In today’s briefing:
- My Take on the Three Scenarios that Sammy Buyback Stirred up in the Market Today
- TIP Taiwan Value High Dividend Index Rebalance: A Lot to Trade This Week
- Quiddity Leaderboard ASX Dec 24: Few Index Changes But High Impact
- HKBN (1310 HK): China Mobile Resurfaces as a Rumoured Suitor
- Korea Value Up Index Rebalance on 20 December
- Tech Supply Chain Tracker (19-Nov-2024): Nvidia Blackwell rack design overheats, delays shipments.
- Fortinet Inc.: These Are The 6 Biggest Factors Impacting Its Performance In 2025 & Beyond! – Major Drivers
- BUY/SELL/HOLD: Hong Kong Stock Updates (NOVEMBER 18)
- IonQ Inc.: Strategic Partnerships & Technology Collaborations As A Critical Factor Driving Growth! – Major Drivers
- Rapid7 Inc: How It Dominates with Managed Detection & Response: The Secret Weapon in Cybersecurity! – Major Drivers
My Take on the Three Scenarios that Sammy Buyback Stirred up in the Market Today
- The market’s reaction to Samsung Fire’s stake sale seems overhyped. Given past share sales, Life may outperform Fire as this momentum unfolds.
- I don’t see SDS merging with Samsung Electronics. It lacks synergy and could stir up PR issues. If Sammy’s stock stalls, Lee Jae-yong might sell more of his SDS stake.
- I’m still bullish on Sammy prefs. If the tax reform passes, a special dividend, not a buyback, will be the cleanest way for Samsung to address inheritance tax.
TIP Taiwan Value High Dividend Index Rebalance: A Lot to Trade This Week
- There are 15 changes for the TIP Taiwan Value High Dividend Index in November. The Yuanta Taiwan Value High Dividend ETF (00940 TT) has an AUM of US$5bn.
- Estimated one-way turnover is 26% and there are 16 stocks with over 4 days of ADV left to trade. The rebalance commenced yesterday and will end on Friday.
- An equal weighted basket of inclusions has outperformed an equal weighted basket of deletions since July. That could continue over the week as the ETF continues to rebalance their portfolio.
Quiddity Leaderboard ASX Dec 24: Few Index Changes But High Impact
- In this insight, we take a look at our final expectations for index changes for ASX200, 100, 50, and 20 in the run-up to the December 2024 index rebal event.
- We do not see any index changes for ASX 20 and ASX 100.
- We expect one change for ASX 50 and one change for ASX 200.
HKBN (1310 HK): China Mobile Resurfaces as a Rumoured Suitor
- Bloomberg reports that China Mobile (941 HK) is exploring a buyout of HKBN Ltd (1310 HK) and is willing to pay at least HK$5.00, a 16.0% premium to last close.
- HKBN has been the subject of numerous bid rumours, which seemingly came to nothing due to the challenge of meeting the largest shareholders’ (TPG and MBK) price expectations.
- The rumoured offer price will struggle to gain TPG/MBK’s backing. The current valuation is unappealing, as HKBN trades at a premium multiple compared to peers at the last close.
Korea Value Up Index Rebalance on 20 December
- Korea Exchange (KRX) plans to make special changes to the Korea Value-Up Index constituents on 20 December.
- We believe that following five stocks are likely inclusions in the Korea Value Up index rebalance on 20 December (KB Financial, Hana Financial, SK Telecom, KT Corp, and LG Electronics).
- The new companies that will be included in the Korea Value-Up Index include companies that provide detailed corporate value up plans by 6 December.
Tech Supply Chain Tracker (19-Nov-2024): Nvidia Blackwell rack design overheats, delays shipments.
- Nvidia’s Blackwell rack design overheating issues causing potential shipment delays
- AMD leading server market in 3Q24, Intel fighting back in PC market
- Trump’s tariff changes impacting Chinese EV makers, with 4 strategies to navigate the changes. Huawei and Xiaomi dominate China’s AI smartphone market with over 50% market share.
Fortinet Inc.: These Are The 6 Biggest Factors Impacting Its Performance In 2025 & Beyond! – Major Drivers
- Fortinet’s third-quarter financial results for 2024 showcase robust performance and a strategic focus on growth markets in the cybersecurity landscape.
- The company’s total revenue grew by 13%, a return to product revenue growth bolstered by strong service revenue expansion.
- Fortinet’s strong execution led to record gross and operating margins, with the latter increasing by 830 basis points to over 36%.
BUY/SELL/HOLD: Hong Kong Stock Updates (NOVEMBER 18)
- Hong Kong market sectors outperforming since the stimulus in September are Consumer Discretionary and Healthcare as Utilities, Telecom and Energy lag.
- CRRC Corp Ltd H (1766 HK) gets BUY recommendations as its results point to continued strength in the rail equipment sector with passenger volume surging.
- Tencent Music Entertainment Group (1698 HK) reported solid results as it shifts to a pay-to-stream subscription model. Xiaomi Corp (1810 HK) had a blowout quarter with EV sales surging.
IonQ Inc.: Strategic Partnerships & Technology Collaborations As A Critical Factor Driving Growth! – Major Drivers
- IonQ, Inc., a leading company in the quantum computing space, reported its results for the third quarter of 2024, showing considerable progress both financially and operationally.
- The company recognized $12.4 million in revenue for the quarter, surpassing its guidance range of $9 million to $12 million.
- This marks a year-over-year doubling of third-quarter revenue, highlighting robust growth and demand for IonQ’s quantum computing services.
Rapid7 Inc: How It Dominates with Managed Detection & Response: The Secret Weapon in Cybersecurity! – Major Drivers
- Rapid7’s financial performance in the third quarter of 2024 demonstrates both strengths and challenges in its business operations, as outlined during their earnings call.
- Starting with the positive aspects, Rapid7 ended the quarter with an annual recurring revenue (ARR) of $823 million, representing a 6% year-over-year growth.
- This ARR growth was primarily driven by their threat detection and response sector, which continued to show robust double-digit growth.
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