily Briefs, ECM

In today’s briefing:

ECM Weekly (1st Apr 2024) – Shinhan, GlobalWafers, Mankind, Hyundai Marine, Bharti Hexacom, ChaPanda
Ibotta IPO Valuation Analysis
Waaree Energies Pre-IPO – Riding the Anti-China US Wave

ECM Weekly (1st Apr 2024) – Shinhan, GlobalWafers, Mankind, Hyundai Marine, Bharti Hexacom, ChaPanda

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, HD Hyundai Marine Solution (443060 KS) and Bharti Hexacom were in the market trying to raise over US$500m each.
Placements flow continued unabated this week as well, India, Taiwan and South Korea seeing large blocks.

Ibotta IPO Valuation Analysis

By Andrei Zakharov

In my insight, I discuss valuation framework for comparable company analysis and outline revenue growth scenario under my base case.
Considering Ibotta achieved profitability in 2023 driven by strong growth in the segment of third-party publishers, I view EV/Revenue as the most appropriate methodology to value Ibotta.
I have a positive view of the upcoming Ibotta IPO. The company’s efficient B2B2C business model, success-based marketing approach and scale provide Ibotta with a long runway of growth.

Waaree Energies Pre-IPO – Riding the Anti-China US Wave

By Sumeet Singh

Waaree Energies is looking to raise up to US$400m in its upcoming India IPO.
Waaree Energies is a solar PV module manufacturer in India with an aggregate installed capacity of 12 GW, as of Jun 2023.
In this note, we talk about the company’s past performance.

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Apr 02

Daily Brief Equity Bottom-Up: Gap Trades in Korean Prefs Vs Common Share Pairs in 2Q 2024 and more

By Smartkarma Daily Briefs | Daily Briefs, Equity Bottom-Up

In today’s briefing:

Gap Trades in Korean Prefs Vs Common Share Pairs in 2Q 2024
China Consumption Weekly (1 Apr 2024): Tencent, Alibaba, Xiaomi, Midea
Korean Holdcos Vs Opcos Gap Trading Opportunities in 2Q 2024
Shenzhen Intl (152 HK): A Decent Rebound
Portfolio Update: March 2024
CSPC Pharmaceutical (1093 HK): Deep Value High Dividend Yield Idea; New Launches to Drive Growth
Tencent Music Entertainment Group: Initiation Of Coverage – Core Business Strategy
Polestar Automotive: Initiation Of Coverage – What Are The 3 Biggest Hindrances In Its Path For Profitable Growth? – Major Drivers
Vanguard (5347.TT): A Consensus View to Build a New 12″ Fab in Singapore.
Dongfang Electric (1072 HK): Good Profit, Record Orders

Gap Trades in Korean Prefs Vs Common Share Pairs in 2Q 2024

In this insight, we discuss numerous gap trades involving Korean preferred and common shares in 2Q 2024.
Although the discount on the preferred shares versus the common shares has been gradually narrowing in the past decade, this discount increased from end of 2021 to 1 April 2024.
On a longer timeframe (3-4 years), we believe this discount could narrow further to the 20-25% range, which provides additional opportunities for the Korean preferred shares to further make gains.

China Consumption Weekly (1 Apr 2024): Tencent, Alibaba, Xiaomi, Midea

By Ming Lu

There is a rumor in social media that Tencent will dismiss 10% – 30% of its employees.
Alibaba withdrew the IPO application of its subsidiary Cainiao and all the other IPOs were halted as well.
Xiaomi began to sell its first vehicle model SU7, but it is too late for the company to enter the market.

Korean Holdcos Vs Opcos Gap Trading Opportunities in 2Q 2024

In this insight, we highlight the recent pricing gap divergences of the major Korean holdcos and opcos which could provide trading opportunities in 2Q 2024.
Of the 38 pair trades, 26 of them involved holdcos outperforming opcos in the past six months, suggesting increased capital allocation to Korean holdcos relative to their opcos.
These pairs could generate trading opportunities in terms of their pricing gaps closing reversal. [CJ Corp vs CJ Cheiljedang & Hanjin KAL Corp vs Korean Air Lines].

