Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

Thematic (Sector/Industry)

<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.

<ul>
<li>Taiwan’s UMC, the world’s third largest foundry, reported Q1’23 revenues of NT$54.2 billion, a decrease of 20.1% QoQ and a 14.5% YoY, in line with expectations</li>
<li>Q2'23 forecasted flat sequentially, outperforming TSMC's outlook for a 6.5% QoQ decline</li>
<li>Management foresees recovery being slower than previously anticipated and to admits to having very limited visibility into H2'23</li>
</ul>


Taiwan’s UMC, the world’s third largest foundry, reported Q1’23 revenues of NT$54.2 billion, a decrease of 20.1% QoQ and a 14.5% YoY, in line with expectations
Q2'23 forecasted flat sequentially, outperforming TSMC's outlook for a 6.5% QoQ decline
Management foresees recovery being slower than previously anticipated and to admits to having very limited visibility into H2'23


UMC. Calling Q1'23 The Trough Despite Limited Forward Visibility

<ul>
<li>SK Hynix reported a Q1'23 net loss of ~ US$1.9 billion</li>
<li>As was the case with Micron, the company pegged Q1'23 as the trough for the current downturn and now expect quarterly revenues to grow sequentially</li>
<li>Recovery may be nigh, but the macro outlook has actually worsened. The road to recovery will be a long and winding one. </li>
</ul>


SK Hynix reported a Q1'23 net loss of ~ US$1.9 billion
As was the case with Micron, the company pegged Q1'23 as the trough for the current downturn and now expect quarterly revenues to grow sequentially
Recovery may be nigh, but the macro outlook has actually worsened. The road to recovery will be a long and winding one. 


SK Hynix Calls Time On The Memory Downturn

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>On 20 April, Chile's government announced that it will be nationalizing the country's lithium industry. Chile is the second largest producer of lithium in the world. </li>
<li>The nationalization of the lithium industry in Chile will likely have a long-term negative impact on the rechargeable batteries related companies in Korea.</li>
<li>This is mainly due to greater challenges of getting access to lithium at more affordable prices. </li>
</ul>


On 20 April, Chile's government announced that it will be nationalizing the country's lithium industry. Chile is the second largest producer of lithium in the world. 
The nationalization of the lithium industry in Chile will likely have a long-term negative impact on the rechargeable batteries related companies in Korea.
This is mainly due to greater challenges of getting access to lithium at more affordable prices. 


Nationalization of Lithium Industry in Chile - Impact on Korean Rechargeable Batteries Value Chain

<ul>
<li>In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 2Q 2023.</li>
<li>Of the 38 pair trades, 21 of them involved holdcos outperforming opcos YTD and 17 of them involved opcos outperforming holdcos in the same period.</li>
<li>We highlight 38 pair trades that involve Korean holdcos and opcos.</li>
</ul>


In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 2Q 2023.
Of the 38 pair trades, 21 of them involved holdcos outperforming opcos YTD and 17 of them involved opcos outperforming holdcos in the same period.
We highlight 38 pair trades that involve Korean holdcos and opcos.


Korean Holdcos Vs Opcos Gap Trading Opportunities in 2Q 2023

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.

Samsung Electronics Pref Shares (005935 KS)

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Samsung Electronics Pref Shares (005935 KS)

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

UMC. Calling Q1'23 The Trough Despite Limited Forward Visibility

Q1’23 revenues of NT$54.2 billion, a decrease of 20.1% QoQ and a 14.5% YoY, in line with expectations. Recovery slower than previously anticipated,...

William Keating

SK Hynix Calls Time On The Memory Downturn

SK Hynix reported a Q1'23 net loss of ~ US$1.9 billion. Q1'23 pegged as the trough. Recovery may be nigh, but macro outlook has actually worsened....

William Keating

Nationalization of Lithium Industry in Chile - Impact on Korean Rechargeable Batteries Value Chain

The nationalization of the lithium industry in Chile will likely have a long-term negative impact on the rechargeable batteries related companies...

Douglas Kim

Korean Holdcos Vs Opcos Gap Trading Opportunities in 2Q 2023

In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 2Q 2023. We highlight 38 pair trades that...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)