Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Independent, Fundamental Quantitative Research

Propitious Research

Fully independent, fundamental and quantitative equity research, focused on companies in the Telecommunication, Media, Technology, Internet and Healthcare sectors in the Global Emerging Markets. Idea generation focused on Quality stocks, trading below their intrinsic Value, with sound Corporate Governance.

Equity Bottom-Up

<ul>
<li>Although the overall channel and customer inventories have reduced aggressively by the end of 3Q2022, we are only in the middle of the inventory adjustment cycle.</li>
<li>We’ve seen early signs of global inflation peaking, and an initial normalization in US dollar strength, which supports recovery in end consumer demand and channel inventory restocking by mid-2023.</li>
<li>Current dividend yield and PE ratio indicate a meaningful margin of safety in valuation levels, with probabilities skewed towards positive surprise.</li>
</ul>


Although the overall channel and customer inventories have reduced aggressively by the end of 3Q2022, we are only in the middle of the inventory adjustment cycle.
We’ve seen early signs of global inflation peaking, and an initial normalization in US dollar strength, which supports recovery in end consumer demand and channel inventory restocking by mid-2023.
Current dividend yield and PE ratio indicate a meaningful margin of safety in valuation levels, with probabilities skewed towards positive surprise.


MediaTek: Mid (Inventory) Cycle, Long-Term Growth Story Intact, Attractive Yield, and Multiples

Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Taiwan Semiconductor (TSMC) / Equity Bottom-Up

<ul>
<li>Broadcom FY22 results indicate strength in data centers, telco infrastructure, enterprise IT spending.</li>
<li>Hon Hai's Zhengzhou facility ends closed-loop operations, returning to a more normal state.</li>
<li>U.S. asking Japan to have its firms comply with U.S. chip restrictions on China.</li>
</ul>


Broadcom FY22 results indicate strength in data centers, telco infrastructure, enterprise IT spending.
Hon Hai's Zhengzhou facility ends closed-loop operations, returning to a more normal state.
U.S. asking Japan to have its firms comply with U.S. chip restrictions on China.


Taiwan Tech Weekly: Broadcom Results Provide Some Signs of Strength, Hon Hai Facility Ends Lockdown

Research and consultancy, Tabbush Report

Daniel Tabbush

Research and consultancy

Tabbush Report

We provide research and consultancy on Asian banks. Our focus is on what we call “Asian bank research, without the noise.” We are interested in the most critical swing-factors for banks, the NPL and credit cycle, and where we believe there is a gap between perception and reality. We often focus on the less studied components of bank financial statements.  Our research is highly thematic, sometimes examining unlisted banks and companies as a window on mainstream banks. 

Being independent allows us to look at smaller banks, often overlooked by others. Analysis of BIS bank guidelines in the context of Asia, is also a focal point, while we also analyze global banks operating in the region. We use what we believe is the most comprehensive, reliable financials database, SNL Financial. S&P Capital IQ augments our database, with corporate data and CEIC, with economics. 

Asian bank research, without the noise.

Formosa Sumco Technology / Equity Bottom-Up

<ul>
<li>The company recently announced poor earnings down 56% YoY in 1Q24</li>
<li>Dwindling cash is another major concern especially with higher debt/ebitda</li>
<li>At 15-25% ROE is sensible but now back toward 5% there is less enthusiasm </li>
</ul>


The company recently announced poor earnings down 56% YoY in 1Q24
Dwindling cash is another major concern especially with higher debt/ebitda
At 15-25% ROE is sensible but now back toward 5% there is less enthusiasm 


Formosa Sumco Technology - Earnings, Returns, Financial Position, Worsening Dramatically

Taiwan Semiconductor (TSMC) - ADR / Equity Bottom-Up

<ul>
<li>Intel has eked out a small outperformance vs. TSMC most recently, and we believe there is more to come.</li>
<li>Events appear to be in Intel's favor in the near-term.</li>
<li>TSMC has outperformed by a historically extreme amount in just three weeks.</li>
</ul>


Intel has eked out a small outperformance vs. TSMC most recently, and we believe there is more to come.
Events appear to be in Intel's favor in the near-term.
TSMC has outperformed by a historically extreme amount in just three weeks.


Intel Vs. TSMC Monitor: TSMC Outperformed Too Much Too Soon?

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

Thematic (Sector/Industry)

<ul>
<li>The current semiconductor market meltdown can be expected to continue through the end of 2024</li>
<li>This will reduce 2022 market growth to 5%, and will drive a decline of 19% in 2023</li>
<li>Stocks will be unevenly influenced by this, with the most dramatic declines hitting makers of volume commodities, smaller declines in differentiated products, and a weak impact on older technology products.</li>
</ul>


The current semiconductor market meltdown can be expected to continue through the end of 2024
This will reduce 2022 market growth to 5%, and will drive a decline of 19% in 2023
Stocks will be unevenly influenced by this, with the most dramatic declines hitting makers of volume commodities, smaller declines in differentiated products, and a weak impact on older technology products.


2023 High Conviction: Semiconductor Down Market

United States

QUALCOMM, Inc . manufactures digital wireless communications equipment.  The Company licenses its code division multiple access (CDMA) and orthogonal frequency division multiplexing access intellectual property to other companies, and produces CDMA-based integrated circuits; and produces equipment and software used to track workers and assets; and software for wireless content enablement.

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Qualcomm Inc (QCOM US)

MediaTek: Mid (Inventory) Cycle, Long-Term Growth Story Intact, Attractive Yield, and Multiples

In this insight, we analyse MediaTek, the world’s 4th largest fabless semiconductor company and the largest smartphone System-on-Chip (SoC) maker,...

Wium Malan, CFA

Taiwan Tech Weekly: Broadcom Results Provide Some Signs of Strength, Hon Hai Facility Ends Lockdown

Broadcom FY22 results indicate strength in data centers, telco infrastructure, enterprise IT spending. U.S. asks Japan to comply with China chip...

Vincent Fernando, CFA

Formosa Sumco Technology - Earnings, Returns, Financial Position, Worsening Dramatically

Company is seeing far lower net profit, with the just-announced quarter one of the worst on record in recent years. Debt is now a factor and SG&A...

Daniel Tabbush

Intel Vs. TSMC Monitor: TSMC Outperformed Too Much Too Soon?

TSMC has outperformed by a historically extreme amount in just three weeks. Intel may attract value and contrarian buyers through year-end.

Vincent Fernando, CFA

2023 High Conviction: Semiconductor Down Market

What's happening in semiconductors? When will the downturn end? What does this mean to chip stock prices? This Insight provides some concrete...

Jim Handy

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