Latest News from the World’s Leading Innovators

Granite Bay Capital

An innovation focussed investment company

Granite Bay Capital is an innovation focussed investment company with a deep focus on the companies at the leading edge of innovation across major themes such as AI, ubiquitous computing, sustainability, automation and longevity.

Thematic (Sector/Industry)

Headline Developments It’s a big edition this week, so settle in! Elon Musk’s Boring Company (private) broke ground this week, shooting Tesla (TSLA) passengers through a high-speed tunnel under Las Vegas.  The loop comprises 2.7km of tunnels, built 30 feet under the Las Vegas Convention Center.

Headline Developments It’s a big edition this week, so settle in! Elon Musk’s Boring Company (private) broke ground this week, shooting Tesla (TSLA) passengers through a high-speed tunnel under Las Vegas.  The loop comprises 2.7km of tunnels, built 30 feet under the Las Vegas Convention Center.

Value Investing

Vladimir Dimitrov, CFA

Equity Bottom-Up

Advanced Micro Devices / Equity Bottom-Up

<ul>
<li>AMD continued to deliver astonishing top-line growth numbers over the past year, reaching more than 90% in the last quarter.</li>
<li>Contrary to the outstanding operational performance, share price underperformed the market on a risk-adjusted basis.</li>
<li>High-growth expectations already built into the price are largely to blame, while the cyclical nature of the industry should also be considered.</li>
</ul>


AMD continued to deliver astonishing top-line growth numbers over the past year, reaching more than 90% in the last quarter.
Contrary to the outstanding operational performance, share price underperformed the market on a risk-adjusted basis.
High-growth expectations already built into the price are largely to blame, while the cyclical nature of the industry should also be considered.


Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

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.

<ul>
<li>Customer service refuses to return repaired graphics card to customers.</li>
<li>The graphics card prices has been rising significantly.</li>
<li>Customers believe customer service sold the repaired cards.</li>
</ul>
Our previous coverage on JD.com:
<a href="https://www.smartkarma.com/insights/jd-com-jd-main-business-accelerated-in-4q20" target="_blank" data-smartkarma-citation="insights:49083" rel="noopener">JD.com (JD): Main Business Accelerated in 4Q20</a>
<a href="https://www.smartkarma.com/insights/jd-com-jd-found-more-exclusive-advantages-but-need-more-reasonable-price" target="_blank" data-smartkarma-citation="insights:48677" rel="noopener">JD.com (JD): Found More Exclusive Advantages, But Need More Reasonable Price</a>


Customer service refuses to return repaired graphics card to customers.
The graphics card prices has been rising significantly.
Customers believe customer service sold the repaired cards.

Our previous coverage on JD.com:
JD.com (JD): Main Business Accelerated in 4Q20
JD.com (JD): Found More Exclusive Advantages, But Need More Reasonable Price

JD.com (JD): Customer Service Facing Short Squeeze Due to Bitcoin Surge

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

While March semiconductor revenues reached record levels, a price downturn appears to have begun.  This downturn seems likely to have a short duration before the market resumes its good growth for the rest of the year.

While March semiconductor revenues reached record levels, a price downturn appears to have begun.  This downturn seems likely to have a short duration before the market resumes its good growth for the rest of the year.

Insight Provider, CrossASEAN Research

Nicolas Van Broekhoven

Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

<a href="https://www.smartkarma.com/entities/pc-partner-group-ltd" target="_blank" data-smartkarma-citation="entities:8492:1" rel="noopener">PC Partner (1263 HK)</a> reported solid 2020 results but last week's earnings call provided a mixed outlook. On the one hand, there is great demand for GPU's and this is likely to continue into 2H21. On the other hand, the companies' two main suppliers <a href="https://www.smartkarma.com/entities/advanced-micro-devices-inc" target="_blank" data-smartkarma-citation="entities:19009:1" rel="noopener">Advanced Micro Devices (AMD US)</a> and <a href="https://www.smartkarma.com/entities/nvidia-corp" target="_blank" data-smartkarma-citation="entities:5891:1" rel="noopener">NVIDIA Corp (NVDA US)</a> can not deliver GPUs fast enough. On the positive side, this is leading to increased ASP (+15%) but on the negative side, volumes are dropping (-20/-30%) while costs (labor, logistics, memory) are rising.Clearly, this is an industry-wide issue and not Pc Partner specific but it does mean that 1H21 will still be stronger than 1H20 but weaker vs 2H20. Fortunately, Pc Partner remains cheap and it will pay a 0.22 HKD dividend (6.4% dividend yield) by mid-July. Investors can also look forward to an interim dividend in August. The downside in the stock is limited but the upside is capped until supply issues at Nvidia and AMD are resolved. We lower our Fair Value estimate to 4 HKD (based on 6x 0.67 HKD FY21 EPS vs 0.75 HKD prior estimate), which leaves another 17% upside. Since IPO the company has traded on a multiple of 4x (low end)-6x (high-end).

PC Partner (1263 HK) reported solid 2020 results but last week's earnings call provided a mixed outlook. On the one hand, there is great demand for GPU's and this is likely to continue into 2H21. On the other hand, the companies' two main suppliers Advanced Micro Devices (AMD US) and NVIDIA Corp (NVDA US) can not deliver GPUs fast enough. On the positive side, this is leading to increased ASP (+15%) but on the negative side, volumes are dropping (-20/-30%) while costs (labor, logistics, memory) are rising.Clearly, this is an industry-wide issue and not Pc Partner specific but it does mean that 1H21 will still be stronger than 1H20 but weaker vs 2H20. Fortunately, Pc Partner remains cheap and it will pay a 0.22 HKD dividend (6.4% dividend yield) by mid-July. Investors can also look forward to an interim dividend in August. The downside in the stock is limited but the upside is capped until supply issues at Nvidia and AMD are resolved. We lower our Fair Value estimate to 4 HKD (based on 6x 0.67 HKD FY21 EPS vs 0.75 HKD prior estimate), which leaves another 17% upside. Since IPO the company has traded on a multiple of 4x (low end)-6x (high-end). 

PC Partner: Great Demand, but Limited Supply of GPU's Created Mixed 2021 Outlook

United States

Advanced Micro Devices, Inc. (AMD) produces semiconductor products and devices. The Company offers products such as microprocessors, embedded microprocessors, chipsets, graphics, video and multimedia products and supplies it to third-party foundries, as well as provides assembling, testing, and packaging services. AMD serves customers worldwide.

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Advanced Micro Devices (AMD US)

Weekly Innovation Review (WIRE) #35

Headline Developments It’s a big edition this week, so settle in!Elon Musk’s Boring Company (private) broke ground this week,...

Granite Bay Capital

AMD: Still Too Expensive

AMD continued to deliver astonishing top-line growth numbers over the past year, reaching more than 90% in the last quarter. Contrary to the...

Vladimir Dimitrov, CFA

JD.com (JD): Customer Service Facing Short Squeeze Due to Bitcoin Surge

Customer service refuses to return repaired graphics card to customers. The graphics card prices has been rising significantly. Customers believe...

Ming Lu

March Semiconductor Sales Up Yet Again

The SIA reported very positive semiconductor revenues for the first quarter, but leading indicators show that a correction has begun. This Insight...

Jim Handy

PC Partner: Great Demand, but Limited Supply of GPU's Created Mixed 2021 Outlook

Pc Partner reported solid FY20 results. During last week's earnings call the company explained industry dynamics are mixed and result in us...

Nicolas Van Broekhoven

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