In today’s briefing:
- Semiconductor Memory Segment Q4 2022 Review, 2023 Outlook
- Good Morning Japan |Now Its Credit Suisse-Markets Rattled; NUGGET: Fuel for Japan’s Defense Stocks
- IVF: Secular Growth for Decades to Come.
- Investors’ Capital Allocation Shift Among Korean Banks Post Collapse of SVB Financial
- Semiconductor Silicon Wafers Segment Q4 2022 Roundup & 2023 Outlook
- The Stocks to Own in Thailand – Vol. 40
- China TMT Update(Mar.16): BABA/JD/PDD/VIPS/TikTok – PDD Reveals Ambitious Goal in Temu Conference
- Weekly Sustainable Investing Surveyor: Week Ended March 10, 2023
- January Mattress Imports Bump Higher Versus December; Sourcing from Vietnam Rebounds
Semiconductor Memory Segment Q4 2022 Review, 2023 Outlook
- H2 2022 was a brutal half year for memory. H1 2023 doesn’t look any better.
- We anticipate a trough in Q1 2023, sequentially flat Q2 followed by modestly increasing revenues through H2.
- Micron’s upcoming earnings on March 28 will be the next significant data point regarding the state of the memory segment.
Good Morning Japan |Now Its Credit Suisse-Markets Rattled; NUGGET: Fuel for Japan’s Defense Stocks
- OVERSEAS. Credit Suisse Rattles Markets; Spurs Equity sell off in flight to Safety trade; UST 2Yr Yld back below 4%; Crude Extend losses amid Banks sector worries;
- JAPAN. NKY Futs -2.6% vs Cash; USDJPY 133.4. NKY Futs surprisingly weak given JP untouched by turmoil; Govt considers Cash transfers to poor households; Inbound recovery Continues
- NUGGET. As Japan Hosts “Defense and Security Equipment International (DSEI) JAPAN” trade show this week, it will highlight opportunities for local defense contractors overseas.
IVF: Secular Growth for Decades to Come.
- The IVF industry is booming, driven by couples having children later in life as well as infertility problems.
- There should be plenty of opportunities for IVF clinic operators, including for Jinxin Fertility which may benefit if the Chinese government introduces subsidies for IVF procedures. But the acquisitive nature of many IVF-related companies has caused their returns on equity and earnings per share growth to be weak.
- One stock that trades at a low multiple with fat profit margins is Organon, though be aware of its ongoing patent cliffs, which may be the reason it was spun off in the first place.
Investors’ Capital Allocation Shift Among Korean Banks Post Collapse of SVB Financial
- Svb Financial has collapsed and Credit Suisse is on the verge of collapse. We discuss a trading strategy on Korean banks amid the ongoing turbulence on the global banking system.
- Our trading strategy is to go long on a basket of three largest banks in Korea (KB, Shinhan, Hana) and go short on a basket of five smaller banks.
- Post collapse of SVB Financial, one clear signal appears to be increasing global capital allocation to the “too big to fail banks” and reduced capital allocation to regional banks.
Semiconductor Silicon Wafers Segment Q4 2022 Roundup & 2023 Outlook
- Worldwide silicon wafer shipments declined ~4% sequentially in Q4 2022. We anticipate a further 10% sequential decline in area shipments in Q1 2023
- For 2023, we expect wafer shipments to decline by around 5% YoY with weakness in H1 offset by strength in demand in H2.
- Despite the decline in area shipments, we expect the sector to remain strongly profitable, bolstered by the impact of Long Term Agreements and customer prepayments.
The Stocks to Own in Thailand – Vol. 40
- We highlight 14 stocks in Thailand that look interesting to us based on our FVMR Methodology
- Portfolio changes: Five stocks remain, nine new join the fray
- Since inception, it has gained 96% versus the SET 100 Index’s return of 29%
China TMT Update(Mar.16): BABA/JD/PDD/VIPS/TikTok – PDD Reveals Ambitious Goal in Temu Conference
- PDD: PDD reveals ambitious goal in Temu offline conference (+)
- BABA/JD/VIPS/3690.HK: 5% YoY rebound in January/February retail data, but slower than expected (-/-/-/+)
- TikTok：TikTok is ready to launch search ads, minior impact to Google
Weekly Sustainable Investing Surveyor: Week Ended March 10, 2023
- The WTR Sustainable Index underperformed the broader market, falling 10.3% W/W versus the S&P 500 Index (down 4.5%), the Russell 2000 Index (down 8.1%), and the Nasdaq Composite Index (down 4.7%).
- Advanced Transportation Solutions (67.9% of the index) drove the index underperformance, falling 12.4%, while Industrial Climate and Ag Technology (23.6% of the index) was down 3.4% and Energy Technology was down 10.3%.
- Top 10 Performers: WWR, ABML, EFOI, LPEN, AMYZF, FCSMD, REE, PPSI, JEV.V, TPIC
January Mattress Imports Bump Higher Versus December; Sourcing from Vietnam Rebounds
- This note addresses the January 2023 mattress import data posted on the Department of Commerce, US International Trade Commission DataWeb at https://dataweb.usitc.gov.
- We track imports for three specific Harmonized Tariff System 10-digit codes (HTS-10) that define adult mattresses.
- HTS import unit and customs value data are normally posted ~70 days after the month-end of the month being reported.
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