Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Quantitative Analysis

<div><p>The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.</p></div><div><p>Hong Kong saw shorts rise on <a href="https://www.smartkarma.com/entities/country-garden-services-holdings-company-limited" target="_blank" data-smartkarma-citation="entities:27343:1" rel="noopener">Country Garden Services Holdings (6098 HK)</a>, <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com (HK) (9618 HK)</a>, <a href="https://www.smartkarma.com/entities/china-mobile-ltd" target="_blank" data-smartkarma-citation="entities:27:1" rel="noopener">China Mobile (941 HK)</a> and <a href="https://www.smartkarma.com/entities/netease" target="_blank" data-smartkarma-citation="entities:29030:1" rel="noopener">NetEase (9999 HK)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/ping-an-insurance-grp-co-of-china-ltd" target="_blank" data-smartkarma-citation="entities:12880:1" rel="noopener">Ping An Insurance (H) (2318 HK)</a>, <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a>, <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a> and <a href="https://www.smartkarma.com/entities/semiconductor-manufacturing-international-corp-smic" target="_blank" data-smartkarma-citation="entities:14231:1" rel="noopener">Semiconductor Manufacturing International Corp (SMIC) (981 HK)</a>. Shorts increased on Industrials, Consumer Discretionary and Real Estate, and decreased on Financials and Information Technology names.</p></div><div><p>In Japan, stocks that saw the most shorts were <a href="https://www.smartkarma.com/entities/honda-motor-co-ltd" target="_blank" data-smartkarma-citation="entities:154:1" rel="noopener">Honda Motor (7267 JP)</a>, <a href="https://www.smartkarma.com/entities/kao-corp" target="_blank" data-smartkarma-citation="entities:12933:1" rel="noopener">Kao Corp (4452 JP)</a>, <a href="https://www.smartkarma.com/entities/central-japan-railway-co" target="_blank" data-smartkarma-citation="entities:13520:1" rel="noopener">Central Japan Railway Co (9022 JP)</a> and <a href="https://www.smartkarma.com/entities/bridgestone-corp" target="_blank" data-smartkarma-citation="entities:8914:1" rel="noopener">Bridgestone Corp (5108 JP)</a> while shorts decreased on <a href="https://www.smartkarma.com/entities/m3-inc" target="_blank" data-smartkarma-citation="entities:13316:1" rel="noopener">M3 Inc (2413 JP)</a>, <a href="https://www.smartkarma.com/entities/takeda-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:11747:1" rel="noopener">Takeda Pharmaceutical (4502 JP)</a>, <a href="https://www.smartkarma.com/entities/toto-ltd" target="_blank" data-smartkarma-citation="entities:11028:1" rel="noopener">Toto Ltd (5332 JP)</a> and <a href="https://www.smartkarma.com/entities/casio-computer-co-ltd" target="_blank" data-smartkarma-citation="entities:18338:1" rel="noopener">Casio Computer (6952 JP)</a>. Sectorally, shorts increased on Consumer Discretionary, Information Technology, Consumer Staples and Industrials, and decreased on Health Care names.</p></div><div><p>In Korea, there were large short positions put on in <a href="https://www.smartkarma.com/entities/lg-chem-ltd" target="_blank" data-smartkarma-citation="entities:3583:1" rel="noopener">LG Chem Ltd (051910 KS)</a>, <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a>, <a href="https://www.smartkarma.com/entities/celltrion-inc" target="_blank" data-smartkarma-citation="entities:991:1" rel="noopener">Celltrion Inc (068270 KS)</a> and <a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix (000660 KS)</a>.</p></div><div><p>Stocks in Taiwan that saw the highest increase in shorts were <a href="https://www.smartkarma.com/entities/largan-precision-co-ltd" target="_blank" data-smartkarma-citation="entities:9126:1" rel="noopener">Largan Precision (3008 TT)</a>, <a href="https://www.smartkarma.com/entities/unimicron-technology-corp" target="_blank" data-smartkarma-citation="entities:18778:1" rel="noopener">Unimicron Technology (3037 TT)</a>, <a href="https://www.smartkarma.com/entities/chung-hsin-electric-machinery-mfg-corp" target="_blank" data-smartkarma-citation="entities:3380:1" rel="noopener">Chung Hsin Electric &amp; Machinery Mfg (1513 TT)</a> and <a href="https://www.smartkarma.com/entities/innolux-corp" target="_blank" data-smartkarma-citation="entities:4509:1" rel="noopener">Innolux Corp (3481 TT)</a> while shorts were covered on <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-manufacturing-company" target="_blank" data-smartkarma-citation="entities:11230:1" rel="noopener">TSMC (2330 TT)</a>, <a href="https://www.smartkarma.com/entities/walsin-technology-corp" target="_blank" data-smartkarma-citation="entities:11084:1" rel="noopener">Walsin Technology (2492 TT)</a>, <a href="https://www.smartkarma.com/entities/epistar-corp" target="_blank" data-smartkarma-citation="entities:6849:1" rel="noopener">Epistar Corp (2448 TT)</a> and <a href="https://www.smartkarma.com/entities/novatek-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:10904:1" rel="noopener">Novatek Microelectronics Corp (3034 TT)</a>.   </p></div>

