In today’s briefing:
- KYEC (2449.TT): The Revenue Outlook Will Be an Upward Pickup in 2024F.
- Convenience Wear: Familymart Competes with Uniqlo in Basics
- 23 Dividend Yielding Mid Caps – Report Card For 2023
- Tencent/Netease: Netease Tops ’23 League Table with Most Games Approved
- MediaTek (2454.TT): The Revenue Is Likely Upside Around 10% QoQ in 1Q24F.
- Indocement Tunggal (INTP IJ) – A More Sustainable Cement Player
- Monthly Chinese Tourism Tracker | No “Pent-Up Demand”! | Weak YTD Returns, Too | (December 2023)
- Power Semiconductor Specialist Will Benefit from AI Yet Lagging Key Customers’ Share Price Rallies
- China Healthcare Weekly (Dec.25) – Stock Picking Strategy, Logic Flaws Behind a Good Story, Tigermed
- Taiwan Dual-Listings Monitor: TSMC Premium at a Decent Short Level; ASE Short Interest Declining
KYEC (2449.TT): The Revenue Outlook Will Be an Upward Pickup in 2024F.
- It’s a greater chance that there will be an upward pickup in 2024F revenue for King Yuan Electronics Co, Ltd. (2449 TT), but the magnitude is hard to predict in 1H24.
- It is expected the revenue to decline by approximately -5% in 1Q24F.
- However, the demand for CoWoS at a corporate level is expected to increase by about 10% in 2024F .
Convenience Wear: Familymart Competes with Uniqlo in Basics
- The almost viral popularity of Familymart’s line of basic clothing items continues to grow and shows the real potential for convenience stores to diversify and adapt.
- Backed by Itochu, Familymart has expanded the product range and added new, limited edition items and brand collaborations, creating a success story that Seven Eleven may find hard to emulate.
- Lawson, however, is controlled by Mitsubishi Corp which happens to have a clothing production arm that was behind the early success of Uniqlo and Adastria.
23 Dividend Yielding Mid Caps – Report Card For 2023
- We compile a report card for dividend-yielding mid-caps that filter out on favorable characteristics of having net cash, decent ROEs, growth, etc.
- It’s been a disappointing year in share price performance owing to the negativity surrounding China and soft business performance in some cases, but there have been some bright spots.
- We help provide a comprehensive list of our updates on some names and an outlook for 2024. It’s our last insight for 2023, so happy new year everyone!
Tencent/Netease: Netease Tops ’23 League Table with Most Games Approved
- China announced game approval for the December batch. The number of games approved has increased compared to recent months.
- The pace of China game approval appears to be accelerating, to the same level as pre-tightening.
- Netease scored two approvals while Tencent scored one. Netease finished the year with the most games approved.
MediaTek (2454.TT): The Revenue Is Likely Upside Around 10% QoQ in 1Q24F.
- For the upcoming revenue outlook, MediaTek Inc (2454 TT) is likely to reach an upside of around 10% QoQ in 1Q24F.
- MediaTek plans to release 12 million units of the Dimensity 9000 series in 2024F.
- Mediatek’s target markets include China, India, and Southeast Asia, with China remaining the primary market of focus.
Indocement Tunggal (INTP IJ) – A More Sustainable Cement Player
- Indocement (INTP IJ) is trading close to 2-year lows, which seems unjustified given the ongoing recovery and a more positive outlook for FY2024.
- The company continues to grow its distribution reach to satisfy demand from IKN in Kalimantan, smelters in Sulawesi, and East Indonesia, with acquired Semen Grobogan feeding Central Java.
- Indocement (INTP IJ) continues to build on its sustainable credentials through the use of alternative fuels and reducing emissions and dust. Valauations are attractive trading on 6.8x FY2024E EV/EBITDA.
Monthly Chinese Tourism Tracker | No “Pent-Up Demand”! | Weak YTD Returns, Too | (December 2023)
- “Pent-Up demand”? No signs of it anywhere in outbound or domestic metrics
- Sluggish outbound demand, capacity trajectories continued to lag in November
- YTD share performance weak, mirrors disappointing recovery in travel activity
Power Semiconductor Specialist Will Benefit from AI Yet Lagging Key Customers’ Share Price Rallies
- UPI Semi is a specialist designer of electronic components and semiconductors for power management. Power management is a key performance factor for AI devices.
- UPI’s clients include most of the world’s largest leading technology companies for semiconductor distribution and AI products.
- UPI shares have lagged the strong performance of its clients — We see opportunity for UPI to now Outperform.
China Healthcare Weekly (Dec.25) – Stock Picking Strategy, Logic Flaws Behind a Good Story, Tigermed
- In the Chinese pharmaceutical industry, stock selection strategies can be divided into “defensive” and “offensive”. We need to combine the judgment of the cycle to choose a stock picking strategy.
- Domestic innovative pharmaceutical companies have the opportunity to create a high gross-margin incremental market of over RMB1 trillion through successful internationalization, but we pointed out the logical flaw behind.
- We analyzed the key points of Hangzhou Tigermed Consulting (3347 HK). It seems insiders don’t have firm confidence in the prospects, so why should investors rush to buy the bottom?
Taiwan Dual-Listings Monitor: TSMC Premium at a Decent Short Level; ASE Short Interest Declining
- TSMC: 10.5% Premium — Still a Good Level to Short the Spread
- UMC: Trading at -1.1% Discount — Uncompelling, Wait for Deeper Discount
- ASE: 8.8% Premium — Still Wait for Lower Levels Before Going Long
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