Shenzhen Intl (152 HK): A Decent Rebound

By Osbert Tang, CFA

Shenzhen International (152 HK) saw its FY23 earnings reaccelerated, supported by gains from the logistics park transformation business. Earnings even surged 169.1% YoY in 2H23.
REIT issuance on two logistics assets, increase in areas of logistics projects, gains from South China Logistics Park transformation, and better Shenzhen Expressway (548 HK) will fuel FY24.
A better debt structure will save finance costs. Its 0.45x P/B, or 1.5SD below the 5-year average, is cheap given its proven ability to realise underlying asset value.

Portfolio Update: March 2024

By Contrarian Cashflows

I recently had a conversation with a close friend and fellow investor, during which he shared his current research interest in the dollar store concept.
He emphasized that this business model aligns with criteria conducive to long-term shareholder returns.
Given the scarce presence of dollar stores in Germany, primarily due to socioeconomic factors, I sought clarification on the underlying concept from him.

CSPC Pharmaceutical (1093 HK): Deep Value High Dividend Yield Idea; New Launches to Drive Growth

By Tina Banerjee

CSPC Pharmaceutical Group (1093 HK) reported steady growth in finished drugs in 2023. New products including Mingfule, Yilouda, and Anfulike achieved rapid sales ramp-up due to inclusion in the NRDL.
The company expects to launch 50 innovative drugs in the next five years, which will provide continuous momentum. The company further aims for 17 common generic launches during 2024–2025.
CSPC Pharmaceutical shares are trading at a P/E of 11.3x, lowest level seen in last five years, and cheaper than peers. Dividend yield remains attractive at 4%+.

Tencent Music Entertainment Group: Initiation Of Coverage – Core Business Strategy

By Baptista Research

Tencent Music Entertainment Group (TME) posted robust results in its fourth quarter and full year 2023 earnings call.
Increasing subscribers and expedited revenue growth were notable positives, taking the total number of subscribers to the 100 million milestone due to the company’s focus on content leadership, platform value, and offering a high-quality user experience.
Yet, the company also faced some headwinds, particularly in the social entertainment business.

Polestar Automotive: Initiation Of Coverage – What Are The 3 Biggest Hindrances In Its Path For Profitable Growth? – Major Drivers

By Baptista Research

This is our first report on Polestar.
The company saw their highest-ever delivery volume for the Q3 2023 period.
The said period witnessed record deliveries of 13,976 vehicles, representing a growth of 51% compared to the same period in the previous year.

Vanguard (5347.TT): A Consensus View to Build a New 12″ Fab in Singapore.

By Patrick Liao

The utilization rate for Vanguard in 1Q24F is at a recent low of 50-53%, indicating that the utilization rate is expected to increase from 2Q24 onwards.
Vanguard should consider building a new 12″ Fab in Singapore, aligning with our potential acquisition of Taiwan Semiconductor (TSMC) – ADR (TSM US)’s 40nm and above business.
In conclusion, the future outlook appears promising for the coming 3~4 years.

Dongfang Electric (1072 HK): Good Profit, Record Orders

By Osbert Tang, CFA

Dongfang Electric (1072 HK) reached another record year with net profit surging 24.2% in FY23. Favourable product mix has benefited gross margin which expanded 0.8pp YoY.
Record new orders of Rmb86.5bn (+31.9% YoY) have been signed and there is a recovery in momentum in 4Q23. Its end-FY23 backlog should be enough to cover 3.1x FY24F revenue.
DEC is well-positioned to capture the demand for hydrogen energy and power storage. With 19.3% 3-year earnings CAGR, its 5.1x PER and 8.2% dividend yield are attractive.