The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.Hong Kong saw shorts rise on Country Garden Services Holdings (6098 HK), JD.com (HK) (9618 HK), China Mobile (941 HK) and NetEase (9999 HK) while there was short covering on Ping An Insurance (H) (2318 HK), Tencent Holdings (700 HK), Xiaomi Corp (1810 HK) and Semiconductor Manufacturing International Corp (SMIC) (981 HK). Shorts increased on Industrials, Consumer Discretionary and Real Estate, and decreased on Financials and Information Technology names.In Japan, stocks that saw the most shorts were Honda Motor (7267 JP), Kao Corp (4452 JP), Central Japan Railway Co (9022 JP) and Bridgestone Corp (5108 JP) while shorts decreased on M3 Inc (2413 JP), Takeda Pharmaceutical (4502 JP), Toto Ltd (5332 JP) and Casio Computer (6952 JP). Sectorally, shorts increased on Consumer Discretionary, Information Technology, Consumer Staples and Industrials, and decreased on Health Care names.In Korea, there were large short positions put on in LG Chem Ltd (051910 KS), Samsung Electronics (005930 KS), Celltrion Inc (068270 KS) and SK Hynix (000660 KS).Stocks in Taiwan that saw the highest increase in shorts were Largan Precision (3008 TT), Unimicron Technology (3037 TT), Chung Hsin Electric &amp; Machinery Mfg (1513 TT) and Innolux Corp (3481 TT) while shorts were covered on TSMC (2330 TT), Walsin Technology (2492 TT), Epistar Corp (2448 TT) and Novatek Microelectronics Corp (3034 TT).   

Asia Short Interest: JD, NetEase, Xiaomi, SMIC, M3, Toto, LG Chem, Celltrion, Largan, TSMC

Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

Ingenuity

Our focus is exclusively on in-depth research & consulting in the broader semiconductor industry. We focus on the key players, namely Intel, Micron, Qualcomm, Apple, Samsung, NVIDIA, AMD, TSMC & Global Foundries - as well as some of the lesser known, but nonetheless critical, companies such as ASML (for EUV), Mellanox, Cavium, Xilinx etc. We specialise in their products, roadmaps, process technologies, competitive advantages & threats etc. We also help our clients understand the implications of new and emerging technologies, e.g. 3D X-Point, 3D NAND, Carbon Nanotubes, Autonomous Driving, Graphene, Silicon Photonics, Wafer-Level Optics, Artificial Intelligence, FPGA, GPU, ASIC etc. 

Semiconductor Analysis & Research

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/intel-corp" target="_blank" data-smartkarma-citation="entities:16764:1" rel="noopener">Intel'</a>s share price is currently down some 26% from its 52 week high, almost exactly where it was three years ago. Meanwhile, competitors <a href="https://www.smartkarma.com/entities/advanced-micro-devices-inc" target="_blank" data-smartkarma-citation="entities:19009:1" rel="noopener">Advanced Micro Devices</a> and <a href="https://www.smartkarma.com/entities/nvidia-corp" target="_blank" data-smartkarma-citation="entities:5891:1" rel="noopener">NVIDIA'</a>s share prices have more than doubled over the same time period. Paradoxically, demand for Intel's products has never been stronger and the company will likely deliver 5% YoY revenue growth compared to the 2% forecasted back in January. How did Intel find itself in this situation and where is the company heading from here? Here's our thoughts on the matter...</p>

Intel's share price is currently down some 26% from its 52 week high, almost exactly where it was three years ago. Meanwhile, competitors Advanced Micro Devices and NVIDIA's share prices have more than doubled over the same time period. Paradoxically, demand for Intel's products has never been stronger and the company will likely deliver 5% YoY revenue growth compared to the 2% forecasted back in January. How did Intel find itself in this situation and where is the company heading from here? Here's our thoughts on the matter...

