In today’s briefing:
- TSMC: 2023 Guidance Reduction Excuse To Take Profit? Guidance Also Affirmed Long-Term Bullishness
- [Kuaishou (1024 HK, SELL, TP HK$50) Preview]: Monetization Is On-Track Amid Competitive Pressure
- Index Rebalance & ETF Flow Recap: ASX, SK Telecom, Yuanta ETFs
- EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades-Where Is the Stimulus
- Monolithic Power Systems Inc.: Initiation of Coverage – Product Portfolio
- America Movil ADR: Initiation of Coverage – Business Strategy & Key Drivers
TSMC: 2023 Guidance Reduction Excuse To Take Profit? Guidance Also Affirmed Long-Term Bullishness
- TSMC reduced 2023 revenue guidance when it reported results during the week. A weaker than expected economy in China and general economic weakness was blamed.
- However, the company’s results beat Street expectations and management maintained its long-term gross margin guidance of 53%+, which implies the company maintaining a structurally higher margin.
- Shares fell after results on a profit taking excuse — We however note that latest guidance also reaffirmed multi-year strength ahead. Structural Long.
[Kuaishou (1024 HK, SELL, TP HK$50) Preview]: Monetization Is On-Track Amid Competitive Pressure
- We expect Kuaishou to report C2Q23 revenue and non-IFRS net income that are in-line and 27% vs consensus, respectively.
- We slightly cut our revenue forecast for live streaming but increased our revenue forecast for online ads. Kuaishou’s margin beat is mainly due to efficient cost control, especially in overseas.
- Kuaishou still has several minor positive catalysts, but WeChat Video Accounts is the major short thesis in the long run. We raise EPS forecasts, but maintain SELL.
Index Rebalance & ETF Flow Recap: ASX, SK Telecom, Yuanta ETFs
- JFSL spun off from Reliance Industries (RIL IN) last week and Ventia (VNT AU) replaced Blackmores Ltd (BKL AU) in the S&P/ASX 200 (AS51 INDEX).
- The IDX should announce the changes to the IDX30, LQ45 and IDX80 indices early in the coming week.
- There were inflows to Tracker Fund of Hong Kong Ltd (2800 HK) and Hang Seng H Share Index ETF (2828 HK) while Taiwan focused ETFs had outflows.
EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades-Where Is the Stimulus
- Weekly summary of vol changes and moves across Global Markets
- Analysing ATM volatility and skew changes over the last 5 days
- We suggest a few trades to take advantage of the implied vol surfaces
Monolithic Power Systems Inc.: Initiation of Coverage – Product Portfolio
- This is our first report on Monolithic Power Systems, one of the largest semiconductor-based equipment companies.
- Revenue from communications also increased due to a slight increase in revenue from the 5G infrastructure.
- We initiate coverage on the stock of Monolithic Power Systems, Inc. with a ‘Hold’ rating.
America Movil ADR: Initiation of Coverage – Business Strategy & Key Drivers
- This is our first report on Latin American telecom major, America Movil.
- Growth in prepaid and postpaid subscriptions remained steady, contributing to an 8.3% expansion in the postpaid base and a 5.3% increase in the prepaid base.
- Despite a 4.6% year-on-year decrease in Q2 revenue due to the Mexican peso’s appreciation against other currencies, the company still posted MXN 203 billion in revenue, with service revenues declining by 4.2%.
💡 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
