FSMOne SG - Research Highlights

2021-11-15 12:50:52 ETF Idea

China’s semiconductor industry: Strong performance year-to-date, but share prices could still rise

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• Chinese semiconductor companies have done well this year, rising by more than 20% year-to-date even as the regulatory crackdown on the tech sector continues.

• The government has identified semiconductors as one of the seven strategic technologies that China will focus on over the next five years. President Xi also appointed Vice Premier Liu He to spearhead the country’s chipmaking ambitions.

• China is starting to make good progress on its goals. Domestic IC production has increased substantially since 2018, a trend that is likely to continue as China pushes to localise chip production.

• Our target price for the Global X China Semiconductor ETF is HKD 93, which represents an upside potential of close to 40% based on the closing price of HKD 67.14 as of 8 Nov 2021.

: Read the full article here
: Global X China Semiconductor ETF (HKEX:3191) Open / Comment

2021-11-15 03:32:39 Stock Idea

Chinasoft: An enabler and beneficiary of “Next-Gen” technology

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• Chinasoft is one largest information technology (IT) services companies in China, offering a suite of IT services such as cloud integration and management, big data management, and IT services outsourcing.

• With the further technological advancement in China, and continued investment from the government to boost technological self-sufficiency, we expect Chinasoft to be positioned for growth.

• Chinasoft has customers across multiple industries from the finance to energy sectors, including multinational corporations and Chinese government state-owned enterprises (SOEs), demonstrating the depth of their know-how.

• As Huawei’s choice IT service partner, Chinasoft stands to be a beneficiary of Huawei’s aggressive push to be one of the top three cloud players in Asia and an IoT leader with their self-built Harmony operating system (OS).

• Our 2023 target price for Chinasoft International (HKEX:354) is HKD 18, and this translates to an upside potential of 43% at closing price of HKD 12.70 as of 8 November 2021.

: Read the full article here
: Chinasoft International (HKEX:354) Open / Comment

2021-11-12 13:32:56 We are keeping our positive credit outlook on Commerzbank, one of Germany’s largest commercial banks: https://bit.ly/3jZodGo Open / Comment

2021-11-12 03:32:03 Macro Research

Brazilian Equities: Prepare for a Bumpy Ride

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• Political risks are building, with elections coming next year. Pro-business Bolsonaro is currently lagging in opinion polls, and we expect increased volatility in Brazilian equities and the Brazilian Real closer to the election.

• Soaring inflation has forced sharp rate hikes from BCB, and we are looking at potentially more hikes coming soon.

• Weak iron ore demand also threatens the earnings outlook for IBOVESPA Index, due to its high weightage of mining company Vale SA.

• Though valuations are cheap, we think the headwinds outlined above may hold back re-rating of Brazilian equities for now. We are looking to downgrade our Star Rating for Brazil, to 3.0 Stars “Attractive”.

: Read the full article here Open / Comment

2021-11-11 16:24:26 Amidst a recent slew of defaults by Chinese property developers, another one bites the dust: https://bit.ly/3nIV97r Open / Comment

2021-11-11 03:32:46 ETF Idea

China’s electric vehicle sector is an area of opportunity amidst regulatory crackdowns

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• As part of its efforts to go green, the Chinese government is aiming for peak CO2 emissions before 2030, and carbon neutrality before 2060.

• The EV sector is in line with the Chinese government’s long-term strategic priorities. Given recent regulatory crackdowns, investors can look to the EV sector for investment opportunities.

• To drive the sector’s growth, the Chinese government has invested at least USD 60 billion, and is pushing an ambitious plan to transition to all-electric or hybrid cars by 2035.

• We recommend investors seeking exposure to China’s EV sector to consider the Global X China Electric Vehicle and Battery ETF. Our 2023 target price is HKD 268, which offers an upside potential of 34%.

: Read the full article here
: Global X China Electric Vehicle and Battery ETF (HKEX:2845) Open / Comment

2021-11-10 13:55:39 Macau's DCIJ has just published a public consultation on gaming laws. Will its concessionaires hit the jackpot? Or will some be forced to fold? https://bit.ly/3w9foPf Open / Comment

2021-11-10 03:32:22 Macro Research

The biggest questions surrounding emerging market equities right now

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As investor interest in emerging market mounts, these are the top questions we ask…

• What are the upside and drivers for EM equities?

• Can EM equities still do well despite uncertainties in China?

• EM inflation and tightening a cause for concern?

• How might tapering affect EM equities?

• Other risks? Thoughts on the USD given that a stronger dollar tends to be negative for EM equities?

• Outlook for EM equities

: Read the full article here Open / Comment

2021-11-09 03:34:49 In this week's Bond Market Monitor, Powell reassures that tapering does not mean the Fed will be hiking rates soon.

Plus, SPH cancels a consent solicitation exercise, and ESR Cayman's merger is approved. https://bit.ly/31uspaP Open / Comment

2021-11-08 12:53:56 ETF Idea

Keep your eyes on the five key sectors in Bursa Malaysia

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• Bursa Malaysia is now accessible through FSMOne.com.

• Malaysia is one of the largest and fastest-growing economies in Southeast Asia. Its stock exchange, also known as Bursa Malaysia, is also the fourth largest in the region.

• Bursa Malaysia is home to over 900 companies, offering investors a diverse range of high-quality companies that are leaders in their respective industries.

• Bursa has three listing boards: Main Market, ACE Market, and LEAP Market. The Main Market, is the largest of the three, with 756 companies.

• The five key sectors in the Main Market are: Financial Services, Consumer Products & Services, Industrial Products & Services, Telecommunications & Media, and Healthcare.

: Read the full article here
: iShares MSCI Malaysia ETF (NYSE:EWM) Open / Comment