In today’s briefing:
- JIC Launches Shinko (6967) Deal At ¥5,920/Share
- Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for March
- Himax Sees Chinese Automakers Far Ahead in Adopting Touch Displays; CoPackaged Optics Key for AI/HPC
- A Real-World Take on the Market Worries Around the Samsung Life Act Proposal
- SailPoint (SAIL): Sets Course to US Indices for March and June 2025
- Weekly Update (WDC, SNDK, MRP, IAC)
- Tech Supply Chain Tracker (18-Feb-2025): Apple may assemble iPhones in Indonesia to comply with local rules.
- Genpact Limited: Will Its Advancement in Data, Tech, and AI Help Alter The Playing Field?
- EQD | Hong Kong Single Stock Options Weekly (Feb 10 – 14): Strong Option Volumes Fuel Rally
- NIFTY Poised to Reignite Its Uptrend, But Faces Short-Term Obstacles
JIC Launches Shinko (6967) Deal At ¥5,920/Share
- Today quite late, the JIC Consortium announced the launch of the Shinko Electric Industries (6967 JP) Tender Offer expected “mid-February”. Price is still ¥5,920/share.
- This is basically going to be all arbs and passive now. And arbs gonna arb.
- Congrats if you bought the lows in late November early December. Great trade. Congrats if you bought the last delay dip. Now we can all go home.
Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for March
- Post market close on Friday, Hang Seng Indexes will announce the changes for the Hang Seng Index (HSI INDEX) that will be implemented at the close on 7 March.
- With no constituent changes, one-way turnover will be 2.75% with 3 stocks being capped downward. This gives the index committee the opportunity to add more stocks without significantly increasing turnover.
- The return of the high and medium probability inclusions has matched the performance of the Hang Seng Index over the last few months, Shorts have climbed in some names.
Himax Sees Chinese Automakers Far Ahead in Adopting Touch Displays; CoPackaged Optics Key for AI/HPC
- Himax 4Q24 Results Show Auto Display Surge — Structural Growth Story Visible with Touch Panel Usage in Vehicles Soaring
- China vs. the Rest of the World: Who’s Moving Faster? China Automakers Far Ahead in Display Sophistication
- Himax on Co-Packaged Optics (CPO) — A Critical New Technology for AI and HPC Processing
A Real-World Take on the Market Worries Around the Samsung Life Act Proposal
- The Rebuilding Korea Party’s hints about this bill since Thursday are seen as a key reason Samsung Electronics’ stock has stalled, despite hype around affiliate shareholder returns.
- With polls dipping, Lee is shifting right. Given the political shifts, pushing through the controversial Samsung Life Act seems unlikely for now.
- Instead of focusing on legislative chances, we should see Samsung Electronics’ stock stall as a short-term entry opportunity ahead of the shareholder return announcement
SailPoint (SAIL): Sets Course to US Indices for March and June 2025
- Sailpoint Technologies Holdings (SAIL US) is forecasted to be excluded from the one global index because of a low free float which is below the minimum threshold.
- SAIL is forecasted to be added to the other global index at the September 2025 review. Conviction is medium as its fcap is near the threshold.
- The security is forecasted to be added to snp TMI and rasel 1000 in March and June 2025, respectively. It is estimated to have failed fast-entry for TMI.
Weekly Update (WDC, SNDK, MRP, IAC)
- Small caps generally trade between a 50% discount to the S&P 500 and a 50% premium. The current discount is 22%.
- Relative periods of outperformance tend to last for waves of at least 13 years.
- The current dominance of large caps over small caps has lasted ~13 years. This suggests the cycle could be due to change.
Tech Supply Chain Tracker (18-Feb-2025): Apple may assemble iPhones in Indonesia to comply with local rules.
- Apple may move iPhone assembly to Indonesia to comply with local content rules and sales ban, shifting focus from Vietnam to India
- India’s AI ambitions hindered by GPU shortages and high costs, while 5G market projected to grow significantly by 2025
- BYD reveals ‘God’s Eye’ smart driving system with budget-friendly aims, as Micron set to challenge Samsung in HBM3E market
Genpact Limited: Will Its Advancement in Data, Tech, and AI Help Alter The Playing Field?
- Genpact Limited reported a strong performance in the fourth quarter of 2024, with revenue reaching $1.25 billion, reflecting a 9% year-over-year increase.
- The company showcased a particularly impressive growth in their Data-Tech-AI segment, which rose by 12% year-over-year, showcasing the potential and growth of this sector within the organization.
- Additionally, Digital Operations saw a 6% year-over-year increase, indicating strong demand across their business segments.
EQD | Hong Kong Single Stock Options Weekly (Feb 10 – 14): Strong Option Volumes Fuel Rally
- Complete rally mode across single stocks and sectors with the 3 highest single stock option volumes of the past 3 months recorded.
- More than 25% of issues experience more than 100% increase in options volume.
- We highlight names with the largest increases in both Put and Call volumes including Alibaba, Alibaba Health, AIA, China telecom and Kingdee.
NIFTY Poised to Reignite Its Uptrend, But Faces Short-Term Obstacles
- It has been a 5-months journey for the NIFTY Index (NIFTY INDEX) , from its last peak in September 2024, to its current lows.
- Our WEEKLY model indicates a (mildly) OVERSOLD state (Friday at Close, 22929). If the index pulls back a bit more, it’s a BUY but keep reading…
- Our tactical short-term model has found limited upside for the NIFTY at the moment, so the long-waited restart of the uptrend may be a bit bumpy.
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