In today’s briefing:
- Alchip Technologies GDR Offering – Has Been Riding on an Unwavering Momentum over the past Year
- Hang Seng Internet & IT Index Rebalance Preview: ZX Inc Could Replace Flowing Cloud
- GlobalWafers (6488.TT): 1Q24F Outlook Could Be a Bit Downside, but 2Q24F Could Be Picking Upward.
- StubWorld: Unicom’s “Hs” Are Still Cheap
- Aequitas 2024 Asia IPO Pipeline – US ADRs
- Silergy (6415.TT): Nothing Fundamental Changed in Reality; Semiconductor Cycle Shall Be Bottomed Up.
Alchip Technologies GDR Offering – Has Been Riding on an Unwavering Momentum over the past Year
- Alchip Technologies (3661 TT) is looking to raise US$415m in its GDR offering. As per the firm, the proceeds from the GDR offering will be used to purchase raw materials.
- Offering 3.7m GDRs, the deal wouldn’t be a very large one for the firm to digest at just 1.6 days of its three month ADV.
- The deal is very well flagged one and momentum on the stock has been very strong.
Hang Seng Internet & IT Index Rebalance Preview: ZX Inc Could Replace Flowing Cloud
- The review cutoff date for the March rebalance of the HSIII was 29 December. The changes will be announced on 16 February and become effective after the close 1 March.
- We see a high probability of Zx Inc replacing Flowing Cloud Technology (6610 HK) in the index. There is a lower probability of 4Paradigm (6682 HK) replacing CMGE Tech (302 HK).
- Capping will result in passives buying Meituan (3690 HK) and selling Tencent (700 HK), Kuaishou Technology (1024 HK), JD.com (9618 HK) and Alibaba Group Holding (9988 HK).
GlobalWafers (6488.TT): 1Q24F Outlook Could Be a Bit Downside, but 2Q24F Could Be Picking Upward.
- The Globalwafers (6488 TT) outlook for 1Q24F is likely to show a slightly negative QoQ revenue trend. However, we anticipate a positive direction from 2Q24F onwards.
- We have a relatively high conviction for 2024F compared to 2023, indicating upside potential for the Memory and Logic sectors.
- The supply of 12″ raw wafers remains constrained among the top market players, and overcoming this constraint won’t be easy.
StubWorld: Unicom’s “Hs” Are Still Cheap
- China Unicom Hong Kong (762 HK) remains inexpensive with respect to parent China United Network A (600050 CH) – its hybrid domestic A-share twin – and to peers.
- Preceding my comments on Unicom, are the current setup/unwind tables for Asia-Pacific Holdcos.
- These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.
Aequitas 2024 Asia IPO Pipeline – US ADRs
- In this note, we will look at the Asia Pacific IPO pipeline for 2024, following up with US ADRs, after having looked at HK, India, Japan and Korea earlier.
- This list has been compiled on a best effort basis from tracking the company filings and through various other sources
- The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.
Silergy (6415.TT): Nothing Fundamental Changed in Reality; Semiconductor Cycle Shall Be Bottomed Up.
- The factor of seasonality will be evolved in 1Q24F, but 2Q24F should be picking up most likely.
- The Semiconductor cycle shall be reaching the bottom and no more correction, to our expectation.
- The recent changes of Silergy’s management didn’t affect the reality.
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