In today’s briefing:
- SSE50 Index Rebalance Preview: Consolidating After Big Outperformance
- VIS (5347:TT): The Outlook Is a Bit Slower in 4Q23F
- Taiwan Tech Weekly: Samsung & Nanya Earnings; AI Names Rebound Again
SSE50 Index Rebalance Preview: Consolidating After Big Outperformance
- Over 90% of the way through the review period, we see 9 potential adds/10 potential deletes in December. However, there can be a maximum of 5 changes at a review.
- We estimate a one-way turnover of 6.1% at the December rebalance leading to a one-way trade of CNY 5.27bn. Index arb balances could increase the impact on the stocks.
- The adds have outperformed the deletes this year though there has been a deterioration in performance over the last few months.
VIS (5347:TT): The Outlook Is a Bit Slower in 4Q23F
- Vanguard’s order visibility is about two months, and its order backlog is also about two months now.
- Vanguard’s goal is to establish a 12″ wafer Fab, which we estimate will likely be viable around 2026F.
- We believe that technology nodes below 28nm HKMG, specifically 40nm and below, would be suitable for transfer.
Taiwan Tech Weekly: Samsung & Nanya Earnings; AI Names Rebound Again
- Samsung Electronics and Nanya Technology will report their results this week. Samsung could reportedly increase NAND prices this month, giving a potential hint to the memory outlook they will provide.
- Hon Hai will begin mass production of its Model C electric car in 4Q23E in Taiwan. This will provide a proof point for Hon Hai’s global EV platform business model.
- Top gainers recently have included rebounding AI names — One can consider using the bounce to find AI shorts to pair against an Nvidia long.
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