In today’s briefing:
- STAR50/STAR100 Index Rebalance Preview: Central Huijin’s ETF Creations Skew Performance
- Key Implications of SK Inc’s Disposal of SK Siltron
- Potential Sale of a Controlling Stake in SK Siltron to Hahn & Co
- Power Integrations Powers Up with GaN Breakthroughs—Is It Time To BUY Into the Future?
- NCR Voyix: How Its Gradual Transition to a Recurring Revenue Model Is Panning Out In Terms Of Financial Impact!
- Is the Valuations Divergence Justified? Mediatek Vs TSMC
- Beijing Yunji Technology Ltd Pre-IPO Tearsheet
- TD SYNNEX: 5 Major Risks That Could Undermine Its 2025 Strategy!
- DoubleVerify Just Partnered With Meta and TikTok—Is This the Ultimate Social Media Power Play?
- TUYA: Investor Day Highlights “AI + IoT” Strategy
STAR50/STAR100 Index Rebalance Preview: Central Huijin’s ETF Creations Skew Performance
- Nearing the end of the review period, we forecast 1 change for the SSE STAR50 (STAR50 INDEX) and 4 changes for the STAR100 Index in June.
- We estimate turnover of 1.9% for the SSE STAR50 (STAR50 INDEX) and 4.5% for the STAR100 Index. The estimated round-trip trade is CNY 7.5bn (US$1.02bn).
- Large ETF inflows could have led to the recent underperformance of a long add/ short delete trade. That could reverse once markets stabilize or when the passives trade the rebalance.
Key Implications of SK Inc’s Disposal of SK Siltron
- SK Inc is selling SK Siltron to cut its 68% debt-to-equity ratio. The sale could reduce borrowings below ₩5T and lower debt ratio to 30-40%.
- Chey Tae-won’s divorce lawsuit risks his majority stake in SK Inc. Selling Siltron helps raise ₩1T for alimony without touching his SK Inc shares, potentially reducing the holding company discount.
- SK Inc-SK Square merger is unlikely soon, despite asset sales and preparation on both sides, as SK Square recently reaffirmed no current merger plans. Setting a position now seems premature.
Potential Sale of a Controlling Stake in SK Siltron to Hahn & Co
- In this insight, we discuss about SK Inc (034730 KS) which is considering on selling the controlling stake of SK Siltron.
- If SK is successful in selling 70.6% stake in SK Siltron for about 5 trillion won, it could result in more than 3 trillion won cash inflow for SK Inc.
- Our base case valuation of SK Inc is NAV of 13.9 trillion won (NAV per share of 192,217 won), representing a 61% upside from current levels.
Power Integrations Powers Up with GaN Breakthroughs—Is It Time To BUY Into the Future?
- Power Integrations, Inc., a company renowned for its high-performance electronic components focused on power conversion, reported its fourth quarter and full-year results, highlighting a mix of challenges and opportunities.
- The company’s Q4 revenue reached $105 million, marking an 18% increase year-over-year but a sequential decline of 9%.
- Despite these mixed signals, revenue for 2024 stood at $419 million, reflecting a 6% decrease from the previous year.
NCR Voyix: How Its Gradual Transition to a Recurring Revenue Model Is Panning Out In Terms Of Financial Impact!
- NCR Voyix’s latest earnings offers crucial insights into the company’s strategic position and operational performance over the fourth quarter of 2024.
- The company reported a decline in revenue, notably from its hardware division, aligning with expectations of a challenging market environment.
- The total revenue stood at $682 million, with adjusted EBITDA showing a significant increase by 75% to $114 million, aided by cost-cutting measures and a focus on recurring revenue streams.
Is the Valuations Divergence Justified? Mediatek Vs TSMC
- From mid-Feb-25 to yesterday, MTK’s stock has declined -18% versus TSM -25%. Similar enough. But Mediatek is trading at average forward PEx 16.6x whereas TSMC is cheap at 12.8x.
- Consensus forecasts more growth for TSM over 2025-27, a strong 2025 with EPS up 33%. Less growth for MTK, a slow 2025 with EPS up 9%. Why MTK more expensive?
- Higher growth but lower PEx, how much risk in TSM earnings? Low valuations could reflect a misunderstanding on the impact of US import tariffs.
Beijing Yunji Technology Ltd Pre-IPO Tearsheet
- Beijing Yunji Technology Ltd (1860671D CH) (BYTL) is planning to raise about US$100m through its upcoming Hong Kong IPO. The lead bookrunners for the deal are Citic, CBB International.
- BYTL provides hospitality robotic AI agents, using advanced robotics and AI to enhance customer experiences. Its solutions include physical-interaction robots and AI-driven digitalization systems for streamlined decision-making and operational efficiency.
- According to the F&S Report, BYTL ranked first globally in 2024 among robotic AI agent companies with multi-layer adaptable robots, leading in concurrent robot operations and total consumers served.
TD SYNNEX: 5 Major Risks That Could Undermine Its 2025 Strategy!
- TD SYNNEX Corporation’s recent financial performance and forward-looking statements offer a mixed picture for investors.
- On the positive side, the company reported strong growth across several key business segments in its First Quarter of Fiscal 2025 earnings.
- Gross billings increased by 7.5% year-over-year and by 9.5% in constant currency terms, indicating robust demand for its products and services.
DoubleVerify Just Partnered With Meta and TikTok—Is This the Ultimate Social Media Power Play?
- DoubleVerify, a company providing digital media measurement solutions, concluded 2024 with several notable achievements and a number of challenges that shape both its financial performance and future outlook.
- Overall, DoubleVerify delivered substantial growth in revenue, achieving a 15% year-over-year increase to $657 million.
- This growth was driven by significant momentum across its three main revenue streams.
TUYA: Investor Day Highlights “AI + IoT” Strategy
- Tuya hosted its Investor Day on April 2, 2025, in Hangzhou, China and provided an update on its evolving “AI + IoT” strategy and its vision for enabling large-scale AI commercialization.
- The event, attended by nearly 100 institutional and individual investors, featured key sessions including a corporate overview by the CEO and CFO, a deep dive into the AI Agent Development Platform, an introduction to Tuya’s AI system architecture, live demonstrations of AI-powered hardware, and an investor Q&A session.
- The catchphrase of the event was “With AI, smart hardware finally becomes truly smart.”
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