Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>It has been four months since JIP officially announced their intention to launch a Tender Offer for <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a> by end-July. 7 weeks since Toshiba's Board supported it.</li>
<li>There's been no material public griping. Peers are sharply higher. There have been news stories suggesting a Western Digital/Kioxia deal is close. That's now extended. The Toshiba deal possibly too. </li>
<li>But huge outperformance by peers, and possible clarity from Kioxia deal terms are unlikely to move the Toshiba Board to demand more. </li>
</ul>


It has been four months since JIP officially announced their intention to launch a Tender Offer for Toshiba Corp (6502 JP) by end-July. 7 weeks since Toshiba's Board supported it.
There's been no material public griping. Peers are sharply higher. There have been news stories suggesting a Western Digital/Kioxia deal is close. That's now extended. The Toshiba deal possibly too. 
But huge outperformance by peers, and possible clarity from Kioxia deal terms are unlikely to move the Toshiba Board to demand more. 


Toshiba (6502) Tender - Certainly Cheaper. Maybe Delayed, But Toshiba Fatigue Is Strong

APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/fadu-inc" target="_blank" data-smartkarma-citation="entities:39896:1" rel="noopener">Fadu (440110 KS)</a> is looking to raise up to US$147m in its Korean IPO.</li>
<li>Fadu is a South Korean fabless semiconductor maker mainly engaged in flash storage technology innovation. Its core products are Enterprise Solid State Drive (SSD) and Enterprise SSDs.</li>
<li>In our previous notes, we looked at the company’s past performance and undertook a peer comparison. In this note, we talk about valuation.</li>
</ul>



Fadu (440110 KS) is looking to raise up to US$147m in its Korean IPO.
Fadu is a South Korean fabless semiconductor maker mainly engaged in flash storage technology innovation. Its core products are Enterprise Solid State Drive (SSD) and Enterprise SSDs.
In our previous notes, we looked at the company’s past performance and undertook a peer comparison. In this note, we talk about valuation.


Semiconductors, Memory and SSDs Specialist, Objective Analysis

Jim Handy

Semiconductors, Memory and SSDs Specialist

Objective Analysis

Objective Analysis offers third-party independent market research and data for the semiconductor industry and investors in the semiconductor industry.

Semiconductors, Memory and SSDs

Thematic (Sector/Industry)

<ul>
<li>Chip revenues have been up for two months in a row.  Could this be the start of a trend?</li>
<li>Commodity prices indicate that the "Collapse" phase of a price downturn has ended, and that prices will now follow costs</li>
<li>DRAM and NAND makers should remain unprofitable until mid 2024, although their revenues can begin to steadily rise.  Other chip makers will do better.</li>
</ul>


Chip revenues have been up for two months in a row.  Could this be the start of a trend?
Commodity prices indicate that the "Collapse" phase of a price downturn has ended, and that prices will now follow costs
DRAM and NAND makers should remain unprofitable until mid 2024, although their revenues can begin to steadily rise.  Other chip makers will do better.


<ul>
<li>In March, when the JIP Offer for <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a> was announced, the Toshiba Board supported the Offer but declined, at the time, to recommend it to shareholders. </li>
<li>
<em>"[The price] has clearly not reached the level at which it is possible to recommend to general shareholders that they tender their shares at this time." </em>That was then.</li>
<li>10 weeks later and the Board has a Revised Opinion. It has recommended the Offer for reasons which smack of resignation rather than appropriate deliberation. Investors beware.</li>
</ul>


In March, when the JIP Offer for Toshiba Corp (6502 JP) was announced, the Toshiba Board supported the Offer but declined, at the time, to recommend it to shareholders. 

"[The price] has clearly not reached the level at which it is possible to recommend to general shareholders that they tender their shares at this time." That was then.
10 weeks later and the Board has a Revised Opinion. It has recommended the Offer for reasons which smack of resignation rather than appropriate deliberation. Investors beware.


Toshiba's Board Buckles Under - As Things Stand, Board Supports and Recommends JIP Offer

Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

<ul>
<li>Q1’23 operating profits of 0.64 trillion won, the lowest since Q1'09</li>
<li>Strong sales of flagship S23 smartphones helped avert an otherwise inevitable overall group operating loss.  </li>
<li>Outlook for the current quarter is for more of the same, albeit the bottom line will depend on the extent (if any) of memory inventory write-downs. </li>
</ul>


Q1’23 operating profits of 0.64 trillion won, the lowest since Q1'09
Strong sales of flagship S23 smartphones helped avert an otherwise inevitable overall group operating loss.  
Outlook for the current quarter is for more of the same, albeit the bottom line will depend on the extent (if any) of memory inventory write-downs. 


Samsung. When Your Cash Cow Turns Into Your Achilles Heel.

United States

Western Digital Corporation is a global provider of solutions for the collection, storage, management, protection and use of digital content, including audio and video. The Company's products include hard drives, solid-state drives, and home entertainment and networking products.

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Western Digital (WDC US)

Toshiba (6502) Tender - Certainly Cheaper. Maybe Delayed, But Toshiba Fatigue Is Strong

Toshiba has sharply underperformed a broad peer basket since March. Too cheap has become cheaper. A Kioxia valuation input may arrive, but I expect...

Travis Lundy

Fadu IPO - Thoughts on Valuation

Fadu (440110 KS) is looking to raise up to US$147m in its Korean IPO. Previously, we looked at the company’s past performance and undertook a peer...

Ethan Aw

Encouraging Signs in Recent Semi Stats

The chip market is giving signs of a recovery which will see rising revenues but should remain unprofitable for commodity players until mid-2024. ...

Jim Handy

Toshiba's Board Buckles Under - As Things Stand, Board Supports and Recommends JIP Offer

In March, Toshiba's Board said they could not recommend JIP's price. 10 weeks later, Peers are up, Toshiba fwd earnings f/casts are up vs peers,...

Travis Lundy

Samsung. When Your Cash Cow Turns Into Your Achilles Heel.

Q1’23 operating profits of 0.64 trillion won, the lowest since Q1'09. Strong S23 sales saved the day. Outlook is for more of the same, albeit the...

William Keating

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