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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Quantitative Analysis

<div>
<p>The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.</p>
<p>Hong Kong saw shorts rise on <a href="https://www.smartkarma.com/entities/cspc-pharmaceutical-group-ltd" target="_blank" data-smartkarma-citation="entities:229:1" rel="noopener">CSPC Pharmaceutical Group (1093 HK)</a>, <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a>, <a href="https://www.smartkarma.com/entities/hsbc-holdings-plc" target="_blank" data-smartkarma-citation="entities:516:1" rel="noopener">HSBC Holdings (5 HK)</a> and <a href="https://www.smartkarma.com/entities/ping-an-insurance-grp-co-of-china-ltd" target="_blank" data-smartkarma-citation="entities:12880:1" rel="noopener">Ping An Insurance (H) (2318 HK)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/ping-an-healthcare-and-technology-company-limited" target="_blank" data-smartkarma-citation="entities:27008:1" rel="noopener">Ping An Healthcare and Technology Company Limited (1833 HK)</a>, <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a>, <a href="https://www.smartkarma.com/entities/xinyi-solar-holdings-ltd" target="_blank" data-smartkarma-citation="entities:318:1" rel="noopener">Xinyi Solar Holdings (968 HK)</a> and <a href="https://www.smartkarma.com/entities/evergrande-real-estate-group-limited" target="_blank" data-smartkarma-citation="entities:479:1" rel="noopener">Evergrande Real Estate Group (3333 HK)</a>. Shorts increased in Financials stocks and decreased in Health Care, Information Technology and Real Estate names.</p>
</div><div><p>In Japan, stocks that saw the most shorts covered were <a href="https://www.smartkarma.com/entities/fast-retailing-co-ltd" target="_blank" data-smartkarma-citation="entities:751:1" rel="noopener">Fast Retailing (9983 JP)</a>, <a href="https://www.smartkarma.com/entities/canon-inc" target="_blank" data-smartkarma-citation="entities:1:1" rel="noopener">Canon Inc (7751 JP)</a>, <a href="https://www.smartkarma.com/entities/taiyo-yuden-co-ltd" target="_blank" data-smartkarma-citation="entities:9924:1" rel="noopener">Taiyo Yuden (6976 JP)</a> and <a href="https://www.smartkarma.com/entities/yaskawa-electric-corp" target="_blank" data-smartkarma-citation="entities:2458:1" rel="noopener">Yaskawa Electric (6506 JP)</a>, while shorts increased on <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a>, <a href="https://www.smartkarma.com/entities/asahi-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10482:1" rel="noopener">Asahi Group Holdings (2502 JP)</a>, <a href="https://www.smartkarma.com/entities/nippon-building-fund-inc" target="_blank" data-smartkarma-citation="entities:1900:1" rel="noopener">Nippon Building Fund (8951 JP)</a> and <a href="https://www.smartkarma.com/entities/terrasky-co-ltd" target="_blank" data-smartkarma-citation="entities:27747:1" rel="noopener">TerraSky Co Ltd (3915 JP)</a>. Sectorally, shorts increased on Industrials, Real Estate and Consumer Staples, while shorts were covered on Consumer Discretionary and Information Technology names.</p></div><div><p>Shorts threw in the towel in Korea with a large drop in short interest due to short covering. Largest shorts were covered in <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a>, <a href="https://www.smartkarma.com/entities/ncsoft-corp" target="_blank" data-smartkarma-citation="entities:5169:1" rel="noopener">NCSOFT Corp (036570 KS)</a>, <a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix (000660 KS)</a> and <a href="https://www.smartkarma.com/entities/netmarble-corporation" target="_blank" data-smartkarma-citation="entities:22839:1" rel="noopener">Netmarble Corporation (251270 KS)</a>. </p></div><div><p>Stocks in Taiwan that saw the highest increase in shorts were <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-manufacturing-company" target="_blank" data-smartkarma-citation="entities:11230:1" rel="noopener">TSMC (2330 TT)</a>, <a href="https://www.smartkarma.com/entities/acer-inc" target="_blank" data-smartkarma-citation="entities:15726:1" rel="noopener">Acer Inc (2353 TT)</a>, <a href="https://www.smartkarma.com/entities/unimicron-technology-corp" target="_blank" data-smartkarma-citation="entities:18778:1" rel="noopener">Unimicron Technology (3037 TT)</a> and <a href="https://www.smartkarma.com/entities/asustek-computer-inc" target="_blank" data-smartkarma-citation="entities:13002:1" rel="noopener">Asustek Computer (2357 TT)</a> while shorts were covered on <a href="https://www.smartkarma.com/entities/yageo-corporation" target="_blank" data-smartkarma-citation="entities:13212:1" rel="noopener">Yageo Corporation (2327 TT)</a>, <a href="https://www.smartkarma.com/entities/walsin-technology-corp" target="_blank" data-smartkarma-citation="entities:11084:1" rel="noopener">Walsin Technology (2492 TT)</a>, <a href="https://www.smartkarma.com/entities/largan-precision-co-ltd" target="_blank" data-smartkarma-citation="entities:9126:1" rel="noopener">Largan Precision (3008 TT)</a> and <a href="https://www.smartkarma.com/entities/wiwynn-corp" target="_blank" data-smartkarma-citation="entities:27838:1" rel="noopener">Wiwynn Corp (6669 TT)</a>. </p></div>


