In today’s briefing:
- FTSE TWSE 50 & 100 Dec 22 Final Expectations: Greatek Is Still the Main Talking Point
- Sumco (3436) | Bargain Basement
- China Internet Weekly (21Nov2022): NetEase, Blizzard, Tencent, Meituan, Tencent Music, JD Logistics
- Ant Group: Consumer Finance Finds Investors But Beijing Could Throw New Obstacles At Ant’s Direction
- Arteria Networks (Buy) – Q2 22 Results Reaction: Core Business Growth Intact
- Hon Hai & Yulon IPO: Media Reports of Electric Vehicle JV 1Q23 Listing, Stock Implications
FTSE TWSE 50 & 100 Dec 22 Final Expectations: Greatek Is Still the Main Talking Point
- The base date for the December 2022 index review FTSE TWSE Taiwan 50 and Taiwan Mid-Cap 100 for the December 2022 Rebalance is today (21st November 2022).
- In this insight, we take a look at Quiddity’s final predictions for expected ADDs/DELs for the December 2022 index review.
- I expect one change for the Taiwan 50 Index and one change for the Taiwan Mid-Cap 100 index.
Sumco (3436) | Bargain Basement
- Sumco is a pure play wafer maker that is geared into demand for cutting edge 300mm wafers
- Sumco is attractive given weak sentiment towards tech, attractive valuation, strong profitability and long-term earnings drivers
- With the stock down 12% YTD, we believe the stocks is undervalued and see at least 20% upside from here
China Internet Weekly (21Nov2022): NetEase, Blizzard, Tencent, Meituan, Tencent Music, JD Logistics
- The authorization contracts between Activision Blizzard and NetEase will terminate in January 2023.
- Tencent plans to distribute 91% of its Meituan share as dividend.
- JD Logistics revenue increased by 39% YoY and Net loss decreased to one tenth.
Ant Group: Consumer Finance Finds Investors But Beijing Could Throw New Obstacles At Ant’s Direction
- Earlier this year, an RMB 22.0bn fundraising was likely blocked by Beijing with the state-backed asset manager, China Cinda pulling out of the deal at the last moment.
- Several media outlets reported last week that Ant Group is pushing ahead yet again with an RMB 10.5bn fundraising effort for its Consumer Finance business.
- This fundraising could yet again face obstacles as Beijing might want Ant Financial Services Group (6688 HK) to surrender a controlling stake in the Consumer Finance business to state-backed firms.
Arteria Networks (Buy) – Q2 22 Results Reaction: Core Business Growth Intact
- Favorable industry trends like work from home and expanding mobile data usage are helping drive Arteria revenue growth
- Headline profits are down but core OP is up when one-time gains last year are stripped out and quarterly results will start to look better in H2 when fully lapped
- Management says macro concerns such as inflation and power costs are manageable and FY targets remain unchanged
Hon Hai & Yulon IPO: Media Reports of Electric Vehicle JV 1Q23 Listing, Stock Implications
- Hon Hai Precision Industry (2317 TT) and Yulon Motor Company (2201 TT) plan to IPO their electric vehicles JV Foxtron Vehicle Technologies in 1Q23E, seeking NT$10bn.
- The IPO’s valuation could be a major uplift for Yulon Motor Company (2201 TT)‘s valuation.
- Hon Hai Precision Industry (2317 TT): Successful IPO would provide markets proof that its EV platform can create value uplifts again and again in the future. Accumulate.
💡 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
