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7、platform.If you want more such Insights delivered to you in real time on your desktop or mobile,visit .Cover Photo by Adam Niecioruk on UnsplashTable of Contents1.China Auto 2021E Outlook:Winter Is Over 4 By Victoria Li 2.Renesas Auto Chip Shortage Could Drive Further Gains 9 By Mio Kato 3.Adi Saran
8、a Armada(ASSA IJ)-Auto Leasing,Logistics,15 and the Last Mile By Angus Mackintosh 4.Toyota Strengthening Autonomous with Aurora Partnership 24 By Mio Kato5.Japan Quake and Chip Shortages,Tough on Auto?29 By Jim Handy 6.Autos-“Electric Vehicles”Thematic Exposure and where to find them 32 By Lazarus G
9、oh7.Texas Weather Deals Second Blow to Automotive Chip Supply Chain 35 By Jim HandyThematic(Sector/Industry)China Auto 2021EOutlook:Winter Is OverBy Victoria Li|08 Dec 2020EXECUTIVE SUMMARYWe are bullish on PV sales in 2021E.We estimate Chinas PV sales willgrow by 10%yoy to 22.2mn units.We also esti
10、mate Chinas EV(electricvehicle)sales double will in 2021E.SUVs market share would continue growing and might reach 50%soonin China due to customers preference,while premium car market(above Rmb130k)would continue gain market shares withconsumption upgrading.B/C segment EV SUVs,as long as theresquali
11、fied models available,would be the hottest segment in 2021E.Among EV brands,Tesla(TSLA.US)Shanghai might be the biggestwinner next year,thanks to its coming Model Y(SUV).Xpeng(EPEV.US)is our favourite in local brand.It would launch a new sedan EV(P5)in2021E.Xpengs new SUV model might come in 2022E.N
12、IOs(NIO.US)sales would under pressure due to direct competition from Model Y.Among traditional OEMs,Geely(175.HK)remains our favourite due tohigh expected growth of earnings driven by ramping up Lynk&Co,newmodels and coming brand new designed EV models.DETAILAccording to CPCA,Chinas PV retail sales
13、increased by 5%yoy in November,vs.10%yoy of October.Retail sales in 4th week of Nov decreased yoy,because year end sales boom in last year started earlier.Market demand oncars continue recovering steadily.Due to the weak sales in 1H2020,weestimate Chinas 2020E PV sales decrease by 5%yoy to 20.18mn u
14、nits.However,we are bullish on PV sales in 2021E.We estimate Chinas PVsales grow by 10%yoy to 22.2mn units.We also estimate Chinas EV(electric vehicle)sales double in 2021E.China Auto 2021E Outlook:Winter Is OverVictoria Li4Victoria LiChina Specialist,Auto and Industrial SpecialistVictoria has 18 ye
15、ars of experience as a sell-side equity analyst in China,focusing on Auto,Industrials,and Energy.She has strong contacts in the machinery and automotive sectors,and can get into the thinking process of key industry players and decision makers through her experience in China and abroad.Areas of Exper
16、tise Primary Asset Class:Equities Geography:Asia Pacific Countries:China Sectors:Consumer Discretionary,IndustrialsContent Verticals Equity Bottom-Up,Thematic(Sector/Industry)EV is the sweet spot in 2021EWith more EV brands launching their flagship models,market recognitionon EV cars is changing and
17、 differentiating from ICE cars in China.Morecustomers are attracted by EV cars themselves due to their unique features,including L3 autonomous driving and smart upgradable control system.Thisis going to be a long-lasting driver of demand of EV cars in China,moreimpactful longer-term than shorter ter
18、m policies like number platerestrictions.While Shanghais new number plate restrictions is a catalyst todrive 2021E EV sales grow strongly.EV SUVs with practical all-electricranges would be more popular than EV sedans.China Auto 2021E Outlook:Winter Is OverVictoria Li5SUV is still favoured in China.I
19、n 10M2020,SUV sales overcome sedan and became the biggest segment inPV market.In October,Chinas SUV sales increased by 9.9%yoy,vs.sedans8.7%yoy.This indicates that SUV would gain market share further as long astherere sufficient new SUV models supplied in the market.MPV marketshare shrank significan
20、tly to 5%in 10M2020,and its sales growth in Octoberwas-10%yoy.The key purpose of buying MPVs for personal use is its biginterior space for family journeys.However,with more affordable bigger SUVmodels available in the market,quite a certain potential buyers of MPVs areswitching to SUVs,considering S
21、UVs better security features.Covid-19 pandemic is speeding upsector penetration in china.Poor sales during pandemic lockdown significantly distroyed small OEMscashflow.Also,customers became more cautious on choosing car brands,asthe business continuity of OEMs became one of the factors to consider.A
22、s aresult,some small OEMs had to go bankrupt.Brilliance Group(BrillianceChinas parent company)is the biggest OEM group who started bankruptprocess so far this year.Leading OEMs with low cashflow risk and attractivecar model launches would be the winners.China Auto 2021E Outlook:Winter Is OverVictori
23、a Li6Consumption upgrading continuesCars with prices below Rmb130k are losing market shares in the past 8 years,especially those with prices below Rmb90k.This trend might be enhanced in2021E due to Covid-19s uneven impact on different sectors in China.All thelocal OEMs would more or less be hurt by
24、this trend.Geely(175.HK)wouldbenefit from its Lynk&Co brands ramping up.China Auto 2021E Outlook:Winter Is OverVictoria Li7Stock callsWe reiterate Xpeng(XPEV.US)and Geely(175.HK)as our Top Buy in Chinaauto sector.Xpeng would gain solid market share in the next few years,thanks to itsproduct quality
25、and well developed smart car tech.In 2021E,Tesla(TSLA.US)Shanghai might be the biggest winner in China EV market,thanksto its coming Model Y(SUV).Xpeng(EPEV.US)is our favourite in localbrands.It would launch a new sedan EV(P5)in 2021E.Xpengs new SUVmodel might come in 2022E.NIOs(NIO.US)sales would u
26、nder pressure dueto direct competition from Model Y.Geelys earnings is expected to grow strongly in 2021E driven by ramping upLynk&Co,new models and coming brand new designed EV models.ItsLynk&Co is building up its brand recognition and would continue benefitfrom consumption upgrading.Its new EV mod
27、el based on brand new EVplatform might win a ticket to the EV party.Disclosure&CertificationI/We have no position(s)in the any of securities referenced in this insightViews expressed in this insight accurately reflects my/our personal opinion(s)about the referenced securities and issuers and/orother
28、 subject matter as appropriate.This insight does not contain and is not based on any non-public,material information.To the best of my/our knowledge,the views expressed in this insight comply with Singapore law as well as applicable law in thecountry from which it is postedI/We have not been commiss
29、ioned to write this insight or hold any specific opinion on the securities referenced thereinI/We have signed the Insight Provider Agreement and this insight does not violate any of the terms specified therein.Victoria Li(23 Nov 2020)China Auto 2021E Outlook:Winter Is OverVictoria Li8Renesas Electro
