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)

First quarter semiconductor revenues were reported to be up 6.9% from one year-ago but down 3.9% from the fourth quarter.  This positive news incorporates very little impact from today's COVID-19 pandemic which, along with other factors, should result in weak revenues for the remainder of the year.

First quarter semiconductor revenues were reported to be up 6.9% from one year-ago but down 3.9% from the fourth quarter.  This positive news incorporates very little impact from today's COVID-19 pandemic which, along with other factors, should result in weak revenues for the remainder of the year.

Q1 Semis Up 6.9% Y/Y, but COVID Not Yet Factored In

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

Renesas was up 9.6% today after posting solid 1Q results with OP of ¥11.3bn well above consensus at ¥6.9bn and revenue was also slightly higher at ¥178.7bn vs. consensus’ ¥174.6bn. The surprise was on margins where gross margin is rising, SG&amp;A expenses appear to be well under control and automotive segment profitability is starting to look healthy again. The Long Renesas, Short TEL idea we pushed on 14 Apr is now up 14.5% in ratio terms from the 15 Apr close. We suggested at the time that there could be about 25% upside to the ratio and that remains our target which leaves about 10.8% upside left.

Renesas was up 9.6% today after posting solid 1Q results with OP of ¥11.3bn well above consensus at ¥6.9bn and revenue was also slightly higher at ¥178.7bn vs. consensus’ ¥174.6bn. The surprise was on margins where gross margin is rising, SG&amp;A expenses appear to be well under control and automotive segment profitability is starting to look healthy again. The Long Renesas, Short TEL idea we pushed on 14 Apr is now up 14.5% in ratio terms from the 15 Apr close. We suggested at the time that there could be about 25% upside to the ratio and that remains our target which leaves about 10.8% upside left.

Renesas – There Is Juice Left in the Long Renesas Short TEL Pair ST and Long Renesas Has Legs LT

The SIA released WSTS semiconductor revenues for February.  While there was a small decline attributable to COVID-19, it is clear that February's figures are only the beginning of the upcoming downturn.  This Smartkarma Insight uses the industry's historical trends to give an early and rough indication of how the market might evolve.

The SIA released WSTS semiconductor revenues for February.  While there was a small decline attributable to COVID-19, it is clear that February's figures are only the beginning of the upcoming downturn.  This Smartkarma Insight uses the industry's historical trends to give an early and rough indication of how the market might evolve.

February Semiconductors Show Onset of COVID-19 Decline

Event-Driven

Continuing on from our earlier series discussing skews that emerged from divergent performance between TOPIX and Nikkei, we examine the merits of pair trading Renesas long vs. Tokyo Electron short. We believe TOPIX ETF buying by the BOJ should support this trade which already looks attractive purely based on deviation from historical ratios.

Continuing on from our earlier series discussing skews that emerged from divergent performance between TOPIX and Nikkei, we examine the merits of pair trading Renesas long vs. Tokyo Electron short. We believe TOPIX ETF buying by the BOJ should support this trade which already looks attractive purely based on deviation from historical ratios.

Renesas Vs. TEL – Watch for a Snapback in This Extremely Stretched Ratio

Micron Technology's quarterly earnings call will occur in a couple of days.  This Smartkarma Insight looks at what the company  is likely to say about both its most recent quarter and the current quarter.  In brief: The reported quarter should be all good news, while the upcoming quarter poses enormous challenges.

Micron Technology's quarterly earnings call will occur in a couple of days.  This Smartkarma Insight looks at what the company  is likely to say about both its most recent quarter and the current quarter.  In brief: The reported quarter should be all good news, while the upcoming quarter poses enormous challenges.

Upcoming Micron Earnings Call: What to Expect

Japan

Renesas Electronics Corporation researches, develops, designs and manufactures electronic components such as semiconductors and integrated devices.

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Renesas Electronics (6723 JP)

Q1 Semis Up 6.9% Y/Y, but COVID Not Yet Factored In

First quarter semiconductor revenues were reported to be up 6.9% from one year-ago but down 3.9% from the fourth quarter. This positive news...

Jim Handy

Renesas – There Is Juice Left in the Long Renesas Short TEL Pair ST and Long Renesas Has Legs LT

Renesas was up 9.6% today after posting solid 1Q results with OP of ¥11.3bn well above consensus at ¥6.9bn and revenue was also slightly higher at...

Mio Kato

February Semiconductors Show Onset of COVID-19 Decline

The SIA released WSTS semiconductor revenues for February. While there was a small decline attributable to COVID-19, it is clear that February's...

Jim Handy

Renesas Vs. TEL – Watch for a Snapback in This Extremely Stretched Ratio

Continuing on from our earlier series discussing skews that emerged from divergent performance between TOPIX and Nikkei, we examine the merits of...

Mio Kato

Upcoming Micron Earnings Call: What to Expect

Micron Technology's quarterly earnings call will occur in a couple of days. This Smartkarma Insight looks at what the company is likely to say...

Jim Handy

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