In today’s briefing:
- Taiwan Dual-Listings Monitor: TSMC Continues Falling from Extreme Level; CHT at Unusual Discount
- Mediatek: Accelerating Momentum in Automotive, Data Center, and AI Memory Solutions
- Taiwan Tech Weekly: Quanta Surging on Nvidia Server Orders; Nanya Results Ahead; Intel Foundry Event
- Monthly Chinese Tourism Tracker | Decision to Slow Capacity Rebuild in Mid-2023 Now Looks Prudent
- Centurion Corp (CENT SP) – Paving the Way for Workers and Students
- Tencent/Netease: Both Zeroed in March Game Approval
- China Healthcare Weekly (Mar.31)- Milestone of Chinese Pharmaceutical Assets, Weight Loss Drug, Aier
- Post Nvidia GTC Industry Impact: Large Quanta Server Win Just the Beginning of an Order Wave?
- Reborn from Ashes and Possible Target
- WuXi XDC Cayman (2268.HK) – Don’t Rush to Bottom Fish This Stock
Taiwan Dual-Listings Monitor: TSMC Continues Falling from Extreme Level; CHT at Unusual Discount
- TSMC: +11.8% Premium — Falling Closer to Its Historical Range
- ASE: +9.2% Premium; Further Breakdown Could Indicate Return to Previous Trading Range
- CHT: -1.8% Discount — Good Level to Long the Spread
Mediatek: Accelerating Momentum in Automotive, Data Center, and AI Memory Solutions
- Mediatek is advancing full speed with recent industry collaborations for automotive chips, data center connectivity solutions, and AI memory solutions.
- In particular, the company has entered the market for Co-Packaged Optics (CPO), with partnerships announced with Foxconn and Ranovus.
- While the stock has rallied and re-rated, consensus forward estimates do not appear overly demanding and could still have room to increase further.
Taiwan Tech Weekly: Quanta Surging on Nvidia Server Orders; Nanya Results Ahead; Intel Foundry Event
- Quanta surged with major server wins from Meta, Alphabet, and Amazon. Nanya Tech results are two weeks ahead and Intel will host a webinar this week about its Foundry business.
- Mediatek: Accelerating Momentum in Automotive, Data Center, and AI Memory Solutions
- Hon Hai (Foxconn): After the 50% Surge, Where Can It Go From Here?
Monthly Chinese Tourism Tracker | Decision to Slow Capacity Rebuild in Mid-2023 Now Looks Prudent
- Chinese outbound travel demand continued to recover nicely in February
- Major airlines’ decision to slow capacity rebuild now looks very prudent
- But the airlines have underperformed, surprisingly; Buy Trip.com below US$43
Centurion Corp (CENT SP) – Paving the Way for Workers and Students
- Centurion Corp (CENT SP) is the leading light in purpose workers’ accommodation in Singapore and Malaysia, with high occupancy rates and healthy rental reversions, with a long-term secular growth backdrop.
- The company is also involved in purpose-built student accommodation in centres of excellence for education including the UK, Australia, and the US in a highly sought-after asset space.
- The outlook for both worker and student accommodation looks positive for the coming two years. Valuations look attractive with Centurion Corp trading at a 56% discount to NAV.
Tencent/Netease: Both Zeroed in March Game Approval
- China announced game approval for the Feb batch. The number of games approved remained at a higher level than 2023.
- The pace of China game approval appears to have accelerated to the same level as pre-tightening.
- However, neither Tencent and Netease got any approval in March.
China Healthcare Weekly (Mar.31)- Milestone of Chinese Pharmaceutical Assets, Weight Loss Drug, Aier
- Licensing-Out deals of Chinese pharmaceutical assets are indeed significant milestones, but we should not exaggerate its significance. The product strength itself/subsequent progress are the true sources of clinical benefits/commercial value.
- In the field of weight loss drugs, first-mover advantage may not be that obvious. The possibility of latecomers to disrupt first-mover would not be that low or time-consuming.
- For Aier, 23Q4 results could show an obvious rebound, leading to relatively high growth in 2023 full year. However, Aier’s problems are still there, which means Aier is not undervalued.
Post Nvidia GTC Industry Impact: Large Quanta Server Win Just the Beginning of an Order Wave?
- Just a week after Nvidia’s GTC conference, Quanta has reportedly secured large orders for new Nvidia Blackwell-based servers from Google, Amazon AWS, and Meta.
- Other firms showcasing Nvidia servers at GTC include Wiwynn, Gigabyte, Pegatron, Asus, Hon Hai (Ingrasys), Wistron, Dell, and Super Micro. There could be a higher probability of new order wins.
- Stock Focus: Asustek — Improving outlook as a play on both AI PCs and AI servers.
Reborn from Ashes and Possible Target
- The Italian Treasury sold an additional 12.5% stake in Banca Monte dei Paschi di Sien (BMPS IM), raising €650 million as part of re-privatization efforts following the 2021 failed attempt.
- The Treasury’s divestment makes BMPS more appealing for buyers. BMPS still trades at attractive valuation multiples. The bank announces approval from the ECB for a €0.25 cash dividend per share.
- Economy Minister Giorgetti and PM Meloni aim to boost competition through privatization, favoring a merger with another mid-sized Italian bank, possibly BPER Banca or Banco BPM.
WuXi XDC Cayman (2268.HK) – Don’t Rush to Bottom Fish This Stock
- Theoretically, there’s no need to doubt WuXi XDC’s growth momentum. What needs to be proven is how large the actual ADC market is, which determines how much valuation it deserves.
- However, the biggest problem currently is geopolitical risks, which make performance forecasts groundless. In the context of Sino-US confrontation, there is “a hesitation” towards sustained high growth of WuXi XDC.
- If several pieces of news are put together, this is not just about China CXO/TikTok being sanctioned by US. New balance point in the game between great powers will emerge.
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