Intel. How Did We Get Here And Where Are We Going?

President

Thomas Coughlin

Coughlin Associates

<p>Intel’s latest 144-layer 3D NAND and 2<sup>nd</sup> and 3<sup>rd</sup> generation Optane SSDs will enable high performance storage for applications ranging from PCs to data center storage.  The Optane SSDs, combined with the company’s Optane DIMMS are enabling high data throughput for Intel’s current and future generation Xeon processors and providing value to their server processor line, even with the heavy subsidies to sell Optane for less than DRAM.  As Optane volumes increase however the cost of Optane will decrease, reducing Intel’s Optane losses.  Intel’s continued NAND flash products continue to enhance the value of its NAND memory and storage business, maintaining this value before the sale of this business to SK hynix closes.</p>

Intel’s latest 144-layer 3D NAND and 2nd and 3rd generation Optane SSDs will enable high performance storage for applications ranging from PCs to data center storage.  The Optane SSDs, combined with the company’s Optane DIMMS are enabling high data throughput for Intel’s current and future generation Xeon processors and providing value to their server processor line, even with the heavy subsidies to sell Optane for less than DRAM.  As Optane volumes increase however the cost of Optane will decrease, reducing Intel’s Optane losses.  Intel’s continued NAND flash products continue to enhance the value of its NAND memory and storage business, maintaining this value before the sale of this business to SK hynix closes.

Intel’s New Optane and NAND SSDs Enhance Value Ahead of SK Hynix NAND Acquisition

Semiconductors, Memory and SSDs Specialist, Objective Analysis

Jim Handy

Semiconductors, Memory and SSDs Specialist

Objective Analysis

Objective Analysis offers third-party independent market research and data for the semiconductor industry and investors in the semiconductor industry.

Semiconductors, Memory and SSDs

Thematic (Sector/Industry)

<p>In 2020 the semiconductor market defied the odds by thriving as a result of the COVID-19 pandemic, rather than suffering from it.  2021 is lining up to do similarly well, but the risk of a global economic collapse would drag the chip market in the opposite direction.  This Insight explores both possibilities.</p>

In 2020 the semiconductor market defied the odds by thriving as a result of the COVID-19 pandemic, rather than suffering from it.  2021 is lining up to do similarly well, but the risk of a global economic collapse would drag the chip market in the opposite direction.  This Insight explores both possibilities.

2021 High Conviction: Semiconductor Growth with COVID Risk

Managing Director

Elan Gore

TMI Data Science

TMI Data Science utilizes Natural Language Processing to build custom leading indicators using unstructured data sourced from the global financial, trade & traditional media.  Our proprietary software, TMI Machine, is a text-mining platform designed with the buy-side & capital markets professional in mind, text-mining the global media to discern and quantify nuanced qualitative shifts in press coverage as they apply to macroeconomics, equity indexes/ETFs, commodities, currencies, fixed income & individual equities.  TMI provides custom leading indicators and systematic trading strategies, operating at the nexus of linguistics & statistics drawing on vast experience in investment banking and hedge fund settings in senior quantitative and fundamental roles.  

TMI Data Science was founded by Elan Gore, an award-winning Senior Global Basic Materials Equity Analyst & China Economist with 15 years of experience in North American hedge funds & institutional managers; and Alessandro Porrino, Ph.D., an Algorithmic Trading Analyst and Programmer with 10 years of front-office experience ranging from complex FX option pricing to auto-hedging strategies at Bank of America Merrill Lynch and Standard Chartered.  Mr. Gore holds an MBA in Finance from New York University Stern School of Business, and Mr. Porrino holds a Ph.D. in Systems Engineering from Brunel University London.