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Apr 02

Daily Brief Event-Driven: If Rakuten (4755) Combines Financial Units… Who Wins and How? Well… It’s Complicated and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

If Rakuten (4755) Combines Financial Units… Who Wins and How? Well… It’s Complicated
Isetan Singapore (ISET SP): Isetan Mitsukoshi (3099 JP)’s 154% Premium Scheme Offer
KRX Imposes a 20% Cap on Weight Ceiling in Sector ETFs with Few Constituents
IntelliCentrics (6819 HK): Special Dividend Vote on 18 April
Isetan Singapore (ISET SP): Mitsukoshi’s BIGLY Premium Offer
(Mostly) Asia M&A, Mar 2024: Chilled & Frozen, TDCX, MMA Offshore, JSR, Roland DG, SciClone

If Rakuten (4755) Combines Financial Units… Who Wins and How? Well… It’s Complicated

A couple of years ago, Rakuten (4755 JP) – burning through cash to start its mobile business – announced it would its Bank and Securities units. Bank listed. Securities didn’t.
Mizuho ended up buying 49% of Securities. Today, it was announced there would be discussions to put Bank, Securities, Card, and Insurance in a new listed Holdco.
How this works will end up being complicated. More complicated than it should be. But the complexity would make this more of a win-win for everyone.

Isetan Singapore (ISET SP): Isetan Mitsukoshi (3099 JP)’s 154% Premium Scheme Offer

Isetan Singapore (ISET SP) disclosed privatisation through a scheme of arrangement from Isetan Mitsukoshi Holdings Ltd (3099 JP) at S$7.20 per share, a 153.5% premium to the last close.
The high takeover premium reflects the fair value of investment properties of S$300.4 million, i.e., S$7.28 per share, marginally above the offer price.
The offer is attractive and 2.1% higher than the all-time high. The vote should comfortably get up. The scheme meeting is from early to mid-July.

KRX Imposes a 20% Cap on Weight Ceiling in Sector ETFs with Few Constituents

By Sanghyun Park

KRX limits individual stock weight to 20% in ETFs with few constituents. KRX confirms working on it, with an official announcement expected soon.
Excludes index ETFs like KOSPI 200. KRX hasn’t finalized criteria for constituent number but expected to involve fewer than 30 stocks.
This could open new passive trading opportunities. Sector ETF cap at 30%, large AUM ones offer noteworthy trading potential.

IntelliCentrics (6819 HK): Special Dividend Vote on 18 April

The IntelliCentrics Global Holding (6819 HK) IFA considers the terms for the disposal of assets to symplr software as fair and reasonable. The EGM vote is on 18 April.
The consideration will be distributed to shareholders as a special dividend with a minimum and maximum of US$0.52 (HK$4.07) and US$0.55 (HK$4.30), respectively.
Irrevocables ensure that the EGM vote will pass. At the last close and for a 7 May payment, the gross and annualised spread of the minimum dividend is 2.8%/33.6%.

Isetan Singapore (ISET SP): Mitsukoshi’s BIGLY Premium Offer

By David Blennerhassett

Isetan Mitsukoshi Holdings Ltd (3099 JP), the controlling shareholder of department store operator Isetan Singapore (ISET SP), is offering $7.20/share, by way of a Scheme.
That’s a whopping 153.5% premium to last close. And a 178.9% premium to ISET’s NAV (as at 31 Dec 2023).
Apart from Mitsukoshi’s 52.73% stake, no other shareholder has >5%. This is a done deal. But why the large premium?

(Mostly) Asia M&A, Mar 2024: Chilled & Frozen, TDCX, MMA Offshore, JSR, Roland DG, SciClone

By David Blennerhassett

For the month of March 2024, 8 new transactions (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$4bn.
The average premium for the new transactions announced (or first discussed) in March was ~55%. The average premium YTD is ~39%.
This compares to the average premium for transactions in 2023 (117 transactions), 2022 (106), 2021 (165), 2020 (158), and 2019 (145 ) of 39%, 41%, 33%, 31%, and 31% respectively.

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Apr 02

Daily Brief Macro: Gold’s Next Leg Up And Why It Matters and more

By Smartkarma Daily Briefs | Daily Briefs, Macro

In today’s briefing:

Gold’s Next Leg Up And Why It Matters
What the Baltimore Bride Collapse Means for Commodities
March Themes and Thematic Portfolio Review
Steno Signals #93 – Material Stealth QT Upcoming During a War Economy
The Week That Was in ASEAN@Smartkarma – Ultrajaya’s Recovery, MAPI’s Regional, and Semen Indonesia.