30、nics|Equity Bottom-UpRenesas Auto ChipShortage Could DriveFurther GainsBy Mio Kato|10 Jan 2021EXECUTIVE SUMMARYAutomakers are starting to struggle with chip shortages as the Nikkei reportshere,here and here.This is an extension of a broad chip shortage globally asWFH demand,the launch of new console
31、s,GPUs and CPUs and rapidlyrecovering auto sales pour some short-term fuel on the long-term fire ofexpanding electrification and digitalisation.No wonder then that TSMC isup 134%from its March lows,but Renesas is up an even more impressive248%since its lows of 2020 and could continue to outperform.D
32、ETAILInventory Destocking and LowUtilisation Create Significant UpsideOne of the headwinds for Renesas in 2019 was inventory buildfollowing a period of near 100%utilisation rates which are unusual forthe industry.The inventory issue was largely corrected by mid-2019 internallyand even channel invent
33、ory was somewhat manageable by the endof 2020 though it did not correct to the same extent.Importantly,the mix of channel inventory did shift away fromautomotive and towards more industrial uses.Renesas Auto Chip Shortage Could Drive Further GainsMio Kato9Mio KatoJapan/Asia Long-Short|LightStream Re
34、searchMio Kato has over 15 years of experience looking at Japanese and Asian cyclically driven sectors such as Gaming,Factory Automation and Autos.He was previously with FrontPoint Partners LP,Arrowhawk Capital Partners,and Uzabase.Areas of Expertise Primary Asset Class:Equities Geography:Asia Pacif
35、ic Countries:Japan Sectors:GeneralistContent Verticals Equity Bottom-Up,Equity Capital MarketsThis creates the potential for significant sales expansion in an upturnbut what should really interest investors is wafer input based utilisationrates.Utilisation rates across the board for all wafer sizes
36、were below60%in 3QFY20 while they had been over 80%on a blended basisduring the heady 2017 period with 8-inch and 12-inch waferutilisation at close to 100%.If utilisation were to rise towards 100%again,we believe therecould be 30+%upside to consensus estimates of 225bn in 2021EBITDA.Renesas Auto Chi
37、p Shortage Could Drive Further GainsMio Kato10Valuations are Also Depressed vs.Peers Despite Share Price RallyWe have a used a peer group comprised of NXP,ST Microelectronics,Infineon,Maxim,TSMC and United Microelectronics.Renesas Auto Chip Shortage Could Drive Further GainsMio Kato11As is apparent,
38、while Renesas EV/EBITDA multiple is headed backtowards its 2017 highs,relative to peers,it is close to its post-restructuring lows now at a discount of 3.7 turns of EV/EBITDA.We believe this is unwarranted given the strong reliance of Toyotaand Nissan on Renesas.Nissan has been struggling,especially
39、 with fleet volumescollapsing in the US but appears to have hit a bottom and will beincreasing the electrification of its fleet with the Ariya crossoverEV to debut in the 2H21.Toyota meanwhile will be not only launching its own EVs but hasbeen aggressively pushing hybrid penetration with levels nowc
40、lose to 50%in Japan and Europe and a breakthrough in the USwith penetration up to 16%in 2020 with the rate up to 20%inDecember.Continued launches of hybrid models should continueto push this up this year.These factors point to continued rising demand for automotivechips and as we have commented prev
41、iously,traditionalautomakers launching a slew of EVs and Toyota pushing hybridsitself and with its Japanese and Chinese partners will start tocreate serious supply chain crunches.This is true for batteries,butalso happening for chips when other sources of demand are alsostrong.We make no secret of o
42、ur scepticism regarding EVpenetration expectations in the short/medium-term and ourfavour for hybrids,however,even for those unconvinced bythis,we feel it is eminently sensible to place heavier bets onthe arms dealers rather than the individual sides in the NEVwar.For further context on valuations,i
43、f the peer group is just restricted to NXP,ST Microelectronics and Infineon,Renesas is still trading at close to its peakdiscount.Renesas Auto Chip Shortage Could Drive Further GainsMio Kato12EVIC/ROIC also shows that at a time when Renesas ROIC generation isstarting to catch up to peers,valuations
44、are actually dropping inrelative terms.We expect this discrepancy to correct in Renesas favourand expect continued outperformance.Lastly,though unusual to say about a stock that has tripled in the lastyear,Renesas could also see a catch-up effect as it has been the weakestperformer relative to peers
45、 over the last three years and is the onlymember of its peer group to have failed to recover its 2017 highs.The inventory correction coming at a time when Renesas wascoming off the acquisition of Intersil and then announced theacquisition of Integrated Devices could have turned off investors,but now
46、 with demand surging the market may be more willing toforgive even expensive acquisitions which we said at the time werenecessary and would pay off in time.Perhaps Renesas wont catch back up to general foundrypeers such as TSMC and UMC,but even a catch-up to thelevels of the automotive semiconductor
47、 peers would implyabout 70-80%upside.We believe outperformance is likely to continue.Renesas Auto Chip Shortage Could Drive Further GainsMio Kato13Disclosure&CertificationI/We have no position(s)in the any of securities referenced in this insightViews expressed in this insight accurately reflects my
48、/our personal opinion(s)about the referenced securities and issuers and/orother subject matter as appropriate.This insight does not contain and is not based on any non-public,material information.To the best of my/our knowledge,the views expressed in this insight comply with Singapore law as well as
49、 applicable law in thecountry from which it is postedI/We have not been commissioned to write this insight or hold any specific opinion on the securities referenced thereinI/We have signed the Insight Provider Agreement and this insight does not violate any of the terms specified therein.Mio Kato(10
50、 Jan 2021)Renesas Auto Chip Shortage Could Drive Further GainsMio Kato14Adi Sarana Armada|Equity Bottom-UpAdi Sarana Armada(ASSA IJ)-AutoLeasing,Logistics,andthe Last MileBy Angus Mackintosh|25 Jan 2021EXECUTIVE SUMMARYAdi Sarana Armada(ASSA IJ)is well-known for its car leasingbusiness in Indonesia,
51、as one of the largest players in long-term carleasing through ASSA Rent,with around 13%market share.It is lesswell appreciated as a major player in logistics and for its technology-based express logistics company Anteraja,which services thebooming e-commerce space in Indonesia.The company is also th
52、e no.1 used car auction player through JBA,witharound 40%market share,providing a service for the majority of Indonesiasauto finance companies.Adi Sarana Armada(ASSA IJ)also has a complementary C2C onlinemarketplace selling vehicles,which is connected to its used car and auctionbusiness.The companys