Cross Asset Strategy

<ul>
<li>While short-term data has been out of favour as the market envisions a post-vaccine supercycle, our text-mining detects greater relative concern on Korean in the financial media over KRW strength and COVID case counts in recent weeks</li>
<li>Japan, for example, saw similar concerns emerge on surging case counts, but news sentiment has been supported by the recent 40tr JPY stimulus package vs. limited Korean measures</li>
<li>KRW/USD's +10% move is equivalent +2x STDEVs, similar to the magnitude of CNY appreciation in the same period, vs. low single-digit moves in JPY and TWD</li>
<li>Consensus suggests foreign inflows associated with a strong KRW are likely to push the KOSPI higher even if exporter earnings (and exports) are hampered by the currency</li>
<li>While we acknowledge the macro impact of COVID resurgence is merely transitory, a key driver in our recent news attribution is the sharp decline in Korean credit card spending as reported by Shinhan for the second half of November</li>
<li>Less transitory is the KRW, and 801 Korean exporters recent polled by the Korea International Trade Association (KITA) suggested the currency is already beyond their pain threshold</li>
</ul><div class="content-highlight"><p>TMI Data Science utilizes Natural Language Processing to build custom leading indicators using unstructured data sourced from the global financial, trade &amp; traditional media. Our proprietary software text-mines the global media to discern and quantify nuanced qualitative shifts in press coverage as they apply to macroeconomics, equity indexes/ETFs, commodities, currencies, fixed income &amp; individual equities. </p></div>


While short-term data has been out of favour as the market envisions a post-vaccine supercycle, our text-mining detects greater relative concern on Korean in the financial media over KRW strength and COVID case counts in recent weeks
Japan, for example, saw similar concerns emerge on surging case counts, but news sentiment has been supported by the recent 40tr JPY stimulus package vs. limited Korean measures
KRW/USD's +10% move is equivalent +2x STDEVs, similar to the magnitude of CNY appreciation in the same period, vs. low single-digit moves in JPY and TWD
Consensus suggests foreign inflows associated with a strong KRW are likely to push the KOSPI higher even if exporter earnings (and exports) are hampered by the currency
While we acknowledge the macro impact of COVID resurgence is merely transitory, a key driver in our recent news attribution is the sharp decline in Korean credit card spending as reported by Shinhan for the second half of November
Less transitory is the KRW, and 801 Korean exporters recent polled by the Korea International Trade Association (KITA) suggested the currency is already beyond their pain threshold
TMI Data Science utilizes Natural Language Processing to build custom leading indicators using unstructured data sourced from the global financial, trade &amp; traditional media. Our proprietary software text-mines the global media to discern and quantify nuanced qualitative shifts in press coverage as they apply to macroeconomics, equity indexes/ETFs, commodities, currencies, fixed income &amp; individual equities. 

TMI Snapshot:  Text-Mining Detects Potential Pullback in Korea Sentiment on KRW Rally & COVID Surge

South Korea

SK Hynix Inc. provides products and services for the electronic components industry. The Company manufactures semiconductors, such as dynamic random access memory (DRAM), NAND flash memory, and static random access memory (SRAM) chips.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

SK Hynix (000660 KS)

Asia Short Interest: JD, NetEase, Xiaomi, SMIC, M3, Toto, LG Chem, Celltrion, Largan, TSMC

The weekly short interest report looks at large moves across HK, Japan, Korea and Taiwan names to gauge investor interest in the stock.

Brian Freitas

Intel. How Did We Get Here And Where Are We Going?

Despite unprecedented demand for their products and record revenues, Intel's share price is bouncing off its March pandemic lows, close to where it...

William Keating

Intel’s New Optane and NAND SSDs Enhance Value Ahead of SK Hynix NAND Acquisition

Intel’s latest 144-layer 3D NAND and 2nd and 3rd generation Optane SSDs will enable high performance storage for applications ranging from PCs to...

Thomas Coughlin

2021 High Conviction: Semiconductor Growth with COVID Risk

In 2021 either the chip market will grow or a COVID-driven collapse will cause it to decline. This Insight shows how to estimate either extreme,...

Jim Handy

TMI Snapshot: Text-Mining Detects Potential Pullback in Korea Sentiment on KRW Rally & COVID Surge

Our text-mining detects a potential pullback in Korea macro sentiment on rapid KRW appreciation and the COVID surge impacting credit card spending,...

Elan Gore

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)