March Update: Hong Kong
Hello,
We’re only holding on to our highest conviction positions as we ride out the exchange of tweets between Donald Trump and a cast of Iranian leaders.
In Hong Kong, the largest position is our favourite Applied Materials fabricator, which is pursuing a secondary listing in Singapore:
We also own a negative EV Singaporean builder, Kwan Yong Holdings, which got cheaper this week.
At HK$ 0.435/share, the company has more than 2.5x its market cap in cash. The company should also generate 72% of its market cap in profit from its order book alone. Last year, it declared a high single digit dividend.
And finally we have what is left of our value trap CTR Holdings, in the hope that they will disclose their work for Micron and declare a dividend.
Two new ideas for you in Hong Kong.
The first relates to the demand for server chassis:
Here Dan links to an article explaining that Vera Rubin is causing a three fold increase in demand for server racks.
Trendforce is also reporting that ASIC-based AI servers are forecast to account for 27.8% of total AI server shipments in 2026, rising to nearly 40% by 2030.
There is a server chassis maker benefitting from both trends and now trading below its recent placement price.