53、 core car rental business will see growth of+10-15%as theeconomy recovers but Anteraja will see stronger growth driving the top lineto grow+25%in 2021.Management expects Anteraja to account for morethan 50%of sales in 1-2 years.Adi Sarana Armada(ASSA IJ)currently trades on an FY21E PER multiple of20
54、.1x and F22E PER of 16.9x,which does not look expensive given thepotential digital transformation ahead.Adi Sarana Armada(ASSA IJ)-Auto Leasing,Logistics,and the Last MileAngus Mackintosh15Angus MackintoshASEAN Insight Provider|CrossASEAN ResearchAngus Mackintosh has been in Equity Sales and Researc
55、h for more than 25 years covering Asian markets.He possesses in-depth knowledge of a wide range of companies,economies,and markets in Asia.Areas of Expertise Primary Asset Class:Equities Geography:ASEAN Countries:Indonesia Sectors:GeneralistContent Verticals Equity Bottom-Up,Thematic(Sector/Industry
56、)DETAILCar leasing with a logistics twistAdi Sarana Armada(ASSA IJ)is Indonesias largest B2B car leasing company,with a fleet of more than 26,728 rental vehicles and about 13%marketshare.It also provides driver services,with 4,325 drivers countrywide.It alsohas an online car auction service.Outside
57、this,it has an end to end logisticsservice,which has a strong client base including Alfamart(Sumber AlfariaTrijaya Tbk Pt(AMRT IJ),HM Sampoerna(HMSP IJ),and PT Nippon IndosariCorpindo Tbk.(ROTI)(ROTI IJ).It is also increasingly plugged into e-commerce through Anteraja,which is a last-mile delivery v
58、enture.Source:Adi Sarana Armada(ASSA IJ)A mobility ecosystemAdi Sarana Armada(ASSA IJ)now describes itself as a mobility eco-systemfrom transportation to end-to-end logistics which combines its corporaterental fleet,drivers,online car-sharing,and logistics services plus the morerecent addition of Ca
59、roline,its online automotive marketplace.The logisticsbusiness utilizes some of the companys fleet,with 5%of the fleet kept as aback up in case replacement cars are required.The company also has anonline car-sharing service which was set up in 2018,which also utilizesexcess capacity.Adi Sarana Armad
60、a(ASSA IJ)-Auto Leasing,Logistics,and the Last MileAngus Mackintosh16A strong management teamAdi Sarana Armada(ASSA IJ)has a management team with many years ofindustry experience and most of the senior management team coming fromAstra International(ASII IJ),which brings with it a degree of comfort.T
61、hePresident Director Dr Projo Sunarjanto previously served in BoD and BoCpositions with Astra International(ASII IJ),the Finance Director,HindraTanujaya,also served in several financial and operations positions at Astra,as did Jany Chandra,the Operational Director.Suyanto Tjoeng,the businessdevelopm
62、ent director previously worked with Astra Graphia(ASGR IJ)andTriputra Group,which is Adi Sarana Armada(ASSA IJ),the ultimatecontrolling shareholder.Management are also shareholders in the company,which we see as a good sign.A well-appointed major shareholderThe company has a strong ultimate sharehol
63、der in the shape of TriputraGroup,which was founded by Teddy Rachmat,who is also its PresidentDirector.The Triputra Group is also involved in agribusiness,manufacturing,mining,and trading&services,which is where Adi SaranaArmada(ASSA IJ)sits.He started out at Astra International(ASII IJ),whichwas fo
64、unded by his uncle William Soeryadjaya in 1968,and he eventuallybecame CEO.He is also a minority shareholder of Adaro Energy(ADRO IJ)where he is also Vice President Commissioner and his son is DeputyPresident Director.This gives Adi Sarana Armada(ASSA IJ)a solid corporategovernance backdrop.Source:A
65、di Sarana Armada(ASSA IJ)Adi Sarana Armada(ASSA IJ)-Auto Leasing,Logistics,and the Last MileAngus Mackintosh17ASSA rent a strong core businessAdi Sarana Armada(ASSA IJ)s core car leasing business falls under ASSARent and contributes around 45%of revenues.It has a total fleet size of26,278 vehicles a
66、cross a network of 45 centers across the country.24%of thefleet in Jakarta,13%in Surabaya,13%in Medan,7%in Bandung,7%inPalembang,4%in Solo,and 28%across other cities.ASSA Rent providescorporate car rental services from hourly to daily to monthly and on annualterms.It also provides a wide range of ve
67、hicles including passenger cars,commercial vehicles,trucks,and even motorcycles.It also has a wideselection of auto brands across its fleet from Toyota and Daihatsu to Honda,Suzuki,and Mitsubishi.Its main competitors are TRAC(Astra International(ASII IJ)and Indorent(Indomobil Sukses Internasional(IM
68、AS IJ),whichboth have around 24,000-25,000 vehicles.Source:Adi Sarana Armada(ASSA IJ)Source:Adi Sarana Armada(ASSA IJ)Adi Sarana Armada(ASSA IJ)-Auto Leasing,Logistics,and the Last MileAngus Mackintosh18Source:Adi Sarana Armada(ASSA IJ)Providing reliable driversOn top of its fleet and as a value-add
69、ed service Adi Sarana Armada(ASSA IJ)also provides driver services,which account for nearly 10%of revenues,with4,325 drivers.Indonesia is a country where having a driver is common andoften a necessity,given the lack of public transport and difficulties parking.Companies will often provide a car and
70、driver as one standard extra formiddle to senior management.Finding a good driver independently is noteasy so this is an invaluable service.The company provides professional,reliable,and highly trained drivers,which is an important service inIndonesia.The drivers receive training in everything from
71、safe driving tocustomer service and are also utilized in the logistics business.Car sharing a new initiativeThe company has also introduced an App-based car-sharing initiative called Share Car,which is a self-drive car sharing application targeted at bothbusiness and personal use.The company is targ
72、eting corporate employees tominimize operational risk plus short term corporate rentals.This will help tobetter utilize the companys fleet.The company has dedicated parking atvarious locations across Jakarta in Kuningan,Cilandak,Pancoran,Blok M,Pluit,and Pasaraya.This division complements the car re
73、ntal business andthe company can utilize older vehicles from the fleet.A car can be rented forIDR90,000 for the first hour and IDR30,000 an hour for the second hour.Thecars are clean and well-serviced and located in strategic areas.JBA the No.1 auto auction player in IndonesiaJBA is the countrys lar
74、gest auto auction business with 18 branches across anumber of cities across the country operating a hub and pool system.Thecompany was acquired in January 2019 from a Japanese-owned car auctioncompany for IDR140bn.The company auctions around 4,000 cars a monthwith a strong customer base including mo
75、st of the major multi-financecompanies such as BFI Finance Indonesia(BFIN IJ),Toyota Astra Finance,MPM Finance,BCA Finance,and Adira Finance to name a few.Financecompanies are required to use a 3rd party to sell vehicles.JBA BidWinauction provides a safe and transparent platform for sellers and buye
