Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Equity Bottom-Up

<ul>
<li>We analyze analyst earnings revisions over the last month to identify key industry takeaways from stocks with major downward and upward revisions.</li>
<li>Innolux indicates there could be another year of pain ahead for LCD Panels, Wistron sees notebook weakness through year-end.</li>
<li>Signs of strong demand persist in Commercial IT, AI, and Medical. </li>
</ul>


We analyze analyst earnings revisions over the last month to identify key industry takeaways from stocks with major downward and upward revisions.
Innolux indicates there could be another year of pain ahead for LCD Panels, Wistron sees notebook weakness through year-end.
Signs of strong demand persist in Commercial IT, AI, and Medical. 


Taiwan Tech: Market Signals in the Latest Earnings Revisions

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>
<a href="https://www.smartkarma.com/entities/gojek-goto" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">GoTo (1379371D IJ)</a> launched its bookbuild but decided to keep it local, with no international bookrunners.</li>
<li>Placements continue to trickle in with <a href="https://www.smartkarma.com/entities/abacus-property-group" target="_blank" data-smartkarma-citation="entities:10566:1" rel="noopener">Abacus Property (ABP AU)</a> managing to raise US$150m odd. All eyes will be on <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com Inc. (9618 HK)</a> in the coming 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.

GoTo (1379371D IJ) launched its bookbuild but decided to keep it local, with no international bookrunners.
Placements continue to trickle in with Abacus Property (ABP AU) managing to raise US$150m odd. All eyes will be on JD.com Inc. (9618 HK) in the coming week.


ECM Weekly (20th Mar 2022) - JD.com, Tencent, Prosus, GoTo, Ferretti, Green Tea, Recbio, Abacus

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

<ul>
<li>
<a href="https://www.smartkarma.com/entities/wistron-corp" target="_blank" data-smartkarma-citation="entities:2189:1" rel="noopener">Wistron Corp (3231 TT)</a> aims to raise around US$204m (NT$5.8bn) via selling 3.3% of its stake in subsidiary, <a href="https://www.smartkarma.com/entities/wiwynn-corp" target="_blank" data-smartkarma-citation="entities:27838:1" rel="noopener">Wiwynn Corp (6669 TT)</a> . This would not be a clean-up.</li>
<li>The timing is curious given Wiwynn having just announced its plans to offer up to 17m new shares in a primary follow-on offer. </li>
<li>In this note, we will talk about the firm’s track record and run the deal through our ECM framework.</li>
</ul>



Wistron Corp (3231 TT) aims to raise around US$204m (NT$5.8bn) via selling 3.3% of its stake in subsidiary, Wiwynn Corp (6669 TT) . This would not be a clean-up.
The timing is curious given Wiwynn having just announced its plans to offer up to 17m new shares in a primary follow-on offer. 
In this note, we will talk about the firm’s track record and run the deal through our ECM framework.


Wiwynn Corp Placement - Selldown's Timing Is Curious but Previous Deal Had Performed Well

Taiwan Tech Focused Senior Analyst

Patrick Liao

Hon Hai Precision Industry / Equity Bottom-Up

<ul>
<li>The revenue/ gross profit/ GM %/ EPS is NT$1,889.8bn/ NT$113.9bn/ 6.03%/ NT3.2 in 4Q21. 4Q21 revenue is growth 34% QoQ, but growing -5.9% YoY.</li>
<li>We expect the material shortage would become more stabilized in 2H22. The revenue was better than expected since 2021, and it will become more challenging in 2022. </li>
<li>2025 EV revenue is about US$600bn. Hon Hai is targeting at 5% market share and aim at US$1,000bn revenue scale.</li>
</ul>


The revenue/ gross profit/ GM %/ EPS is NT$1,889.8bn/ NT$113.9bn/ 6.03%/ NT3.2 in 4Q21. 4Q21 revenue is growth 34% QoQ, but growing -5.9% YoY.
We expect the material shortage would become more stabilized in 2H22. The revenue was better than expected since 2021, and it will become more challenging in 2022. 
2025 EV revenue is about US$600bn. Hon Hai is targeting at 5% market share and aim at US$1,000bn revenue scale.


Hon Hai(2317.TT): It Will Be More Challenging in 2022, but Hon Hai Will Focus on EPS.

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

<p>The existence of the annual cap from BYD Electronics to the BYD group which then sells the masks to the distributors or end customers through BYD Care (a subsidiary of BYD Group), BYD Electronics will see an increase in revenues but not so much of the increase in the margin as BYD Care (the seller of surgical masks) is a subsidiary of <a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a> rather than BYD Electronics. </p><p>Among Trump's outperforming Biden in the first Presidential debate, an attempt to make up for the loss, overly bullish investors in China's plan on domestic consumption and surgical masks production, <a href="https://www.smartkarma.com/entities/byd-electronic-international-co-ltd" target="_blank" data-smartkarma-citation="entities:1927:1" rel="noopener">BYD Electronics (285 HK)</a> share price rose close to 10% today makes an attractive entry point to shorting the stock. Size up your bet!</p>

The existence of the annual cap from BYD Electronics to the BYD group which then sells the masks to the distributors or end customers through BYD Care (a subsidiary of BYD Group), BYD Electronics will see an increase in revenues but not so much of the increase in the margin as BYD Care (the seller of surgical masks) is a subsidiary of BYD (1211 HK) rather than BYD Electronics. Among Trump's outperforming Biden in the first Presidential debate, an attempt to make up for the loss, overly bullish investors in China's plan on domestic consumption and surgical masks production, BYD Electronics (285 HK) share price rose close to 10% today makes an attractive entry point to shorting the stock. Size up your bet!

BYD Electronics (285): Where Is the Margin At?

Taiwan

Wistron Corporation manufactures and markets notebook computers, personal computers, and other related information products.

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Wistron Corp (3231 TT)

Taiwan Tech: Market Signals in the Latest Earnings Revisions

We analyze analyst earnings revisions over the last month to identify key industry takeaways from stocks with major downward and upward revisions.

Vincent Fernando, CFA

ECM Weekly (20th Mar 2022) - JD.com, Tencent, Prosus, GoTo, Ferretti, Green Tea, Recbio, Abacus

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

Wiwynn Corp Placement - Selldown's Timing Is Curious but Previous Deal Had Performed Well

Wistron Corp (3231 TT) aims to raise around US$204m (NT$5.8bn) via selling 3.3% of its stake in subsidiary, Wiwynn Corp (6669 TT) . This would not...

Clarence Chu

Hon Hai(2317.TT): It Will Be More Challenging in 2022, but Hon Hai Will Focus on EPS.

Revenue was better than expected in 2021, and it will be more challenging in 2022. Hon Hai will focus on getting more clients’ orders and maximize...

Patrick Liao

BYD Electronics (285): Where Is the Margin At?

The share price increase of close to 10% today makes a more attractive entry point to shorting BYD Electronics.

Henry Soediarko

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