In today’s briefing:
- Ford Halts Construction of U.S. EV Battery Plant Using CATL Technology
- Taiwan AI Supply Chain Names: Four AI Plays to Short as Hedge Vs. An Nvidia Long
- Prodia (PRDA IJ) – Going Digital with Precision
- Delta Taiwan Vs. Thailand Monitor: Delta Thai Crashes After Parent Share Sale; Still Overvalued
- Taiwan Dual Listings Monitor: TSMC & UMC Trading Ranges Working; Short ASE Spread at Latest Level
- Kaspi.kz: The Super-App of Kazakhstan
- VF Corporation: Understanding the Dynamics Behind The Recent Financial Performance! – Major Drivers
- China Healthcare Weekly (Sep.29) – Be Rational About Biotech Investment, R&D Team Layoffs, Huadong
- Emerald Holding: Does Onex Exploring A Sale Imply That The Company Has A Limited Upside?
- PROS Holdings Acquisition Alert: A Golden Opportunity or a Mirage for Investors?
Ford Halts Construction of U.S. EV Battery Plant Using CATL Technology
- Ford Motor Co. said Monday it was suspending construction of its $3.5 billion electric-vehicle (EV) battery plant in the U.S. midwestern state of Michigan, where it had planned to manufacture batteries using technology licensed from Contemporary Amperex Technology Co. Ltd. (CATL) (300750.SZ -0.31%).
- “We’re pausing work and limiting spending on construction on the Marshall project until we’re confident about our ability to competitively operate the plant,” Ford spokesperson T.R. Reid said in a statement emailed to Caixin.
- “There are a number of considerations. We haven’t been specific about what they are, nor made any final decision about the planned investment there,” Reid said.
Taiwan AI Supply Chain Names: Four AI Plays to Short as Hedge Vs. An Nvidia Long
- Taiwan’s AI supply chain names have fallen over the last month, yet many have still outperformed Nvidia by a wide margin over the last six months.
- We don’t want to sell our Nvidia despite market risks — We believe a basket of Taiwan AI stocks can act as a Short to hedge a Long Nvidia position.
- Shorting a basket of Wistron, Quanta, Gold Circuit, and Asia Vital Components can act as a hedge vs. a Long Nvidia position. Below we explain why.
Prodia (PRDA IJ) – Going Digital with Precision
- Prodia is the leading diagnostics company in Indonesia, with over 40% market share as the most trusted brand in the country, given accreditation from the College of American Physicians.
- The company was a huge beneficiary of all the testing over COVID with the result of a post-pandemic correction but sales should see a strong 2H2023 with more like-for-like comparisons.
- Prodia (PRDA IJ) remains one of our top healthcare picks in Indonesia, with rising health consciousness driving higher demand for testing. Valuations are extremely attractive versus Indian peers.
Delta Taiwan Vs. Thailand Monitor: Delta Thai Crashes After Parent Share Sale; Still Overvalued
- Delta Thailand shares crashed over 20% in one day after its Taiwan parent sold a stake in the company.
- Given the small size of the stake sale, we believe the share sale by the parent represents an opportunistic sale to crystallize value from Delta Thailand’s high share price.
- We spoke with Delta Taiwan to update our model. Delta Taiwan continues to offer much better value than Delta Thailand, earning more than double Thailand’s net profit with similar growth.
Taiwan Dual Listings Monitor: TSMC & UMC Trading Ranges Working; Short ASE Spread at Latest Level
- Our range for TSMC’s spread trading appears to be working. Premium has rebounded lately and we would Short if breaks above 9.8%.
- Our UMC trading range also appears to be working. We should Short if the premium increases slightly further to break 1%.
- One can consider Shorting ASE’s ADR premium at the current 10.8% premium level. After latest premium spike, risk appears skewed to the downside in the coming weeks.
Kaspi.kz: The Super-App of Kazakhstan
- Kaspi.kz is the local super-app in Kazakhstan, with payments, marketplace, and Fintech as its three main business segments.
- The company has achieved strong topline and bottom line growth since listing with a RoAE >70% over the years and its share price having gone up ~3x.
- Key concerns arise from its political ties and future growth potential, given the country’s relatively low population/user size.
VF Corporation: Understanding the Dynamics Behind The Recent Financial Performance! – Major Drivers
- VF Corporation delivered a mixed result in the past quarter, with revenues above anticipations, but it failed to surpass the analyst consensus in terms of earnings.
- While their on-time performance and in-stock percentages were both back in line with their expectations, lead times concluded the quarter at typical levels.
- Vans experienced a 22% decline in the quarter and was significantly impacted by the brand’s expected 40% decline in wholesale sales in the Americas.
China Healthcare Weekly (Sep.29) – Be Rational About Biotech Investment, R&D Team Layoffs, Huadong
- We have discovered something interesting from the innovative drug evaluations disclosed by the NMPA over the years. It’s recommended to establish rational expectations for the investment return of biopharmaceutical industry.
- We analyzed the different situations faced by Biotech in IPO/M&A process, so as to help investors make rational judgments. R&D team is likely to be cut regardless of the circumstances.
- We updated views on Huadong. Its old businesses dragged down valuation. It may need to wait until Huadong delivers better-than-expected sales/profit growth in weight-loss management business before further boosting valuation.
Emerald Holding: Does Onex Exploring A Sale Imply That The Company Has A Limited Upside?
- This is a special one-time report on Emerald Holding that is creating ripples in the news circuit, courtesy of the exploration endeavors by its predominant shareholder, Onex.
- Emerald Holding, though operating with a low profile, has been wielding a silent yet significant influence over the events sphere.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
PROS Holdings Acquisition Alert: A Golden Opportunity or a Mirage for Investors?
- This is a special one-time report on PROS Holdings which has garnered attention due to speculation around a potential sale, as noted in a Reuters report.
- Despite its significant role and contributions to various industries, including airlines, PROS has encountered notable challenges, struggling to achieve profitability.
- Thus, the pertinent questions that arise are related to the feasibility of an acquisition of PROS Holdings and the potential premium that early investors might garner from such a transaction.
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