In today’s briefing:
- Delta Taiwan Vs. Thailand Monitor: Delta Thai Crashes Vs. Taiwan After Results, Can Correct Further
- Index Rebalance & ETF Flow Recap: KS200, KQ150, HSI, CSI300/500, STAR50, SSE50, ChiNext, PCOMP, HDFC
- Insiders At Seoul City Gas and Daou Data Corp Sell Shares Before the Crash
- Last Week in Event SPACE: China Mobile, Fast Retailing, Yuexiu Property, Vinda, Tokyo Gas
- ASE Technology: Semiconductor Packaging & Testing Demand Suprisingly Weak At End of Quarter
- Chewy Inc.: Growing Market Share In Pet Products – Key Drivers
- Lumen Technologies: Quantum Fiber Customers Saving The Day? – Key Drivers
Delta Taiwan Vs. Thailand Monitor: Delta Thai Crashes Vs. Taiwan After Results, Can Correct Further
- Both Delta Electronics Thailand and its parent Delta Electronics Taiwan reported results; both reports came in below analyst expectations.
- Delta Thailand shares have dropped 19% since our recent update. The company also did a 10 for 1 share split in an apparent bid to make the shares look ‘cheaper’.
- Delta’s EV business grew 100% YoY and is becoming a significant driver for the company. The pricing mis-alignment between Delta Thailand and Taiwan has corrected substantially.
Index Rebalance & ETF Flow Recap: KS200, KQ150, HSI, CSI300/500, STAR50, SSE50, ChiNext, PCOMP, HDFC
- Friday marked the end of the review cutoff for the MSCI, CSI300, CSI500, STAR50, SSE50, ChiNext and a bunch of other indices for the upcoming rebalances in May and June.
- There are no major index events coming up this week as a lot of markets are shut on different days.
- There were big inflows to mainland China ETFs during the week, while there was a big redemption from the iShares MSCI ACWI ETF (ACWI US).
Insiders At Seoul City Gas and Daou Data Corp Sell Shares Before the Crash
- Key insiders at Seoul City Gas (017390 KS) and Daou Data Corp (032190 KS) sold their shares before the recent crash.
- On 28 April, it was reported that Kim Young-Min (Seoul City Gas Chairman) sold 2% of Seoul City Gas on 20 April, resulting in net sales of 45.7 billion won.
- These Korean companies are two of the eight stocks related to the CFD derivatives sell-down that have been crashing in the past week.
Last Week in Event SPACE: China Mobile, Fast Retailing, Yuexiu Property, Vinda, Tokyo Gas
- It is relatively low-hanging fruit to “further propel the renmimbi’s internationalisation” and for HKEX, it will “cement HK’s position as the premier offshore renmimbi financing center.”
- The Conundrum: the more active investors decide they like Fast Retailing (9983 JP), the more there is to sell. That creates interesting opportunities.
- Short Yuexiu Property (123 HK) now, or soon. The dynamics of this is that there WILL be selling when the rights come out.
ASE Technology: Semiconductor Packaging & Testing Demand Suprisingly Weak At End of Quarter
- ASE’s results commentary for its semiconductor packaging and testing service said that inventory problems for the industry are taking longer than expected to improve.
- The weaker than expected environment was only realized towards the end of 1Q23. The company’s utilization is near an all-time low which is expected to persist through 2Q23E.
- Automotive remains a bright spot for the company, with Auto-linked revenue rising 30% YoY.
Chewy Inc.: Growing Market Share In Pet Products – Key Drivers
- In spite of the operating and economic climate difficulties, Chewy managed to deliver an all-around beat, surpassing the revenue, profitability, and free cash flow expectations of Wall Street.
- Their net sales climbed 13% to $10 billion during the fourth quarter, representing an annual growth rate of roughly 14%.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
Lumen Technologies: Quantum Fiber Customers Saving The Day? – Key Drivers
- Lumen Technologies has its results just around the corner.
- The company gave a solid result in the last quarter and managed an all-around beat which can also be expected this time.
- Lumen Technologies recently announced the company’s major network expansion plan for deriving an additional 6 million intercity fiber miles to its existing expansive network by 2026.
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