February 21, 2025 05:37 AM GMT Enterprise Storage | North America CQ4 Storage Preview: Few Multiple Expansion Catalysts Into Storage Prints Our checks and survey results point to a healthier storage spend environment, although we are hesitant on any meaningful acceleration. Most cautious PSTG into print on FY26 guide risk. NTNX our preference for LT time horizon, but see little catalysts into print. Key Takeaways Healthier spend environment, although we lean cautious on any meaningful acceleration. Checks a ...

J P M O R G A N Global Emerging Markets Research 21 February 2025 EM Flows Weekly Turning the tide? EM bond funds see the largest inflow since early October EM Flows Weekly includes fund flow data, non-resident EM portfolio flow data, weekly retail fund flow models, EM-dedicated retail bond fund beta trackers, and historical cross-asset fund flows. – Within local currency, EM ex-China saw inflows of +$146mn (from + $60mn), and China-focused funds saw outflows of -$57mn (from -$274mn). – Within hard currency ...

February 21, 2025 03:50 AM GMT Investor Presentation | Asia Pacific M Foundation Taiwan – Financials We believe cash dividend yield remains the key focus in 1H25, Industry View Attractive and insurers and securities have competitive dividend yields compared to banks. Higher long-term rates and the FSC's localized measure should also help insurers implement IFRS 17 and ICS smoothly and deliver higher ICS ratios in 2026. Key stock calls: Cathay (2882.TW; OW): Higher dividend yield for 2024 with improving recu ...

Foundation M Meet the new boss, same as the old boss U.S. Economics | North America History may not repeat, but it should rhyme: what the 2018-19 tariffs can tell us about tariffs today The 2018-19 tariffs caused manufacturing output to fall after a delay. This time around, the hit to growth could materialize faster. Either way, we think the Fed will be inclined to ease in support of activity so long as inflation pressures prove temporary, as we expect. Key Takeaways | M February 21, 2025 06:00 AM GMT Histo ...

21 February 2025 Equity Research Report 360 Security Technology (601360 CH) Upgrade to Hold: AI monetisation accelerates AI monetisation fully priced in. We previously pointed out that the company's AI businesses were still at an early stage, while we underestimated the pace of its AI development, with the fast-growing AI search and office businesses seeing a surge in the number of users. We expect AI businesses to significantly contribute to earnings growth, and we thus raise our 2026 EPS estimate by 25% a ...

February 21, 2025 09:20 AM GMT Chinese Airports | Asia Pacific Consumption Slump in the Price; Await Catalysts We expect consumption pressure will continue to weigh on Chinese airports' earnings recovery in 2025. However, we think soft consumption is largely in the price. We await catalysts. Key Takeaways Duty-free spending is soft; we also think air traffic and air cargo volume growth are at risk... We remain guarded toward China's 2025 consumption outlook, considering soft GDP growth amid tariffs and pers ...

Summary of Fund Flow Insights - February 21, 2025 Industry Overview - The report focuses on the equity fund flows in both Developed Markets (DM) and Emerging Markets (EM), highlighting trends in inflows and outflows across various regions and fund types. Key Points Developed Markets (DM) - **Equity Fund Inflows**: DM equity funds experienced inflows of **US$16.8 billion** during the week ending February 19, 2025, with US ETFs contributing **US$12.9 billion** to unit creation [1][5][29]. - **Bond Fund Inflows**: Bond funds saw inflows of **US$16.2 billion** during the same period [1]. - **Performance**: The MSCI AC World index rose by **1.5%**, indicating positive performance across most funds [1]. Emerging Markets (EM) - **Equity Fund Outflows**: EM funds faced outflows of **US$5.3 billion**, with China ETFs alone accounting for **US$4.7 billion** in redemptions despite a **5%** rally in the MSCI China index [2][5]. - **GEM Funds**: GEM funds reported almost net zero flows, as inflows into ETFs were offset by redemptions from non-ETFs [2]. - **Regional Insights**: - India experienced **US$1.6 billion** in Foreign Institutional Investor (FII) outflows, while Taiwan saw **US$0.2 billion** in foreign inflows [2]. - Foreign flows in Korea remained weak, with nearly net zero flows [2]. Geographic Focus of Fund Flows - **North America**: Inflows of **US$12.5 billion** were noted, with a performance increase of **1.4%** [3]. - **Western Europe**: Inflows totaled **US$4.0 billion**, with a performance increase of **0.5%** [3]. - **Asia Pacific**: Japan saw negligible inflows, while other regions like EM Asia experienced significant outflows of **US$5.5 billion** [3]. Fund Type Analysis - **ETFs vs Non-ETFs**: The report indicates a trend where ETFs are attracting more inflows compared to non-ETFs, particularly in the US and Global markets [5][29]. - **Cumulative Flows**: The cumulative flows to equity funds versus bond funds were analyzed, showing a significant divergence in investor preferences [9][10]. Additional Insights - **Market Allocation**: The report emphasizes that market equity flows are estimated by multiplying fund flows into a fund group with the group's market allocation, providing a clearer picture of market dynamics [5][45]. - **ESG Funds**: The report also touches on flows to ESG funds, indicating a growing interest in sustainable investment options [112][120]. Conclusion The fund flow insights for the week ending February 19, 2025, reveal a robust recovery in developed markets, particularly in equity funds, while emerging markets continue to face challenges with significant outflows. The preference for ETFs over traditional funds is evident, reflecting changing investor behavior in the current market landscape.

