In today’s briefing:
- Tencent/Netease: Zeroed for Two Rounds of Game Approval
- SMIC’s Semi Shocker
- Baidu: Back in the Mix
- 4Paradigm: Fears About The Entity List Are Exaggerated, Bullish On AI and SageGPT, PT: HK$86
- Microchip Technology: Navigating Through Market Sluggishness! – Major Drivers
- Twilio Inc.: Surprising Signals of Growth and Stabilization You Need to Know! – Major Drivers
- Fox Corporation: Discover the Strategy Behind Their Stellar Viewership Jump! – Major Drivers
- EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades-Shutdown or Meltdown?
- Huawei Unveils New Products Boasting Self-Developed Chips
Tencent/Netease: Zeroed for Two Rounds of Game Approval
- China just announced game approval for September batch. The number of games approved is in-line with the pace of approval in recent month.
- Pace of China game approval stays flattish, at a much slower pace than pre-tightening.
- Neither Tencent or Netease received approval for any game. Same thing happened for July batch.
SMIC’s Semi Shocker
- The latest Mate 60 Kirin SOC is a major accomplishment for the Huawei, SMIC combo
- SMIC will likely continue to refine their N+2 node and develop a 5nm-like process within 2-3 years, even without the use of EUV
- SMIC’s accomplishment is not reflected in its share price which lies midways between 52 week highs & lows
Baidu: Back in the Mix
- After a heavy decline in ownership between 2016 and 2020, active Asia Ex-Japan managers are re-engaging with Baidu Inc.
- Ownership levels are at 4-year highs, with Baidu one of the key beneficiaries of manager rotation this year.
- Baidu is the 3rd largest holding in the Communication Services sector, but there a plenty of funds with a history of ownership who remain on the sidelines for now.
4Paradigm: Fears About The Entity List Are Exaggerated, Bullish On AI and SageGPT, PT: HK$86
- 4Paradigm, a self-developed AI platform and scenario-specific AI applications provider, has completed an IPO and raised net proceeds of ~HK$836M, excluding the over-allotment option.
- Founder-Led AI unicorn priced its IPO at the bottom end of the range at HK$55.60 per share. Cornerstone investors agreed to purchase ~13.6M H shares at the IPO price.
- I like the company’s leadership position in China’s fastest-growing decision-making AI market, large TAM for their enterprise-grade generative AI offering SageGPT and top-tier VC investors.
Microchip Technology: Navigating Through Market Sluggishness! – Major Drivers
- Despite a sluggish macro environment, Microchip Technology’s quarterly earnings were solid due to resilient end markets and broad client base.
- The company’s net sales increased 2.5% sequentially and 16.6% annually to reach $2.29 billion.
- From a product line standpoint, their mixed-signal microcontroller net sales hit another all-time high, increasing 0.8% sequentially and 22.5% annually in the quarter.
Twilio Inc.: Surprising Signals of Growth and Stabilization You Need to Know! – Major Drivers
- Twilio Inc. delivered a positive result and managed an all-around beat in the last quarter, exceeding its revenue and profit targets and producing a significant quarterly non-GAAP revenue from operations of $120 million.
- Twilio had a successful quarter in communications and continues to see encouraging signs of stabilization across its client base.
- Their management believes that bookings will recover toward the end of the year and that revenue growth will resume throughout 2024.
Fox Corporation: Discover the Strategy Behind Their Stellar Viewership Jump! – Major Drivers
- Fox delivered decent results in the quarter, with revenue growth of 7%, including 12% growth in advertising, supported by significant tentpole events like the midterm elections, Super Bowl LVII, and the FIFA Men’s World Cup, as well as outstanding growth of Tubi and 3% affiliate growth driven by the first third of its distribution renewal cycle.
- These results show that Fox’s distinctive strategy continues to produce engaged audiences at scale for its distribution and advertising partners across its sports and news verticals while also propelling remarkable growth throughout its digital businesses.
- For the ninth consecutive quarter, the FOX News Channel concluded the fourth quarter as the most-watched cable network overall.
EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades-Shutdown or Meltdown?
- 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
Huawei Unveils New Products Boasting Self-Developed Chips
- Huawei Technologies Co. Ltd. launched a line of new products this week, including a tablet and smart TV, powered by self-developed chips, in its latest show of semiconductor self-sufficiency in the face of U.S. sanctions.
- The fall season launch event on Monday came a month after the tech giant made headlines with the rollout of its new flagship smartphone the Mate 60 Pro — a handset using Huawei’s own Kirin 9000s chip that reviewers claimed can rival 5G speeds.
- During the launch event, the head of Huawei’s consumer division, Richard Yu, spent much of his time on stage measuring the company’s new MatePad Pro tablet against Apple’s iPad Pro.
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