In today’s briefing:
- Passive Flow Trading Opportunities Emerge from L&F’s Transition to KOSPI Listing
- Alibaba (BABA US): Still One of if Not the Best China Consumer Play
- First Run of Global Semis’ Guidances to Tell Early Signs of Recovery
- Intel. Beat & Raise Sends Shares Soaring After Hours
- MediaTek (2454.TT): 4Q23F Results in Line, 2024F Smartphone Outlook Can Grow a Double Digits.
Passive Flow Trading Opportunities Emerge from L&F’s Transition to KOSPI Listing
- L&F will likely be listed on the KOSPI in mid-December. The top reserved issue within the KOSDAQ 150 IT Sector will be added to the index via an ad-hoc change.
- Selvas AI stands as the foremost candidate for the screened top reserved issue, with a mere two trading days remaining in the six-month screening period.
- Given the relatively limited proactive position buildup due to more uncertainty regarding timing, the price impact leading up to the effective date might become even more significant.
Alibaba (BABA US): Still One of if Not the Best China Consumer Play
- The increasing dominance of retailers (off/online) in the US consumer sector measured by market cap over last three decades tellingly illustrates the long term potential of Alibaba in China.
- While we believe consensus underestimates bottom line for 2QFY24, investors will likely focus on the outlook for 2024, with growth of Taobao/Tmall group remaining key share price driver.
- Investors pulling out of Alibaba due to geopolitical risks remind me of how ESG drove investments away from oil & gas years ago and eventually led to the latter’s outperformance.
First Run of Global Semis’ Guidances to Tell Early Signs of Recovery
- We see early signs of recovery in PC and smartphone markets, stable server market (strengths in AI server, stable in non-AI server market), but weaknesses in automotive and industrial.
- We expect the PC semi market recovery of more than 10% y/y in 2024/2025, driven by inventory rebuild and silicon contents increase by adding AI into PC.
- We expect the smartphone semi market recovery of 7-8% y/y in 2024/2025, driven by inventory rebuild and adopting 3nE foundry node. But, Huawei/HiSilicon will take some of the growth.
Intel. Beat & Raise Sends Shares Soaring After Hours
- Q323 revenues of $14.2 billion, some $800 million above the guided midpoint, down 8% YoY but up 10% sequentially.
- Current quarter revenue guided up QoQ to $15.1 billion at the midpoint, shares up 10%
- Intel is betting big on a return to a 300 million unit PC TAM. Is this realistic?
MediaTek (2454.TT): 4Q23F Results in Line, 2024F Smartphone Outlook Can Grow a Double Digits.
- MediaTek’s 4Q23F revenue guidance falls in line with our prior expectation. The general outlook is for double-digit growth in 2024F.
- MediaTek believes that the 3nm SoC will certainly perform differently in 2H24F.
- MediaTek will pay NT$24 DPS for 1H23 earnings, and the dividend will be paid on 1/31, 2024F.
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