Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Cross Asset Strategy

<ul>
<li>Nancy Pelosi has left Taiwan but the confrontation between China and Taiwan has stepped up to another level.</li>
<li>In the past two days, there have been numerous news flow about an emerging naval/arial blockade of Taiwan by the Chinese military. </li>
<li>An intermittent/prolonged blockade of Taiwan by China could lead to some of the biggest global investors that may reduce their exposures in Taiwan. </li>
</ul>


Nancy Pelosi has left Taiwan but the confrontation between China and Taiwan has stepped up to another level.
In the past two days, there have been numerous news flow about an emerging naval/arial blockade of Taiwan by the Chinese military. 
An intermittent/prolonged blockade of Taiwan by China could lead to some of the biggest global investors that may reduce their exposures in Taiwan. 


JFK's Naval Blockade of Cuba (1962) - Fast Forward 60 Years & A Blockade of Taiwan by China?

Equity Bottom-Up

<ul>
<li>One of the curious share price movements this year has been the outperformance of Samsung Electronics versus other global tech peers including Apple, TSMC, Intel, and Xiaomi.</li>
<li>Three reasons why Samsung is outperforming global peers such as Apple and TSMC may due to a potential war in Taiwan, COVID lockdown in Shanghai, and new pro-business Korean President.</li>
<li>Caution is warranted on playing long/short on Samsung, Apple, and TSMC in the coming months as their tides appear to be driven too much by the whims of global politics. </li>
</ul>


One of the curious share price movements this year has been the outperformance of Samsung Electronics versus other global tech peers including Apple, TSMC, Intel, and Xiaomi.
Three reasons why Samsung is outperforming global peers such as Apple and TSMC may due to a potential war in Taiwan, COVID lockdown in Shanghai, and new pro-business Korean President.
Caution is warranted on playing long/short on Samsung, Apple, and TSMC in the coming months as their tides appear to be driven too much by the whims of global politics. 


3 Major Reasons Why Samsung and KOSPI Are Outperforming Other Global Peers & Country Equity Indices

<ul>
<li>In this insight, we discuss about the major Taiwanese players in the electronics supply chain that could be impacted by the the slowing demand for consumer electronics, especially in China.</li>
<li>When TSMC's Chairman mentions that the demand for consumer electronics is slowing down, especially in China, this is a time for a pause and really ponder on this.</li>
<li>We believe that there is an increasing risk of the average sales growth of the 13 major Taiwanese tech/consumer electronics stocks being lowered further in the coming months.</li>
</ul>


In this insight, we discuss about the major Taiwanese players in the electronics supply chain that could be impacted by the the slowing demand for consumer electronics, especially in China.
When TSMC's Chairman mentions that the demand for consumer electronics is slowing down, especially in China, this is a time for a pause and really ponder on this.
We believe that there is an increasing risk of the average sales growth of the 13 major Taiwanese tech/consumer electronics stocks being lowered further in the coming months.


Major Taiwanese Players in the Electronics Supply Chain: Slowing Demand for Consumer Electronics

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.

Equity Capital Markets

<ul>
<li>Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.</li>
<li>As <a href="https://www.smartkarma.com/entities/sbi-sumishin-net-bank" target="_blank" data-smartkarma-citation="entities:34572:1" rel="noopener">SBI Sumishin Net Bank (7163 JP)</a> called off its listing, Government of India is still vacillating on <a href="https://www.smartkarma.com/entities/life-insurance-corp-of-india-lic" target="_blank" data-smartkarma-citation="entities:28829:1" rel="noopener">Life Insurance Corp of India (LIC) (1248Z IN)</a>. </li>
<li>Placement scene remains quiet with <a href="https://www.smartkarma.com/entities/cosmo-energy-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:26565:1" rel="noopener">Cosmo Energy Holdings (5021 JP)</a> deeply discounted block following up on <a href="https://www.smartkarma.com/entities/zip-industries-aust-pty-ltd" target="_blank" data-smartkarma-citation="entities:24111:1" rel="noopener">ZIP Holdings (ZHL AU)</a> deeply discounted block the previous week.</li>
</ul>


Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
As SBI Sumishin Net Bank (7163 JP) called off its listing, Government of India is still vacillating on Life Insurance Corp of India (LIC) (1248Z IN). 
Placement scene remains quiet with Cosmo Energy Holdings (5021 JP) deeply discounted block following up on ZIP Holdings (ZHL AU) deeply discounted block the previous week.