76、rs andcommends around 40%market share of the car auction business inIndonesia.It charges a 2%-3%commission to the seller in each transactionplus a registration fee,which the buyer pays.Around 90%of the businesscomes from dealers and 10%from individuals.Adi Sarana Armada(ASSA IJ)itself retires around
77、 20%of its own fleet every year,so there are also internalsynergies.Adi Sarana Armada(ASSA IJ)-Auto Leasing,Logistics,and the Last MileAngus Mackintosh19Source:Adi Sarana Armada(ASSA IJ)Caroline.id a complimentary online market placeAdi Sarana Armada(ASSA IJ)has also set up an online automotivemarke
78、tplace called Caroline.id,which is a C2C online platform,which bringstogether buyers and sellers with transparent prices and reliable quality.It isintegrated with ASSAs Galeri Mobil,a used car business,JBA BidWinauction,and a B2D(dealer)to help grow volumes through the platform.Theprocess involves i
79、nspections of all vehicles being sold and includes a fuelrange of different types of cars.There is a guarantee on the engine of thecars being sold.It can also offer credit for buyers,working with BFI FinanceIndonesia(BFIN IJ),Adira Dinamika Multi Finance(ADMF IJ),and financearms of Bank Central Asia
80、(BBCA IJ),Bank Rakyat Indonesia Persero(BBRIIJ),and Bank Mandiri Persero(BMRI IJ).ASSA Logistics a staples logistics playerASSA Logistics provides integrated logistics services,including trip-basedoperations and distribution management and specializing in nationwidestore to store and intra-city deli
81、veries.The company has a full range of fleetoptions including blind vans,light trucks,and up to medium and heavytrucks.ASSA Logistics provides services to some substantial consumercompanies including Alfamart(Sumber Alfaria Trijaya Tbk Pt(AMRT IJ),PTNippon Indosari Corpindo Tbk.(ROTI)(ROTI IJ),HM Sa
82、mpoerna(HMSP IJ),Circle K,and Bright Group.For Alfamart,the company services more than5,000 outlets through 15 distribution centers,with 10m deliveries a year.The company aims to optimize cost efficiencies,providing fleetmanagement,trip management,and delivery systems for its customers.ASSA Logistic
83、s accounts for around 5.5%of the companys revenues in1H2020.Serving the last mile with AnterajaAdi Sarana Armada(ASSA IJ)has also launched a new initiative in OnlineExpress Logistics called Anteraja,which is a technology-based expresslogistics company,providing delivery in the last mile.Chinese logi
84、sticsplayer SF Express has a 20%stake in Anteraja,and it provides its expertise tothe company.The platform cooperates with multiple e-commerce platforms(including Tokopedia PT(1087142D IJ),Shopee(Sea Ltd(SE US)andBukalapak,B2B document deliveries,social commerce(Facebook Inc A(FBUS)and Instagram),an
85、d B2B deliveries,as well as general parcel deliveries.Adi Sarana Armada(ASSA IJ)-Auto Leasing,Logistics,and the Last MileAngus Mackintosh20It currently has 260 service points across the country,with 60%in Jakarta,20%in Java-ex Jakarta,and 20%ex-Java,and continues to increase itsnetwork density to co
86、ver all provinces.It currently delivers around 220,000parcels a day,with around 5,000 couriers.Management estimates it willbreakeven at around 350,000 parcels a day and expects to reach this level in2021.The company did reach 500,000 parcels a day for a few days inDecember 2020.Anteraja eats spare c
87、apacityAnteraja already accounts for 19%of Adi Sarana Armada(ASSA IJ)revenuesin 1H2020.The companys couriers or SATRIA(Knights)are well trainedprofessional local couriers serving pre-assigned unit zones and on contractwith the company.The company provides optimal pricing and real-timetracking,guaran
88、teed pick up times under service level agreements.Anterajahas helped ramp up the utilization of trucks and logistical vehiclesbelonging to ASSA Logistics.Anteraja utilized 20%of ASSA Logistics trucksin 2019 and 40%by the end of 2020.It is also developing a B2B service underBisnisaja.Management sugge
89、sts that it will be the biggest revenuecontributor to Adi Sarana Armada(ASSA IJ)in 2-3 years time.The companyalso has a platform called Titipaja,which provides fulfillment services forcustomers through its network of warehouses.Source:Adi Sarana Armada(ASSA IJ)An embryonic electric motorcycle ventur
90、eThis year,the company will collaborate with PT Listrik Vine Jasa and Tetrikto launch an environmentally-friendly electric motorbike that is specificallyused for AnterAja couriers(SATRIA)in delivering parcels to customers in aneffort to increase the use of green energy.The electric motorbike usesenv
91、ironmentally friendly technology and is equipped with a DC 72V/20 AhLithium-Ion battery to support its performance.The electric motorbikefeatures an Android-based smartphone indicator panel to display relevantdata.This is an embryonic project which is being supported by Adaro Energy(ADRO IJ).Adi Sar
92、ana Armada(ASSA IJ)-Auto Leasing,Logistics,and the Last MileAngus Mackintosh21Well-funded with zero-coupon convertibleAdi Sarana Armada(ASSA IJ)plans to issue an IDR450bn(US$32m)7-yearzero-coupon convertible bond,with International Finance Corp(IFC)as thestand by buyer to finance the expansion of bo
93、th Anteraja and to repay bankloans.51.5%of the proceeds will be distributed to subsidiaries includingAnteraja and Titipaja.This is a zero-coupon note with a 3.5%yield tomaturity per annum should the bonds not be converted.Shareholders notexercising pre-emptive rights will undergo up to 15%dilution a
94、fter theexercise of pre-emptive rights and convertible bond conversion.Thecompany is planning a capex of IDR1.5tn this year focusing on adding newvehicles.In 2020,Adi Sarana Armada(ASSA IJ)had allocated Capex of IDR1.2tn which was almost completely utilized.Optimistic guidanceAdi Sarana Armada(ASSA
95、IJ)remains optimistic on the outlook for growthin 2021,targeting+20%-25%revenue growth driven by a recovery in therental business,along with growth in delivery services from e-commercealong with its warehouse fulfillment business under Titipaja.The rental andauction business is expected to grow by+1
96、0%-15%in 2021,whilst Anterajais expected to grow at a faster pace and should account for more than 50%ofrevenues in 1-2 years time.A digitally enhanced leasing and logistics leaderIn the 3Q2020,Adi Sarana Armada(ASSA IJ)booked a+28.1%YoY inrevenue to IDR2.14tn and+4.16%growth in gross profit but net
97、 profitdecreased-41.7%YoY to IDR 51.19bn.The key reason for the decline in netprofit came from an increase in interest expenses to fund the acquisition ofJBA,as well as investing in Anterajas expansion.The company currentlytrades on an FY21E PER multiple of 20.1x and F22E PER of 16.9x,which doesnot
98、look expensive given the potential digital transformation ahead.Thecompanys last-mile venture will become increasingly important over thenext few years and should make a meaningful contribution to profits in2022.Adi Sarana Armada(ASSA IJ)-Auto Leasing,Logistics,and the Last MileAngus Mackintosh22Ear