The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.
Hong Kong saw shorts rise on CSPC Pharmaceutical Group (1093 HK), Xiaomi Corp (1810 HK), HSBC Holdings (5 HK) and Ping An Insurance (H) (2318 HK) while there was short covering on Ping An Healthcare and Technology Company Limited (1833 HK), Alibaba Group (9988 HK), Xinyi Solar Holdings (968 HK) and Evergrande Real Estate Group (3333 HK). Shorts increased in Financials stocks and decreased in Health Care, Information Technology and Real Estate names.
In Japan, stocks that saw the most shorts covered were Fast Retailing (9983 JP), Canon Inc (7751 JP), Taiyo Yuden (6976 JP) and Yaskawa Electric (6506 JP), while shorts increased on Toshiba Corp (6502 JP), Asahi Group Holdings (2502 JP), Nippon Building Fund (8951 JP) and TerraSky Co Ltd (3915 JP). Sectorally, shorts increased on Industrials, Real Estate and Consumer Staples, while shorts were covered on Consumer Discretionary and Information Technology names.Shorts threw in the towel in Korea with a large drop in short interest due to short covering. Largest shorts were covered in Samsung Electronics (005930 KS), NCSOFT Corp (036570 KS), SK Hynix (000660 KS) and Netmarble Corporation (251270 KS). Stocks in Taiwan that saw the highest increase in shorts were TSMC (2330 TT), Acer Inc (2353 TT), Unimicron Technology (3037 TT) and Asustek Computer (2357 TT) while shorts were covered on Yageo Corporation (2327 TT), Walsin Technology (2492 TT), Largan Precision (3008 TT) and Wiwynn Corp (6669 TT). 

Asia Short Interest Weekly: Xiaomi, Evergrande, Toshiba, Asahi, NBF, Samsung, Hynix, TSMC, Acer

