Japan TMT Analyst

Pelham Smithers

Market Intel on Asian Tech with a Japan focus

Pelham Smithers Associates

Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods. 

Research is provided by the following:
Pelham Smithers: Macro, consumer electronics, telecoms & pharma
Joel Scheiman: Electronics materials / components
Julie Boote: Autos
Will Nestuk: Capital goods, machinery & transportation equipment parts
Thao Nguyen: eCommerce, internet content, marketing & advertising

Equity Bottom-Up

<p>A couple of years ago, <strong><a href="https://www.smartkarma.com/entities/7245" target="_blank" data-smartkarma-citation="entities:7245:1">Nidec (6594 JP)</a></strong> unveiled a small elongated haptic device, perfect for fitting into smartphones, and <strong><a href="https://www.smartkarma.com/entities/666" target="_blank" data-smartkarma-citation="entities:666:1">Apple (AAPL US)</a></strong> fell in love with it. At the time, the company was trialing its new touch technology where changes in pressure from the finger onto the device would activate the menu system. Makers of VCM systems like Hong Kong's <strong><a href="https://www.smartkarma.com/entities/6544" target="_blank" data-smartkarma-citation="entities:6544:1">AAC Technologies (2018 HK)</a></strong> and Japan's <strong><a href="https://www.smartkarma.com/entities/12001" target="_blank" data-smartkarma-citation="entities:12001:1">Alps Electric (6770 JP)</a></strong> had such haptic devices but they proved difficult to manufacture in the quantities…</p>

A couple of years ago, Nidec (6594 JP) unveiled a small elongated haptic device, perfect for fitting into smartphones, and Apple (AAPL US) fell in love with it. At the time, the company was trialing its new touch technology where changes in pressure from the finger onto the device would activate the menu system. Makers of VCM systems like Hong Kong's AAC Technologies (2018 HK) and Japan's Alps Electric (6770 JP) had such haptic devices but they proved difficult to manufacture in the quantities…

Global Asset Allocation, Politics & Governance, Ecstrat

John-Paul Smith

Global Asset Allocation, Politics & Governance

Ecstrat

Ecstrat is a consultancy advising on asset allocation between global equity markets, with a focus on the intersection of governments, geopolitics, governance and markets.
 
Over the past few years and more especially since the Great Financial Crisis (GFC), investors have become more focused on short-term market movements and real-time returns and have consequently neglected the analysis of the underlying structural themes that underpin longer term performance.
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More specifically we believe that the evolution of governance-based relationships between investors, controlling shareholders, labour and the state is one of the primary determinants of both relative and absolute performance between individual equity markets.
 
We will endeavour to provide investors with some of the context surrounding governance-related issues which encompass many different disciplines including history, economics and political science, as well as the financial metrics which are the most obvious manifestation of the structural characteristics of each market.
 
We will pay particular attention to the shifts and potential inflection points for governance in individual markets as these are often the best lead indicators for both economic and market performance.

Cross Asset Strategy

<h2>Market Commentary</h2><p>The Taiwanese market has continued to perform strongly, led by shares in the technology companies which are integrated into the iPhone manufacturing chain, although the momentum has slowed a liitle over the past two months in line with NASDAQ. As a consequence, the most widely followed market cap weighted index is continuing to outperform our equally weighted index of Taiwanese shares. Unlike Q1 when the Taiwanese dollar recorded its biggest ever gains, dollar based returns are…</p>

Market CommentaryThe Taiwanese market has continued to perform strongly, led by shares in the technology companies which are integrated into the iPhone manufacturing chain, although the momentum has slowed a liitle over the past two months in line with NASDAQ. As a consequence, the most widely followed market cap weighted index is continuing to outperform our equally weighted index of Taiwanese shares. Unlike Q1 when the Taiwanese dollar recorded its biggest ever gains, dollar based returns are…

Taiwan (Overweight): Strong Performance Running Out of Steam? (Part 5 of 6)

Asia and Global Semiconductor and Tech Research

Andrew Lu

Thematic (Sector/Industry)

<h2>What's new?</h2><p>Taiwan Ministry of Finance announced yesterday a new tax reform (starting 2019 calendar year for 2018 income taxes) to cut personal tax ceiling to 40% from 45% but raise the corporate tax rate to 20% from 17% coupled with 50% cut on retained earning taxes to 5% from 10%. For the same reform, cash dividends taxes for domestic investors will be cut substantially but be raised by 1% to 21% for foreign investors. Post our analysis, we conclude the reform is positive</p><p>Post our analysis, we…</p>

