|Bid||22.00 x 0|
|Ask||22.05 x 0|
|Day's Range||21.75 - 22.05|
|52 Week Range||18.75 - 28.40|
|Beta (5Y Monthly)||0.06|
|PE Ratio (TTM)||11.11|
|Earnings Date||Nov 10, 2020 - Nov 16, 2020|
|Forward Dividend & Yield||1.30 (5.99%)|
|Ex-Dividend Date||Jul 15, 2020|
|1y Target Est||25.75|
(Bloomberg Opinion) -- India quite literally needs to put a roof over its China dream.It took a pandemic and a lockdown to highlight the precarious existence of the country’s blue-collar workers. Left without jobs and shelter, an estimated 30 million — roughly a fifth of the urban labor force — have gone back to their villages, with many completing long, hazardous journeys on foot when trains and buses shut down.No wonder, then, that Prime Minister Narendra Modi’s government cleared a plan this week to build inexpensive rental dwellings in cities for 350,000 workers.Giving rural migrants an incentive to return is crucial to restoring economic activity to pre-Covid levels. But there’s an opportunity here to do much more. For India to industrialize, rethinking the housing situation will be as important as freeing the urban poor from large medical bills and helping them build retirement savings. If the country of 1.3 billion people wants to be a factory to the world — the next China — it must start by giving workers low-cost living quarters.India is sitting on an inventory of more than 1.3 million unsold homes. Mumbai-based property researcher Liases Foras estimates that roughly half of these units could face delays and other execution risk; prices on nearly nine out of 10 apartments may have to be cut by 5% to 15% to hook wary buyers. That’s billions of dollars in lost revenue.It may not be possible to repurpose this stock as worker accommodation. Nevertheless, as losses on pricey condominiums crystallize for struggling developers and stretched financiers, they can be made more bearable by tax breaks, cheap government land and other fiscal support for affordable rental housing — a new revenue stream. Assured of a decent rental yield, investors will be encouraged to finance this new asset class. Institutional capital will return to depressed real estate. Construction will absorb surplus manpower and create badly needed wage income. Cheap urban rents will bring India the full benefit of labor mobility, which isn’t constrained by Chinese-style hukou, or city registration requirements. Yet the rapid urbanization that turned East Asia into an exporting powerhouse and created a foundation for mass consumption has eluded the country. Young men migrate to cities for economic reasons, and return to their villages in old age. Apart from cultural factors, availability and cost of housing is the main reason why women and children stay behind, making urbanization in India both slow and rather “masculine,” as economist Chinmay Tumbe, who has studied migration trends since the 1870s, has put it.While the gender ratio of large cities is no longer as skewed as it was in the early 20th century — 500 to 600 women for 1,000 men — it’s still a lopsided 868 in Delhi. For Surat, a major diamond-cutting and textile center on India’s western coast, the ratio is even more unbalanced at 756. Surat is still an exception in that it has a lot of manufacturing. A peculiar facet of rural-urban migration in India, according to Tumbe, is that most of the workers end up in service-industry jobs. Creaky infrastructure, infuriating red tape, occasionally overvalued currency and lack of meaningful free-trade arrangements have held back the share of manufacturing in the economy to 16% — a modest rise from 5% in 1901. Back then, British colonialists had kept India under-industrialized so they could sell their wares in a market that produced little of its own. Now, it’s a small urban elite — whose own ancestors left villages a long time ago — that’s keeping new migrants employed as chauffeurs, housemaids, condominium security and ATM guards.The economy is geared to satisfy the top 150 million earners, as Rathin Roy, until recently the director at the New Delhi-based National Institute of Public Finance and Policy, has argued. This depresses the wages that would be generated by becoming good at making what the next 300 million want. In the absence of broad-based income growth, consumers boosted spending by borrowing. When they eventually started to deleverage last year, India faced an acute demand funk, even for 7-cent munchies.Since then, Covid-19 hasn’t been the only wake-up call. Rapidly deteriorating U.S.-China relations portend sweeping changes in global supply chains, but even in its own neighborhood, India isn’t competitive in manufacturing. A once-in-a-generation opportunity could slip out of its grasp. At a furniture store in Ho Chi Minh City some years ago, I saw colorful satin-upholstered sofas whose sides were drab black polyester. This, I was told, was because the sides would take dirt from motorbike tires and must be easy to clean: A Vietnamese family would park the two-wheeler, its most precious possession, next to the living-room furniture to keep it safe at night. Societies that value and make things that workers themselves use lift living standards and labor productivity. No wonder Vietnam, now a hub for Samsung Electronics Co., is winning investments from Inventec Corp., Apple Inc.’s main assembly partner for AirPods, as well as Hon Hai Precision Industry Co., better known as Foxconn.India must also make more shoes, clothes and toys. To create a permanent urban workforce that will both produce and consume those wage goods, it should also build millions of new homes.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services. He previously was a columnist for Reuters Breakingviews. He has also worked for the Straits Times, ET NOW and Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Server manufacturer, Inventec (TPE: 2356), today announced that its first edge computing server, E850G4, now supports NVIDIA EGXTM, a high-performance, cloud native platform that brings real-time AI to the edge. As an NGC-Ready for Edge server, the E850G4 is certified for functionality and performance of the GPU Optimized AI stack from NVIDIA, security, and remote management. This 2U GPU server, targets multi-access edge computing (MEC), content acceleration, network-in-a-box, and network function virtualization (NFV) applications, among others, in the booming new market of 5G and edge datacenter. This allows users to rapidly deploy and efficiently run AI workloads in their edge networks.
