Electronics

Alibaba may be Suning’s white knight in hiding

22 Jun 2021

The e-commerce giant’s 20% stake in the Chinese retailer has plunged by two-thirds in value since it bought it in 2015. The shares have further to fall as Suning faces $7 bln of debt due. Given Alibaba’s push into bricks-and-mortar commerce, a takeover could benefit both sides.

Toshiba mess will be useful national embarrassment

10 Jun 2021

An independent probe found the $20 bln Japanese conglomerate sought to subvert shareholders in conjunction with the government. The findings intensify pressure for a sale, bolster the broad case for activist investors and should kick Japan’s governance changes into higher gear.

Electronic waste unearths green China unicorn

8 Jun 2021

Used-phone retailer Aihuishou wants to go public at a $5 bln valuation. Thanks to frugal and environmentally conscious shoppers, demand for second-hand goods is booming. The company has yet to turn a profit, but backer JD's deep pockets and rare ESG credentials should appeal.

Capital Calls: Klarna, Dan Loeb, Fashion IPO

28 May 2021

Concise views on global finance: The Swedish “buy now, pay later” group’s possible $50 bln price tag may leapfrog rivals Afterpay and Affirm; the corporate agitator deserves a taste of his own medicine; About You’s mooted 3 bln euro valuation implies a discount to rivals.

Capital Calls: Endeavor’s Hollywood ending

29 Apr 2021

Concise views on global finance: The entertainment conglomerate’s IPO flipped the script on opening day.

Who wants to be an electric-car billionaire?

8 Apr 2021

In China, who doesn’t may be the better question. Dishwasher maker Haier, property developer Evergrande and smartphone maker Xiaomi are piling into the over-invested sector. They may disrupt the industry; they will certainly accelerate the coming bloodbath.

Capital Calls: Twitter time-wasting, News Corp

25 Mar 2021

Concise views on global finance in the Covid-19 era: Congressional hearings on Big Tech get ever less productive; meanwhile, the parent of the Wall Street Journal snaps up Investor’s Business Daily.

China’s Xiaomi risks wasting its good luck

25 Mar 2021

The $81 bln smartphone maker grew adjusted quarterly earnings 37%. Suspension of a U.S. ban, plus the suppression of rival Huawei’s smartphone business, helped enormously. It is missing a golden opportunity, however, to achieve a goal of expanding beyond low-margin hardware.

Chip shortages are here to stay, for some

2 Mar 2021

Pandemic-led demand swings and trade wars have left factories short of semiconductors. The chip industry’s too-successful capital discipline is also a factor. The $450 bln industry’s coming splurge on new capacity will benefit smartphone manufacturers more than automakers.

Toshiba gets in its own way yet again

14 Jan 2021

The $13 bln Japanese conglomerate is under fire from hedge fund Farallon over its strategy while Effissimo wants a probe into a vote scandal. Their demands for shareholder meetings reflect a lack of trust in boss Nobuaki Kurumatani that’s also evident in a lacklustre valuation.

Intel woes provide timely lesson for Samsung

8 Jan 2021

The South Korean giant will end 2020 with a 26% rise in quarterly operating profit, thanks largely to its chip dominance. Its U.S. peer, by contrast, has fallen behind rivals and faces calls to break up. The prolonged leadership vacuum at Samsung risks a similar gradual decline.

LG missteps into chaebol-challenge spotlight

16 Dec 2020

A pushy investor is unhappy with a spinoff plan by the South Korean empire’s $12 bln holding company. The carve-up’s financial benefits are hard to identify. That brings unwanted attention to a pioneer in corporate restructuring just as the country angles for stricter measures.

Chinese Icarus escapes Ingram Micro unsinged

10 Dec 2020

HNA aggressively acquired overseas assets between 2015 and 2017, including hotels and even a stake in Deutsche Bank. The $7 bln purchase of the U.S. electronics distributor epitomized the binge, now being unwound. A sale at a higher price shows stable businesses retain value.

Samsung chairman bequeaths a tainted empire

25 Oct 2020

Lee Kun-hee, who transformed a noodle business into a smartphone and chipmaking colossus, has died at 78. The second-generation leader's mark on Korea Inc will endure, as do scandals that follow the family. Their challenge is to clean up the messy parts of his $355 bln legacy.

Warburg Pincus enjoys Japanese Suga rush

5 Oct 2020

IT conglomerate NEC will splash out $2.2 bln on private equity-backed Swiss fintech firm Avaloq. At 21 times adjusted EBITDA, it’s not cheap. But with new Prime Minister Yoshihide Suga vowing to digitise ministries and banks, the deal is well-timed for both sides.

Xiaomi is next Apple of China’s eye

27 Aug 2020

The $65 bln smartphone maker has exploited Washington's attacks on Huawei to take overseas market share. Its suite of gadgets look similar to the Cupertino giant's, and Xiaomi has maintained a bland political profile at home and abroad. That’s about to pay off.

Asia chip windfall preludes tech’s next challenge

29 Jul 2020

Shares of TSMC and Samsung have leapt on hopes Intel may outsource production. It could enlarge the contract-chipmaking market they dominate by 20%. Still, the $209 bln Intel's woes highlight the high costs of making advanced semiconductors. Finding buyers may get harder.

Chip champ jumps into Shanghai-Hong Kong value gap

17 Jul 2020

Dual-listed SMIC's mainland shares debuted at four times the price of its Hong Kong equivalent. Other peers trade at similarly ridiculous premiums. Mainland traders still struggle with valuing companies, while Beijing’s incomplete reforms keep the markets out of sync.

SoftBank will struggle to find equal love of Arm

14 Jul 2020

The Japanese conglomerate paid $32 bln for the chip designer in 2016. Businesses have been hived off, while sales growth and operating profit have underwhelmed. As boss Masayoshi Son contemplates floating a piece of Arm, under pressure, it could be hard to avoid a markdown.

Chinese IPO gives vaping a second, deep puff

7 Jul 2020

Smoore International has been valued at $9 bln in a Hong Kong listing after pricing its shares at the top of a range. The issue defies a global backlash against the battery-powered devices. At 19 times forward earnings, investors have helped to prop up a smoking hot valuation.