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Event-Driven

Samsung Electronics Pref Shares / Event-Driven

<p>Samsung 1P is wrapping up the three-day skid today relative to the ordinary share. The sigma is now back to +1.7 for 1P on a 20D MA.</p><p>The duo hit +2.1σ on T-4, then began a decline to the neutral point until yesterday.</p><p><strong>What caused this decline?</strong></p><p>It was probably because of <strong>the SK Hynix/Intel deal</strong>, which might have led to a concern that Samsung would be conservative on the upcoming dividend policy as the deal may open up an industry-wide M&amp;A race.</p><p>But it now seems that the theory isn't gaining ground anymore.</p><p>1P discount is now 11.2%, almost there to the all-time low at 10.5%.</p><table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"% of sigma"}'>% of sigma</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Today"}'><strong>Today</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1.6482283181420518}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[0]C[6]"><strong>164.82%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"T-1"}'><strong>T-1</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.20857242985196214}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[0]C[6]"><strong>20.86%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"T-2"}'><strong>T-2</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.4558295544289668}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[0]C[6]"><strong>45.58%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"T-3"}'><strong>T-3</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1.2861473735904243}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[0]C[6]"><strong>128.61%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"T-4"}'>T-4</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2.0953475237198345}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[0]C[6]">209.53%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"T-5"}'>T-5</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2.1103104667249077}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[0]C[6]">211.03%</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"% of sigma"}'>% of sigma</td></tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"Today"}'><strong>Today</strong></td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":0.11185308848080133}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=RP!R[9]C[15]"><strong>11.19%</strong></td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"T-1"}'><strong>T-1</strong></td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":0.12643678160919541}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=RP!R[7]C[15]"><strong>12.64%</strong></td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"T-2"}'>T-2</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":0.12479474548440066}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=RP!R[5]C[15]">12.48%</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"T-3"}'>T-3</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":0.11666666666666667}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=RP!R[3]C[15]">11.67%</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"T-4"}'>T-4</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":0.1092436974789916}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=RP!R[1]C[15]">10.92%</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"T-5"}'><strong>T-5</strong></td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":0.11333333333333333}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=RP!R[-1]C[15]"><strong>11.33%</strong></td>
</tr>
<tr><td colspan="2" rowspan="1" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Pref discount"}'>Pref discount</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Today"}'><strong>Today</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.11185308848080133}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=RP!R[445]C[5]"><strong>11.19%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"120D mean"}'>120D mean</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.13049699147320118}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=average(RP!R396C7:R494C7)">13.05%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"120D median"}'>120D median</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.13099630996309963}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MEDIAN(RP!R396C7:R494C7)">13.10%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"120D high"}'>120D high</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.1552901023890785}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MAX(RP!R396C7:R494C7)">15.53%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"120D low"}'>120D low</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.10505836575875487}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MIN(RP!R396C7:R494C7)">10.51%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1Y mean"}'>1Y mean</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.1501642918651683}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=average(RP!R248C7:R494C7)">15.02%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1Y median"}'>1Y median</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.14724919093851133}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MEDIAN(RP!R248C7:R494C7)">14.72%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1Y high"}'>1Y high</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.19791666666666666}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MAX(RP!R248C7:R494C7)">19.79%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1Y low"}'>1Y low</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.10505836575875487}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MIN(RP!R248C7:R494C7)">10.51%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"2Y mean"}'>2Y mean</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.16677099580087038}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=average(RP!R2C7:R494C7)">16.68%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"2Y median"}'>2Y median</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.17272727272727273}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MEDIAN(RP!R2C7:R494C7)">17.27%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"2Y high"}'>2Y high</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.21040723981900453}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MAX(RP!R2C7:R494C7)">21.04%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"2Y low"}'><strong>2Y low</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.10505836575875487}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MIN(RP!R2C7:R494C7)"><strong>10.51%</strong></td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table>

Samsung 1P is wrapping up the three-day skid today relative to the ordinary share. The sigma is now back to +1.7 for 1P on a 20D MA.The duo hit +2.1σ on T-4, then began a decline to the neutral point until yesterday.What caused this decline?It was probably because of the SK Hynix/Intel deal, which might have led to a concern that Samsung would be conservative on the upcoming dividend policy as the deal may open up an industry-wide M&amp;A race.But it now seems that the theory isn't gaining ground anymore.1P discount is now 11.2%, almost there to the all-time low at 10.5%.





% of sigma

Today
164.82%


T-1
20.86%


T-2
45.58%


T-3
128.61%


T-4
209.53%


T-5
211.03%

Source: KRX







% of sigma

Today
11.19%


T-1
12.64%


T-2
12.48%


T-3
11.67%


T-4
10.92%


T-5
11.33%

Source: KRX







Pref discount

Today
11.19%


120D mean
13.05%


120D median
13.10%


120D high
15.53%


120D low
10.51%


1Y mean
15.02%


1Y median
14.72%


1Y high
19.79%


1Y low
10.51%


2Y mean
16.68%


2Y median
17.27%


2Y high
21.04%


2Y low
10.51%

Source: KRX



Samsung 1P Ends 3-Day Skid Relative to Ordinary: Situation Check-Up

Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

Ingenuity

Our focus is exclusively on in-depth research & consulting in the broader semiconductor industry. We focus on the key players, namely Intel, Micron, Qualcomm, Apple, Samsung, NVIDIA, AMD, TSMC & Global Foundries - as well as some of the lesser known, but nonetheless critical, companies such as ASML (for EUV), Mellanox, Cavium, Xilinx etc. We specialise in their products, roadmaps, process technologies, competitive advantages & threats etc. We also help our clients understand the implications of new and emerging technologies, e.g. 3D X-Point, 3D NAND, Carbon Nanotubes, Autonomous Driving, Graphene, Silicon Photonics, Wafer-Level Optics, Artificial Intelligence, FPGA, GPU, ASIC etc. 

