In today’s briefing:
- Sharing Intel from IR on the Growing Market Interest in Samsung SDS’s Special Dividend
- Quiddity Leaderboard HSTECH Mar 25: US$716mn One-Way; Large Outflow for Xiaomi
- Taiwan Tech Weekly: OpenAI Developing Alternative to Nvidia with TSMC; Hon Hai Guides Strong 1Q25E
- Nifty IT Index Rebalance Preview: Oracle Financial Services Could Replace L&T Tech
- Quiddity Leaderboard HSIII Mar25: Couple of Names Have High Impact; Time for a Trade
- KOSDAQ150 Index Rebalance Preview: 10 Changes a Side; Strong Outperformance
- Hexaware Technologies IPO: Valuation Insights
- Cirrus Logic: The High-Performance Mixed Signal Expansion & Other Major Drivers
- Samsung Electronics – Positive Impact from the Potential Involvement in the Stargate Project
- Tech Supply Chain Tracker (11-Feb-2025): Can Trump’s tariffs benefit India’s tech?
Sharing Intel from IR on the Growing Market Interest in Samsung SDS’s Special Dividend
- SDS seems to wait until after Samsung Electronics and C&T announce their value-up plans. Key dates: JPM IR event on 21st and Board meeting on Feb 18.
- I think they’re leaning toward a special dividend instead of increasing the base payout, based on the tone during our chat.
- The prosecutor’s third-instance appeal likely won’t delay the value-up announcement, as it usually takes a year for a decision, and is unlikely to affect JY Lee or Samsung’s plans.
Quiddity Leaderboard HSTECH Mar 25: US$716mn One-Way; Large Outflow for Xiaomi
- The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
- The official index changes and indicative weights for the March 2025 index rebal event will be announced on Friday 21st February 2025.
- We continue to expect one change for the HSTECH index in March 2025, combined with capping flows of US$716mn.
Taiwan Tech Weekly: OpenAI Developing Alternative to Nvidia with TSMC; Hon Hai Guides Strong 1Q25E
- OpenAI Joins the AI Chip Race — Partnering with TSMC and Broadcom to Reduce Nvidia Reliance
- TSMC January Revenue Rises 35.9% — But Reduces 1Q25E Expectations Due to Quake Impact
- Hon Hai Guides for 1Q25E Growth to Be Above Average and ‘Strong’
Nifty IT Index Rebalance Preview: Oracle Financial Services Could Replace L&T Tech
- Oracle Financial Services (OFSS IN) could replace L&T Technology Services Limited (LTTS IN) in the Nifty IT Index (NSEIT INDEX) at the March rebalance.
- L&T Technology Services Limited (LTTS IN) will also be excluded from the F&O segment at the close on 27 March, so there could be some interesting dynamics at play.
- Passive trackers will need to trade between 0.5-0.6x ADV in the stock. The impact in terms of delivery volume increases to 1.6-2.2x.
Quiddity Leaderboard HSIII Mar25: Couple of Names Have High Impact; Time for a Trade
- The Hang Seng Internet & IT (HSIII) Index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
- The official index changes and indicative weights for the March 2025 index rebal event will be announced on Friday 21st February 2025.
- We expect four changes for the HSIII index in March 2025.
KOSDAQ150 Index Rebalance Preview: 10 Changes a Side; Strong Outperformance
- Just over halfway through the review period for the June rebalance of the KOSDAQ 150 Index (KOSDQ150 INDEX), there could be 10 constituent changes.
- The estimated impact on the potential inclusions ranges from 0.03-3.6 days of ADV while the impact on the potential deletions varies from 0.8-4.3 days of ADV.
- The list of forecast adds and deletes has been fairly stable over the last month. The forecast adds have run up at a blistering pace and outperformed the forecast deletes.
Hexaware Technologies IPO: Valuation Insights
- Hexaware Technologies (HEXW IN), an Indian mid-sized global IT services company, aims to raise up to US$1.0 billion.
- We previously discussed the IPO in Hexaware Technologies IPO: The Bull Case and Hexaware Technologies IPO: The Bear Case.
- Our valuation analysis suggests that the IPO price range of Rs674-708 per share is attractive. Therefore, we would participate in the IPO.
Cirrus Logic: The High-Performance Mixed Signal Expansion & Other Major Drivers
- Cirrus Logic recently reported its financial performance for the third quarter of the fiscal year 2025, revealing both opportunities and challenges.
- The company announced revenues of $555.7 million, surpassing the upper limit of its guidance range due to stronger-than-anticipated demand in the smartphone sector.
- However, this quarter represented a 10% decline in sales year-over-year, attributed largely to a decrease in smartphone volumes and adjustments in the fiscal calendar.
Samsung Electronics – Positive Impact from the Potential Involvement in the Stargate Project
- Samsung Electronics (005930 KS)’s shares were up 3.5% (55,600 won) while KOSPI was down 0.3% today. We believe there were two major reasons for this.
- First, there was a recent meeting among Lee Jae Yong (Samsung Electronics), Masayoshi Son (Softbank), and Sam Altman (Open AI) regarding a potential alliance regarding the new Stargate Project.
- Second, there has been increased speculation regarding additional total shareholder returns measures by Samsung Electronics that could be announced in the coming weeks.
Tech Supply Chain Tracker (11-Feb-2025): Can Trump’s tariffs benefit India’s tech?
- ASML CEO suggests Trump’s tariffs could give US tech industry an advantage, potentially benefiting India’s tech sector as well.
- Tongfu begins trial assembly of HBM2, signaling potential growth in India’s tech industry in response to changing tariff policies.
- India lowers tariffs in response to Trump’s tariff policy, indicating a willingness to adapt and potentially increase trade opportunities.
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