Asia and Global Semiconductor and Tech Research

Andrew Lu

Equity Bottom-Up

Semiconductor Manufacturing International Corp (SMIC) / Equity Bottom-Up

Semiconductor Manufacturing International Corp (SMIC)

<h2>Summary</h2><ul>
<li>Unexciting guidance for 1Q17 and 2017: Post our analysis, we estimate consensus to cut 2017 EPS growth for SMIC to 10% y/y or less. SMIC needs to deliver better numbers for investors also to buy earnings not just to buy the China semi expansion story.</li>
<li>
Gross margin guidance in risk on 51% jump in depreciation cost: SMIC guides 2017 depreciation to jump 51% y/y to US$1.1bn from US$730mn in 2016, which should affect gross margin by 5ppts on a y/y basis together with lower margin 28nm ramp…</li>
</ul>

Summary
Unexciting guidance for 1Q17 and 2017: Post our analysis, we estimate consensus to cut 2017 EPS growth for SMIC to 10% y/y or less. SMIC needs to deliver better numbers for investors also to buy earnings not just to buy the China semi expansion story.

Gross margin guidance in risk on 51% jump in depreciation cost: SMIC guides 2017 depreciation to jump 51% y/y to US$1.1bn from US$730mn in 2016, which should affect gross margin by 5ppts on a y/y basis together with lower margin 28nm ramp…


A Tough Year for SMIC to Grow in EPS; Buy the Growth Story or Sell on Earnings?

Taiwan Semiconductor (TSMC) / Equity Bottom-Up

<h2>What's new?</h2>Economic Daily and Commercial Times news today both confirmed Dr. Shih-wei Sun would join the Tsinghua Unigroup as an executive vice president for its global operation.According to Bloomberg database, Dr. Sun served as the Chief Executive Officer of <a href="https://www.smartkarma.com/entities/6450" target="_blank" data-smartkarma-citation="entities:6450:1">United Microelectronics Corp. (2303 TT)</a> from July 2008 to November 2012. Dr. Sun joined UMC in 1995 and was responsible for fab operations, sales and the profit/loss for 12-inch technologies. Since October 1, 2007, Dr. Sun served as the…

What's new?Economic Daily and Commercial Times news today both confirmed Dr. Shih-wei Sun would join the Tsinghua Unigroup as an executive vice president for its global operation.According to Bloomberg database, Dr. Sun served as the Chief Executive Officer of United Microelectronics Corp. (2303 TT) from July 2008 to November 2012. Dr. Sun joined UMC in 1995 and was responsible for fab operations, sales and the profit/loss for 12-inch technologies. Since October 1, 2007, Dr. Sun served as the…

More Taiwan Semi Veteran to Join China Semis; Structurally Harmful to Other Supply Chain Vendors

Making sense of the Global Market, Euromonitor International Ltd.

Yu Mitsuhashi

Making sense of the Global Market

Euromonitor International Ltd.

We are a global market research company focused on industries, countries, economies and consumers worldwide. Our cross-country comparable research helps your organisation identify opportunities and develop growth strategies in countries and regions across the globe. With offices around the world, 1,200 analysts in 100 countries and market research on every key trend and driver, we give you powerful access to the real story behind consumer change.

Thematic (Sector/Industry)

Asia Pacific is at a crucial juncture in its digital development. The vast diverse region has always been technologically segregated and will continue to be so over the next five years. But, rapid advancement in technology globally has meant a vast number of Asian consumers now have the means to enjoy a digitally connected future, which can have a direct impact on their economic well-being.

Asia Pacific is at a crucial juncture in its digital development. The vast diverse region has always been technologically segregated and will continue to be so over the next five years. But, rapid advancement in technology globally has meant a vast number of Asian consumers now have the means to enjoy a digitally connected future, which can have a direct impact on their economic well-being.

Mobile Data to Address Asia Pacific's Digital Divide

Alibaba continues to expand Double 11, its shopping event around Singles’ Day, a consumerist holiday meant for treating oneself. The 2016 version of the event was the retailer’s most extravagant and successful one yet. This year, Alibaba rebranded the shopping event from “Double 11” to “The 11/11 Global Shopping Festival”. Based on this rebranding and its surrounding marketing and promotional events as well as the integration of the most up-and-coming technology, it is clear that the retailer does not simply plan on expanding the shopping event but instead plans on leveraging the event to expand its business globally.

Alibaba continues to expand Double 11, its shopping event around Singles’ Day, a consumerist holiday meant for treating oneself. The 2016 version of the event was the retailer’s most extravagant and successful one yet. This year, Alibaba rebranded the shopping event from “Double 11” to “The 11/11 Global Shopping Festival”. Based on this rebranding and its surrounding marketing and promotional events as well as the integration of the most up-and-coming technology, it is clear that the retailer does not simply plan on expanding the shopping event but instead plans on leveraging the event to expand its business globally.

How Alibaba's 11/11 Global Shopping Festival Represents the Future of Ecommerce

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

<ul><li>The biggest SGX-listed stocks that respectively represent the hardware, software and semiconductors industries are Venture Corporation, Silverlake Axis and UMS Holdings. </li><li>These three stocks have averaged a 19.2% total return in the 2016 year-to-date.</li><li>These three current leaders of the Sector have also had to embrace innovation and transformation for the last 25-30 years. The foundations of the trio track back to the 1980s.</li></ul>

The biggest SGX-listed stocks that respectively represent the hardware, software and semiconductors industries are Venture Corporation, Silverlake Axis and UMS Holdings. These three stocks have averaged a 19.2% total return in the 2016 year-to-date.These three current leaders of the Sector have also had to embrace innovation and transformation for the last 25-30 years. The foundations of the trio track back to the 1980s.

Innovative Transformation of Singapore's Technology Sector

Taiwan

United Microelectronics Corporation designs, manufactures, and markets integrated circuits (ICs) and related electronic products.  The Company's main products are consumer electronic ICs, memory ICs, personal computer peripheral ICs, and communication ICs.

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United Microelectron Sp Adr (UMC US)

A Tough Year for SMIC to Grow in EPS; Buy the Growth Story or Sell on Earnings?

Summary Unexciting guidance for 1Q17 and 2017: Post our analysis, we estimate consensus to cut 2017 EPS growth for SMIC to 10% y/y or less. SMIC...

Andrew Lu

More Taiwan Semi Veteran to Join China Semis; Structurally Harmful to Other Supply Chain Vendors

What's new?Economic Daily and Commercial Times news today both confirmed Dr. Shih-wei Sun would join the Tsinghua Unigroup as an executive vice...

Andrew Lu

Mobile Data to Address Asia Pacific's Digital Divide

Asia Pacific is at a crucial juncture in its digital development. The vast diverse region has always been technologically segregated and will...

Euromonitor International Ltd.

How Alibaba's 11/11 Global Shopping Festival Represents the Future of Ecommerce

Alibaba continues to expand Double 11, its shopping event around Singles’ Day, a consumerist holiday meant for treating oneself. The 2016 version...

Euromonitor International Ltd.

Innovative Transformation of Singapore's Technology Sector

The biggest SGX-listed stocks that respectively represent the hardware, software and semiconductors industries are Venture Corporation, Silverlake...

Singapore Exchange Ltd (SGX)

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