In today’s briefing:
- Taiwan Dual-Listings Monitor: TSMC Spread Near Short Level; ASE & ChipMOS Spreads Good Short Levels
- Shimano (7309) | Gears Grinding
- A Pair Trade Between DL Holdings and DL E&C
- Nvidia Is Getting Hit by Tariffs—But Here’s How It Plans to Fight Back!
- Conagra Brands: Powering Through Inflation with Bold Pricing & Sourcing Moves!
- Concentrix Corporation: Expanding Client Base & Capitalizing On Consolidation Opportunities…
- Lions Gate Entertainment Strikes Gold with New TV Hits & Bold Digital Expansion!
- Intel’s High-Stakes Reboot: Can the TSMC Tie-Up and Lip-Bu Tan’s Strategy Save the Chip Giant?
- CLEAR Secure: The Biometric Technology Advancements & Critical Growth Enablers!
- Daiseki Co Ltd (9793 JP): Full-year FY02/25 flash update
Taiwan Dual-Listings Monitor: TSMC Spread Near Short Level; ASE & ChipMOS Spreads Good Short Levels
- TSMC: +18.9% Premium; Soon at a Good Level to Short the Spread
- ASE: +6.5% Premium; Good Level to Short the Spread Given Trading Range Breakdown
- ChipMOS: +6.6% Premium; 2% And Higher Good Level to Short the Spread
Shimano (7309) | Gears Grinding
- US tariffs could sharply cut Shimano’s H2 operating profit by up to 57%, despite limited direct exposure, due to opaque supply chains via China and Taiwan.
- Valuation would look stretched at 25x EV/EBIT versus historical 20x, if earnings fall short of current guidance.
- Shimano’s ¥530bn net cash pile offers room to boost shareholder returns through buybacks or dividends.
A Pair Trade Between DL Holdings and DL E&C
- In this insight, we discuss a pair trade between DL Holdings Co (000210 KS) (go long) and DL E&C (375500 KS) (go short).
- In the past three months, DL Holdings’ share price is down 9.9% versus DL E&C which is up 21%. We believe this gap has become too excessive.
- The shares sold short volume/total traded volume ratio is more than double for DL E&C versus DL Holdings from 31 March to 9 April.
Nvidia Is Getting Hit by Tariffs—But Here’s How It Plans to Fight Back!
- The semiconductor sector has been rattled by a wave of tariff escalations, with Nvidia at the center of attention.
- President Donald Trump’s recent imposition of steep new tariffs—34% on imports from China and 32% on Taiwan—sent shockwaves across the global technology industry.
- While semiconductors were initially exempted from the levies, the ambiguity in policy messaging and the potential for future inclusion have raised investor concerns.
Conagra Brands: Powering Through Inflation with Bold Pricing & Sourcing Moves!
- Conagra Brands recently reported its third-quarter fiscal 2025 financial results.
- A nuanced analysis reveals both strengths and challenges the company is navigating in a dynamic macroeconomic environment.
- On the positive side, Conagra Brands highlighted robust consumer demand for its products.
Concentrix Corporation: Expanding Client Base & Capitalizing On Consolidation Opportunities…
- Concentrix Corporation presented a mixed overview of its performance for the first quarter of fiscal 2025, achieving revenue growth and profitability ahead of guidance, yet facing strategic and operational challenges.
- On the positive side, Concentrix reported a solid demand environment, with a particular emphasis on the growing adoption of their GenAI solutions across its client base, claiming one of the largest scales in global deployments of such technology.
- The company emphasized its strategic focus on integrating AI solutions and expanding its business portfolio to deliver value across a broader client base.
Lions Gate Entertainment Strikes Gold with New TV Hits & Bold Digital Expansion!
- Lionsgate secured a solid performance in the third quarter of fiscal 2025, demonstrating resilience in a challenging operating environment.
- The Motion Picture segment was particularly strong, highlighted by the successful conversion of three mid-budget films into profitable ventures.
- This performance underscores Lionsgate’s ability to effectively manage mid-range budget productions, capitalizing on steady box office showings, robust business models, and efficient execution.
Intel’s High-Stakes Reboot: Can the TSMC Tie-Up and Lip-Bu Tan’s Strategy Save the Chip Giant?
- Intel is navigating one of the most pivotal moments in its corporate history as new CEO Lip-Bu Tan begins implementing a series of structural reforms aimed at reversing the chipmaker’s prolonged decline.
- In recent weeks, a series of bold announcements and market-moving headlines have brought Intel’s turnaround efforts back into the spotlight.
- The most notable development is a tentative joint venture with Taiwan Semiconductor Manufacturing Company (TSMC), where TSMC is expected to take a 20% stake in Intel’s loss-making manufacturing business in exchange for sharing advanced foundry techniques.
CLEAR Secure: The Biometric Technology Advancements & Critical Growth Enablers!
- CLEAR, known for its identity verification platform, reported its fiscal fourth quarter and full-year 2024 results demonstrating both opportunities and challenges.
- The company continues to expand its footprint in the travel sector, with a notable presence in 73% of U.S. airports through 166 lanes nationwide.
- The rollout of the NextGen Identity technology, including innovative systems such as EnVe’s (enrollment and verification Pods), has been a focal point—improving member throughput and enhancing the customer experience significantly.
Daiseki Co Ltd (9793 JP): Full-year FY02/25 flash update
- Daiseki’s FY02/25 sales declined 2.8% YoY to JPY67.3bn, exceeding the forecast of JPY66.0bn.
- Operating profit fell 3.3% YoY to JPY14.3bn, impacted by TOB-related expenses and heavy snowfall.
- FY02/26 forecast: Sales JPY70.0bn (+4.0% YoY), operating profit JPY15.7bn (+9.7% YoY), OPM 22.4% (+1.1pp YoY).
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