In today’s briefing:
- The Core of CFD Margin Call Risk May Lie in the JPM Counter, Not SG: Potentially Infected Names
- Travelsky (696): The Ignored Travel Stock of China
- Long Acer Vs. Short Asustek: 6.9% Performance in One Week, Can REVERSE the Trade Again
- Taiwan Tech Weekly: PC Market Bottoming, AMAT, Quanta Outperforms Peers, Samsung Tesla Meeting
- Hon Hai Sees Computing Products Rebound, PC Market Bottomed; EV Expanding
- ASUS Q1’23 Revenues NT$ 102,376 Million,- 13% QoQ & -20% YoY. PC Segment to Grow ~20% in Q2’23
- Near and Clear
The Core of CFD Margin Call Risk May Lie in the JPM Counter, Not SG: Potentially Infected Names
- The possibility of experiencing a CFD margin call is a genuine and persistent concern. Even a small trigger causes selling pressure to intensify and results in a rapid downward trend.
- The counter that the local market is closely monitoring is JPM. The selling pressure from the JPM counter since May 8th has exhibited an abnormal pattern.
- Eight names are screened. They are KOSPI 200/KOSDAQ 150 constituents with JPM’s net selling volume to SO being 0.2% or higher, and a margin-equity ratio of 3% or higher.
Travelsky (696): The Ignored Travel Stock of China
- Travelsky Technology Ltd H (696 HK) is the IT provider for airports in China thus it should be one of the stocks to benefit from China’s reopening.
- Despite already operating at a profit, the share price is still lagging behind the other travel-related names that are still loss-making.
- Its operating numbers have already reached the 2019 level, a pre-COVID era, thus the opportunity to rebound is abundant.
Long Acer Vs. Short Asustek: 6.9% Performance in One Week, Can REVERSE the Trade Again
- Since we released our piece suggesting closing our original Long Asustek vs. Short Acer, and reversing to Long ACER vs. Short Asustek, this new trade has earned a 6.9% spread.
- Given the latest performance between the two shares and the latest results from Asustek, we believe one can now close out Long Acer/Short Asustek… and reverse the trade again.
- Hence we now like Long Asustek vs. Short Acer based on relative share performance and latest guidance from Asustek.
Taiwan Tech Weekly: PC Market Bottoming, AMAT, Quanta Outperforms Peers, Samsung Tesla Meeting
- This week is relatively in terms of earnings. Applied Materials (AMAT US) will however be reporting on the 18th U.S. time.
- Hon Hai sees the PC market bottoming; Separately, we’ve closed our Long Acer vs. Short Asus and reversed it to Long Asus vs. Short Acer again.
- Quant shares have surged post results, dramatically outperforming Apple and other key Apple suppliers.
Hon Hai Sees Computing Products Rebound, PC Market Bottomed; EV Expanding
- In our view, Hon Hai 3Q23 results showcased stability for 2023E ahead of expected growth in 2024E-2025E.
- The company has maintained its 2025E 10% gross margin target and highlighted how its EV business expansion is continuing.
- While Consumer Electronics revenue is expected to fall this year, PC Products is expected to grow given the company believes the PC market has bottomed. Stay Long Hon Hai.
ASUS Q1’23 Revenues NT$ 102,376 Million,- 13% QoQ & -20% YoY. PC Segment to Grow ~20% in Q2’23
- Q1’23 revenues of NT$ 102,376 million, down 13% QoQ and down 20% YoY
- Forecasting PC segment +20% but Components segment -5% QoQ in Q2’23
- Outperforming both peers & the market with >50% revenues now coming from gaming…
Near and Clear
- In the digital era, data is the bedrock of decision-making, fuelling business strategies worldwide.
- However, the tightening landscape of privacy regulations presents challenges in capturing and utilizing data, particularly for advertisers and marketing departments across industries.
- In this complex backdrop, Near, a data intelligence startup, asserts its unique proposition of providing actionable, anonymized insights via its cloud-based AI platform.
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