Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

Equity Bottom-Up

<ul>
<li>
Delta Taiwan delivered record 1Q25 results, driven by strong AI data center demand; EPS beat Bloomberg consensus by 8%.</li>
<li>
Management highlights microgrids as essential for resilient AI infrastructure amid power grid instability, and challenges keeping national power supply up with data center expansion.</li>
<li>
Valuation gap widens sharply: Delta Taiwan trades at 22x PER vs. 60x for Delta Thailand, despite having stronger 2025–2026E growth. Weak macroeconomic situation also makes Delta Thailand highly vulnerable.</li>
</ul>



Delta Taiwan delivered record 1Q25 results, driven by strong AI data center demand; EPS beat Bloomberg consensus by 8%.

Management highlights microgrids as essential for resilient AI infrastructure amid power grid instability, and challenges keeping national power supply up with data center expansion.

Valuation gap widens sharply: Delta Taiwan trades at 22x PER vs. 60x for Delta Thailand, despite having stronger 2025–2026E growth. Weak macroeconomic situation also makes Delta Thailand highly vulnerable.


Delta Taiwan Vs. Delta Thailand: Valuation Gap Widens After Strong 1Q25; Why AI Now Needs Microgrids

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 foreign holdings of TWSE Stocks as of May 2nd which has an aggregated holding worth USD944.4bn.</li>
<li>We estimate that foreign flows to be inflows of USD1,396mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.</li>
<li>We highlight changes of foreign holdings in TSMC, Quanta Computer, Hon Hai Precision, Ctbc Financial, Mediatek.</li>
</ul>


We analyzed the changes in foreign holdings of TWSE Stocks as of May 2nd which has an aggregated holding worth USD944.4bn.
We estimate that foreign flows to be inflows of USD1,396mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight changes of foreign holdings in TSMC, Quanta Computer, Hon Hai Precision, Ctbc Financial, Mediatek.


TWSE Foreign Holding Weekly (May 2nd): TSMC, Quanta Computer, Hon Hai Precision, Ctbc Financial

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

<ul><li>Despite the challenges of the past five years and the significant impact of the FTSE ST Banks Index's 93% total return on the STI's 42% total return, the iEdge SG Advanced Manufacturing Index has achieved a similar 5-year total return of 39%.</li><li>The iEdge SG Advanced Manufacturing Index achieved an 11.3% net total return from 2H24 to 23 Oct, driven by a global pivot in interest rates and a strong recovery in Singapore’s July and August Industrial Production, with top gainers including Delta SDR, Dyna-Mac, Seatrium, Jiutian Chemical Group, and SATS.</li><li>The 11.3% net total return for the iEdge SG Advanced Manufacturing Index in 2H24 to 23 Oct, has coincided with a global pivot in interest rates, and on the manufacturing front, a strong recovery in Singapore’s July and August Industrial Production.</li></ul>

Despite the challenges of the past five years and the significant impact of the FTSE ST Banks Index's 93% total return on the STI's 42% total return, the iEdge SG Advanced Manufacturing Index has achieved a similar 5-year total return of 39%.The iEdge SG Advanced Manufacturing Index achieved an 11.3% net total return from 2H24 to 23 Oct, driven by a global pivot in interest rates and a strong recovery in Singapore’s July and August Industrial Production, with top gainers including Delta SDR, Dyna-Mac, Seatrium, Jiutian Chemical Group, and SATS.The 11.3% net total return for the iEdge SG Advanced Manufacturing Index in 2H24 to 23 Oct, has coincided with a global pivot in interest rates, and on the manufacturing front, a strong recovery in Singapore’s July and August Industrial Production.

Delta Electronics’ Rise in the iEdge SG Advanced Manufacturing Index

<ul>
<li>We have an Underperform rating for Delta Electronics Taiwan as a single stock trade due to our concerns that its valuation has been inflated by Delta Thailand.</li>
<li>The extreme valuation mismatch between Delta Thailand and Delta Taiwan has corrected to some degree (Delta Thai crashed 23%) but still has a long way to go.</li>
<li>Delta Thailand should be removed from the SET50 Index in our view, the stock could be at risk of just such an action by year end according to precedent.</li>
</ul>


We have an Underperform rating for Delta Electronics Taiwan as a single stock trade due to our concerns that its valuation has been inflated by Delta Thailand.
The extreme valuation mismatch between Delta Thailand and Delta Taiwan has corrected to some degree (Delta Thai crashed 23%) but still has a long way to go.
Delta Thailand should be removed from the SET50 Index in our view, the stock could be at risk of just such an action by year end according to precedent.


