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>Taiwan’s tech space fell hard last week, with the tech sector down 5.4%, compared to a 4.9% drop for the overall market. Semiconductors performed the worst, down 6.2%.</li>
<li>Hon Hai, Delta, Lite-On -- EV a major theme for the first-ever Taiwan Expo USA coming October 12th.</li>
<li>Taiwan wafer exports were at an all-time high in August. We note that wafer names have underperformed TSMC.</li>
</ul>


Taiwan’s tech space fell hard last week, with the tech sector down 5.4%, compared to a 4.9% drop for the overall market. Semiconductors performed the worst, down 6.2%.
Hon Hai, Delta, Lite-On -- EV a major theme for the first-ever Taiwan Expo USA coming October 12th.
Taiwan wafer exports were at an all-time high in August. We note that wafer names have underperformed TSMC.


Taiwan Tech Weekly: Trying to Recover After a Week of Deep Declines

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Capital Markets

Lumentum Holdings / Equity Capital Markets

<ul><li>This is our first report on Lumentum Holdings, a manufacturing company operating in the niche of optical and photonic products.</li><li>In its result result, the company delivered an all-around beat with strong revenue in Datacom EMLs, coherent components, pump lasers, tunable products, and sub-sea components.</li><li>Overall, Lumentum is in a good position to profit from the expanding applications for photonics in various end markets.</li></ul>

This is our first report on Lumentum Holdings, a manufacturing company operating in the niche of optical and photonic products.In its result result, the company delivered an all-around beat with strong revenue in Datacom EMLs, coherent components, pump lasers, tunable products, and sub-sea components.Overall, Lumentum is in a good position to profit from the expanding applications for photonics in various end markets.

Lumentum Holdings Inc.- Initiation of Coverage – Recent Acquisitions & Other Drivers

Taiwan Tech Focused Senior Analyst

Patrick Liao

<ul>
<li>In our estimate, WinSemi’s 4Q21 revenue/GM is NT$70bn/38.9% and 1Q22 revenue/GM is NT$68bn/38% respectively . Usually, the first quarter of the year is a low season. </li>
<li>For WinSemi capacity management, the company will expand once they find the utilization being reaching to 85%, or above. </li>
<li>For the inventory issues that some people might be arguing with, WinSemi did not see any sign to worry about so far. </li>
</ul>


In our estimate, WinSemi’s 4Q21 revenue/GM is NT$70bn/38.9% and 1Q22 revenue/GM is NT$68bn/38% respectively . Usually, the first quarter of the year is a low season. 
For WinSemi capacity management, the company will expand once they find the utilization being reaching to 85%, or above. 
For the inventory issues that some people might be arguing with, WinSemi did not see any sign to worry about so far. 


WinSemi (3105.TT): Usually, the First Quarter of the Year Is a Low Season.

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.

<a href="https://www.smartkarma.com/entities/biel-crystal" target="_blank" data-smartkarma-citation="entities:33919:1" rel="noopener">Biel Crystal (0924581D HK)</a> is looking to raise up to US$2bn in its upcoming Hong Kong IPO. Biel Crystal (BC) is the largest smart device enclosure and module solution provider in terms of shipment value in 2020 with a market share of 17.6%, according to Frost &amp; Sullivan (F&amp;S). BC’s products are used in end products such as smartphones, tablets, smart watches, AR, and VR glasses as well as automobiles.In this note, we will look at the industry landscape and compare BC to other Apple suppliers.We covered the IPO previously in:<ul><li dir="ltr" aria-level="1"><a href="https://www.smartkarma.com/insights/biel-crystal-pre-ipo-cash-flow-generative-business-but-underlying-trend-is-worrying" target="_blank" data-smartkarma-citation="insights:56198" rel="noopener">Biel Crystal (伯恩光学) Pre-IPO - Cash Flow Generative Business but Underlying Trend Is Worrying</a> </li></ul>

Biel Crystal (0924581D HK) is looking to raise up to US$2bn in its upcoming Hong Kong IPO. Biel Crystal (BC) is the largest smart device enclosure and module solution provider in terms of shipment value in 2020 with a market share of 17.6%, according to Frost &amp; Sullivan (F&amp;S). BC’s products are used in end products such as smartphones, tablets, smart watches, AR, and VR glasses as well as automobiles.In this note, we will look at the industry landscape and compare BC to other Apple suppliers.We covered the IPO previously in:Biel Crystal (伯恩光学) Pre-IPO - Cash Flow Generative Business but Underlying Trend Is Worrying 

Biel Crystal (伯恩光学) Pre-IPO - Industry Landscape & Peer Comparison -  Auto Is the Wildcard

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

S&amp;P 500 Potential Support Levels. Current logical support levels we are monitoring include the December 2018 low of 2,346 and prior resistance in 2015-2016 at 2,130-2,200. The 2,346 level would make a lot of sense, however there is nothing that says we can’t be down 35% (coinciding with the 2,130-2,200 level) or more from the highs. Ultimately, COVID-19 is holding the market hostage and it likely will stay that way until the virus spread diminishes.

S&amp;P 500 Potential Support Levels. Current logical support levels we are monitoring include the December 2018 low of 2,346 and prior resistance in 2015-2016 at 2,130-2,200. The 2,346 level would make a lot of sense, however there is nothing that says we can’t be down 35% (coinciding with the 2,130-2,200 level) or more from the highs. Ultimately, COVID-19 is holding the market hostage and it likely will stay that way until the virus spread diminishes.

S&P 500 Technical Appraisal and Support Levels

United States

Lumentum Holdings Inc. operates as a holding company. The Company, through its subsidiaries, supplies optical and photonic products. Lumentum Holdings serves data communications and telecommunications, networking, and life-sciences markets worldwide.

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Lumentum Holdings (LITE US)

Taiwan Tech Weekly: Trying to Recover After a Week of Deep Declines

AU Optronics stock suspended, Intel's Mobileye IPO is back, Samsung takes share from TSMC, Taiwan wafer exports are at an all-time high.

Vincent Fernando, CFA

Lumentum Holdings Inc.- Initiation of Coverage – Recent Acquisitions & Other Drivers

This is our first report on Lumentum Holdings, a manufacturing company operating in the niche of optical and photonic products. In its result...

Baptista Research

WinSemi (3105.TT): Usually, the First Quarter of the Year Is a Low Season.

In our estimate, WinSemi’s 4Q21 revenue/GM is NT$70bn/38.9% and 1Q22 revenue/GM is NT$65bn/36% respectively . Usually, the first quarter of the...

Patrick Liao

Biel Crystal (伯恩光学) Pre-IPO - Industry Landscape & Peer Comparison - Auto Is the Wildcard

Peer comparison against other Apple suppliers show that BC doesn’t stand out but neither does it underperform in any aspects.

Sumeet Singh

S&P 500 Technical Appraisal and Support Levels

S&P 500 Potential Support Levels. Current logical support levels we are monitoring include the December 2018 low of 2,346 and prior resistance...

Vermilion Research

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