Gold’s Next Leg Up And Why It Matters

By David Mudd

Gold price is a reflection of underlying global stress in currency markets
Gold price is a reflection of actual not reported real rates of interest
Gold price is a reflection of global increased demand from central banks and consumers

What the Baltimore Bride Collapse Means for Commodities

By The Commodity Report

Goldman also highlights that cyclical risks from the business cycle are fading.
An upswing in the global industrial cycle typically leads to broad metals upside over the next 12 months the investment bank added.
According to data from PIERS, a trade flow analytics tool within S&P Global, Baltimore port held just 4% share of the total trade volumes on the East Coast compared with other major regional ports like New York, with a nearly 38% share according to S&P Global.

March Themes and Thematic Portfolio Review

By Rikki Malik

A monthly review at how the markets and our themes are currently performing
Analysing what went wrong and what went right in stocks and sectors
Highlighting positions added or removed from the thematic investment portfolio

Steno Signals #93 – Material Stealth QT Upcoming During a War Economy

By Andreas Steno

Happy Easter and welcome to our flagship editorial! The tide is turning on USD liquidity and the four most recent bills auctions have seen net negative issuance, which is a harbinger for the trend into April, which is typically strongly net issuance negative due to tax seasonality (see chart 1).
Only during the first lockdown in 2020, did the net amount of outstanding bills increase through this period, which makes for a solid hit ratio in predicting (much) weaker USD liquidity in Q2 this year.
We wrote on New Years eve of 2023 that “USD liquidity is likely going to increase massively in Q1 due to a series of technicalities surrounding the BTFP, ON RRP and TGA facilities, which makes us set for a material rally (or a blow off top) in Q1.”, which I guess was as precise as it could be.

The Week That Was in ASEAN@Smartkarma – Ultrajaya’s Recovery, MAPI’s Regional, and Semen Indonesia.

By Angus Mackintosh

The past week saw insights on Ultrajaya Milk (ULTJ IJ), Mitra Adiperkasa (MAPI IJ), PT Nippon Indosari Corpindo (ROTI IJ), Bukalapak.com (BUKA IJ), and Semen Indonesia (SMGR IJ).
There were also insights on Bank Mandiri (BMRI IJ), Siloam International Hospitals (SILO IJ), Kawasan Industri Jababeka (KIJA IJ), Multi Bintang Indonesia, and Far East Hospitality Trust (FEHT SP)
The Week That Was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity bottom-up, from across Southeast Asia.

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Apr 01

Daily Brief Industrials: Zhuzhou CRRC Times Electric Co., Ltd., HD Hyundai Marine Solution and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

A/H Premium Tracker (To 28 Mar 2024): Liquid AH Premia Still Very Wide
HD Hyundai Marine Solutions IPO: The Investment Case

A/H Premium Tracker (To 28 Mar 2024): Liquid AH Premia Still Very Wide

The New/Better A-H Premium Tracker has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.
SOUTHBOUND’s consecutive buying streak ended on Monday, and a new buying streak started Tuesday. NORTHBOUND net bought the dip. Last week’s (double long) choice Longyuan Power was up 5.24%.
Narrow AH premia narrowed some. Wider AH premia saw Hs outperform. There is a LOT of spread left in this market. 7 recommendations this week.

HD Hyundai Marine Solutions IPO: The Investment Case

HD Hyundai Marine Solution (443060 KS), the ship after-service subsidiary of HD Hyundai (267250 KS), aims to raise up to US$550 million.
The international book-building will run from 8 to 22 April, while the domestic book will open from 16 to 22 April. Pricing will be announced on 24 April.
The investment case rests on solid top-line growth, a healthy order book, rising margins, cash generation, and modest leverage.

