Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Equity Bottom-Up

Hon Hai Precision Industry / Equity Bottom-Up

<ul>
<li>Hon Hai's upcoming results date hasn't yet been publicly announced, but last year it was 16 March.</li>
<li>Gross margin could come in well below consensus, and net profit could be minimal for 4Q22E. Look for reiteration of its longer-term margin target from management.</li>
<li>We remain structurally bullish on Hon Hai and see it as positioned favorably relative to U.S. China semiconductor restrictions. Our TP for Hon Hai is $155, over 50% above today.</li>
</ul>


Hon Hai's upcoming results date hasn't yet been publicly announced, but last year it was 16 March.
Gross margin could come in well below consensus, and net profit could be minimal for 4Q22E. Look for reiteration of its longer-term margin target from management.
We remain structurally bullish on Hon Hai and see it as positioned favorably relative to U.S. China semiconductor restrictions. Our TP for Hon Hai is $155, over 50% above today.


Hon Hai 4Q22 Results Preview: Brace for a Weak Print, But EV Structural Driver Intact

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

<ul>
<li>New China semiconductor restrictions could be announced by the Netherlands and Japan by end-January.</li>
<li>Realtek 4Q22 results -- Signals weakness for companies serving the PC market, and could get worse in 1Q23E.</li>
<li>Western Digital &amp; Kioxia could merge NAND flash units to create a rival to Samsung.</li>
</ul>


New China semiconductor restrictions could be announced by the Netherlands and Japan by end-January.
Realtek 4Q22 results -- Signals weakness for companies serving the PC market, and could get worse in 1Q23E.
Western Digital &amp; Kioxia could merge NAND flash units to create a rival to Samsung.


Taiwan Tech Weekly: Dutch & Japan China Restrictions End-January, Realtek Results Show Pain in PCs

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (373220 KS)</a> (LGES) raised US$10.8bn in its South Korea IPO, after pricing at the top-end of the IPO price range.</li>
<li>The stock was listed on 27th Jan 22. Its one-year lockup is set to expire soon.</li>
<li>In this note, we will talk about the lock-up dynamics and updates since our last note</li>
</ul>



LG Energy Solution (373220 KS) (LGES) raised US$10.8bn in its South Korea IPO, after pricing at the top-end of the IPO price range.
The stock was listed on 27th Jan 22. Its one-year lockup is set to expire soon.
In this note, we will talk about the lock-up dynamics and updates since our last note


LG Energy IPO Lock-Up - Last of the Lockups at US$3bn

Founder, Market Thinker

Mark Tinker

Founder

Market Thinker

Mark Tinker has over 35 years experience as an investor, market strategist and economist. Having spent more than 20 years as a sell side strategist and being top rated on numerous occasions and surveys he moved to investment management in 2006 to run global equity portfolios in London and subsequently moved to Hong Kong in 2013 to help establish an Investment Management business for a top 20 international asset manager. He first started writing investment weeklies for his employers in 1989, developing a style characterised under the title Market Thinking and has been a regular commentator and presenter on CNBC, Bloomberg and other business channels, where his approach of rationalising market behaviour rather than making short term predictions on high frequency market data provides a welcome balance to his client audience.

Making Sense of the Narrative

Macroeconomics

<ul><li>We are re-introducing two regular posts, Monday Morning Musings and Friday Market Thinking to book-end the week, on the basis that regular postings are appreciated by readers, as well as providing a good discipline for ourselves.</li><li>Other posts will continue obviously. The idea of ‘Musings’ is that while none of the following might merit a full post of their own, they might perhaps add up to some interesting observations (of sorts).</li><li>This week, it is all back to ‘normal’ as Davos man hops on a Private Jet and returns to their snowy ancestral home to talk once again about climate change and world poverty for the World Economic Forum.</li></ul>

We are re-introducing two regular posts, Monday Morning Musings and Friday Market Thinking to book-end the week, on the basis that regular postings are appreciated by readers, as well as providing a good discipline for ourselves.Other posts will continue obviously. The idea of ‘Musings’ is that while none of the following might merit a full post of their own, they might perhaps add up to some interesting observations (of sorts).This week, it is all back to ‘normal’ as Davos man hops on a Private Jet and returns to their snowy ancestral home to talk once again about climate change and world poverty for the World Economic Forum.

<ul>
<li>UMC vs. TSMC results review comparison: Vastly different tones of results shows the large gap in industry performance for the most advanced chips products vs. the lesser advanced.</li>
<li>Japan gives mixed signals about rapidly joining U.S. chip restrictions vs. China.</li>
<li>TSMC and UMC were some of the most net-bought stocks in Taiwan by foreigners last week.</li>
</ul>


UMC vs. TSMC results review comparison: Vastly different tones of results shows the large gap in industry performance for the most advanced chips products vs. the lesser advanced.
Japan gives mixed signals about rapidly joining U.S. chip restrictions vs. China.
TSMC and UMC were some of the most net-bought stocks in Taiwan by foreigners last week.


Taiwan Tech Weekly: UMC Vs. TSMC Results' Vastly Different Performance, Japan Cautious on China Bans

United States

Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related accessories. The Company also offers payment, digital content, cloud and advertising services. Apple Inc.'s customers are primarily in consumer, small & mid-sized business, education, enterprise and government markets worldwide.

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Apple (AAPL US)

Hon Hai 4Q22 Results Preview: Brace for a Weak Print, But EV Structural Driver Intact

We remain structurally bullish on Hon Hai and see it as positioned favorably relative to U.S. China semiconductor restrictions. Our TP for Hon Hai...

Vincent Fernando, CFA

Taiwan Tech Weekly: Dutch & Japan China Restrictions End-January, Realtek Results Show Pain in PCs

Also- The U.S. military is preparing for Speaker of the House McCarthy to visit Taiwan; and Western Digital & Kioxia could merge NAND flash units...

Vincent Fernando, CFA

LG Energy IPO Lock-Up - Last of the Lockups at US$3bn

LG Energy Solution (373220 KS) raised US$10.8bn in its South Korea IPO, after pricing at the top-end of the IPO price range. Its one-year lockup...

Sumeet Singh

Monday Morning Musings

We are re-introducing two regular posts, Monday Morning Musings and Friday Market Thinking to book-end the week, on the basis that regular postings...

Mark Tinker

Taiwan Tech Weekly: UMC Vs. TSMC Results' Vastly Different Performance, Japan Cautious on China Bans

UMC vs. TSMC results review comparison: Vastly different tones of results shows the large gap in industry performance for the most advanced chips...

Vincent Fernando, CFA

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52-week Range

Market Cap (USDm)

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