In today’s briefing:
- Shanghai/Shenzhen Southbound Connect: Weekly Moves (28 October 2022)
- Softbank Group (9984 JP) – Defying Gravity into 4Q 2022
- Intel 3Q22: Still Too Optimistic
- Micron Technology: The New York Mega Fab & Other Drivers
- BlackBerry Ltd: Major Drivers
Shanghai/Shenzhen Southbound Connect: Weekly Moves (28 October 2022)
- Inside is a recap of movements in the last week relating to the Shanghai and Shenzhen-Hong Kong Stock Connect facilities, broken down by company and industry.
- Overall, the net inflow over the past week was ~HK$3.65bn, split (+HK$1.78bn) for Shanghai and (+HK$1.87bn) for Shenzhen.
- The largest inflows were in Tencent (700 HK) and Meituan (3690 HK). The largest outflows were in China Shenhua Energy (1088 HK) and China Overseas Land & Investment (688 HK).
Softbank Group (9984 JP) – Defying Gravity into 4Q 2022
- Softbank Group’s share price has been supported by the share buyback programme since late September, but 2Q FY2022 results are likely act as a negative catalyst for Softbank shares
- Alibaba and its core listed holdings in the Vision Funds have seen market values go lower in recent months; see the diverging market price chart trends in this report
- In addition, valuations among the unlisted holdings are also under pressure into October, so 2Q results may not capture the full extent of the down rounds
Intel 3Q22: Still Too Optimistic
- Intel put forth a significant cost cutting program to generate $3B in savings in 2023 and $8-10B by 2025.
- CEO Gelsinger’s PC forecasting track record is horrendous, we wouldn’t bet on a down MSD 2023 market.
- Datacenter…which once carried near 60% margins hit breakeven this quarter… an astonishing fall.
Micron Technology: The New York Mega Fab & Other Drivers
- Micron delivered a mixed set of results for the previous quarter, missing out on the revenue expectations of Wall Street but managing an earnings beat.
- As a result, demand is being reduced for the other parts of the supply chain, which already have more than enough inventory, because the servers cannot be built.
- Therefore, although the overall demand for clouds is generally healthy, this is one factor that is having an impact on it.
BlackBerry Ltd: Major Drivers
- BlackBerry had a mediocre quarterly, beating profitability estimates of Wall Street while delivering revenue aligned with forecasts.
- The best performer continues to be QNX design base revenue.
- Royalty revenue increased on the production side, but it is still below pre-pandemic levels, mostly because of supply chain challenges.
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