BEIJING (Reuters) - China on Wednesday unveiled plans to cut tariffs for products including machinery, electrical equipment and textile products beginning on Nov. 1, as the country braces for an escalating trade war with the United States.

https://www.reuters.com/article/us-china-economy-tariffs/china-announces-fresh-import-tariff-cuts-amid-brewing-trade-war-idUSKCN1M61EH

Just hold Kesm. The electric vehicle boom is coming.

Warren Buffett Has Made a Killing Off China's Biggest Electric Car Maker

On Sept. 26, 2008, Berkshire Hathaway Inc. (BRK-B) agreed to buy what is now equivalent to 24.59% of BYD Co.’s Hong Kong-traded stock. Those shares in what is now China’s biggest maker of alternative-energy vehicles have soared more than 500% since then, turning a $232 million investment into a stake worth roughly $1.6 billion at current prices. Berkshire shares have rallied just 146% in the same 10-year period as of Tuesday’s close.

Buffett’s bet — made two years before Tesla Inc. (TSLA, +0.58%) listed and way ahead of the auto industry’s shift toward electric cars — has turned BYD (BYDDY, +0.68%) into the billionaire investor’s most-valuable holding in a publicly traded company based outside the U.S. The Chinese firm has weathered sharp swings in its share price and transformed itself from a maker of cell-phone batteries into a manufacturer of cars and monorails as China’s transport needs evolved.
http://fortune.com/2018/09/26/warren-buffett-berkshire-hathaway-byd-china-electric-cars/

Next Dufu

China stocks rally as MSCI considers lifting index weighting | http://www.klsescreener.com/v2/news/view/435242

FBM KLCI rises with China shares as trade war concerns subside | http://www.klsescreener.com/v2/news/view/435450

FBM KLCI rises with China shares as trade war concerns subside | http://www.klsescreener.com/v2/news/view/435450

George Kent: 2Q net profit down but results 'credible' despite LRT3 work disruption http://www.theedgemarkets.com/article/george-kent-2q-net-profit-down-results-credible-despite-lrt3-work-disruption

China stocks rally as MSCI considers lifting index weighting | http://www.klsescreener.com/v2/news/view/435242

Consumer confidence surges in September to 18-year high, near all-time peak
https://www.marketwatch.com/story/consumer-confidence-surges-in-september-to-18-year-high-near-all-time-peak-2018-09-25?mod=bnbh

VW's affordable electric car to be offered in 3 battery configurations starting at ~$30,000, report says
https://electrek.co/2018/09/24/vw-neo-electric-car-battery-configurations-price-report/

“We project stronger earnings in FY19F due to improving wafer supplies but remain concerned that the escalating trade situation may affect demand.
http://www.theedgemarkets.com/article/cimb-research-raises-target-price-kesm-rm1850

Singapore stocks are bullish. Oil price is high.

The PHLX Semiconductor index was up 0.39% yesterday.

KESM科技
销售订单仍强劲 | http://www.klsescreener.com/v2/news/view/434406

Kenanga Research & Investment
KESM Industries Bhd - Within Expectations
https://klse.i3investor.com/blogs/kenangaresearch/175089.jsp

Growth to resume after a hiatus in 2H18. Though earnings shortfall was observed in 3Q18 with 4Q18 still seeing some sluggishness, we are not overly concerned regarding the lagging sales as we understand that the late delivery was only a timing issue with orders volume still resilient. Note that the group is still at investment phase for customers, where it should plough in a similar quantum of capex as of FY17 (at RM107m) for expansion. Recall that FY17 revenue/CNP saw a jump of 18%/43% during its aggressive expansion period back then. In terms of investment, it is shifting towards upgrading existing plants in Malaysia and China into “smart factories”, which should see higher automation; hence, suggesting better operational efficiency. All in, we expect a much better FY19, underpinned by higher utilisation alongside capacity

Growth to resume after a hiatus in 2H18. Though earnings shortfall was observed in 3Q18 with 4Q18 still seeing some sluggishness, we are not overly concerned regarding the lagging sales as we understand that the late delivery was only a timing issue with orders volume still resilient. Note that the group is still at investment phase for customers, where it should plough in a similar quantum of capex as of FY17 (at RM107m) for expansion. Recall that FY17 revenue/CNP saw a jump of 18%/43% during its aggressive expansion period back then. In terms of investment, it is shifting towards upgrading existing plants in Malaysia and China into “smart factories”, which should see higher automation; hence, suggesting better operational efficiency. All in, we expect a much better FY19, underpinned by higher utilisation alongside capacity

Kenaga lowered Kesm's TP from 18.30 to 18.20 and maintained MP.

https://klse.i3investor.com/m/priceTarget/45029.jsp

Kenanga Research & Investment
KESM Industries Bhd - Within Expectations
https://klse.i3investor.com/blogs/kenangaresearch/175089.jsp

Kenaga generally has the most bearish view on semiconductor stocks.

