Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Thematic (Sector/Industry)

<ul>
<li>We look at where Taiwan tech sits in the cycle and which companies appear better or worse placed to weather the coming inventory correction.</li>
<li>Semiconductor inventory to sales and gross margins near record levels, hardware metrics are high as well but less extreme.</li>
<li>Formosa SUMCO, Macronix, Nanya Technology, Hon Hai Precision, and Flexium appear ahead of the inventory correction curve and well-placed as long positions for the current phase of the cycle.</li>
</ul>


We look at where Taiwan tech sits in the cycle and which companies appear better or worse placed to weather the coming inventory correction.
Semiconductor inventory to sales and gross margins near record levels, hardware metrics are high as well but less extreme.
Formosa SUMCO, Macronix, Nanya Technology, Hon Hai Precision, and Flexium appear ahead of the inventory correction curve and well-placed as long positions for the current phase of the cycle.


Taiwan Tech: Who's Ahead of the Inventory Cycle?

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>On Friday, <a href="https://www.smartkarma.com/entities/far-eastone-telecomm-co-ltd" target="_blank" data-smartkarma-citation="entities:19488:1" rel="noopener">Far Eastone Telecomm (4904 TT)</a> announced in a Taiwan Stock Exchange filing that it would merge with long-suffering <a href="https://www.smartkarma.com/entities/asia-pacific-telecom-co-ltd" target="_blank" data-smartkarma-citation="entities:19657:1" rel="noopener">Asia Pacific Telecom (3682 TT)</a> in a scrip merger.</li>
<li>The ratio chosen is a takeunder vs Friday's closing price terms. An 18.8% hit for APT shareholders. </li>
<li>Shareholder structure suggests it gets done IF the FTC and NCC approve the deal, which would go against their approval last August of the FET capital injection into APT.</li>
</ul>


On Friday, Far Eastone Telecomm (4904 TT) announced in a Taiwan Stock Exchange filing that it would merge with long-suffering Asia Pacific Telecom (3682 TT) in a scrip merger.
The ratio chosen is a takeunder vs Friday's closing price terms. An 18.8% hit for APT shareholders. 
Shareholder structure suggests it gets done IF the FTC and NCC approve the deal, which would go against their approval last August of the FET capital injection into APT.


Asia Pacific Telecom in Taiwan Takeunder by Far EasTone - Sector Remake Needs FTC+NCC Approval

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 Sep 20th which has an aggregated holding worth USD971.7bn.</li>
<li>We estimate that foreign flows to be inflows of USD1,487mln. 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, Shin Kong Financial, Evergreen Marine Corp Taiwan, Mediatek, Hon Hai Precision Industry, Ase Industrial.</li>
</ul>


We analyzed the changes in foreign holdings of TWSE Stocks as of Sep 20th which has an aggregated holding worth USD971.7bn.
We estimate that foreign flows to be inflows of USD1,487mln. 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, Shin Kong Financial, Evergreen Marine Corp Taiwan, Mediatek, Hon Hai Precision Industry, Ase Industrial.


TWSE Foreign Holding Weekly (Sep 20th): TSMC, Shin Kong Financial, Evergreen Marine Corp Taiwan

<ul>
<li>We analyzed the changes in short interest of TWSE Stocks as of Sep 20th which has an aggregated short interest worth USD20.8bn.</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 Ase Industrial, Century Iron And Steel Industrial, Jentech Precision Industrial, Eva Airways, Shin Kong Financial, King Slide Works.</li>
</ul>


We analyzed the changes in short interest of TWSE Stocks as of Sep 20th which has an aggregated short interest worth USD20.8bn.
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 Ase Industrial, Century Iron And Steel Industrial, Jentech Precision Industrial, Eva Airways, Shin Kong Financial, King Slide Works.


TWSE Short Interest Weekly (Sep 20th): Ase Industrial, Century Iron And Steel Industrial

<ul>
<li>We analyzed the changes in foreign holdings of TWSE Stocks as of Sep 13th which has an aggregated holding worth USD938.6bn.</li>
<li>We estimate that foreign flows to be outflows of USD1,475mln. 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 Quanta Computer, TSMC, Ctbc Financial, Hon Hai Precision Industry.</li>
</ul>


We analyzed the changes in foreign holdings of TWSE Stocks as of Sep 13th which has an aggregated holding worth USD938.6bn.
We estimate that foreign flows to be outflows of USD1,475mln. 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 Quanta Computer, TSMC, Ctbc Financial, Hon Hai Precision Industry.


TWSE Foreign Holding Weekly (Sep 13th): Quanta Computer, TSMC, Ctbc Financial

Taiwan

Hon Hai Precision Industry Co., Ltd. provides electronic manufacturing services for computers, communications, and consumer electronic products.  The Company's business operations include desktop and notebook PC assembly, connector production, cable assembly, PCB assembly, handset manufacturing, networking equipment, and other consumer electronic devices manufacturing.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Hon Hai Precision Industry (2317 TT)

Taiwan Tech: Who's Ahead of the Inventory Cycle?

We look at where Taiwan tech sits in the cycle and which companies appear better or worse placed to weather the coming inventory correction.

Vincent Fernando, CFA

Asia Pacific Telecom in Taiwan Takeunder by Far EasTone - Sector Remake Needs FTC+NCC Approval

On Friday, Asia Pacific Telecom and Far EasTone Telecom announced a takeunder merger, barely 2mos after the Taiwan Mobile/Star merger, and 6mos...

Travis Lundy

TWSE Foreign Holding Weekly (Sep 20th): TSMC, Shin Kong Financial, Evergreen Marine Corp Taiwan

We analyzed TWSE foreign holding data for the past week and highlighted foreign holding changes in TSMC, Shin Kong Financial, Evergreen Marine Corp...

Ke Yan, CFA, FRM

TWSE Short Interest Weekly (Sep 20th): Ase Industrial, Century Iron And Steel Industrial

We analyzed TWSE short interest report for the past week and highlighted short interest changes in Ase Industrial, Century Iron And Steel...

Ke Yan, CFA, FRM

TWSE Foreign Holding Weekly (Sep 13th): Quanta Computer, TSMC, Ctbc Financial

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

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)