What's new?Taiwan Ministry of Finance announced yesterday a new tax reform (starting 2019 calendar year for 2018 income taxes) to cut personal tax ceiling to 40% from 45% but raise the corporate tax rate to 20% from 17% coupled with 50% cut on retained earning taxes to 5% from 10%. For the same reform, cash dividends taxes for domestic investors will be cut substantially but be raised by 1% to 21% for foreign investors. Post our analysis, we conclude the reform is positivePost our analysis, we…

Taiwan Tax Reform: Positive to Domestic Investors but Only Marginal Impact to Corporates' Earnings

<h2>What's new?</h2><p>Economic Daily reports today that <a href="https://www.smartkarma.com/entities/969" target="_blank" data-smartkarma-citation="entities:969">Qualcomm Inc (QCOM US)</a> is lowering its upcoming mid-end version smartphone SoC Snapdragon 450 price by 30% to US$10.0-10.5 before <a href="https://www.smartkarma.com/entities/772" target="_blank" data-smartkarma-citation="entities:772">Mediatek Inc (2454 TT)</a> introduction of P23 and P30 in 4Q17. To match the price cut from Qualcomm, MediaTek needs to cut its P23 price by 33-39% to US$8 from earlier planned US$12-13. Also, according to the news, <a href="https://www.smartkarma.com/entities/11230" target="_blank" data-smartkarma-citation="entities:11230">Taiwan Semiconductor Mfg. Co. Ltd. (2330 TT)</a> is priced at US$7,000 per wafer on 16nm for P23 vs. <a href="https://www.smartkarma.com/entities/191" target="_blank" data-smartkarma-citation="entities:191">Samsung</a>…</p>

What's new?Economic Daily reports today that Qualcomm Inc (QCOM US) is lowering its upcoming mid-end version smartphone SoC Snapdragon 450 price by 30% to US$10.0-10.5 before Mediatek Inc (2454 TT) introduction of P23 and P30 in 4Q17. To match the price cut from Qualcomm, MediaTek needs to cut its P23 price by 33-39% to US$8 from earlier planned US$12-13. Also, according to the news, Taiwan Semiconductor Mfg. Co. Ltd. (2330 TT) is priced at US$7,000 per wafer on 16nm for P23 vs. Samsung…

Can MediaTek Keep Its Margin Promise if Qualcomm Is Cutting the Price by 30%? Cost Cut Coming

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

<p>A review of Vermilion's Sector Rankings (RSR) reveals Cap-weighted Groups, as a whole, ranking better<br>than average-weighted (or equal-weighted), reflecting the S&amp;P 500's outperformance relative to the Russell 2000.  We share comments on a number of sectors and highlight bottoms-up ideas in the semiconductor and software space.</p>

A review of Vermilion's Sector Rankings (RSR) reveals Cap-weighted Groups, as a whole, ranking better than average-weighted (or equal-weighted), reflecting the S&amp;P 500's outperformance relative to the Russell 2000.  We share comments on a number of sectors and highlight bottoms-up ideas in the semiconductor and software space.

Taiwan

Taiwan Semiconductor Manufacturing Company Ltd. manufactures integrated circuits based on its proprietary designs.  The Company offers a comprehensive set of integrated circuit fabrication processes to manufacture CMOS logic, mixed-mode, volatile and non-volatile memory and BiCMOS chips.  Taiwan Semiconductor is an affiliate of Philips Electronics N.V.

Taiwan Semiconductor (TSMC) - ADR (TSM US)

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Taiwan Semiconductor (TSMC) - ADR (TSM US)

WDC Gets Apple in a Huff

A couple of years ago, Nidec (6594 JP) unveiled a small elongated haptic device, perfect for fitting into smartphones, and Apple (AAPL US) fell in...

Pelham Smithers Associates

Taiwan (Overweight): Strong Performance Running Out of Steam? (Part 5 of 6)

Market CommentaryThe Taiwanese market has continued to perform strongly, led by shares in the technology companies which are integrated into the...

John-Paul Smith

Taiwan Tax Reform: Positive to Domestic Investors but Only Marginal Impact to Corporates' Earnings

What's new?Taiwan Ministry of Finance announced yesterday a new tax reform (starting 2019 calendar year for 2018 income taxes) to cut personal tax...

Andrew Lu

Can MediaTek Keep Its Margin Promise if Qualcomm Is Cutting the Price by 30%? Cost Cut Coming

What's new?Economic Daily reports today that Qualcomm Inc (QCOM US) is lowering its upcoming mid-end version smartphone SoC Snapdragon 450 price by...

Andrew Lu

U.S. Equity Sector Rankings

A review of Vermilion's Sector Rankings (RSR) reveals Cap-weighted Groups, as a whole, ranking betterthan average-weighted (or equal-weighted),...

Vermilion Research

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