Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

Thematic (Sector/Industry)

<ul>
<li>DRAM Q2'23 revenues amounted to ~$11 billion, up 14.6% sequentially but down 56% YoY.</li>
<li>NAND Q2'23 revenues amounted to $9 billion, up 7.7% sequentially but down ~50% YoY.</li>
<li>Despite the modest uptick in Q2'23, there's a long and winding road back to sustainable profitability...</li>
</ul>


DRAM Q2'23 revenues amounted to ~$11 billion, up 14.6% sequentially but down 56% YoY.
NAND Q2'23 revenues amounted to $9 billion, up 7.7% sequentially but down ~50% YoY.
Despite the modest uptick in Q2'23, there's a long and winding road back to sustainable profitability...


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>Fadu’s revenue growth has been stupendous, to say the least. However, the firm’s revenues are derived mainly from two customers, which exposes it to a large degree of concentration risk.</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. 
Fadu’s revenue growth has been stupendous, to say the least. However, the firm’s revenues are derived mainly from two customers, which exposes it to a large degree of concentration risk.


Fadu Pre-IPO - Stupendous Revenue Growth but Heavily Reliant on Two Key Customers

<ul>
<li>Q2’23 revenues of NT$ 7,027 million, up 9.4% sequentially but down 61% YoY. Net losses declined QoQ, mainly due to favourable Fx and Income tax charges</li>
<li>Similar to Micron, while bit shipments increased QoQ, ASPs declined. This is not a road to recovery out of the memory segment downturn</li>
<li>While customer inventories have largely normalised, supplier inventories remain elevated. Until this corrects or demand surges, Nanya and peers will remain in the doldrums. </li>
</ul>


Q2’23 revenues of NT$ 7,027 million, up 9.4% sequentially but down 61% YoY. Net losses declined QoQ, mainly due to favourable Fx and Income tax charges
Similar to Micron, while bit shipments increased QoQ, ASPs declined. This is not a road to recovery out of the memory segment downturn
While customer inventories have largely normalised, supplier inventories remain elevated. Until this corrects or demand surges, Nanya and peers will remain in the doldrums. 


Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

<ul>
<li>Three shareholders of <a href="https://www.smartkarma.com/entities/socionext-inc" target="_blank" data-smartkarma-citation="entities:36351:1" rel="noopener">Socionext (6526 JP)</a> aim to raise around US$1.8bn via selling all of their shares in Socionext.</li>
<li>Socionext was listed on 12th Oct 2022, when it raised US$457m in its upsized Japan IPO. Its six-month lockup expired in Apr 2023. Its shares are up 6x since listing.</li>
<li>In this note, we talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>


Three shareholders of Socionext (6526 JP) aim to raise around US$1.8bn via selling all of their shares in Socionext.
Socionext was listed on 12th Oct 2022, when it raised US$457m in its upsized Japan IPO. Its six-month lockup expired in Apr 2023. Its shares are up 6x since listing.
In this note, we talk about the deal dynamics and run the deal through our ECM framework.


Socionext Placement - A US$1.8bn Cleanup, Will Have to Give up Some of Its 6x Listing Gains

Event-Driven

<ul>
<li>On 28th Mar 2023, <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a> announced that it would adopt a new organizational and governance structure, splitting into six major business groups and other investments.</li>
<li>Alibaba also stated that each of the business groups would be set up as an independent entity with its own board and the groups will eventually seek to list.</li>
<li>Having looked at the past performance of its division, some appear more worthy than others of undertaking a listing in the next year or two.</li>
</ul>


On 28th Mar 2023, Alibaba Group (9988 HK) announced that it would adopt a new organizational and governance structure, splitting into six major business groups and other investments.
Alibaba also stated that each of the business groups would be set up as an independent entity with its own board and the groups will eventually seek to list.
Having looked at the past performance of its division, some appear more worthy than others of undertaking a listing in the next year or two.


Alibaba Potential IPOs - Part 1 - Six Mini-Alibabas - Some Are More Ready than Others to List

South Korea

Samsung Electronics Co., Ltd. manufactures a wide range of consumer and industrial electronic equipment and products such as semiconductors, personal computers, peripherals, monitors, televisions, and home appliances including air conditioners and microwave ovens. The Company also produces Internet access network systems and telecommunications equipment including mobile phones.

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Samsung Electronics (005930 KS)

Q2'23 Memory Segment Review

DRAM Q2'23 revenue ~$11 billion, up 14.6% QoQ, down 56% YoY. NAND Q2'23 revenue ~$9 billion, up 7.7% QoQ, down ~50% YoY. H1'23 was loss making...

William Keating

Fadu Pre-IPO - Stupendous Revenue Growth but Heavily Reliant on Two Key Customers

Fadu is a South Korean fabless semiconductor maker mainly engaged in flash storage technology innovation. Its core products are Enterprise Solid...

Ethan Aw

Nanya Q2'23 Results. Doldrums Ahoy!

Q2’23 revenue NT$ 7,027 million, +9.4% QoQ , -61% YoY. Customer inventories ~normalised, supplier inventories remain ++. Until this corrects or...

William Keating

Socionext Placement - A US$1.8bn Cleanup, Will Have to Give up Some of Its 6x Listing Gains

Three shareholders of Socionext (6526 JP) aim to raise around US$1.8bn via selling shares in Socionext. In this note we talk about the deal...

Sumeet Singh

Alibaba Potential IPOs - Part 1 - Six Mini-Alibabas - Some Are More Ready than Others to List

Alibaba recently announced that it would adopt a new organizational structure, splitting into six major business groups and other investments. In...

Sumeet Singh

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