(Bloomberg) -- Wistron Corp., one of Apple’s manufacturing partners, said this week half its capacity could reside outside China within a year. The declaration underscored how the Asian assemblers that keep the world supplied with iPhones and other gadgets are shifting to a higher gear after the coronavirus showed the folly of staking everything on one country.The move in production out of China has been underway since the trade war between Washington and Beijing reached its zenith last year. Now, Covid-19 is expediting that. Decisions by companies like Wistron and other Apple Inc. partners including Hon Hai Precision Industry Co., Inventec Corp. and Pegatron Corp., could re-shape tech supply chains.Read more: Trump Tumult Has Gadget Giants Splitting Along U.S.-China LinesTaipei-listed Wistron is targeting India -- where it’s already making some iPhones -- along with Vietnam and Mexico, setting aside $1 billion to fund the expansion this year and next. “We understand from a lot of messages from our customers that they believe this is something we have to do,” Chairman Simon Lin said on an earnings call. “They’re happy and appreciate that we can continue to make such a move and they will continue to work with us.”IPhone assembler Pegatron is also diversifying manufacturing sites, including by adding capacity back home in Taiwan. Chief Executive Officer Liao Syh-jang said Thursday the company hopes to kick-start manufacturing operations in Vietnam in 2021 after setting up a new plant in Indonesia last year, and it’s further looking at India as a location for new facilities. It said on Friday it had agreed to purchase land and a plant in northern Taiwan.Apple’s main assembly partner for AirPods, Inventec, said Tuesday it’s preparing to establish a unit in Vietnam.More than any other assembler, Hon Hai encapsulated how the coronavirus brought the world’s No. 2 economy to a standstill. Better known as Foxconn, it augurs a potential shift in a global production paradigm that’s governed the electronics industry well over three decades. The company also has facilities in India, where it began churning out iPhones last year, and Vietnam. “Trade, the virus, all these things will make the world very different in the next decade,” Alex Yang, the company’s investors relations chief, told investors in a recent call.It’s unlikely that China will fully give up its place as the world’s electronics workshop anytime soon. That’s because it’s difficult to replicate the intricate network of suppliers, competent workers, efficient distribution systems and large home market that the country offers. Large-scale relocation of manufacturing capabilities would also take time. Apple CEO Tim Cook said in late February that the company wasn’t looking to make any quick moves out of China in light of virus-related supply-chain interruptions. “We’re talking about adjusting some knobs, not some sort of wholesale, fundamental change,” he said.Read more: Apple’s Cook Sees Minor Supply Chain Changes in Wake of VirusStill, the outward-bound trend is accelerating, especially among smaller-scale manufacturers. That extends to gadget makers serving customers other than Apple. Meiloon Industrial Co., which makes speakers and counts Harman International Industries Inc. and Xiaomi Corp. among its clients, said it’s seeking alternatives to China-based production and speeding up a move of capacity to places like Taiwan and Indonesia, spokesperson Eva Kuo said in a phone interview.The singularly trying experience of dealing with the outbreak in China will reverberate well after Covid-19 subsides, raising questions about the globalized business model of modern corporations. “It’s a wake-up call,” Joerg Wuttke, president of the European Union Chamber of Commerce in China, told Bloomberg Television last month. “China was a given, it was the perfect infrastructure for us to source and buy from there, and to sell. Now of course we have to reconsider scenarios, how to deal with China in the future.”(Updates with Pegatron’s facility investment in Taiwan in fourth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.