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>Hon Hai shares have broken out to near-term highs after news flow regarding its investment agreement in Lordstown Motors.</li>
<li>PC makers Acer &amp; Asustek's share prices remain subdued since Nvidia results despite AI's potential to accelerate the PC upgrade cycle.</li>
<li>TSMC's ADR premium went even higher just today; Also, Realtek is suing Mediatek in the U.S., adding to our Long/Short watchlists.</li>
</ul>


Hon Hai shares have broken out to near-term highs after news flow regarding its investment agreement in Lordstown Motors.
PC makers Acer &amp; Asustek's share prices remain subdued since Nvidia results despite AI's potential to accelerate the PC upgrade cycle.
TSMC's ADR premium went even higher just today; Also, Realtek is suing Mediatek in the U.S., adding to our Long/Short watchlists.


Taiwan Tech Weekly: Hon Hai Breaking Out of Range; Acer/Asustek Subdued Despite PC Upgrade Potential

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of TWSE Stocks as of Jun 9th which has an aggregated short interest worth USD14.8bn.</li>
<li>We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Alchip Tech, Mediatek, Gigabyte Tech, Walsin Lihwa, Yageo, Unimicron Tech, Eva Airways, Nanya Tech.</li>
</ul>


We analyzed the changes in short interest of TWSE Stocks as of Jun 9th which has an aggregated short interest worth USD14.8bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Alchip Tech, Mediatek, Gigabyte Tech, Walsin Lihwa, Yageo, Unimicron Tech, Eva Airways, Nanya Tech.


TWSE Short Interest Weekly (Jun 9th): Alchip Tech, Mediatek, Gigabyte Tech, Walsin Lihwa, Yageo

<ul>
<li>HP and Dell's industry outlook after their results last week indicate a PC market stabilizing and set for growth in 2024E. Qualcomm provided AI comments at a recent conference.</li>
<li>Both HP and Dell managed to beat earnings expectations despite experiencing 20%+ YoY revenue declines. Neither stock's price has made a significant move since results.</li>
<li>AI incorporated into Windows 11 and PC's themselves could be a major reason for companies and consumers to buy new PC's. PC's are being designed to run AI capabilities locally.</li>
</ul>


HP and Dell's industry outlook after their results last week indicate a PC market stabilizing and set for growth in 2024E. Qualcomm provided AI comments at a recent conference.
Both HP and Dell managed to beat earnings expectations despite experiencing 20%+ YoY revenue declines. Neither stock's price has made a significant move since results.
AI incorporated into Windows 11 and PC's themselves could be a major reason for companies and consumers to buy new PC's. PC's are being designed to run AI capabilities locally.


Dell, HP, Qualcomm Signal AI-Driven PC Refresh Cycle, 2024E PC Growth, Accelerated Windows Upgrades

<ul>
<li>Investors in the U.S. market seem to be having a more bullish outlook towards U.S.-listed semiconductor names than investors are having for Taiwan's semi names so far.</li>
<li>Stocks with highest short interest as % of float -- Some of the top names squeezed... Is HTC next? Also can consider Long Wiwynn vs. Short Wistron.</li>
<li>Highest short ratios -- Asus, UMC, Transcend shorts squeezed... Could WPG be next? Also can consider continuing Long Asus vs. Short Acer.</li>
</ul>


Investors in the U.S. market seem to be having a more bullish outlook towards U.S.-listed semiconductor names than investors are having for Taiwan's semi names so far.
Stocks with highest short interest as % of float -- Some of the top names squeezed... Is HTC next? Also can consider Long Wiwynn vs. Short Wistron.
Highest short ratios -- Asus, UMC, Transcend shorts squeezed... Could WPG be next? Also can consider continuing Long Asus vs. Short Acer.


Taiwan Shorts Monitor: Top Shorted Names Have Been Squeezed; U.S. Semis Outperforming Taiwan

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>Today was the review cutoff for the June rebalance of the Yuanta/P-Shares Taiwan Top 50 ETF. We see one potential change at the review.</li>
<li>Passive trackers are estimated to buy nearly 6 days of ADV on <a href="https://www.smartkarma.com/entities/pegatron-corp" target="_blank" data-smartkarma-citation="entities:12852:1" rel="noopener">Pegatron Corp (4938 TT)</a> while selling around 1.7 days of ADV on <a href="https://www.smartkarma.com/entities/silergy-corp" target="_blank" data-smartkarma-citation="entities:13998:1" rel="noopener">Silergy Corp (6415 TT)</a>.</li>
<li>Short interest on <a href="https://www.smartkarma.com/entities/pegatron-corp" target="_blank" data-smartkarma-citation="entities:12852:1" rel="noopener">Pegatron Corp (4938 TT)</a> has continued to drop as the stock has moved higher; <a href="https://www.smartkarma.com/entities/silergy-corp" target="_blank" data-smartkarma-citation="entities:13998:1" rel="noopener">Silergy Corp (6415 TT)</a>'s short interest has risen as the stock has dropped.</li>
</ul>


Today was the review cutoff for the June rebalance of the Yuanta/P-Shares Taiwan Top 50 ETF. We see one potential change at the review.
Passive trackers are estimated to buy nearly 6 days of ADV on Pegatron Corp (4938 TT) while selling around 1.7 days of ADV on Silergy Corp (6415 TT).
Short interest on Pegatron Corp (4938 TT) has continued to drop as the stock has moved higher; Silergy Corp (6415 TT)'s short interest has risen as the stock has dropped.


Taiwan Top 50 ETF Rebalance: One Change Expected in June

Taiwan

Asustek Computer Inc. manufactures and markets computer motherboards, interface cards, notebook computers, and other related products.

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Asustek Computer (2357 TT)

Taiwan Tech Weekly: Hon Hai Breaking Out of Range; Acer/Asustek Subdued Despite PC Upgrade Potential

TSMC's ADR premium went even higher just today; Also, Realtek is suing Mediatek in the U.S., adding to our Long/Short watchlists.

Vincent Fernando, CFA

TWSE Short Interest Weekly (Jun 9th): Alchip Tech, Mediatek, Gigabyte Tech, Walsin Lihwa, Yageo

We analyzed TWSE short interest report for the past week and highlight short interest changes in Alchip Tech, Mediatek, Gigabyte Tech, Walsin...

Ke Yan, CFA, FRM

Dell, HP, Qualcomm Signal AI-Driven PC Refresh Cycle, 2024E PC Growth, Accelerated Windows Upgrades

AI incorporated into Windows 11 and PC's themselves could be a major reason for companies and consumers to buy new PC's. PC's are being designed to...

Vincent Fernando, CFA

Taiwan Shorts Monitor: Top Shorted Names Have Been Squeezed; U.S. Semis Outperforming Taiwan

Investors in the U.S. market seem to be having a more bullish outlook towards U.S.-listed semiconductor names than investors are having for...

Vincent Fernando, CFA

Taiwan Top 50 ETF Rebalance: One Change Expected in June

There could be one change for the Yuanta/P-Shares Taiwan Top 50 ETF with Pegatron replacing Silergy. There is decent impact expected on the stocks...

Brian Freitas

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