In today’s briefing:
- Good Morning Japan |Yellen/Powell Rattles Markets; NUGGET: NIKON – Riding the DigiCam Renaissance
- Intel’s GPU Guru Departs. Very Abruptly.
- Intel Foundry Chief Announcement Spells Trouble For The Tower Semi Acquisition
- China SOEs – Waiting for Core Asset Valuation to Take Off
- Ecognosis Advisory Ltd – ECONOTE No. 111 Investing in the Defence Sector
- Key Takeaways from IRENA’s Global Landscape of Renewable Energy Finance 2023 Report
- Tech Talk: Digital Transformation
- China TMT Update(Mar.23): 3690HK/PDD/BABA – Surplus Meituan Delivery Riders Could Improve Margins
Good Morning Japan |Yellen/Powell Rattles Markets; NUGGET: NIKON – Riding the DigiCam Renaissance
- OVERSEAS. Fed Chair Powell delivers expected +25bps; Hawkish pledge on inflation + Yellen’s testimony rattles markets; Safety trade reasserts; Seems like more volatility ahead for all markets.
- JAPAN. NKY Futs -1.7% vs Cash; USDJPY strengthens to 131.4 n rush to safety; Monetary nomalization on course in Japan – solid Land price gains + continued wage hikes.
- NUGGET. NIKON – Riding the Digital Camera Renaissance. Camera demand has stabilizes and is recovering as consumers shift to high end models.
Intel’s GPU Guru Departs. Very Abruptly.
- While his hiring back in 2017 was heralded with a corporate press release, his abrupt departure yesterday was communicated via a rather succinct tweet from the CEO.
- Intel’s GPU/DPU data center roadmap was already “simplified” in back in January. Will what remains survive the ongoing cuts across the company?
- Should Intel still really be trying to break into the gaming PC market? How is that strategically important?
Intel Foundry Chief Announcement Spells Trouble For The Tower Semi Acquisition
- The role has been vacant for > 3 months. Why wait till now to chose an obvious in-situ candidate?
- Closure date for the Tower acquisition has been pushed out to H1 2023 from Q1 2023 according to an Intel filing on January 27 last
- Intel’s fortunes have changed dramatically for the worse over the past year. It’s debatable whether the Tower acquisition makes sense any more.
China SOEs – Waiting for Core Asset Valuation to Take Off
- In most industries, SOEs have valuation discounts compared to non-SOEs, and the degree of PB discount is more obvious than P/E ratio. A prominent problem is the uneven valuation structure.
- Valuation reflects expectations for future fundamentals. The improvement in SOE performance with limited valuation boost may be due to investors’ consideration of growth potential, governance mechanisms, and information asymmetry.
- With the further deepening of SOE reform and the formation of the concept of building a modern capital market with Chinese characteristics, it’s expected to see improvement in SOE’s valuation.
Ecognosis Advisory Ltd – ECONOTE No. 111 Investing in the Defence Sector
- In Econote No. 110 ( Nov.Dec 2022) we broached the topic of investing in the Defence sectors of various West and Asian economies.
- The reasons for this were very simple: First, the war in the Ukraine resulted to a sharp rise in defence spending in western countries and, second, this rise would not cease with the end of the war but presented a pivot to higher defence spending, not only in western countries, but also in areas such as Asia.
- Hence the outlook for Defence stocks was, and is very bright, as witnessed by their persistent outperformance of the S&P 500 and still reasonable valuations.
Key Takeaways from IRENA’s Global Landscape of Renewable Energy Finance 2023 Report
- We have made our best efforts to summarize the content published in the most recent IRENA report on renewable energy financing.
- This report provides a quick summary of key facts from the 120-plus-page report.
- While worldwide investment in renewable energy reached a record high of US$0.5 trillion in 2022, it represented less than 40% average expenditure required under IRENA’s 1.5°C Scenario between 2021 and 2030.
Tech Talk: Digital Transformation
- The digital transformation services market is big, at more than $2 trillion this year, and growing at a 23% CAGR.
- According to Gartner, 91% of organizations have a digital initiative currently ongoing and 67% of senior executives believe their organizations must become significantly more digitized.
- The reason digital transformation is growing is the benefits of a true digital transformation are significant, including improved operations, time-to-market, and customer experience, and COVID-19 just accelerated the trend.
China TMT Update(Mar.23): 3690HK/PDD/BABA – Surplus Meituan Delivery Riders Could Improve Margins
- 3690HK: Surplus Meituan delivery riders could improve margins beginning in 1Q23 (+)
- PDD: Temu temporarily suspended inventory intake at Guangzhou warehouse because of shortage in labor and warehouse storage capacity (-)
- BABA：Taobao is testing “price comparison” feature, which might impact its take rate（-）
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