Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

Equity Bottom-Up

<ul>
<li>Latest Nanya Tech results showed weak margin rebound. Gross margin rebounded but remained below zero.</li>
<li>Nanya expects DRAM pricing improvement through 2024E; due to demand for AI related memory products reducing capacity for other DRAM products rather than improvement for Nanya's main Consumer segment.</li>
<li>Micron is reportedly increasing prices post Taiwan earthquake and this is positive, but we see Nanya's 2024E consensus margin expectations set at a high bar and the stock isn't cheap.</li>
</ul>


Latest Nanya Tech results showed weak margin rebound. Gross margin rebounded but remained below zero.
Nanya expects DRAM pricing improvement through 2024E; due to demand for AI related memory products reducing capacity for other DRAM products rather than improvement for Nanya's main Consumer segment.
Micron is reportedly increasing prices post Taiwan earthquake and this is positive, but we see Nanya's 2024E consensus margin expectations set at a high bar and the stock isn't cheap.


Nanya Technology Sees DRAM Industry Pricing Rising Through 2024E; But Is Underperforming Financially

<ul>
<li>DRAM producer Nanya Tech will report its 1Q24E results on April 10th.</li>
<li>While Micron has said it is evaluating the impact of the Taiwan earthquake on its operations and has halted price discussions with clients, Nanya could provide latest DRAM outlook color.</li>
<li>Short interest has spiked ahead of Nanya's results; We note that the company has a large revenue and margin rebound it needs to deliver on to meet 2024E consensus.</li>
</ul>


DRAM producer Nanya Tech will report its 1Q24E results on April 10th.
While Micron has said it is evaluating the impact of the Taiwan earthquake on its operations and has halted price discussions with clients, Nanya could provide latest DRAM outlook color.
Short interest has spiked ahead of Nanya's results; We note that the company has a large revenue and margin rebound it needs to deliver on to meet 2024E consensus.


Memory Monitor: Nanya's Results to Provide Latest Color on DRAM Post Earthquake; Short Int Rising

Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Independent, Fundamental Quantitative Research

Propitious Research

Fully independent, fundamental and quantitative equity research, focused on companies in the Telecommunication, Media, Technology, Internet and Healthcare sectors in the Global Emerging Markets. Idea generation focused on Quality stocks, trading below their intrinsic Value, with sound Corporate Governance.

Thematic (Sector/Industry)

<ul>
<li>The Global Emerging Markets Weekly summarizes the key news and related developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.</li>
<li>
 Macro data points:China PMI, South Korean exports, and inflation.</li>
<li>
 Companies mentioned:<a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a>, <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-manufacturing-company" target="_blank" data-smartkarma-citation="entities:11230:1" rel="noopener">Taiwan Semiconductor (TSMC) (2330 TT)</a>, <a href="https://www.smartkarma.com/entities/nio-inc-2d526675-c878-4104-840f-87fed1735e85" target="_blank" data-smartkarma-citation="entities:35652:1" rel="noopener">NIO (9866 HK)</a>, <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>
</li>
</ul>


The Global Emerging Markets Weekly summarizes the key news and related developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.

 Macro data points:China PMI, South Korean exports, and inflation.

 Companies mentioned:Xiaomi Corp (1810 HK), Taiwan Semiconductor (TSMC) (2330 TT), NIO (9866 HK), SK Hynix (000660 KS)



GEMWeekly (5 Apr 2024): China, South Korea Macro; Xiaomi, TSMC, NIO, SK Hynix

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.<ul><li><a href='#lucror-entity-1632'>Gajah Tunggal</a></li><li><a href='#lucror-entity-31'>Rakuten</a></li><li><a href='#lucror-entity-7845'>Road King Infrastructure</a></li><li><a href='#lucror-entity-16955'>SK Hynix</a></li></ul>

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.Gajah TunggalRakutenRoad King InfrastructureSK Hynix

Morning Views Asia: Gajah Tunggal, Rakuten, Road King Infrastructure, SK Hynix

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>SK Square owns a 20.07% stake in SK Hynix which is now worth 27.2 trillion won. SK Square's market cap is only 39% of SK Square's stake in SK Hynix.</li>
<li>SK Square has benefited from increased capital allocation to low P/B stocks in Korea due to the Corporate Value Up program. SK Square is trading at P/B of 0.7x. </li>
<li>Amid the tremendous demand for Nvidia's AI related chips, this has also benefited several Korean companies including SK Hynix and SK Square. </li>
</ul>


SK Square owns a 20.07% stake in SK Hynix which is now worth 27.2 trillion won. SK Square's market cap is only 39% of SK Square's stake in SK Hynix.
SK Square has benefited from increased capital allocation to low P/B stocks in Korea due to the Corporate Value Up program. SK Square is trading at P/B of 0.7x. 
Amid the tremendous demand for Nvidia's AI related chips, this has also benefited several Korean companies including SK Hynix and SK Square. 


SK Square: Higher NAV Driven by Its Holding in SK Hynix

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.

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SK Hynix (000660 KS)

Nanya Technology Sees DRAM Industry Pricing Rising Through 2024E; But Is Underperforming Financially

Nanya Tech's gross margin rebound appears to be lagging Memory peers. DRAM pricing is expected to improve through 2024E, but its mostly due to...

Vincent Fernando, CFA

Memory Monitor: Nanya's Results to Provide Latest Color on DRAM Post Earthquake; Short Int Rising

Nanya Tech to report results -- Potential insight into DRAM outlook amid Micron's earthquake impact evaluation. We note increased short interest....

Vincent Fernando, CFA

GEMWeekly (5 Apr 2024): China, South Korea Macro; Xiaomi, TSMC, NIO, SK Hynix

The Global Emerging Markets Weekly summarizes the key news and related developments impacting the largest countries and constituents of the Global...

Wium Malan, CFA

Morning Views Asia: Gajah Tunggal, Rakuten, Road King Infrastructure, SK Hynix

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

SK Square: Higher NAV Driven by Its Holding in SK Hynix

SK Square owns a 20.07% stake in SK Hynix which is now worth 27.2 trillion won. SK Square's market cap is only 39% of SK Square's stake in SK Hynix.

Douglas Kim

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Nanya Technology Sees DRAM Industry Pricing Rising Through 2024E; But Is Underperforming Financially

​Nanya Tech's gross margin rebound appears to be lagging Memory peers. DRAM pricing is expected to improve through 2024E, but its mostly due to...

Vincent Fernando, CFA

Memory Monitor: Nanya's Results to Provide Latest Color on DRAM Post Earthquake; Short Int Rising

​Nanya Tech to report results -- Potential insight into DRAM outlook amid Micron's earthquake impact evaluation. We note increased short interest....

Vincent Fernando, CFA

GEMWeekly (5 Apr 2024): China, South Korea Macro; Xiaomi, TSMC, NIO, SK Hynix

The Global Emerging Markets Weekly summarizes the key news and related developments impacting the largest countries and constituents of the Global...

Wium Malan, CFA

Morning Views Asia: Gajah Tunggal, Rakuten, Road King Infrastructure, SK Hynix

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

SK Square: Higher NAV Driven by Its Holding in SK Hynix

SK Square owns a 20.07% stake in SK Hynix which is now worth 27.2 trillion won. SK Square's market cap is only 39% of SK Square's stake in SK Hynix.

Douglas Kim

Nanya Tech's gross margin rebound appears to be lagging Memory peers. DRAM pricing is expected to improve through 2024E, but its mostly due to...

Nanya Tech to report results -- Potential insight into DRAM outlook amid Micron's earthquake impact evaluation. We note increased short interest....