Semiconductor Analysis & Research

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix</a> this week <a href="https://news.skhynix.com/sk-hynix-to-acquire-intel-nand-memory-business/" target="_blank" rel="noopener">announced</a> their intention to acquire <a href="https://www.smartkarma.com/entities/intel-corp" target="_blank" data-smartkarma-citation="entities:16764:1" rel="noopener">Intel's</a> NAND memory business in a complex deal valued at $9 billion. The move comes as little surprise following comments relating to the loss-making memory division made by Intel CEO Bob Swan earlier this year. What is surprising is the structure of the deal. While $7 billion in cash will be payable once the deal clears regulatory hurdles, thought to be in lat 2021, the remaining $2 billion will only be paid on "final closure" in March 2025. </p><p>What are the implications of this deal for the broader NAND industry? Is the deal a good one for both Intel and SK Hynix?  Why is the deal structured in such a complex and drawn-out fashion? Here's our thoughts.</p>

SK Hynix this week announced their intention to acquire Intel's NAND memory business in a complex deal valued at $9 billion. The move comes as little surprise following comments relating to the loss-making memory division made by Intel CEO Bob Swan earlier this year. What is surprising is the structure of the deal. While $7 billion in cash will be payable once the deal clears regulatory hurdles, thought to be in lat 2021, the remaining $2 billion will only be paid on "final closure" in March 2025. What are the implications of this deal for the broader NAND industry? Is the deal a good one for both Intel and SK Hynix?  Why is the deal structured in such a complex and drawn-out fashion? Here's our thoughts.

Intel. Thoughts On The Proposed NAND Flash Sale To SK Hynix.

Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

ASA Capital Management

ASA Capital Management is a boutique Research and Investment Advisory firm focusing on primary research in India. ASA provides bespoke research services to Institutional Clients with a focus on due diligence backed with primary research, Field Trips & Channel Checks.

Alibaba Group Holding  / Equity Bottom-Up

<p>Our objective with this weekly is to highlight notable developments in the India internet and consumer sector focusing on public and private companies. The sub-sectors covered include payment providers, e-commerce retailers,  social media platforms and consumer companies.</p>
<ul>
<li>
<a href="https://www.smartkarma.com/entities/tata-group" target="_blank" data-smartkarma-citation="entities:25998:1" rel="noopener">Tata Group (1396Z IN)</a> is aiming to become a serious contender in the Indian E-Commerce race with a potential stake in <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group (BABA US)</a> backed BigBasket</li>
<li>
<a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a> re-gains its top slot in global smartphones thanks to market share gains in India</li>
<li>
<a href="https://www.smartkarma.com/entities/facebook-inc-a" target="_blank" data-smartkarma-citation="entities:665:1" rel="noopener">Facebook Inc A (FB US)</a> backed Whatsapp Pay gets its act together in the already competitive Indian Payments Market, expected to roll out soon. </li>
<li>India bans import of AC units, but we see no major market share gains for top players. </li>
</ul>

Our objective with this weekly is to highlight notable developments in the India internet and consumer sector focusing on public and private companies. The sub-sectors covered include payment providers, e-commerce retailers,  social media platforms and consumer companies.


Tata Group (1396Z IN) is aiming to become a serious contender in the Indian E-Commerce race with a potential stake in Alibaba Group (BABA US) backed BigBasket

Samsung Electronics (005930 KS) re-gains its top slot in global smartphones thanks to market share gains in India

Facebook Inc A (FB US) backed Whatsapp Pay gets its act together in the already competitive Indian Payments Market, expected to roll out soon. 
India bans import of AC units, but we see no major market share gains for top players. 


