Equity Long-Short Analyst

Pyari Menon

Thematic (Sector/Industry)

<ul>
<li>The three companies we write about this week are <a href="https://www.smartkarma.com/entities/roche-holding-ltd" target="_blank" data-smartkarma-citation="entities:976:1" rel="noopener">Roche Holding Ltd (ROG VX)</a> , <a href="https://www.smartkarma.com/entities/siemens-healthineers-ag" target="_blank" data-smartkarma-citation="entities:29221:1" rel="noopener">Siemens Healthineers AG (SHL GR)</a> and <a href="https://www.smartkarma.com/entities/e-ink-holdings-inc" target="_blank" data-smartkarma-citation="entities:17793:1" rel="noopener">E Ink Holdings (8069 TT)</a> </li>
<li>For the ten weeks since inception ended 27 Jan the combined innovation portfolio was +4.0%, versus DJIA +.7%, S&amp;P500 +2.7%, Nasdaq +4.3%, Russell2000 +3.3%, MSCI-ACWI-ETF +5.1%, all in US$ terms</li>
<li>For the first time in decades IBM lost its top position in patent registrations in US. IBM’s patent count declined 44% to 4,743 patents in 2022, versus Samsung Electronics' 8,513</li>
</ul>


The three companies we write about this week are Roche Holding Ltd (ROG VX) , Siemens Healthineers AG (SHL GR) and E Ink Holdings (8069 TT) 
For the ten weeks since inception ended 27 Jan the combined innovation portfolio was +4.0%, versus DJIA +.7%, S&amp;P500 +2.7%, Nasdaq +4.3%, Russell2000 +3.3%, MSCI-ACWI-ETF +5.1%, all in US$ terms
For the first time in decades IBM lost its top position in patent registrations in US. IBM’s patent count declined 44% to 4,743 patents in 2022, versus Samsung Electronics' 8,513


External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>IDC released 4Q22 global smartphone shipment with 18% YoY decline (vs -9.3% in 3Q22), mainly due to weak consumer demand, rising inflation and China COVID-19 impact.</li><li>For 2022, global smartphone shipment fell 11% YoY to 1.21bn unit, marking the lowest annual shipment since 2013.</li><li>By brand, Apple/ Samsung/Xiaomi/Oppo/Vivo declined 15%/16%/26%/16%/19% YoY in 4Q22.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

IDC released 4Q22 global smartphone shipment with 18% YoY decline (vs -9.3% in 3Q22), mainly due to weak consumer demand, rising inflation and China COVID-19 impact.For 2022, global smartphone shipment fell 11% YoY to 1.21bn unit, marking the lowest annual shipment since 2013.By brand, Apple/ Samsung/Xiaomi/Oppo/Vivo declined 15%/16%/26%/16%/19% YoY in 4Q22.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Technology - 4Q22 Global Smartphone Shipment Down 18% YoY

Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Equity Bottom-Up

Taiwan Semiconductor (TSMC) - ADR / Equity Bottom-Up

<ul>
<li>ASML and Lam Research's latest guidance implies extremely different near-term revenue outlooks but shows an industry pulling back near-term while investing for long-term.</li>
<li>Results show the much weaker situation for Memory chips vs. Logic chips, and little discussion of a recovery for Memory from the firms so far.</li>
<li>Firms servicing long-term strategic, specialized demand from customers are indeed performing better than those servicing more commoditized demand.</li>
</ul>


ASML and Lam Research's latest guidance implies extremely different near-term revenue outlooks but shows an industry pulling back near-term while investing for long-term.
Results show the much weaker situation for Memory chips vs. Logic chips, and little discussion of a recovery for Memory from the firms so far.
Firms servicing long-term strategic, specialized demand from customers are indeed performing better than those servicing more commoditized demand.


ASML & Lam Results: Key Take-Aways for Semiconductors in 2023

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 1Q 2023.</li>
<li>Of the 33 pair trades, 2/3 of them involved holdcos outperforming opcos in the past year and 1/3 of them involved opcos outperforming holdcos in the same period.</li>
<li>We highlight 33 pair trades that involve Korean holdcos and opcos.</li>
</ul>


In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 1Q 2023.
Of the 33 pair trades, 2/3 of them involved holdcos outperforming opcos in the past year and 1/3 of them involved opcos outperforming holdcos in the same period.
We highlight 33 pair trades that involve Korean holdcos and opcos.


Korean Holdcos Vs Opcos Gap Spreads Opportunities in 1Q 2023

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

Samsung Electronics Pref Shares / Event-Driven

<ul>
<li>SamE PREF's relative underperformance compared to ORD has been getting a bit worse lately. And finally, today, it went down below -2.0σ on a 20-day moving average.</li>
<li>This much diversion is the first in recent months, and the pref discount is close to last year's peak. The dividend yield difference is also the widest in recent years.</li>
<li>The current diversion appears to be a byproduct of the SamE overbuying amid the recent market rally, and we should expect a quick reversion.</li>
</ul>


SamE PREF's relative underperformance compared to ORD has been getting a bit worse lately. And finally, today, it went down below -2.0σ on a 20-day moving average.
This much diversion is the first in recent months, and the pref discount is close to last year's peak. The dividend yield difference is also the widest in recent years.
The current diversion appears to be a byproduct of the SamE overbuying amid the recent market rally, and we should expect a quick reversion.


Samsung Electronics 1P Pushed to a Substantial Diversion (Below -2σ) Today

South Korea

Samsung Electronics Co., Ltd. manufactures a wide range of consumer and industrial electronic equipment and products such as semiconductors, personal computers, peripherals, monitors, televisions, and home appliances including air conditioners and microwave ovens. The Company also produces Internet access network systems and telecommunications equipment including mobile phones.

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Samsung Electronics (005930 KS)

The Innovations Portfolio - Week Ten

For the ten weeks since inception ended 27 Jan the combined innovation portfolio was +4.0%, versus DJIA +.7%, S&P500 +2.7%, Nasdaq +4.3%,...

Pyari Menon

China Technology - 4Q22 Global Smartphone Shipment Down 18% YoY

IDC released 4Q22 global smartphone shipment with 18% YoY decline (vs -9.3% in 3Q22), mainly due to weak consumer demand, rising inflation and...

CMB International

ASML & Lam Results: Key Take-Aways for Semiconductors in 2023

Firms servicing long-term strategic, specialized demand from customers are indeed performing better than those servicing more commoditized demand.

Vincent Fernando, CFA

Korean Holdcos Vs Opcos Gap Spreads Opportunities in 1Q 2023

In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 1Q 2023. We highlight 33 pair trades that...

Douglas Kim

Samsung Electronics 1P Pushed to a Substantial Diversion (Below -2σ) Today

This post examines the current diversion of Samsung Electronics' preferred shares relative to its ordinary shares and discusses why we should...

Sanghyun Park

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