Delta Taiwan Vs. Thailand Monitor: Thailand Mismatch Correcting & This Could Pull Down Delta Taiwan

<ul>
<li>We had a call with <a href="https://www.smartkarma.com/entities/delta-electronics-inc" target="_blank" data-smartkarma-citation="entities:12688:1" rel="noopener">Delta Electronics (2308 TT)</a> management to understand the company’s latest developments, particularly in relation to its growing automotive and EV businesses.</li>
<li>Delta Thailand shares have rallied 55.4% in T$ terms, while Delta Taiwan has only rallied 9.3%.</li>
<li>Delta’s EV business is growing 50% per year and has major customers including Tesla, GM, and Volkswagen, however, our sense is the Taiwan entity has an advantage. </li>
</ul>


We had a call with Delta Electronics (2308 TT) management to understand the company’s latest developments, particularly in relation to its growing automotive and EV businesses.
Delta Thailand shares have rallied 55.4% in T$ terms, while Delta Taiwan has only rallied 9.3%.
Delta’s EV business is growing 50% per year and has major customers including Tesla, GM, and Volkswagen, however, our sense is the Taiwan entity has an advantage. 


Delta Electronics: Taiwan Vs. Thailand Pairs Monitor, Call with Management

Taiwan

Delta Electronics Inc. manufactures power supplies and video display products. The Company's products include switching power supplies, telecom power systems, uninterrupted power supply (UPS), variable speed alternating current (AC) monitor drives, high resolution color monitors, and projectors.  Delta also manufactures magnetic and networking components.

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Delta Electronics (2308 TT)

Delta Taiwan Vs. Delta Thailand: Valuation Gap Widens After Strong 1Q25; Why AI Now Needs Microgrids

Delta Taiwan reports record 1Q25 results driven by AI data center demand, emphasizes microgrids for resilient infrastructure, and faces valuation...

Vincent Fernando, CFA

TWSE Foreign Holding Weekly (May 2nd): TSMC, Quanta Computer, Hon Hai Precision, Ctbc Financial

We analyzed TWSE foreign holding data for the past week and highlighted foreign holding changes in TSMC, Quanta Computer, Hon Hai Precision, Ctbc...

Ke Yan, CFA, FRM

Delta Electronics’ Rise in the iEdge SG Advanced Manufacturing Index

Despite the challenges of the past five years and the significant impact of the FTSE ST Banks Index's 93% total return on the STI's 42% total...

Singapore Exchange Ltd (SGX)

Delta Taiwan Vs. Thailand Monitor: Thailand Mismatch Correcting & This Could Pull Down Delta Taiwan

We have an Underperform rating for Delta Electronics Taiwan as a single stock trade due to our concerns that its valuation has been inflated by...

Vincent Fernando, CFA

Delta Electronics: Taiwan Vs. Thailand Pairs Monitor, Call with Management

We had a call with Delta Electronics (2308 TT) management to understand the company’s latest developments, particularly in relation to its growing...

Vincent Fernando, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Delta Taiwan Vs. Delta Thailand: Valuation Gap Widens After Strong 1Q25; Why AI Now Needs Microgrids

​Delta Taiwan reports record 1Q25 results driven by AI data center demand, emphasizes microgrids for resilient infrastructure, and faces valuation...

Vincent Fernando, CFA

TWSE Foreign Holding Weekly (May 2nd): TSMC, Quanta Computer, Hon Hai Precision, Ctbc Financial

We analyzed TWSE foreign holding data for the past week and highlighted foreign holding changes in TSMC, Quanta Computer, Hon Hai Precision, Ctbc...

Ke Yan, CFA, FRM

Delta Electronics’ Rise in the iEdge SG Advanced Manufacturing Index

Despite the challenges of the past five years and the significant impact of the FTSE ST Banks Index's 93% total return on the STI's 42% total...

Singapore Exchange Ltd (SGX)

Delta Taiwan Vs. Thailand Monitor: Thailand Mismatch Correcting & This Could Pull Down Delta Taiwan

We have an Underperform rating for Delta Electronics Taiwan as a single stock trade due to our concerns that its valuation has been inflated by...

Vincent Fernando, CFA

Delta Electronics: Taiwan Vs. Thailand Pairs Monitor, Call with Management

We had a call with Delta Electronics (2308 TT) management to understand the company’s latest developments, particularly in relation to its growing...

Vincent Fernando, CFA

Delta Taiwan reports record 1Q25 results driven by AI data center demand, emphasizes microgrids for resilient infrastructure, and faces valuation...