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>TSMC's premium is trading at a historically high level after its recent results release, while ADR short interest has remained subdued.</li>
<li>ASE's ADR premium is at one of its highest levels in history, appears precarious in our view.</li>
<li>ChipMOS premium near middle of range; the company will report results this week.</li>
</ul>


TSMC's premium is trading at a historically high level after its recent results release, while ADR short interest has remained subdued.
ASE's ADR premium is at one of its highest levels in history, appears precarious in our view.
ChipMOS premium near middle of range; the company will report results this week.


Taiwan Dual-Listings Monitor: TSMC Premium High & Short Interest Down; ASE Premium Precarious

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.

Thematic (Sector/Industry)

<ul>
<li>The Global Emerging Markets Weekly provides a summary of the key news and related developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.</li>
<li>
 Macro data points: South Korean GDP, export, and import growth.</li>
<li>
 Companies mentioned:<a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group Holding (9988 HK)</a>, <a href="https://www.smartkarma.com/entities/samsung-sdi-co-ltd" target="_blank" data-smartkarma-citation="entities:503:1" rel="noopener">Samsung SDI (006400 KS)</a>, <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>, <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-manufacturing-company" target="_blank" data-smartkarma-citation="entities:11230:1" rel="noopener">Taiwan Semiconductor (TSMC) (2330 TT)</a>, <a href="https://www.smartkarma.com/entities/ant-group-co-ltd" target="_blank" data-smartkarma-citation="entities:24240:1" rel="noopener">Ant Group (6688 HK)</a>, <a href="https://www.smartkarma.com/entities/meiragtx-holdings-plc" target="_blank" data-smartkarma-citation="entities:27183:1" rel="noopener">MeiraGTx Holdings plc (MGTX US)</a>
</li>
</ul>


The Global Emerging Markets Weekly provides a summary of the key news and related developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.

 Macro data points: South Korean GDP, export, and import growth.

 Companies mentioned:Alibaba Group Holding (9988 HK), Samsung SDI (006400 KS), Tencent (700 HK), Taiwan Semiconductor (TSMC) (2330 TT), Ant Group (6688 HK), MeiraGTx Holdings plc (MGTX US)



GEMWeekly (28 Jul 2023): South Korea GDP; Alibaba, Samsung SDI, Tencent, TSMC, Ant, Meituan

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.

Taiwan Semiconductor (TSMC) / Equity Bottom-Up

<ul><li>Taiwan Semiconductor managed to exceed analyst expectations in terms of revenue as well as earnings.</li><li>Despite the cyclical downturn, the company continued investing in R&D to support the development of its N3 and N2 technologies.</li><li>We give Taiwan Semiconductor Manufacturing a 'Hold' rating with a revised target price.</li></ul>

Taiwan Semiconductor managed to exceed analyst expectations in terms of revenue as well as earnings.Despite the cyclical downturn, the company continued investing in R&D to support the development of its N3 and N2 technologies.We give Taiwan Semiconductor Manufacturing a 'Hold' rating with a revised target price.

Taiwan Semiconductor Manufacturing: Unlocking The Reasons For Its Growth - Financial Forecasts

United Microelectronics Corp / Equity Bottom-Up

<ul>
<li>UMC reported 2Q23E results with revenue falling 20% YoY and EPS down 30% YoY. Results were higher than consensus but forward guidance was worrisome in our view.</li>
<li>We are concerned by UMC’s high exposure to more mature technology nodes, limited exposure to AI, and vulnerability to China competition forced to focus on non-leading edge technology nodes.</li>
<li>We rate the stock Underperform with a target price of $36 which implies a 2023E PER of 10x.</li>
</ul>


UMC reported 2Q23E results with revenue falling 20% YoY and EPS down 30% YoY. Results were higher than consensus but forward guidance was worrisome in our view.
We are concerned by UMC’s high exposure to more mature technology nodes, limited exposure to AI, and vulnerability to China competition forced to focus on non-leading edge technology nodes.
We rate the stock Underperform with a target price of $36 which implies a 2023E PER of 10x.


United Microelectronics: Underperform; Exposed to China Competition Avoiding Tech Restrictions

Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

<ul>
<li>Persistent fabless inventory issues dampen the slope of H2'23 recovery. FY'23 forecast further reduced to a 10% YoY decline</li>
<li>AI-Related hardware will reach 6% of revenues in 2023, a welcome boost but insufficient to counter the negative impact of macro headwinds</li>
<li>TSMC's earnings provides an important read through on the likely results and outlook for the broader semi ecosystem in the coming weeks. </li>
</ul>


Persistent fabless inventory issues dampen the slope of H2'23 recovery. FY'23 forecast further reduced to a 10% YoY decline
AI-Related hardware will reach 6% of revenues in 2023, a welcome boost but insufficient to counter the negative impact of macro headwinds
TSMC's earnings provides an important read through on the likely results and outlook for the broader semi ecosystem in the coming weeks. 


TSMC. AI Tailwinds No Match For Macro Headwinds

Taiwan

Taiwan Semiconductor Manufacturing Company, Ltd. manufactures and markets integrated circuits. The Company provides the following services: wafer manufacturing, wafer probing, assembly and testing, mask production, and design services. TSMC's ICs are used in computer, communication, consumer electronics, automotive, and industrial equipment industries.

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

Taiwan Semiconductor (TSMC) (2330 TT)

Taiwan Dual-Listings Monitor: TSMC Premium High & Short Interest Down; ASE Premium Precarious

TSMC's premium is trading at a historically high level after its recent results release, while ADR short interest has remained subdued.

Vincent Fernando, CFA

GEMWeekly (28 Jul 2023): South Korea GDP; Alibaba, Samsung SDI, Tencent, TSMC, Ant, Meituan

The Global Emerging Markets Weekly provides a summary of the key news and related developments impacting the largest countries and constituents of...

Wium Malan, CFA

Taiwan Semiconductor Manufacturing: Unlocking The Reasons For Its Growth - Financial Forecasts

Taiwan Semiconductor managed to exceed analyst expectations in terms of revenue as well as earnings. Despite the cyclical downturn, the company...

Baptista Research

United Microelectronics: Underperform; Exposed to China Competition Avoiding Tech Restrictions

We are concerned by UMC’s high exposure to more mature technology nodes, limited exposure to AI, and vulnerability to China competition forced to...

Vincent Fernando, CFA

TSMC. AI Tailwinds No Match For Macro Headwinds

Fabless inventory issues dampen slope of H2'23 recovery. FY'23 forecast now -10% YoY. TSMC's provides an important read through on the likely...

William Keating

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)