In today’s briefing:
- TSMC (2330.TT; TSM.US): Brace Yourself for the US Tariffs!
- Komeri (8218) Rare, Tariff-Proof Domestic Growth Idea at a Steep Discount
- HK-Listed Apparel & Footwear Screener: Tariff Drag On The Sector
- SK Bioscience (302440 KS): New Vaccine Trial and ITD Turnaround To Improve Long-Term Outlook
- CKI (1038 HK): It Is the Best Time
- Goldlion Holdings (533 HK) Privatization – Updates on Valuation Outlook Based on 2024 Results
- Zuiko Corp (6279 JP): Full-year FY02/25 flash update
TSMC (2330.TT; TSM.US): Brace Yourself for the US Tariffs!
- We aim at nearly 0% growth QoQ for Taiwan Semiconductor (TSMC) – ADR (TSM US)‘s revenue in 2Q25, but US tariff can be a changing factor since April, 2025.
- Taiwan Financial Supervisory Commission is announcing on April 6th, 2025 with three temporary methods to prevent a sudden slump of Taiwan stock market today.
- Taiwan Semiconductor (TSMC) – ADR (TSM US) is taking about 39.2% of Taiwan stock market value, which is the single largest stock in Taiwan.
Komeri (8218) Rare, Tariff-Proof Domestic Growth Idea at a Steep Discount
- Komeri plans to expand their addressable market by 75% and to double their current market share to 21%.
- Same store sales of the company’s Pro Stores rose an average of more than 7% in the past 8 quarters, and selling area is expanding at more than 25% annually.
- Yet Komeri trades at just 11x earnings, compared to about 16x for Topix and 18x for the median retail stock.
HK-Listed Apparel & Footwear Screener: Tariff Drag On The Sector
- Tariff introductions in Vietnam were 46%, PRC 34%, Bangladesh 37%, Indonesia 32%, etc, have rocked the textile complex, and share prices have reacted negatively.
- The companies with the maximum revenue exposure to the US market are Stella International (1836 HK), with 47%, Crystal International (2232 HK), with 38%, and Lever Style (1346 HK), with 58%.
- We anticipate that the negative sentiment will continue to hinder the sector until a reasonable negotiation occurs. In the meantime, there are no beneficiaries in this trade war.
SK Bioscience (302440 KS): New Vaccine Trial and ITD Turnaround To Improve Long-Term Outlook
- SK Bioscience (302440 KS) has initiated phase 3 trial of Sanofi-partnered pneumococcal conjugate vaccine candidate in Australia. This year, Phase 3 trial will be initiated in U.S., Korea, and EU.
- This year, SK Bioscience has initiated global Phase 1/2 trials of mRNA Japanese Encephalitis vaccine candidate in Australia and New Zealand. The company aims to secure interim results by 2026.
- ITD Biologika is targeting for a 17% revenue CAGR during 2024–2028. The company aims to achieve EBITDA margin of 25%+ by 2028 and become IPO ready.
CKI (1038 HK): It Is the Best Time
- CK Infrastructure Holdings (1038 HK)‘s share price should pick up as its portfolio of non-US infrastructure assets will become increasingly attractive.
- Its assets will benefit from re-pricing as global inflation rates trend higher. Meanwhile, it will gain from the translation of foreign earnings back to HK$.
- The secured 5.7% and 6.2% dividend yield for FY25F and FY26F makes CKI appealing, especially given a track record of 28 consecutive years of dividend hike.
Goldlion Holdings (533 HK) Privatization – Updates on Valuation Outlook Based on 2024 Results
- 2024 results is significantly below expectations. While revenue had negative growth, SG&A expenses remain high.Coupled with net fair value losses after tax on investment properties, we saw ugly net profit.
- As consumer confidence won’t improve in short term, coupled with competition/corporate strategy lag, we adjusted next three-year growth based on 2024 results. This may increase the success rate of privatization.
- Reasonable valuation of Goldlion is 9-14x P/E due to short-term headwinds.If performance picks up due to effective expansion in online channels or popular products launched, P/E may improve to 12-15x.
Zuiko Corp (6279 JP): Full-year FY02/25 flash update
- FY02/25 revenue was JPY20.0bn (-8.2% YoY), with a net loss of JPY788mn, impacted by declining sales in Japan and China.
- FY02/26 revenue is projected at JPY22.0bn (+10.3% YoY), with expected operating profit of JPY1.0bn and EPS of JPY31.0.
- ZUIKO’s medium-term plan targets FY02/28 revenue of JPY30bn+, with JPY8.0bn from new businesses, and OPM of 8.1%.
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
Unlock all research summaries