Deshima weekly catch is a weekly publication which focus on news of interest related to international companies in technology, consumption and luxury. Deshima seeks to catch interesting company and industry news and announcements when we think they could impact investor perception and market sentiment.

-         TSMC net profit rose 78% in the last quarter to $9.6bn, exceeding analyst forecasts. TSMC cut an aggressive capex plan in September due to the macro environment. TSMC CEO CC Wei forecasts a “slight growth year”. Shares fell 27% in 2022. Net Income margin is 45% versus a pre-covid level of 35%. TSMC EVEBITDA is at a 5-year low of 8X. It makes sense for TSMC to be on Warren Buffet shopping list: he bought a $4.1bn stake in October.

-         Richemont third quarter sales are up 8% (consensus at 7.8%), posting double-digit growth in the jewelry division and 5% contraction in the watch division due to China lockdown. Richemont has significant exposure to China mainland and should benefit from the reopening.  Richemont trades on a EVEBITDA of 12x 2023 and 10x 2024 compared to a pre-covid level of 13.5x.

-         Diageo acquired this week the high-end Rhum company Don Papa founded by Stephen Caroll ex Remy Cointreau executive in 2012. Caroll applied high-end Remy Cointreau business model for this Rhum business. Diageo is paying 240 million euros for a company with a double-digit turnover indicating how much Diageo and Pernod are keen to get exposure to this fast growth segment.

-         Ryanair chief executive Michael O’Leary has said to the FT there are “no signs” of the economic slowdown hitting airlines after the low-cost airline racked up record bookings at the start of the year.