99、nings EstimatesFY2020EFY2021EFY2022ESales IDR BN2,9573,4754,362Net Profit IDR bn108138164EPS IDR31.840.648.3Growth-2%+27%+19%PER25.6x20.1x16.9xDividend0.000.000.00Yield0.000.002.4%ROE8.7%10.7%10.9%PBV2.6x2.5x2.4xSource:Adi Sarana Armada(ASSA IJ)/CrossASEAN ResearchFY21E EPS growthFY21E PERFY21E ROEP
100、BVUnion Auction(AUCT TB)+12.2%18.2x52.4%20.0 xS.F.Holding(002352 CH)+29%50.2x16.5%7.8xZTO Express(ZTO US)+21.2%43.6x11.2%4.9xSource:Capital IQDisclosure&CertificationI/We have no position(s)in the any of securities referenced in this insightViews expressed in this insight accurately reflects my/our
101、personal opinion(s)about the referenced securities and issuers and/orother subject matter as appropriate.This insight does not contain and is not based on any non-public,material information.To the best of my/our knowledge,the views expressed in this insight comply with Singapore law as well as appl
102、icable law in thecountry from which it is postedI/We have not been commissioned to write this insight or hold any specific opinion on the securities referenced thereinI/We have signed the Insight Provider Agreement and this insight does not violate any of the terms specified therein.Angus Mackintosh
103、(14 Jan 2021)Adi Sarana Armada(ASSA IJ)-Auto Leasing,Logistics,and the Last MileAngus Mackintosh23Toyota Motor|Equity Bottom-UpToyota StrengtheningAutonomous withAurora PartnershipBy Mio Kato|10 Feb 2021EXECUTIVE SUMMARYToyota and Denso have reportedly struck a long-term partnership with keyautonomo
104、us technology startup Aurora Innovation.Part of our core thesisfor automakers is that increasingly confident shifts into electrifiedtechnologies and later autonomous would reveal the immaturity anddeficiencies of EV makers,popping this bubble.We do not expect this tohappen overnight but there is one
105、 more step being taken here to shine lighton the underlying reality in the space.DETAILAn Intelligent Approach to AutonomousWe have been critical about Teslas approach to autonomous for avariety of reasons.Firstly,the lack of LiDAR which is accepted as being necessary toensure safety for fully auton
106、omous driving.Secondly,because of its nave belief that an ADAS system couldgradually be upgraded to a fully autonomous system withoutserious to driver safety as a result of overconfidence andinattention.Lastly,because of the rather thoughtless assumption that moredata=win!Aurora addresses all three
107、points directly on its website.Firstly,the incrementalism approach is directly repudiated.This is something that Waymo has also commented on and bothcompanies are directly trying to develop a fully autonomoussystem,which will take more time but will not comprise on safetyin the interim.Toyota Streng
108、thening Autonomous with Aurora PartnershipMio Kato24Mio KatoJapan/Asia Long-Short|LightStream ResearchMio Kato has over 15 years of experience looking at Japanese and Asian cyclically driven sectors such as Gaming,Factory Automation and Autos.He was previously with FrontPoint Partners LP,Arrowhawk C
109、apital Partners,and Uzabase.Areas of Expertise Primary Asset Class:Equities Geography:Asia Pacific Countries:Japan Sectors:GeneralistContent Verticals Equity Bottom-Up,Equity Capital MarketsWe have commented previously on OpenPilot,an ADAS systemdeveloped by a tiny startup that is competitive with T
110、eslasautopilot.In a nutshell,ADAS is(relatively)easy.AD is hard.Thinking that one is a simple extension of the other is incorrect.The company also directly addresses Teslas claims that a surfeit of datawould give it an enormous advantage in developing self-drivingtechnology.As we have said previousl
111、y most data generated is garbage data.Itis worthless.Accumulating too much worthless data can in fact becounterproductive because it makes it more difficult to identify,extract and analyse the valuable data.Most likely,Tesla is aware of this and simply engaging in dubiousmarketing.If the management
112、genuinely believes that gorging ondata is an intelligent strategy that would be an even biggerconcern.The second point below on not building a ladder to the moon isalso pertinent in the direct to AD vs.incremental ADAS debate.We maintain the view that NEV manufacturers will quickly see anyadvantages
113、 in ADAS evaporate as traditional automakers getserious and will be unable to fund the investments necessary withthe patience necessary to successfully commercialise true AD.Toyota Strengthening Autonomous with Aurora PartnershipMio Kato25Lastly,they address the necessity of combining different sens
114、ors formaximum accuracy.There are pictures illustrating the limitations ofeach of a pure camera,radar or lidar system on their webpage.According to Bloomberg:Toyota Strengthening Autonomous with Aurora PartnershipMio Kato26That is a strong pedigree,and we believe it shows in the intelligentstrategic
115、 approach adopted by the company.We have commented numerous times that AD should be firstcommercialised for heavier duty commercial vehicles andconstruction machinery(dump trucks)due to their higher pricepoints(ability to more easily absorb the costs of the AD system),typically set routes(limiting s
116、urprises)and often high driversalaries.This is what Aurora has been developing for as their Aurora Driverwas initially targeted at Class-8 trucks and the company has apartnership with Paccar.Advantages for Toyota and DensoToyota and Denso already own a small stake in Aurora as Auroraacquired Ubers A
117、dvanced Technologies Group in which themanufacturers had stakes.The new partnership does not initially entail any furtherinvestment.Aurora will develop systems for Toyotas Sienna minivans to beused as autonomous taxis,including on Ubers network.Aurora has also expressed interest in Toyotas e-Palette
118、 concept asan autonomous platform.We believe this partnership will be positive for the Toyota Group.It is the typical Toyota approach of being selective but makingmultiple bets to ensure it never gets left behind technologically.The sheer scale of the Toyota group allows it to take this approachwith
119、out becoming financially burdened and it is a key competitiveadvantage that the market does not sufficiently discount in ouropinion.Aurora also emphasises its focus,being a pure autonomousdeveloper rather than being part of a bigger where the priority lieselsewhere such as Waymos position under Goog
120、le.While Waymosoperations are relatively independent,ultimately its interests aresubservient to its parent which could be an issue in someinstances.Toyota still maintains its own autonomous unit,internally so itwill not be wholly dependent on Aurora and this partnership ismostly dipping its toe in t
121、he water.Toyota likes to keep tabs on allthe different approaches being taken for technology developmentand it clearly evaluates Auroras approach highly.Toyota Strengthening Autonomous with Aurora PartnershipMio Kato27The move continues a trend of traditional auto manufacturerstying up with tech sta
