In today’s briefing:
- Tokyo Electron (8035 JP): Why the Big Downward Revision?
- Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (04 Aug)
- Taiwan Dual-Listings Monitor: TSMC Spread Short Setup, ASE ADR at Historically Rare Discount
- Spindex Potential Privatisation
- TechChain Insights: Taiwan’s Battery Cell Moment? USA & EU Supply Chain Under Strategic Pressure
- Teradyne Transforms Robotics with U.S. Manufacturing Push & Operational Breakthroughs!
- PayPal Holdings: Enhancement in Branded Checkout, Payment Systems & Other Major Drivers!
- Boeing Co: Service Expansion Complexity
- Seagate Technology: Initiation of Coverage- HAMR Technology Advancement
- LRCX FY 25Q4. Record Quarter, Record Year But Beware Tariff Threats & China Exposure
Tokyo Electron (8035 JP): Why the Big Downward Revision?
- Tokyo Electron’s share price dropped 18% on Friday following the announcement of weak Q1 results and a huge downward revision to H2 FY Mar-26 guidance.
- Push-Outs and/or cancellations of orders due to the uncertainty caused by President Trump apparently caught managment by surprise. Costs also rising as management ramps up capex and R&D.
- Impact of Trump’s yet-to-be-announced tariffs on semiconductors is still unknown, but 15% base rate on Japan already a negative.
Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (04 Aug)
- Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.
- Highlight: Currently six pair trade opportunities across three markets and three sectors persist.
- Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.
Taiwan Dual-Listings Monitor: TSMC Spread Short Setup, ASE ADR at Historically Rare Discount
- TSMC: +23.9% Premium; Continued Opportunity to Short the ADR Premium
- UMC: -0.4% Discount; Wait for More Extreme Levels Before Going Long or Short
- ASE: -1.5% Discount; Historically Rare Discount Presents Opportunity to Long the ADR Spread
Spindex Potential Privatisation
- Spindex has announced that they have been approached by a third party on a possible transaction in relation to shares of the company.
- The discussions are ongoing and transaction may or may not happen
- We have published insight on 22nd April highlighting that the stock trades below 2x EV/EBDITA and has 60% of market cap
TechChain Insights: Taiwan’s Battery Cell Moment? USA & EU Supply Chain Under Strategic Pressure
- Battery cells are the new chokepoint in the global clean energy supply chain, with China still controlling 75%+ of global capacity and exporting under increasingly restrictive terms.
- Taiwan is emerging as a high-trust, high-precision hub for advanced cell manufacturing, applying its semiconductor model to batteries.
- With pouch cells gaining traction across drones, robotics, and compact mobility, Taiwan’s lab-to-fab advantage positions it as a future anchor of the U.S. and European energy ecosystems.
Teradyne Transforms Robotics with U.S. Manufacturing Push & Operational Breakthroughs!
- Teradyne, Inc. reported second-quarter results that showed a sequential and year-over-year improvement in its core business areas, led by strong demand in AI compute-related segments.
- The company posted secondquarter revenue of $652 million and non-GAAP EPS of $0.57, both above the midpoint of guidance.
- Semi Test revenue was $492 million, including $397 million from System-on-Chip (SOC) testing and $61 million from Memory.
PayPal Holdings: Enhancement in Branded Checkout, Payment Systems & Other Major Drivers!
- PayPal Holdings, Inc. delivered mixed results for the second quarter of 2025, displaying both strong growth in certain key segments as well as some challenges.
- The positive highlights from their results include continued profitability and expanding transaction volumes, driven by strategic initiatives across their platforms.
- PayPal’s transaction margin dollars increased by 8% excluding interest on customer balances, marking their sixth consecutive quarter of profitable growth, and non-GAAP earnings per share surged by 18% year-over-year.
Boeing Co: Service Expansion Complexity
- The Boeing Company reported its second-quarter 2025 financial results, showcasing a mixed bag of performance indicators, strategic progress, and notable challenges.
- During this period, Boeing generated total revenue of $22.7 billion, marking a significant increase of 35% from the previous year.
- This uptick was primarily driven by an increase in commercial airplane deliveries.
Seagate Technology: Initiation of Coverage- HAMR Technology Advancement
- Seagate Technology reported a strong performance for the fiscal fourth quarter and the entire fiscal year 2025, characterized by significant year-over-year growth in key financial metrics.
- The company’s results highlighted a 30% year-over-year increase in quarterly revenue and record gross margins, marking the ninth consecutive quarter of gross margin improvement.
- This performance was attributed to increased adoption of Seagate’s heatassisted magnetic recording (HAMR) technology and a robust demand for nearline products in global cloud markets.
LRCX FY 25Q4. Record Quarter, Record Year But Beware Tariff Threats & China Exposure
- LRCX reported FY 25Q4 revenues of $5.17 billion, + 10% QoQ, + 33% YoY and up $170 million from the guided midpoint.
- For FY 2025 as a whole, revenue amounted to $18.44 billion, up 23% YoY and their highest ever annual revenue, exceeding the previous record by roughly $1 billion.
- China revenues are climbing once again and now represent 35% of sales and are on track to go even higher in the current quarter. That’s a concern..
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
