Asia and Global Semiconductor and Tech Research

Andrew Lu

Equity Bottom-Up

Taiwan Semiconductor (TSMC) / Equity Bottom-Up

<h2>Executive summary</h2><ul>
<li>
Results/guidance beat: TSMC reports 7% better 3Q16 EPS than Bloomberg consensus' and guides 7% better 4Q16 sales and 1.6-1.7ppts higher margins. Thus, Bloomberg consensus should raise its 4Q16 EPS forecast by more than 10%. 
</li>
<li>
More positive on smartphone IC demand: TSMC says better 4Q16 demand from smartphone and PC customers and looks for 5% CAGR for smartphone market in next five years, vs. our expectation of 0-5% CAGR.</li>
<li>
Slower 10nm ramp but more customers want fan out: TSMC changes…</li>
</ul>

Executive summary

Results/guidance beat: TSMC reports 7% better 3Q16 EPS than Bloomberg consensus' and guides 7% better 4Q16 sales and 1.6-1.7ppts higher margins. Thus, Bloomberg consensus should raise its 4Q16 EPS forecast by more than 10%. 


More positive on smartphone IC demand: TSMC says better 4Q16 demand from smartphone and PC customers and looks for 5% CAGR for smartphone market in next five years, vs. our expectation of 0-5% CAGR.

Slower 10nm ramp but more customers want fan out: TSMC changes…


TSMC - 1H17 Unknown After Apple Drives 2H16 Beat

Founder and CEO, Europacifica Consulting

Naomi Fink

Founder and CEO

Europacifica Consulting

Thematic (Sector/Industry)

In <a href="https://www.smartkarma.com/insights/why-overcoming-deflation-is-not-enough-part-iii-corporate-governance" target="_blank" data-smartkarma-citation="insights:6183">Why Overcoming Deflation Is Not Enough Part III: Corporate Governance</a>, we argued that corporate governance is pivotal to successful structural reform in Japan.  Noting that corporate governance is a weighty enough topic deserving of analysis in its own right, we reviewed some of the pivotal current debates on governance in <a href="https://www.smartkarma.com/insights/corporate-governance-in-japan-what-s-at-stake" target="_blank" data-smartkarma-citation="insights:6302">Corporate Governance in Japan: What’s at Stake</a>.  Now, with the goal of situating reforms to corporate governance within the context of the liability side of corporate balance sheets we take a step back for a brief examination of the structure of the Japanese financial sector.  Our review of the financial sector keeps in mind at all times the interdependence between structural reform in the financial sector and capital market reform (inclusive of corporate governance).  In order to understand the importance of capital market (and thus corporate governance) reform, it is important to understand the limited reach of reforms to the Japanese financial sector, given the complementarity of bank lending and financing via capital markets.

In Why Overcoming Deflation Is Not Enough Part III: Corporate Governance, we argued that corporate governance is pivotal to successful structural reform in Japan.  Noting that corporate governance is a weighty enough topic deserving of analysis in its own right, we reviewed some of the pivotal current debates on governance in Corporate Governance in Japan: What’s at Stake.  Now, with the goal of situating reforms to corporate governance within the context of the liability side of corporate balance sheets we take a step back for a brief examination of the structure of the Japanese financial sector.  Our review of the financial sector keeps in mind at all times the interdependence between structural reform in the financial sector and capital market reform (inclusive of corporate governance).  In order to understand the importance of capital market (and thus corporate governance) reform, it is important to understand the limited reach of reforms to the Japanese financial sector, given the complementarity of bank lending and financing via capital markets.

Structural Reform I: The Japanese Financial Sector

After our earlier report "<a href="https://www.smartkarma.com/insights/anything-really-new-at-iphone-7-and-watch-2-launch-event" target="_blank" data-smartkarma-citation="insights:5736">Anything Really New at IPhone 7 and Watch 2 Launch Event?"</a> to discuss some incremental changes on iPhone 7 and 7 Plus regarding new features like dual-camera system, 16nm FinFET +integrated fan out packaging for A10 fusion, IP67 ingress protection, doubling NAND flash, and wireless headphone, IFIXIT published an iPhone 7 Plus teardown report (<a href="https://www.ifixit.com/Teardown/iPhone+7+Plus+Teardown/67384" target="_blank">https://www.ifixit.com/Teardown/iPhone+7+Plus+Teardown/67384</a>) to go for more details to find semiconductor vendors in iPhone 7…

After our earlier report "Anything Really New at IPhone 7 and Watch 2 Launch Event?" to discuss some incremental changes on iPhone 7 and 7 Plus regarding new features like dual-camera system, 16nm FinFET +integrated fan out packaging for A10 fusion, IP67 ingress protection, doubling NAND flash, and wireless headphone, IFIXIT published an iPhone 7 Plus teardown report (https://www.ifixit.com/Teardown/iPhone+7+Plus+Teardown/67384) to go for more details to find semiconductor vendors in iPhone 7…