India Internet & Consumer Weekly | Bigbasket, Samsung, Whatsapp Pay, India's AC Ban

Samsung beat the street consensus for 3Q, and the local market now expects Samsung to do so for the next quarter as well.






Income statement (₩T)
2019 1Q
2019 2Q
2019 3Q
2019 4Q
2020 1Q
2020 2Q
2020 3Q


Revenue
52.4
56.1
62.0
59.9
55.3
53.0
66.0


Operating profit
6.2
6.6
7.8
7.2
6.4
8.1
12.3


Profit before income tax
6.9
7.2
8.6
7.7
6.8
7.8
-


Net profit
5.0
5.2
6.3
5.2
4.9
5.6
-

Revenue by Segment

SEMI
14.5
16.1
17.6
16.8
17.6
18.2
-


DP
6.1
7.6
9.3
8.0
6.6
6.7
-


IM
27.2
25.9
29.3
25.0
26.0
20.8
-


CE
10.0
11.1
10.9
12.7
10.2
10.3
-


Harman
2.2
2.5
2.6
2.7
2.1
1.5
-

Operating profit by Segment

SEMI
4.1
3.4
3.0
3.4
4.0
5.4
5.7


DP
-0.6
0.7
1.2
0.2
-0.3
0.3
0.3


IM
2.3
1.6
2.9
2.5
2.6
2.0
5.0


CE
0.5
0.7
0.5
0.8
0.5
0.7
1.3


Harman
0.01
0.09
0.10
0.12
-0.19
-0.09
-


OPM
11.9
11.8
12.5
12.0
11.7
15.4
18.6

Source: Samsung Electronics 


The local consensus on FY20 OP got bumped up to ₩37T, up 12.4% since a month ago.It means that 4Q OP will be around ₩10T, which is substantially higher than the initial market expectation.










FY2020 - consolidated (₩T)
2020. 10. 13
T-1M
T-3M
T-6M
T-1Y


Sales
238.1
233.9
231.6
236.3
252.4


OP
37.0
32.9
32.6
34.5
37.1


NP to controlling stake
27.7
24.8
25.1
26.6
28.8


EPS (₩)
4,077
3,648
3,696
3,915
4,238


PER (x)
14.80
16.20
14.30
12.60
11.60


12M PER (x)
12.04
12.94
11.85
11.13
12.09


TP (₩)
76,008
72,592
65,957
64,577
58,071

Source: FnGuide













FY2017~2022E - consolidated (₩T)
2017
2018
2019
2020E
2021E
2022E


Sales
239.6
243.8
230.4
238.1
263.8
281.0


- YoY
18.68%
1.75%
-5.48%
3.34%
10.81%
6.49%


OP
53.6
58.9
27.8
37.0
46.8
54.3


- YoY
83.46%
9.77%
-52.84%
33.07%
26.56%
16.11%


NP
42.2
44.3
21.7
27.8
35.6
41.6


- YoY
85.63%
5.12%
-50.98%
27.92%
28.03%
16.72%


NP to controlling stake
41.3
43.9
21.5
27.7
35.4
41.2


EPS (₩)
5,421
6,024
3,166
4,077
5,206
6,061


BPS (₩)
28,971
35,342
37,528
40,429
44,034
48,597


DPS (₩)
850
1,416
1,416
1,475
1,517
1,536


PER (x)
9.40
6.42
17.63
14.82
11.60
9.97


PBR (x)
1.76
1.10
1.49
1.49
1.37
1.24

Source: FnGuide



Samsung 1P Going Strong on Expectations of Special Dividend & New 3-Yr Return Plan

South Korea

Samsung Electronics Co., Ltd. manufactures a wide range of consumer and industrial electronic equipment and products such as semiconductors, personal computers, peripherals, monitors, televisions, and home appliances including air conditioners and microwave ovens. The Company also produces Internet access network systems and telecommunications equipment including mobile phones.

Samsung Electronics Pref Shares (005935 KS)

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

Samsung Electronics Pref Shares (005935 KS)

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Samsung 1P Going Strong on Expectations of Special Dividend & New 3-Yr Return Plan

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Sanghyun Park

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P/E

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