In today’s briefing:
- Taiwan Dual-Listings Monitor: TSMC Spread on Brink of Falling to Past Levels; UMC Extreme Premium
- Taiwan Tech Weekly: TSMC Sales Beat High Expectations; Wiwynn GDR Offering; IPhone 17 to Use 2nm
- Tesla Q2 Earnings Preview: All Eyes on China, Energy Storage, & Robotaxi
- Mongolia Elections Behind Us and Rio Versus Entree Arbitration Ruling Expected by Late 3Q24
- The United Laboratories Company Ltd (3933 HK) – A Sub Five PE Bargain!
- An Interview with Wes Cummins, CEO of Applied Digital
- Doosan Enerbility: A Key Beneficiary of Potential Nuclear Power Projects Win in the Czech Republic
- General Electric Company: Is The Healthy Demand In Renewables Here To Stay? – Major Drivers
- J.B. Hunt Transport Services: Expanded Intermodal Services Driving Our Bullish Thesis! – Major Drivers
- Nanya Technology: Latest Results & Guidance Make 2024E Consensus Hard to Achieve; Underperform
Taiwan Dual-Listings Monitor: TSMC Spread on Brink of Falling to Past Levels; UMC Extreme Premium
- TSMC: +15.1% Premium; Will It Break Down to Lower Past Trading Levels?
- UMC: +2.4% Premium; Can Consider Shorting This Historically High Level
- ChipMOS: -3.1% Discount; Long The Spread Given Historically Extreme Discount
Taiwan Tech Weekly: TSMC Sales Beat High Expectations; Wiwynn GDR Offering; IPhone 17 to Use 2nm
- TSMC June Sales Surge Higher Than Expectations; Apple Will Be Use TSMC’s 2nm Node for Next Year’s iPhone 17
- Wiwynn GDR Offering – US$1.45bn Dilutive Offering, but Momentum Has Been Very Strong
- Silergy (6415.TT): Trial-Run with Vanguard, and Recent Stock Drops Represent an Entry Opportunity.
Tesla Q2 Earnings Preview: All Eyes on China, Energy Storage, & Robotaxi
- Energy Growth: Tesla’s energy storage business surged to 9.4 GWh in Q2, a 135% increase from Q1’s 4 GWh.
- China’s Impact: Shanghai Gigafactory shipments fell 24.2% YoY in June, delivering 71,007 units amid a Chinese price war.
- FSD & Robotaxi: Full Self-Driving price cut to $8,000 from $15,000; investors await Robotaxi Day on 8/8.
Mongolia Elections Behind Us and Rio Versus Entree Arbitration Ruling Expected by Late 3Q24
- Entree Resources (ETG CN) has been in an arbitration proceeding against Rio Tinto PLC (RIO LN) since April 2024.
- After initial hearings earlier in 1H24 we expect final arguments next week. The arbitration committee verdict should come by late 3Q24.
- At stake is the relationship and ownership arrangement between ETG and RIO’s in Oyu Tolgoi, one of the world’s largest copper mines. Just concluded Mongolian elections clear the last hurdle.
The United Laboratories Company Ltd (3933 HK) – A Sub Five PE Bargain!
- At a 4.6 FPE, you would expect to find some real concerns, however there are no gremlins anywhere?
- What you are buying is an antibiotic developer and distributor who is performing better than expected, given that the antibiotic market is thriving.
- The extensive pipeline including GLP-1 drugs is still at an early stage/midway through development, however at this valuation, you are probably not paying for it!
An Interview with Wes Cummins, CEO of Applied Digital
- Doug O’Laughlin: Today, on Fabricated Knowledge, I have the privilege of having Wes from Applied Digital on to talk about Applied Digital.
- Today, we’re gonna talk about the change in his business model. The company is experiencing a lot of changes, and there are a lot of new things in the pipeline.
- And so I just wanted to sit him down and have an opportunity to chat about that.
Doosan Enerbility: A Key Beneficiary of Potential Nuclear Power Projects Win in the Czech Republic
- The Czech Republic government is in the final stages of selecting companies to build four nuclear power plants which could cost nearly US$30 billion.
- A Korean consortium including KHNP, Doosan Enerbility, KEPCO E&C, and Daewoo E&C is competing mainly against EDF, a French government owned electric utility company.
- If the KHNP consortium is able to win this new order, Doosan Enerbility will be a key beneficiary as it will supply the nuclear reactors and steam generators.
General Electric Company: Is The Healthy Demand In Renewables Here To Stay? – Major Drivers
- General Electric Company, known as GE, recently marked a significant milestone by completing the spin-off of GE Vernova and launching GE Aerospace, positioning the company as a focused leader in the aerospace and defense industry.
- This transition follows the successful spin-off of GE Healthcare last year, achieving a strategic restructuring aimed at strengthening the company’s core operations and financial health.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
J.B. Hunt Transport Services: Expanded Intermodal Services Driving Our Bullish Thesis! – Major Drivers
- J.B. Hunt Transport Services, Inc. presented its First Quarter 2024 results delineating challenges primarily driven by continued market pressures, alongside optimistic notes on strategic positioning and long-term growth.
- The results highlighted a decline in revenues and profits, accentuated by inflationary pressures intermingling with deflationary pricing dynamics, reflecting the intricate operational environment the company navigates.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
Nanya Technology: Latest Results & Guidance Make 2024E Consensus Hard to Achieve; Underperform
- Nanya Tech reported a continued net loss in its latest 2Q24 results; the company’s gross margin has rebounded into positive territory but only marginally so.
- Server end demand strong, however PC and mobile remain flattish; the company expects some improvemnt in PC and mobile driven by AI trends but conservative on the impact for 2024E.
- We believe the Street may need to reduce their 2024E estimates; margin rebound is too small and guidance remains very conservative. We see near-term downside risk for Nanya Tech shares.
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