122、rtups to develop autonomous technologybut we feel that Toyotas strategic positioning is just superior.Its ability to continue its own development of thetechnology while also benefitting from advances made byits partners(Aurora and Chinas pony.ai)mean it gets threebites at the apple and is less likel
123、y to become dependent onan outside player.This place it in a stronger position thanthe competition with the exception of GM,whose Cruiseunit has a strong reputation and track record,and thebacking of Honda and Microsoft.The sheer volume and breadth of vehicle models offered bythe Toyota group can al
124、so be an advantage as there is nolimit to the know how that can be tapped in terms ofdriving conditions and specific vehicle types.The presence of Denso is key as it illustrates the advantageof having a“smaller brother”which is an exceptionallymanaged company in its own right,capable of leadingdevel
125、opment efforts in this space.The abundance ofmanagement resources available to the sprawling Toyotagroup,thanks to its tightly linked but relativelyindependently managed group companies is an advantage.Disclosure&CertificationI/We have no position(s)in the any of securities referenced in this insigh
126、tViews expressed in this insight accurately reflects my/our personal opinion(s)about the referenced securities and issuers and/orother subject matter as appropriate.This insight does not contain and is not based on any non-public,material information.To the best of my/our knowledge,the views express
127、ed in this insight comply with Singapore law as well as applicable law in thecountry from which it is postedI/We have not been commissioned to write this insight or hold any specific opinion on the securities referenced thereinI/We have signed the Insight Provider Agreement and this insight does not
128、 violate any of the terms specified therein.Mio Kato(10 Feb 2021)Toyota Strengthening Autonomous with Aurora PartnershipMio Kato28Thematic(Sector/Industry)Japan Quake and ChipShortages,Tough onAuto?By Jim Handy|16 Feb 2021EXECUTIVE SUMMARYSaturdays 7.1 earthquake in Japan could have caused important
129、 supplydisruptions for semiconductors.We reached out to over a dozen companiesto check their status,and those who replied indicated that there was littleimpact.Still,the automotive sector has reason to be nervous.DETAILSaturdays 7.3-magnitude earthquake in Japan occurred relatively close tothe epice
130、nter of the notorious earthquake near Fukushima in 2011.At thattime Objective Analysis issued an Alert to show our clients the impact ofthat earthquake,using the diagram below:The red concentric circles mark the epicenter of the 2011 quake,and thecallouts show the locations of all of the wafer fabri
131、cation plants(Fabs)thatwe were tracking in the country.Japan Quake and Chip Shortages,Tough on Auto?Jim Handy29Jim HandySemiconductors,Memory and SSDs Specialist|Objective AnalysisJim Handy has over 35 years in the electronics industry including 20 years as a leading semiconductor and SSD industry a
132、nalyst.He posts blogs at www.TheMemoryG,and www.TheSSD.Areas of Expertise Primary Asset Class:Equities Geography:Developed World Countries:Generalist Sectors:Information TechnologyContent Verticals Thematic(Sector/Industry),Equity Bottom-UpOn a similar map the 13 February 2021 earthquake is a little
133、 further southfrom the 2011 earthquake:Although we no longer keep a careful watch on the plants in our 2011 map,Idecided it would be worthwhile to reach out to those companies to see whatthey have to say.Here are the responses I have received to date:Renesas Electronics(6723 JP)has issued two detail
134、ed press releases(HERE and HERE).To summarize them:No casualties&no building damageNaka plant operations were suspended for review Feb 14,andrestarted Feb 15.(Naka is just north of Tokyo on the top mapabove)Supply chain has reported no issuesInfineon Technologies Ag(IFX GR),which now owns the Spansi
135、on plantin Aizu reported that its plant was not close enough to be impacted,butthat some subcontractors were affected by a short production halt.Some of these subcontractors wafers are still under review.Thecompany does not expect for the earthquake to cause a major impact toits supply chain and its
136、 ability to deliver.Toshiba Corp(6502 JP)reported that one of its fabs is about 350kmfrom the earthquakes epicenter,and that there is no damage toemployees,buildings,and production equipment.The factory isreported to be continuing normal operation.Kioxia(6600 JP)replied that there was no power outag
137、e in thecompanys Kitakami Plant,but that some manufacturing equipmentwas temporarily taken offline.These tools have have already beenrestarted,so the impact is said to be insignificant.The company saidnothing about its Yokkaichi mega-fab.Japan Quake and Chip Shortages,Tough on Auto?Jim Handy30Texas
138、Instruments(TXN US)replied that the earthquake caused nosignificant impact on its operations.Mitsubishi Electric(6503 JP)reports that no major damage or impactoccurredI have not heard back from numerous other companies:Fujitsu Ltd(6702 JP)Hitachi Ltd(6501 JP)Micron Technology(MU US),which took over
139、Elpidas fabsNEC Corp(6701 JP)Nuvoton Technology(4919 TT),who took over the fabs ofPanasonic/MatsushitaNxp Semiconductors Nv(NXPI US),which took over the FreescalefabOn Semiconductor(ON US)ROHM Co Ltd(6963 JP)I did not reach out to the other companies on the map.I will post comments on this Insight a
140、s other companies reply to my queries.Part of the reason that this is important is that a few Japanese companies like Renesas and Fujitsu are major suppliers to the automotive industry,and that industry is already suffering badly from chip shortages largely caused by a shortage of lagging-edge found
141、ry capacity.Any supply lapse from Saturdays earthquake would worsen their situation.This would include companies like Delphi Technologies PLC(DLPH US)and Bosch Ltd(BOS IN)who produce electronics for the auto industry.Its fortunate that no lives were lost despite the large magnitude of this earthquak
142、e.It appears from the remarks above that damage to the semiconductor supply chain has been very light.Disclosure&CertificationI/We have no position(s)in the any of securities referenced in this insightViews expressed in this insight accurately reflects my/our personal opinion(s)about the referenced
143、securities and issuers and/orother subject matter as appropriate.This insight does not contain and is not based on any non-public,material information.To the best of my/our knowledge,the views expressed in this insight comply with Singapore law as well as applicable law in thecountry from which it i
