In today’s briefing:
- Socionext (6526) TOPIX Inclusion
- Renesas (6723) | Bullish Toyota Troubles
- Weekly Deals Digest (23 Oct) – Link, Nearmap, Pushpay, Tyro, Singapore Medical, DTAC/True, Blibli
- Issues with WCP & SillaJen for KOSDAQ 150 Special Entry in December
- Hon Hai: U.S. Chip Restrictions Vs. China Have Put Hon Hai in a Stronger Than Ever Position
- Taiwan Tech Weekly: ASML & Lam Provide Industry Optimism, Wave of Earnings This Week
- Taiwan Dual-Listings: TSMC Premium Near-Term High, ASE Spikes, UMC High as Well
Socionext (6526) TOPIX Inclusion
- System-On-Chip designer and IP purveyor Socionext (6526 JP) is a recent IPO in Japan, born from a spinout of Fujitsu and Panasonic system LSI operations 7+ years ago.
- Having listed on TSE Prime from the outset, that means it gets TOPIX inclusion at the close of trading 29 November.
- Inclusion Float is a bit nebulous. There is a chance we get official company data prior to the TSE announcement, in which case we know more by cob 31 October.
Renesas (6723) | Bullish Toyota Troubles
- We remain bullish on the stock price ahead of Q3 earnings
- We expect the company to surprise the market given stronger volumes and pricing trends
- If Toyota is having problems securing a stable supply of chips, we believe that industry inventories are much leaner than most believe
Weekly Deals Digest (23 Oct) – Link, Nearmap, Pushpay, Tyro, Singapore Medical, DTAC/True, Blibli
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments – Giant Biogene Holding (GBH HK) will launch a US$500 million HKEx IPO this week. Blibli (1437710D IJ) has launched an IDR8.2 trillion (US$530 million) Indonesian IPO.
- Event-Driven developments Link Administration (LNK AU), Nearmap Ltd (NEA AU), Pushpay Holdings (PPH NZ), Tyro Payments (TYR AU), China Vast Industrial Urban Development (6166 HK), Singapore Medical (SMG SP), DTAC/True.
Issues with WCP & SillaJen for KOSDAQ 150 Special Entry in December
- Two other names aim at Special Entry: WCP and SillaJen. Their listing dates are September 30 and October 13. So, they are technically eligible. But they each have their issues.
- As for WCP, MSCI has not yet assigned a GICS sector. It is unlikely that KRX will put WCP into the KOSDAQ 150 without GICS confirmation.
- SillaJen is technically eligible as its ADMINISTRATIVE designation got terminated. But the rule allowing for KRX’s arbitrary judgment can act as an uncertainty factor.
Hon Hai: U.S. Chip Restrictions Vs. China Have Put Hon Hai in a Stronger Than Ever Position
- U.S. chip restrictions have hobbled Hon Hai’s China EV competition.
- AI and advanced semiconductors will become a necessity for a globally competitive EV platform and Hon Hai appears to be moving aggressively to capture this opportunity.
- The shares should see topline growth and major margin expansion into 2025, and the market appears to have not yet priced-in Hon Hai’s latest advantageous position.
Taiwan Tech Weekly: ASML & Lam Provide Industry Optimism, Wave of Earnings This Week
- ASML and Lam Research beat estimates last week and provided some relief to the semiconductor space.
- Major global industry earnings coming this week include — Samsung, SK Hynix, Texas Instruments, KLA Tencor, Apple, and Intel.
- Major Taiwan earnings this week — AUO, UMC, ASE, Realtek, Delta Electronics, Mediatek.
Taiwan Dual-Listings: TSMC Premium Near-Term High, ASE Spikes, UMC High as Well
- TSMC’s ADR premium has rebounded and is high relative to its recent trading range.
- ASE Technology’s ADR premium has spiked to a historically very high level.
- UMC ADRs are also trading at a relatively high premium.
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