Equity Research Analyst, Maritime sector, Drewry Maritime Financial Research

Ankush Kathuria CFA, FRM

Equity Research Analyst, Maritime sector

Maritime Sector, Equity & Credit Research

Drewry Maritime Financial Research

With no ties to other players in the shipping, finance or banking world, we provide a uniquely impartial view of the markets and companies we cover. Our parent organization, Drewry is a leading independent provider of research services to the maritime and shipping industry, employing over 100 professionals across an international network of offices in London, Delhi, Singapore and Shanghai. Combining our market-leading resources with seasoned sector expertise DFRS offers a highly differentiated and comprehensive range of investment and financial research services to lenders and prospective investors in publicly listed maritime and shipping companies. The full service of reports, supporting resources and sector orientated webinars provides our clients with the most complete picture of the organisations under coverage as is possible. We have been charting and analysing the world’s maritime markets for more than 40 years. This unrivalled intelligence and understanding provides the foundation of our research service. Our analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.

• Credit markets: Global yields drifted lower in recent months, thanks to the low interest rate environment, ongoing stimulus imposed by the ECB as well as launch of quantitative easing by the Bank of England following Britain’s vote to exit the EU. Excessive demand for sovereign debt sent yields to negative territory and Germany’s 10-year sovereign paper to -0.2% in July. Meanwhile, corporate shipping and energy issuers offer higher yields at greater risk because of the low oil price and weak…

• Credit markets: Global yields drifted lower in recent months, thanks to the low interest rate environment, ongoing stimulus imposed by the ECB as well as launch of quantitative easing by the Bank of England following Britain’s vote to exit the EU. Excessive demand for sovereign debt sent yields to negative territory and Germany’s 10-year sovereign paper to -0.2% in July. Meanwhile, corporate shipping and energy issuers offer higher yields at greater risk because of the low oil price and weak…

DMER - Maritime Financial Insights - September 2016

Japan TMT Analyst

Pelham Smithers

Market Intel on Asian Tech with a Japan focus

Pelham Smithers Associates

Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods. 

Research is provided by the following:
Pelham Smithers: Macro, consumer electronics, telecoms & pharma
Joel Scheiman: Electronics materials / components
Julie Boote: Autos
Will Nestuk: Capital goods, machinery & transportation equipment parts
Thao Nguyen: eCommerce, internet content, marketing & advertising

Event-Driven

Given that the iPhone 7 is expected to be pretty similar to the iPhone 6s, it is not surprising that the Japanese stock market has generally shown more interest in 2017's anticipated OLED / Glass offering. However, as more and more snippets about the iPhone 7 hit the rumour mills, the Japanese stock market is beginning to think that the iPhone 7 may prove to be rather more important for Japanese companies than originally thought.Perhaps the most important story circulating is that Apple is to…

Given that the iPhone 7 is expected to be pretty similar to the iPhone 6s, it is not surprising that the Japanese stock market has generally shown more interest in 2017's anticipated OLED / Glass offering. However, as more and more snippets about the iPhone 7 hit the rumour mills, the Japanese stock market is beginning to think that the iPhone 7 may prove to be rather more important for Japanese companies than originally thought.Perhaps the most important story circulating is that Apple is to…

IPhone 7 Implications for Japanese Stocks

Japan

Toshiba Corporation manufactures and markets electrical and electronic products. The Company's products include digital products such as PCs and televisions, NAND flash memories, and system LSIs (large-scale integrated), as well as social infrastructures such as power generators, medical equipment, and home appliances.

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Toshiba Corp (6502 JP)

TSMC - 1H17 Unknown After Apple Drives 2H16 Beat

Executive summary Results/guidance beat: TSMC reports 7% better 3Q16 EPS than Bloomberg consensus' and guides 7% better 4Q16 sales and 1.6-1.7ppts...

Andrew Lu

Structural Reform I: The Japanese Financial Sector

In Why Overcoming Deflation Is Not Enough Part III: Corporate Governance, we argued that corporate governance is pivotal to successful structural...

Naomi Fink

IPhone 7 Plus Teardown, Takeaways

After our earlier report "Anything Really New at IPhone 7 and Watch 2 Launch Event?" to discuss some incremental changes on iPhone 7 and 7 Plus...

Andrew Lu

DMER - Maritime Financial Insights - September 2016

• Credit markets: Global yields drifted lower in recent months, thanks to the low interest rate environment, ongoing stimulus imposed by the ECB as...

Drewry Maritime Financial Research

IPhone 7 Implications for Japanese Stocks

Given that the iPhone 7 is expected to be pretty similar to the iPhone 6s, it is not surprising that the Japanese stock market has generally shown...

Pelham Smithers Associates

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52-week Range

Market Cap (USDm)

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