In today’s briefing:
- StubWorld: Intouch Not As Attractive As At First Glance
- STAR50 Index Rebalance Preview: One High Probability Change; One ‘It Depends’
- Taiwan Tech: Insights from 1Q23 Earnings Season Into Where We Are in the Cycle
- Tata Technologies Pre-IPO – Peer Comparison – Middling
StubWorld: Intouch Not As Attractive As At First Glance
- Intouch Holdings (INTUCH TB) is coming up cheap versus Advanced Info Service (ADVANC TB). Yet the longer-term view suggests otherwise.
- Preceding my comments on Intouch are the weekly setup/unwind tables for Asia-Pacific Holdcos.
- These relationships trade with a minimum liquidity of US$1mn on a 90-day moving average, and a % market capitalisation threshold of at least 20%.
STAR50 Index Rebalance Preview: One High Probability Change; One ‘It Depends’
- The review period for the September rebalance ends 31 July. We expect the changes to be announced 25 August with the implementation taking place after the close on 8 September.
- We expect the index committee to continue using a 6-month minimum listing history resulting in two changes to the index.
- One way turnover is estimated at 3.45% resulting in a one-way trade of CNY 3,675m. The impact on the deletions will be larger than that on the inclusions.
Taiwan Tech: Insights from 1Q23 Earnings Season Into Where We Are in the Cycle
- Our aggregate analysis of the 1Q23 earnings season showed a more balanced beat/miss ratio than 4Q22 likely due to already-downgraded forecasts presenting a lower expectations hurdle.
- Semiconductor’s inventory situation overall appeared to get worse in 1Q23… Excess inventory digestion is still a few quarters away for many semiconductor companies. Margins fell to the last cycle lows.
- Hardware showed small signs of overall inventory improvement. Margins fell further but remained pretty high relative to the previous cycle.
Tata Technologies Pre-IPO – Peer Comparison – Middling
- Tata Technologies (TATATECH IN) (TT) is looking to raise around US$600m in its upcoming India IPO.
- Tata Technologies is a global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEMs) and their tier 1 suppliers.
- We have looked at the company’s past performance in our earlier notes, in this note we will undertake a peer comparison.
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