144、s postedI/We have not been commissioned to write this insight or hold any specific opinion on the securities referenced thereinI/We have signed the Insight Provider Agreement and this insight does not violate any of the terms specified therein.Jim Handy(16 Feb 2021)Japan Quake and Chip Shortages,Tou
145、gh on Auto?Jim Handy31Thematic(Sector/Industry)Autos-ElectricVehicles ThematicExposure and Where toFind ThemBy Lazarus Goh|19 Feb 2021EXECUTIVE SUMMARYWe scanned through all company filings in the US to find companies thathave exposure to the electric vehicles(EV)value chain,be it electric car andeq
146、uipment makers,EV charging grid builders,EV charging equipmentmakers,thermal insulator producers(to keep batteries cool),and IoT playerswith an electrical vehicle angle,among others.DETAILOur methodology involves programmatically running through annualreports of all companies listed in the US and fi
147、nding relevance by thenumber of occurrence of the keywords in each annual report.The screening method is especially useful for new emerging themes whereanalyst coverage is still thin,and could yield early gems in such instances.The theme of electric vehicles is relatively well-covered across the val
148、uechain.That said,since this is the first scan we are doing,we thought toshowcase the screener by giving the electric car(theme)a test drive anyway!Methodology:First,we came up with a short list of keywords with relevance toelectrical vehicles,namely:Tesla,electric vehicles,and electric cars.We chos
149、e only companies with annual reports that reached a certainthreshold count for the above keywords.We display the results in the interactive heatmap below-larger boxessignifies more mentions of the keywords.You can mouse over to see therelevant sentences pulled from the annual report.Please view this
150、 on a proper desktop for it to make sense.Zoom-in by clicking on specific Industry Categories or CompaniesZoom-out by clicking on the barAutos-Electric Vehicles Thematic Exposure and Where to Find ThemLazarus Goh32Lazarus GohChina Specialist,Auto and Industrial SpecialistLazarus Goh is an equity ana
151、lyst based in Singapore.He enjoys working at the intersection of investing and technology.Areas of Expertise Primary Asset Class:Equities Geography:Asia Pacific Countries:Generalist Sectors:GeneralistContent Verticals Equity Bottom-up,Forensic AccountingAre there other themes that interests you?Let
152、us know!Autos-Electric Vehicles Thematic Exposure and Where to Find ThemLazarus Goh33Disclosure&CertificationThis report is for the use of intended recipients only and may not be reproduced,in whole or in part,or delivered or transmitted to anyother person without our prior written consent.By accept
153、ing this report,the recipient agrees to be bound by the terms and limitationsset out herein.The information contained in this report has been obtained from public sources believed to be reliable and the opinionscontained herein are expressions of belief based on such information.No representation or
154、 warranty,express or implied,is made thatsuch information or opinions is accurate,complete or verified and it should not be relied upon as such.Nothing in this report constitutesa representation that any investment strategy or recommendation contained herein is suitable or appropriate to a recipient
155、s individualcircumstances or otherwise constitutes a personal recommendation.It is published solely for information purposes,it does not constitutean advertisement,a prospectus or other offering document or an offer or a solicitation to buy or sell any securities or related financialinstruments in a
156、ny jurisdiction.Information and opinions contained in this report are published for the reference of the recipients andare not to be relied upon as authoritative or without the recipients own independent verification or taken in substitution for the exerciseof the recipients own judgment,research,an
157、d due diligence.All opinions contained herein constitute the views of the analyst named inthis report,they are subject to change without notice and are not intended to provide the sole basis of any evaluation of the subjectsecurities and companies mentioned in this report.Any reference to past perfo
158、rmance should not be taken as an indication of futureperformance.We do not accept any liability whatsoever for any direct or consequential loss arising from any use of the materialscontained in this report.Distribution or publication of this report in any other places to persons who are not permitte
159、d under theapplicable laws or regulations of such places is strictly prohibited.Mention of any company name should neither be construed as anallegation of any misdeed or misgovernance nor should it be taken as a recommendation to avoid the concerned company.I/We have no position(s)in the any of secu
160、rities referenced in this insightViews expressed in this insight accurately reflects my/our personal opinion(s)about the referenced securities and issuers and/orother subject matter as appropriate.This insight does not contain and is not based on any non-public,material information.To the best of my
161、/our knowledge,the views expressed in this insight comply with Singapore law as well as applicable law in thecountry from which it is postedI/We have not been commissioned to write this insight or hold any specific opinion on the securities referenced thereinI/We have signed the Insight Provider Agr
162、eement and this insight does not violate any of the terms specified therein.Lazarus Goh(16 Feb 2021)Autos-Electric Vehicles Thematic Exposure and Where to Find ThemLazarus Goh34Thematic(Sector/Industry)Texas Weather DealsSecond Blow toAutomotive Chip SupplyChainBy Jim Handy|24 Feb 2021EXECUTIVE SUMM
163、ARYAfter Japans earthquake automobile makers had a lot to worry about,sincethey were already faced with critical semiconductor shortages.Nowunusually bad weather has hit much of the US,and has stopped chipproduction in three important fabs in Austin,Texas.This Insight exploresthe winners and losers
164、in this series of events.DETAILIts a really challenging time to be in the automotive business.At thebeginning of February these companies were facing chip shortages that werecaused by a combination of the industrys use of Just in time inventorymanagement and its inability to forecast demand during a
165、 pandemic.OnFebruary 13 an earthquake in Japan threatened the automotivesemiconductor supply chain,since a significant share of automotive chipsare produced in Japan.(See:Japan Quake and Chip Shortages,Tough onAuto?)Now extraordinarily harsh weather in the US has led to power cuts at threewafer fabr
166、ication plants(Fabs)in Austin Texas,further threateningproduction.Lets look at how the industry got into this situation and examine its likelyoutcome.Texas Weather Deals Second Blow to Automotive Chip Supply ChainJim Handy35Jim HandySemiconductors,Memory and SSDs Specialist|Objective AnalysisJim Han
