In today’s briefing:
- Swiggy/Eternal: Free Float Increase & Foreign Room Decrease ‘Delivering’ BIG Passive Flows
- GDS Holdings (9698 HK): Global Index Inclusion as Shorts Build Up
- Merger Arb Mondays (28 Jul) – Shibaura, Abacus Storage, Insignia, Mayne, Santos, ENN, Smart Share
- Taiwan Dual-Listings Monitor: TSMC ADR Premium Remaining Unusually High; UMC & ASE Headroom Changes
- ECM Weekly (28 July 2025) – MMC, Pine Lags, Prestige, Veritas, Daehan, Kasumigaseki, NSDL, GNI
- Domain Holdings Australia Ltd – The Monday Report – 28 July 2025
- Intel (INTC.US): 18A May Have Been Too Rushed; Now All Hopes Rest on 14A.
- Sumco (3436): So, This Is How Slumps Die
- Intel Q225. GM Obfuscation, Red Flags & 14A Now Officially A Risk Factor
Swiggy/Eternal: Free Float Increase & Foreign Room Decrease ‘Delivering’ BIG Passive Flows
- Increased free float should result in passives buying Swiggy (SWIGGY IN) and lower foreign room should lead to passives selling Eternal (ETERNAL IN) at the end of August.
- The increased free float should also result in passive buying for Swiggy (SWIGGY IN) in September.
- Eternal has outperformed Swiggy last week following strong earnings. Swiggy announces earnings later this week and that could be a short-term catalyst for a narrowing of the spread.
GDS Holdings (9698 HK): Global Index Inclusion as Shorts Build Up
- Following a rally in the stock over the last 3 months, GDS Holdings (9698 HK) / GDS Holdings (ADR) (GDS US) could be added to a global index in August.
- Short interest in GDS Holdings (9698 HK) has been increasing. Add the short interest in GDS Holdings (ADR) (GDS US) and the number is pretty big.
- Despite the recent rally, GDS Holdings (9698 HK) trades cheaper than its closest peer and there could be opportunities to enter market neutral trades.
Merger Arb Mondays (28 Jul) – Shibaura, Abacus Storage, Insignia, Mayne, Santos, ENN, Smart Share
- I summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
- Highest spreads: Mayne Pharma (MYX AU), Yichang HEC Changjiang Pharma (1558 HK), ENN Energy (2688 HK), Pacific Industrial (7250 JP), Santos Ltd (STO AU), Smart Share Global (EM US).
- Lowest spreads: Bright Smart Securities (1428 HK), Hainan Meilan International Airport (357 HK), Humm Group (HUM AU), New World Resources (NWC AU), Nippon Concept (9386 JP).
Taiwan Dual-Listings Monitor: TSMC ADR Premium Remaining Unusually High; UMC & ASE Headroom Changes
- TSMC: +26.3% Premium; Opportunity to Go Short the ADR Premium
- UMC: -1.2% Discount; ADR Headroom Falls Yet Again by a Significant Amount
- ASE: +0.7% Premium; Opportunity to Go Long the ADR Premium — ADR Headroom Has First Change in a Long Time
ECM Weekly (28 July 2025) – MMC, Pine Lags, Prestige, Veritas, Daehan, Kasumigaseki, NSDL, GNI
- Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
- On the IPO front, we had a look at a number of deals that are in the pipeline.
- On the placements front, it was a relatively quiet week with a few primary raisings.
Domain Holdings Australia Ltd – The Monday Report – 28 July 2025
- Trade deals, central bank meetings, earnings season (US & Europe) with first local releases later in the week, as well as the all-important June quarter CPI print domestically will set the mood and tone for the ASX200 this week.
- ASX200 futures are pointing to a slightly weaker start, but the overnight, EU-US trade deal may boost sentiment.
Intel (INTC.US): 18A May Have Been Too Rushed; Now All Hopes Rest on 14A.
- On July 24, chip giant Intel announced that its latest 18A advanced process is progressing smoothly. However, the next-generation 14A process will be developed “based on confirmed customer commitments.”
- Apple (AAPL US) adopt Intel’s 14A process for its future M-series chips, while NVIDIA Corp (NVDA US) is expected to use the same process for its entry-level gaming GPUs.
- U.S. President Trump is imposing tariffs on countries around the world, which is indirectly pressuring some manufacturers to accelerate the establishment of U.S.-based production facilities.
Sumco (3436): So, This Is How Slumps Die
- Capacity utilization at Sumco’s largest customer, TSMC, jumped 10% in Q2, with another core customer, Renesas, showing consecutive improvements.
- Surging AI chip demand and geopolitical shifts favoring non-Chinese suppliers are set to boost demand for high-end silicon wafers.
- The stock trades at 0.7x book and 4.9x EV/EBITDA. These are levels we think the stock can make a meaningful upward advance from if the improvement in customer inventories broadens.
Intel Q225. GM Obfuscation, Red Flags & 14A Now Officially A Risk Factor
- Intel reported Q225 revenues of $12.9 billion, up $200 million QoQ, flat YoY but $1.1 billion above the guided midpoint. After that revenue beat, things went downhill from there.
- CEO Lip Bu Tan said he will review and approve all future company product designs prior to tape out. Sounds like a vote of no confidence in the design team.
- Intel’s 10 Q now lists the possibility of pausing or abandoning 14A as a risk factor with doomsday details about the implications for the company
💡 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
