In today’s briefing:
- SBI To Buy Gumi (3903) Shares To Up Stake to Near 30% (And Try To Avoid Impairment)
- KYEC (2449.TT): The Revenue Outlook Will Be an Upward Pickup in 2024F.
- ABB’s Offer For Symbio (SYM AU): 7th Feb Shareholder Vote
- Tencent/Netease: Netease Tops ’23 League Table with Most Games Approved
- MediaTek (2454.TT): The Revenue Is Likely Upside Around 10% QoQ in 1Q24F.
- Hollysys (HOLI US): Dazheng Ups the Ante with a US$29.00 Competing Offer
- Power Semiconductor Specialist Will Benefit from AI Yet Lagging Key Customers’ Share Price Rallies
- Taiwan Dual-Listings Monitor: TSMC Premium at a Decent Short Level; ASE Short Interest Declining
SBI To Buy Gumi (3903) Shares To Up Stake to Near 30% (And Try To Avoid Impairment)
- Today after the close, SBI Holdings (8473 JP) made an announcement it would buy (up to) 3.0mm shares of Gumi Inc (3903 JP) shares between tomorrow and end-March 2024.
- SBI already owns 8.8mm shares, and this would bring them close to 30.0%.
- SBI did not specifically say they would buy on market, but the next 400,000 shares would require a large shareholder filing amendment.
KYEC (2449.TT): The Revenue Outlook Will Be an Upward Pickup in 2024F.
- It’s a greater chance that there will be an upward pickup in 2024F revenue for King Yuan Electronics Co, Ltd. (2449 TT), but the magnitude is hard to predict in 1H24.
- It is expected the revenue to decline by approximately -5% in 1Q24F.
- However, the demand for CoWoS at a corporate level is expected to increase by about 10% in 2024F .
ABB’s Offer For Symbio (SYM AU): 7th Feb Shareholder Vote
- On the 1st November, cloud communication software outfit Symbio Holdings (SYM AU) backed Aussie Broadband Pty Ltd (ABB AU)‘s reduced cash/scrip Offer of A$2.99-$3.04/share, and entered into a Scheme agreement.
- Superloop Ltd (SLC AU), which had previously made two cash/scrip Offers for Symbio, promptly walked.
- Symbio’s Scheme Meeting has now been tabled for the 7 Feb, with implementation expected on the 28 February. The IE is supportive. This is done – and trading tight.
Tencent/Netease: Netease Tops ’23 League Table with Most Games Approved
- China announced game approval for the December batch. The number of games approved has increased compared to recent months.
- The pace of China game approval appears to be accelerating, to the same level as pre-tightening.
- Netease scored two approvals while Tencent scored one. Netease finished the year with the most games approved.
MediaTek (2454.TT): The Revenue Is Likely Upside Around 10% QoQ in 1Q24F.
- For the upcoming revenue outlook, MediaTek Inc (2454 TT) is likely to reach an upside of around 10% QoQ in 1Q24F.
- MediaTek plans to release 12 million units of the Dimensity 9000 series in 2024F.
- Mediatek’s target markets include China, India, and Southeast Asia, with China remaining the primary market of focus.
Hollysys (HOLI US): Dazheng Ups the Ante with a US$29.00 Competing Offer
- Dazheng (without Recco) has returned with a revised US$29.00 offer for Hollysys Automation Technologies (HOLI US), 9.4% higher than Ascendent Capital’s US$26.50 binding offer.
- While Dazheng’s proposal represents an all-time high, it would likely not be a superior proposal based on the Ascendent merger agreement due to the clauses on financing and due diligence.
- Nevertheless, to avoid the high risk that shareholders vote down the Ascendent offer and/or there are substantial dissenting shareholders, the Board will likely ask Ascendent to match Dazheng’s offer.
Power Semiconductor Specialist Will Benefit from AI Yet Lagging Key Customers’ Share Price Rallies
- UPI Semi is a specialist designer of electronic components and semiconductors for power management. Power management is a key performance factor for AI devices.
- UPI’s clients include most of the world’s largest leading technology companies for semiconductor distribution and AI products.
- UPI shares have lagged the strong performance of its clients — We see opportunity for UPI to now Outperform.
Taiwan Dual-Listings Monitor: TSMC Premium at a Decent Short Level; ASE Short Interest Declining
- TSMC: 10.5% Premium — Still a Good Level to Short the Spread
- UMC: Trading at -1.1% Discount — Uncompelling, Wait for Deeper Discount
- ASE: 8.8% Premium — Still Wait for Lower Levels Before Going Long
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
