In today’s briefing:
- Ohayo Japan | Significant Reversal
- China & HK Strategy: Stocks Exposed to the US and Higher Tariffs
- Japan Morning Connection: Potential for Ibiden and Renesas to Be Seen as NVDA Plays
- Silicon Wafers Q324 Area Shipments, Revenue, EBIT, Outlook & More
Ohayo Japan | Significant Reversal
- US stocks plummeted on Friday, with the S&P 500 dropping 1.3% and the Nasdaq Composite falling 2.2%.
- Investors face a sparse economic calendar next week, with Nvidia’s quarterly earnings taking center stage
- Sony Honda Mobility will showcase its luxury electric vehicle, AFEELA, at CES 2025 in Las Vegas.
China & HK Strategy: Stocks Exposed to the US and Higher Tariffs
- Our list of HK-listed industrial companies indicated that the US generated an average of 22.9% of sales. With diversified production bases, higher tariffs may only affect ~10% of revenue.
- Vesync (2148 HK), Chervon Holdings (2285 HK), and AAC Technologies Holdings (2018 HK) are more exposed given their significant US sales yet most production is still in China.
- While the US generated over 50% of the revenue of Techtronic Industries (669 HK) and Nexteer Automotive (1316 HK), they are less exposed given their worldwide manufacturing presence.
Japan Morning Connection: Potential for Ibiden and Renesas to Be Seen as NVDA Plays
- AMAT numbers sends US SPE lower on Friday which should spill over into Japan.
- Trump’s Energy Secretary nomination may be a short term positive for oil and gas related, longer-term questionable.
- Both Ibiden and Renesas have potential to be rerated on their NVDA exposure, but market indifferent so far.
Silicon Wafers Q324 Area Shipments, Revenue, EBIT, Outlook & More
- Silicon wafer area shipments in Q324 amounted to 3,214 million square inches (MSI), up 5.9% QoQ and up 6.8% YoY,
- Q324 saw the combined revenues from the top four players in the segment reaching $2.5 billion, up 0.5% QoQ and up 6.5% YoY
- Top 4 EBIT amounted to just $337 million, up 1.5% QoQ but down 38.9% YoY.
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