ECM Weekly (13th Mar 2022)-Arrail, Aquila, Propguru, Ferretti, Jinmao, Nio, Fabindia, Hyu Hvy, Cosmo

<div class="content-highlight">
<p>It was reported in numerous Korean media that the Japanese government is planning to amend the law in the National Assembly so that it can provide subsidies worth several trillion won to major semiconductor players such as TSMC to build semiconductor plant in Japan.</p>
<p>The bill is expected to contain contents that mention that subsidies are necessary for national security in the chaos caused by the global semiconductor shortage. The purpose of this move is to increase semiconductor chip production amid global shortages and also increase jobs and investments in Japan. </p>
<p><strong>Overall, this major government subsidy to <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-co-ltd" target="_blank" data-smartkarma-citation="entities:1248:1" rel="noopener">Taiwan Semiconductor Co. (5425 TT)</a> (TSMC) is likely to have a negative impact to <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>.</strong> In the past several weeks, Samsung Electronics' share price has been relatively weak due to the concerns about the Lee family selling big stakes due to the need to pay for inheritance taxes. Now, this new legislation in Japan which could provide billions of dollars in subsidies to TSMC could further negatively impact Samsung Electronics' share price. </p>
</div>


It was reported in numerous Korean media that the Japanese government is planning to amend the law in the National Assembly so that it can provide subsidies worth several trillion won to major semiconductor players such as TSMC to build semiconductor plant in Japan.
The bill is expected to contain contents that mention that subsidies are necessary for national security in the chaos caused by the global semiconductor shortage. The purpose of this move is to increase semiconductor chip production amid global shortages and also increase jobs and investments in Japan. 
Overall, this major government subsidy to Taiwan Semiconductor Co. (5425 TT) (TSMC) is likely to have a negative impact to Samsung Electronics (005930 KS). In the past several weeks, Samsung Electronics' share price has been relatively weak due to the concerns about the Lee family selling big stakes due to the need to pay for inheritance taxes. Now, this new legislation in Japan which could provide billions of dollars in subsidies to TSMC could further negatively impact Samsung Electronics' share price. 


Japanese Govt May Provide Several Trillion Won in Subsidy to TSMC To Build A Semicon Plant in Japan

Taiwan

Taiwan Semiconductor Co., Ltd. designs, manufactures, and distributes rectifiers, thermal bar code printers, and color photo printers.

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Taiwan Semiconductor Co. (5425 TT)

JFK's Naval Blockade of Cuba (1962) - Fast Forward 60 Years & A Blockade of Taiwan by China?

Nancy Pelosi has left Taiwan but the confrontation between China and Taiwan has stepped up to another level including an emerging naval/arial...

Douglas Kim

3 Major Reasons Why Samsung and KOSPI Are Outperforming Other Global Peers & Country Equity Indices

Three reasons why Samsung is outperforming global peers such as Apple and TSMC may due to a potential war in Taiwan, COVID lockdown in Shanghai,...

Douglas Kim

Major Taiwanese Players in the Electronics Supply Chain: Slowing Demand for Consumer Electronics

In this insight, we discuss about the major Taiwanese players in the electronics supply chain that could be impacted by the the slowing demand for...

Douglas Kim

ECM Weekly (13th Mar 2022)-Arrail, Aquila, Propguru, Ferretti, Jinmao, Nio, Fabindia, Hyu Hvy, Cosmo

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

Japanese Govt May Provide Several Trillion Won in Subsidy to TSMC To Build A Semicon Plant in Japan

The Japanese government is planning to amend the law so that it can provide subsidies worth several trillion won to major semiconductor players...

Douglas Kim

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