A c t i o n | 20 Feb 2025 20:00:00 ET │ 36 pages North America Hardware & Storage Broader Recovery In Infrastructure Demand With Near Term AI Lumpiness, PC Demand More Tempered But Expected to Recover CITI'S TAKE Hardware OEMs are expected to report in the coming weeks. On a median basis, shares have modestly underperformed the S&P500 over a three- month period. From a fundamental perspective, overall infrastructure demand indicators (excluding AI) remain constructive with supply chain commentary (SNX, CDW) ...

Summary of the Conference Call on Greater China Tech Semiconductor Industry Overview - The focus is on the Greater China Tech Semiconductor industry, particularly in the context of AI and non-AI opportunities [1][2]. Core Insights - **Top Investment Ideas**: - Key Overweight (OW) recommendations include FOCI, Novatek, Asmedia, Nuvoton, Espressif, Montage, and Yangjie [5]. - Key Equal Weight (EW) recommendations include Aspeed and ASMPT [5]. - Key Underweight (UW) recommendations include Realtek, Winbond, and Macronix [5]. - **Market Dynamics**: - The broader semiconductor cycle recovery is slow, with AI cannibalization impacting general computing, consumer, and automotive sectors as enterprises prioritize AI investments [5]. - The value of AI semiconductors is increasingly tied to software rather than just semiconductor technology [5]. - China's capital expenditure (capex) is strengthening, leading to a slower recovery in mature node foundry utilization [5]. - An increase in semiconductor inventory days historically signals a negative trend for semiconductor stock price appreciation [5]. - **Long-term Demand Drivers**: - Tech diffusion is expected to drive a reacceleration in AI semiconductor demand, particularly due to generative AI applications across various sectors [5]. - Tech deflation is anticipated to stimulate demand for technology products through "price elasticity" [5]. Financial Metrics and Valuation - **Valuation Comparisons**: - TSMC (Ticker: 2330.TW) has a current price of 1,080.0 TWD with a target price of 1,388.0 TWD, indicating a 29% upside [6]. - UMC (Ticker: 2303.TW) has a current price of 43.0 TWD with a target price of 48.0 TWD, indicating a 12% upside [6]. - SMIC (Ticker: 0981.HK) shows a current price of 50.8 HKD with a target price of 38.0 HKD, indicating a 25% downside [6]. - **Performance Metrics**: - TSMC's P/E ratio is projected to decrease from 33.4 in 2023 to 17.7 in 2025, with EPS growth expected to rebound from -18% to 35% [6]. - UMC's P/E ratio is expected to decline from 8.8 in 2023 to 13.9 in 2025, with EPS growth projected to be negative [6]. Additional Insights - **AI Semiconductor Growth**: - Excluding NVIDIA's AI GPU revenue, non-AI semiconductor growth is projected at only 10% year-over-year in 2024 [11]. - The semiconductor supply chain is seeing a slight decrease in inventory days, which historically correlates with an increase in the semiconductor stock index [11]. - **Technological Advancements**: - TSMC's CoWoS (Chip on Wafers on Substrate) technology is becoming mainstream for 2.5D packaging, with plans for rapid expansion of advanced package plants in Taiwan [14][15]. - The global market for CoWoS is expected to grow significantly, with a projected CAGR of 172% from 2023 to 2030, reaching an estimated market size of US$9 billion by 2030 [36]. - **CPO Technology**: - CPO (Chip on Photonic Integrated Circuit) is highlighted as a power-saving solution that enhances data transmission speeds [26][36]. - FOCI is expected to see significant revenue growth from CPO-related business, primarily driven by partnerships with NVIDIA [38][41]. Conclusion - The Greater China Tech Semiconductor industry is navigating a complex landscape with both challenges and opportunities, particularly in AI and advanced packaging technologies. The focus on long-term demand drivers and strategic investments in key companies will be crucial for navigating this evolving market.

Deutsche Bank Research Asia Economics Asia Macro Insight 22 February 2025 Date Calm before the storm Despite US tariff threats, which prompted many of Asia's authorities to seek a deal with the US (with the exception of China), local markets remained relatively resilient, especially in the absence of aggressive follow-up actions against China. That said, we strike a note of caution, given that the US's comprehensive review and remedial action plan is not scheduled to be completed until April 1. While there ...