CCCC open to ‘equity partnership’ in bid to rescue ECRL | http://www.klsescreener.com/v2/news/view/433978

CCCC open to ‘equity partnership’ in bid to rescue ECRL | http://www.klsescreener.com/v2/news/view/433978

Dufu used to be an undervalued stock. It is an example of a success story.

On the other hand, many undervalued stocks will remain undervalued because their net profits do not increase much for a few years.

Kobay is next Dufu.

Singaporean and Chinese semiconductor stocks have been relatively bearish recently due to trade war concerns, whcih have affected the Sunright price. On the other hand., US and Malaysian chip stocks have not been bearish recently.
23/09/2018 17:43

At the moment valuations of Malaysian semiconductor stocks are relatively high. Check Inari, Vitrox and Pentamaster, etc. Even MMSV is quite expensive,
Kesm can move up to RM 20.00 in two months.

17.8 tomorrow?

split

Unisem

https://klse.i3investor.com/m/stock/overview/5005.jsp

The QR in Q4 FY2017 was exceptionally good. The net profit increased to 11,316K from 10,604K compared to Q3 FY2017.

net profit (YoY)

MMSV: -69.21%
Kesm: -15.57%
Inari: -12.98%
Unisem: -26.01%

net profit (YoY)

Unisem: -26.01%
Kesm: -15.57%
Inari: -12.98%
MSV: -69.21%

net profit (YoY)

Kesm: -15.57%
Inari: -12.98%
Unisem: -26.01%
MMSV: -69.21%

China rebar price

Wow

http://www.sunsirs.com/uk/prodetail-927.html

China rebar price
http://www.sunsirs.com/uk/prodetail-927.html

Wow

Industrials lead Dow to record high; tech boosts S&P, Nasdaq | http://www.klsescreener.com/v2/news/view/433184

LRT3 likely to resume with reduced budget and revised plan https://www.thestar.com.my/business/business-news/2018/09/17/lrt3-set-to-continue/

LRT3 likely to resume with reduced budget and revised plan https://www.thestar.com.my/business/business-news/2018/09/17/lrt3-set-to-continue/

Morgan Stanley upgrades Malaysia stocks to equalweight | http://www.klsescreener.com/v2/news/view/430020

https://www.investors.com/market-trend/stock-market-today/chip-stocks-stock-futures-trade-war/

美中貿易談判露曙光 亞股聞訊止跌回揚 | http://www.klsescreener.com/v2/news/view/429686

https://klse.i3investor.com/servlets/ptres/47241.jsp

The outlook of Malaysian semiconductor stocks are far better than that of US semiconductor stocks due to depreciation of rinngit. Plus some analysts are nagative about US semiconductor stocks, but others are not.

https://klse.i3investor.com/blogs/Vitrox/173596.jsp

Unisem chairman and Chinese partner launch takeover bid at RM3.30 per share | http://www.klsescreener.com/v2/news/view/429140

謝圣德与中資每股3.30獻購友尼森 | http://www.klsescreener.com/v2/news/view/429168

等待美国中期选举结果 半导体股可短买 | http://www.klsescreener.com/v2/news/view/428780

US manufacturing in August expanded at the fastest pace in 14 years as the Institute of Supply Management gauge rose to 61.3 from 58.1 in July.

Dollar pops higher after August jobs data show pickup in wage growth
https://www.marketwatch.com/story/dollar-hovers-with-weekly-loss-ahead-of-jobs-report-2018-09-07

關稅戰敲響半導體警鐘　本地業者或因禍得福


http://www.klsescreener.com/v2/news/view/428152

關稅戰敲響半導體警鐘　本地業者或因禍得福 | http://www.klsescreener.com/v2/news/view/428152