In today’s briefing:
- TSMC (2330.TT; TSM.US): If Intel Was Split Up, What Impact Will It Have on the Foundry Industry?(II)
- Vesync (2148 HK): Proposed Privatisation at HK$5.60 Fair and Reasonable
- Taiwan Dual-Listings Monitor: TSMC Spread Decline from Near Historical Highs; ChipMOS Discount
- Sumber Alfaria Trijaya (AMRT IJ) – Primed for Profitable Growth in 2025
TSMC (2330.TT; TSM.US): If Intel Was Split Up, What Impact Will It Have on the Foundry Industry?(II)
- Intel Corp (INTC US) established “Intel Foundry Services” in 2021, but it has not shown notable performance until now.
- There is some pessimism regarding providing foundry services in the US.
- Taiwan Semiconductor (TSMC) – ADR (TSM US) should provide foundry services to Intel Corp (INTC US) and potentially other common clients as well.
Vesync (2148 HK): Proposed Privatisation at HK$5.60 Fair and Reasonable
- Vesync (2148 HK)‘s major shareholders proposed to privatise at HK$5.60, a 33.3% premium to the pre-suspension price. This is the same as we calculated using the 3-year average P/B.
- At such a price, it will sit at 7.6x PER for FY25F, a level that it only touched briefly 3 times in the last two years.
- This PER is at a 25-30% discount to the sector and justified by its smaller size and lesser diversification. All in all, the proposed price looks fair and reasonable.
Taiwan Dual-Listings Monitor: TSMC Spread Decline from Near Historical Highs; ChipMOS Discount
- TSMC: +21.1% Premium; Spread Has Fallen From Previous Short Levels, Remains Elevated
- UMC: -0.3% Discount; Middle of the Historical Trading Range, Not Compelling
- ChipMOS: -1.2% Discount; Wait for Deeper Discount Before Going Long
Sumber Alfaria Trijaya (AMRT IJ) – Primed for Profitable Growth in 2025
- Sumber Alfaria Trijaya (Alfamart) looks well set for a strong finish to the year boosted by seasonal factors and a higher quarter for supplier rebates making it the peak quarter.
- The company should be able to surpass its guidance for new store build-out in 2024, emphasising Alfamart and Alfamidi outlets, as it consolidates its Lawson rollout.
- Alfamart saw strong growth from online sales through Alfagift at +45% YoY, with Alfamart members reaching 20m, with 65% shopping every week. Valuations remain attractive with strong growth in 2025.
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