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Apr 01

Daily Brief TMT/Internet: Taiwan Semiconductor (TSMC) – ADR, Mediatek Inc, TSE Tokyo Price Index TOPIX, Tencent, Asustek Computer and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Taiwan Dual-Listings Monitor: TSMC Continues Falling from Extreme Level; CHT at Unusual Discount
Mediatek: Accelerating Momentum in Automotive, Data Center, and AI Memory Solutions
Taiwan Tech Weekly: Quanta Surging on Nvidia Server Orders; Nanya Results Ahead; Intel Foundry Event
Updated Tool (31Mar24) & “Diff File Generator” For TSE “Mgmt Conscious of Capital Cost/Stock Price”
Tencent/Netease: Both Zeroed in March Game Approval
Post Nvidia GTC Industry Impact: Large Quanta Server Win Just the Beginning of an Order Wave?

Taiwan Dual-Listings Monitor: TSMC Continues Falling from Extreme Level; CHT at Unusual Discount

TSMC: +11.8% Premium — Falling Closer to Its Historical Range
ASE: +9.2% Premium; Further Breakdown Could Indicate Return to Previous Trading Range
CHT: -1.8% Discount — Good Level to Long the Spread

Mediatek: Accelerating Momentum in Automotive, Data Center, and AI Memory Solutions

Mediatek is advancing full speed with recent industry collaborations for automotive chips, data center connectivity solutions, and AI memory solutions.
In particular, the company has entered the market for Co-Packaged Optics (CPO), with partnerships announced with Foxconn and Ranovus.
While the stock has rallied and re-rated, consensus forward estimates do not appear overly demanding and could still have room to increase further.

Taiwan Tech Weekly: Quanta Surging on Nvidia Server Orders; Nanya Results Ahead; Intel Foundry Event

Quanta surged with major server wins from Meta, Alphabet, and Amazon. Nanya Tech results are two weeks ahead and Intel will host a webinar this week about its Foundry business.
Mediatek: Accelerating Momentum in Automotive, Data Center, and AI Memory Solutions
Hon Hai (Foxconn): After the 50% Surge, Where Can It Go From Here?

Updated Tool (31Mar24) & “Diff File Generator” For TSE “Mgmt Conscious of Capital Cost/Stock Price”

In mid-January, the TSE announced a “name-and-shame” list where they listed all the companies which had put forth a disclosure about 【資本コストや株価を意識した経営の実現に向けた対応】. But they did not actually shame.
The list shows which companies have disclosed a policy/consideration. But no data/links. We have the links, and we are weeks ahead of the TSE. Working to get months ahead.
We created a tool to name everyone, show their reports, provide links, and now a new tool. Put in a name, see the difference between the Old/New Reports.

Tencent/Netease: Both Zeroed in March Game Approval

By Ke Yan, CFA, FRM

China announced game approval for the Feb batch. The number of games approved remained at a higher level than 2023.
The pace of China game approval appears to have accelerated to the same level as pre-tightening.
However, neither Tencent and Netease got any approval in March.

Post Nvidia GTC Industry Impact: Large Quanta Server Win Just the Beginning of an Order Wave?

Just a week after Nvidia’s GTC conference, Quanta has reportedly secured large orders for new Nvidia Blackwell-based servers from Google, Amazon AWS, and Meta.
Other firms showcasing Nvidia servers at GTC include Wiwynn, Gigabyte, Pegatron, Asus, Hon Hai (Ingrasys), Wistron, Dell, and Super Micro. There could be a higher probability of new order wins.
Stock Focus: Asustek — Improving outlook as a play on both AI PCs and AI servers.

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Apr 01

Daily Brief Industrials: Zhuzhou CRRC Times Electric Co., Ltd., HD Hyundai Marine Solution and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

A/H Premium Tracker (To 28 Mar 2024): Liquid AH Premia Still Very Wide
HD Hyundai Marine Solutions IPO: The Investment Case

A/H Premium Tracker (To 28 Mar 2024): Liquid AH Premia Still Very Wide

The New/Better A-H Premium Tracker has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.
SOUTHBOUND’s consecutive buying streak ended on Monday, and a new buying streak started Tuesday. NORTHBOUND net bought the dip. Last week’s (double long) choice Longyuan Power was up 5.24%.
Narrow AH premia narrowed some. Wider AH premia saw Hs outperform. There is a LOT of spread left in this market. 7 recommendations this week.

HD Hyundai Marine Solutions IPO: The Investment Case