In today’s briefing:
- MVIS US Listed Semiconductor 25 Index Rebalance: Upweight for TSMC
- MVIS Australia Equal Weight Index Rebalance: Float & Capping Changes
- Intuit Inc.: Launch of QuickBooks Workforce Mobile Application & Other Major Developments
- NetApp Inc.: Relaunch of NetApp Channel Program & Other Developments
- Index Rebalance & ETF Flow Recap: NKY, ASX, CSI300, KOSDAQ150, Yuanta ETFs, MVA, MVW, SMH
- NetEase Inc.: New Gaming Studio Launch & Other Major Drivers
- Analog Devices: Wireless BMS Integration Could Be The Next Big Thing! Major Drivers
- ECM Weekly (10th Sep 2023) – ARM, VNG, Tuhu, Integral, Doosan, Orora, JFE, RR Kabel, Samhi Hotel
MVIS US Listed Semiconductor 25 Index Rebalance: Upweight for TSMC
- The upcoming rebalance of the MVIS US Listed Semiconductor 25 Index will be implemented on 15 September. There are no constituent changes, but there are float and capping changes.
- The VanEck Vectors Semiconductor (SMH US) ETF tracks the index and has an AUM of US$9.7bn.
- Estimated one-way turnover is 5.9% resulting in a one-way trade of US$595m. The stocks are extremely liquid, the impact on the stock in terms of ADV to trade is small.
MVIS Australia Equal Weight Index Rebalance: Float & Capping Changes
- There are no constituent changes for the MVIS Australia Equal Weight Index at the September rebalance. JB Hi-Fi Ltd (JBH AU) and Charter Hall (CHC AU) have avoided deletion.
- Float and capping changes will result in a one-way turnover of 3.5% and in a one-way trade of A$69m.
- There is a lot of short interest on stocks that will have passive buy/sell flows, but there will not be enough volume traded for shorts to use to reduce positions.
Intuit Inc.: Launch of QuickBooks Workforce Mobile Application & Other Major Developments
- Intuit Inc. managed to exceed the revenue expectations as well as the earnings expectations of Wall Street.
- The company raised revenue by 13% for the entire year, produced good operating margin growth, and finished the year on a high note.
- Revenue from the desktop environment and QuickBooks Desktop Enterprise revenue increased significantly.
NetApp Inc.: Relaunch of NetApp Channel Program & Other Developments
- NetApp delivered an all-around beat in the most recent quarterly result.
- The company’s rigorous operational management and the enthusiastic customer response to its innovation continue to yield positive results.
- They are also making strategic purchases in order to lock in significant loan NAND pricing and reduce future price increases.
Index Rebalance & ETF Flow Recap: NKY, ASX, CSI300, KOSDAQ150, Yuanta ETFs, MVA, MVW, SMH
- The changes at the Nikkei 225 September rebalance were announced on 4 September. The rebalance of the HSI, HSCEI, HSTECH and HSCI was implemented on the same day.
- The changes to the MVIS indices were announced on 8 September and will be implemented at the close on 15 September. The S&P/ASX family will also rebalance on 15 September.
- After a month and a half of big inflows to onshore China ETFs, there were small outflows from a lot of ETFs during the week.
NetEase Inc.: New Gaming Studio Launch & Other Major Drivers
- NetEase delivered a mixed set of results in the quarter, with revenues well below expectations, but managed an earnings beat.
- Revenues from the Fantasy Westward Journey Saga continued to increase year over year in the quarter, again impressing the industry with this IP’s enduring appeal.
- In the second quarter, Cloud Music’s GP margin increased significantly because of the growth of membership services and ongoing cost-cutting initiatives.
Analog Devices: Wireless BMS Integration Could Be The Next Big Thing! Major Drivers
- Analog Devices delivered a disappointing set of results as the company was unable to meet the revenue and earnings expectations of Wall Street.
- The operating margin was almost 48%, the gross margin was above 72%, and the EPS was $249 million.
- Analog Devices anticipates revenue of around $2.7 billion for the fourth quarter.
ECM Weekly (10th Sep 2023) – ARM, VNG, Tuhu, Integral, Doosan, Orora, JFE, RR Kabel, Samhi Hotel
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- In the IPO space, things are getting busy again with multiple deals live across the region, whic his a refreshing change from the slow start in the first half.
- There were only a few placement this week, but what the lacked in volume they made up for in size.
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