167、dy has over 35 years in the electronics industry including 20 years as a leading semiconductor and SSD industry analyst.He posts blogs at www.TheMemoryG,and www.TheSSD.Areas of Expertise Primary Asset Class:Equities Geography:Developed World Countries:Generalist Sectors:Information TechnologyContent
168、 Verticals Thematic(Sector/Industry),Equity Bottom-UpThe Perils of Just In TimeManufacturingIn the 1980s Japanese automobile manufacturers,and other industries,tookbusiness away from US manufacturers by adopting innovative processes thatwere unknown in the US,one of which was Just in Time inventorym
169、anagement.US manufacturers found that they would not survive unlessthey moved away from The way weve always done things to adopt thesenewer techniques.With Just in Time management,inventories are kept extraordinarily low,and a strong relationship is created with suppliers who deliver components,mate
170、rials,and subassemblies perfectly synchronized to the needs of theautomobile maker.When this works its a thing of beauty,minimizinginventory carrying costs and keeping product flow very efficient.When itbreaks down the automobile maker loses the ability to function.A key component of the tight suppl
171、ier/consumer relationship is an accurateforecast.When the COVID-19 pandemic arrived two factors forced automakers to make sudden substantial changes to their forecasts:1.1.Consumers stopped purchasing automobiles,as well as most otherconsumer goods2.Automobile(and other)factories were closed to stop
172、 the spread ofthe pandemicAuto makers dramatically slowed their purchases and were unable to predictwhen their business would return to its prior run rate.Some of the suppliers to these companies were able to redirect their outputto other markets.Semiconductor makers were in good shape because thepa
173、ndemic led to increased demand for chips to support expanding Internetuse.Since the carmakers werent buying chips,these suppliers grew theInternet side of their sales.As the automotive industry regains its strength,producers are increasingtheir forecasts,but their suppliers have moved on and are ful
174、filling the needsof their new customers.This has created critical shortages of the chips theautomakers need,and is limiting their ability to produce cars.Japans RoleThe automotive business is a critical part of Japans industrial structure.Since it started,Japanese component and materials suppliers h
175、ave focusedsignificant efforts on supporting automakers.Thanks to this,Japanese chipmakers have a leading role in the automotive supply chain,not onlyproducing chips for Japanese automakers,but also for their competitorsworldwide.Companies like Renesas Electronics(6723 JP)and Fujitsu Ltd(6702 JP)are
176、 tightly aligned with the automotive business.Texas Weather Deals Second Blow to Automotive Chip Supply ChainJim Handy36When theres a powerful earthquake in Japan,like the one on February 13,automakers find themselves in jeopardy of supply disruptions.For the lastweek and a half automakers have been
177、 carefully watching their Japan-basedsuppliers in anticipation of shortages worse than they were already facing.Fortunately the earthquakes impact has been relatively minor.US Weather CrisisFor a little over a week the US has experienced extraordinarily harshweather,bringing record-breaking snowfall
178、 and cold temperatures to theeastern and southern parts of the country.The state of Texas has beenunusually hard hit,and because of an interplay of cold temperatures,politics,and energy regulation,the state has suffered from significant poweroutages.Semiconductor fabs use a lot of power,and three wa
179、fer fabs in Austin weredenied power starting on February 16.Two belong to Nxp SemiconductorsNv(NXPI US),a leading supplier of automotive semiconductors.The thirdbelongs to Samsung Electronics(SMSD LI),and is a foundry.Although both companies power was restored by Feb 21(Sunday),both werestill in pro
180、cess of bringing the impacted lines into full operation as of Feb24.Over a weeks worth of production has been lost.Typically,littlematerial must be discarded after such events,so the loss is likely to belimited to downtime.Since NXP is a supplier to the automotive industry its closures will directly
181、impact chip availability to carmakers.Samsungs closure increases the pressure on an already-constrained foundrymarket.Although the Samsung plant produces more advanced processesthan are currently used in automotive chips,the ongoing foundry shortagewill create a ripple effect,with Samsungs shortage
182、motivating otherfoundries to redirect some of their production away from lower-margin chipsto help make up for Samsungs loss of output.The unusual snow has disrupted supply with road closures and chain-reaction auto accidents,so even if these plants had power they would bevulnerable to materials sho
183、rtages.It is unclear when these firms operations will be brought back to fullproduction,since there are certain delays involved to bring the plants up tospeed.Texas Weather Deals Second Blow to Automotive Chip Supply ChainJim Handy37Who Wins,Who Loses?While this will be a boon to foundries like Taiw
184、an Semiconductor Sp Adr(TSM US),United Microelectronics Corp(2303 TT),Jiangsu HuahongTechnolog A(002645 CH),Vanguard Intl Semiconductor(5347 TT),TowerSemiconductor Ltd(TSEM US),Semiconductor Manufacturing InternationalCorp(SMIC)(981 HK),andNuvoton Technology(4919 TT),automotivecompanies are poised t
185、o do very poorly.This would include the companies who produce electronic subassemblies forthe industry Delphi Technologies PLC(DLPH US),Harman International(HAR US),and Bosch Ltd(BOS IN),and the car makers themselves,including Bayerische Motoren Werke AG(BMW GR),Daimler AG(DAIGR),Ford Motor Co(F US)
186、,Geely Auto(175 HK),General Motors Co(GMUS),Honda Motor Co Ltd(Adr)(HMC US),Hyundai Motor Co(005380KS),Mazda Motor(7261 JP),Mitsubishi Motors(7211 JP),Nikola Corp(NKLA US),Nissan Motor(7201 JP),Renault SA(RNO FP),Saab AB(SAABBSS),Subaru Corp(7270 JP),Suzuki Motor Corp(SZKMY US),Tesla Motors(TSLA US)
187、,Toyota Motor Corp Spon Adr(TM US),andVolkswagen(VOW GR).Disclosure&CertificationI/We have no position(s)in the any of securities referenced in this insightViews expressed in this insight accurately reflects my/our personal opinion(s)about the referenced securities and issuers and/orother subject ma
188、tter as appropriate.This insight does not contain and is not based on any non-public,material information.To the best of my/our knowledge,the views expressed in this insight comply with Singapore law as well as applicable law in thecountry from which it is postedI/We have not been commissioned to wr
189、ite this insight or hold any specific opinion on the securities referenced thereinI/We have signed the Insight Provider Agreement and this insight does not violate any of the terms specified therein.Jim Handy(24 Feb 2021)Texas Weather Deals Second Blow to Automotive Chip Supply ChainJim Handy38SMART
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