![]() "Maybe valuations should be lower."īut Kumar is no bear on Asia. " markets have a history of higher volatility, and the companies are smaller," says Subodh Kumar, chief investment strategist with CIBC World Markets, a Toronto-based investment bank. To be sure, comparing multiples across the Pacific may be of limited use. BellSouth sells for 18 times its trailing profits per share. , which carry price-to-sales multiples of 1.7 and 1.9, respectively.Īt 13, KT's latest 12-month price-to-earnings ratio also looks reasonable relative to a five-year average multiple of 20. investors as an American Depositary Receipt (ADR), currently trades at 0.9 times sales. , a South Korean provider of fixed-line, wireless and other telecom services. S&P Global Market Intelligence is not responsible if those links are unavailable later.The discrepancy could explain why some Asian stocks still look like bargains relative to their U.S. Links are current at the time of publication. This content does not constitute investment advice, and the views and opinions expressed in this piece are those of the author and do not necessarily represent the views of S&P Global Market Intelligence. By contrast imports associated with Sony Corp.'s PlayStation rose by 4.7% - admittedly at the off-peak time of year.Ĭhristopher Rogers is a senior researcher at Panjiva, which is a business line of S&P Global Market Intelligence, a division of S&P Global Inc. The decline in shipments linked to Microsoft Corp.'s Xbox has been more extreme with a 75.9% drop perhaps explained by the absence of a new gaming system until later this year. shores in March, with seaborne imports linked to Nintendo Co. Panjiva's data shows disruptions already hit U.S. Yet, from a supply chain perspective "the outlook remains uncertain" due to issues sourcing parts, according to a Nintendo spokesperson. Indeed, The Nikkei reported that Nintendo wants to increase production of its Switch video game system in 2020 in response to the success of "Animal Crossing" as people spend more time at home. One industry where demand has remained robust is videogames. Shipments from South Korea, dominated by commodity memory chips, slipped 2.7% lower after recovering for the first time in nearly a year in February. The fastest growth has been in exports from Taiwan, which rose by 20.5% in March. That was slower than the 21.5% surge seen a month earlier but follows an extended downturn in 2019. Panjiva's analysis of official data from China, Japan, South Korea and Taiwan shows that exports from the four countries combined increased by 8.9% year over year in dollar terms in March. There may yet be a slowdown, however, as downstream demand from manufacturers slows. That may reflect the low labor element in the factors of production as well as comparing to a period when there was an earlier downturn. Semiconductors, however, appear to have avoided the worst of the problems. ![]() The subsequent spread to other manufacturing hubs has disrupted a wide range of electronics components and final products. The sector's tight supply chains were an early victim of COVID-19 when the outbreak started in Wuhan, China, as discussed in Panjiva's Feb. ![]() Electronics supply chains are being roiled by the spread of the coronavirus pandemic.
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