In today’s briefing:
- Korea NPS’s Funds Influx into Local Stock Market Starting Next Year: What to Know
- Trading Strategy of Doosan Robotics in the First Day of Trading Post Book Building Results
- Asicland IPO Preview: The Only Value Chain Alliance (VCA) Company of TSMC in Korea
- Himax Vs. Novatek Long/Short: Management Meeting; Himax Historically Cheap
- Taiwan Tech Weekly: Intel ‘AI PC’ Chips On Track to Drive 2024E PC Supply Chain
- 4Paradigm IPO: Valuation Insights
- Infineon: The Potential Of Silicon Carbide
- Amazon.com Inc.: How Is The Revenue Diversification Beyond AWS & E-Commerce Catalyzing Growth? – Major Drivers
- Asicland IPO Valuation Analysis
- Cloudflare Inc.: Beyond AI – Is Their Cloud Reigning Supreme? – Major Drivers
Korea NPS’s Funds Influx into Local Stock Market Starting Next Year: What to Know
- The proposal to increase NPS’s annual target investment return rate by 1%p by 2028. A rough mathematical estimate suggests the necessity of an additional investment of nearly ₩60T until 2028.
- It augments the overall investment volume in local stocks to ₩200T. This projection implies an annual net purchase of approximately ₩12T from the forthcoming year through 2028.
- Consequently, this matter is currently among the most captivating topics in the Korean local market, and efforts are underway to identify the sectors and stocks that stand to benefit.
Trading Strategy of Doosan Robotics in the First Day of Trading Post Book Building Results
- Doosan Robotics (454910 KS) reported excellent IPO book building results. The IPO price has been finalized at 26,000 won (upper end of the IPO price range).
- A total of 1,920 institutional investors participated in the IPO demand forecast survey and the demand ratio was 272 to 1.
- The trading strategy on the first day of IPO is to take some profits (25%-50% of total) if the share price shoots much higher than the IPO price by 70-100%+.
Asicland IPO Preview: The Only Value Chain Alliance (VCA) Company of TSMC in Korea
- Asicland is one of eight companies in the world and the only TSMC VCA (Value Chain Alliance) company in Korea.
- The IPO price range is from 19,100 won to 21,400 won. The IPO offering amount is from 50.4 billion won to 56.4 billion won.
- Asicland’s sales and operating profit increased at a CAGR of 71.8% and 220%, respectively from 2020 to 2022. Operating margin improved from 4.7% in 2020 to 16.5% in 2022.
Himax Vs. Novatek Long/Short: Management Meeting; Himax Historically Cheap
- Himax shares have been in downtrend recently, falling 20% since the end of June vs. Novatek up 12%. We met with the Himax for an update.
- Himax at historically very cheap level relative to Novatek, both are exposed to similar display end-markets. Himax trades at just 1x sales on an absolute basis.
- We have a Structural Long view for both stocks, however from an arb perspective see a Long Himax vs. Short Novatek trade opportunity given the large share price divergence.
Taiwan Tech Weekly: Intel ‘AI PC’ Chips On Track to Drive 2024E PC Supply Chain
- Intel kicked off its Innovation conference and announced that its new PC processors with built-in AI coprocessors would launch December 14th. This is positive for the PC supply chain.
- Many types of existing software that used to require expert users can become more valuable with AI capabilities; we believe tomorrow’s AI PC killer apps could be in plain sight.
- Himax Long vs. Novatek Short. Himax is at historically very cheap level relative to Novatek, yet both are exposed to similar display end-markets.
4Paradigm IPO: Valuation Insights
- 4Paradigm (1764934D HK), a leader in enterprise artificial intelligence (AI) in China, has launched an HKEx IPO to raise up to US$144 million.
- We previously discussed the IPO in 4Paradigm IPO: The Bull Case and 4Paradigm IPO: The Bear Case.
- In this note, we discuss forecasts and valuation. Our analysis suggests that the IPO price range of HK$55.60-61.16 per share is unattractive. We would give the IPO a pass.
Infineon: The Potential Of Silicon Carbide
- We reiterate our buy case on Infineon. The investment case just gets more exiting at these levels
- Infineon is in an excellent position to capture growth in silicon carbide, now expanding in Kulin with Phase II.
- The Company could generated €7bn in revenues by the end of the decade (up from €3bn) from Silicon Carbide.
Amazon.com Inc.: How Is The Revenue Diversification Beyond AWS & E-Commerce Catalyzing Growth? – Major Drivers
- Amazon.com, Inc. delivered positive results and managed an all-around beat last quarter.
- The company has reported revenue of $134.4 billion and operating income of $7.7 billion.
- These are significant contributing causes to AWS’s recent growth and the over twofold increase in revenue over other service providers.
Asicland IPO Valuation Analysis
- Our base case valuation of Asicland is target price of 40,571 won per share, which is 90% higher than the high end of the IPO price range (21,400 won).
- Our target price of 40,571 won is based on 43x P/E using our estimated net profit of 10.1 billion won in 2024.
- Asicland is one of eight companies in the world and the only TSMC VCA (Value Chain Alliance) company in Korea.
Cloudflare Inc.: Beyond AI – Is Their Cloud Reigning Supreme? – Major Drivers
- Cloudflare, Inc. delivered an all-around beat in the previous quarter.
- The second quarter’s total revenue reached 32% year over year to $308.5 million.
- In the quarter, Cloudflare received 10 million active worker applications, a 250% increase since December and a 490% increase year over year.
💡 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
