Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

Equity Bottom-Up

<ul>
<li>Q1’23 revenues of NT$ 102,376 million, down 13% QoQ and down 20% YoY</li>
<li>Forecasting PC segment +20% but Components segment -5% QoQ in Q2'23 </li>
<li>Outperforming both peers &amp; the market with &gt;50% revenues now coming from gaming...</li>
</ul>


Q1’23 revenues of NT$ 102,376 million, down 13% QoQ and down 20% YoY
Forecasting PC segment +20% but Components segment -5% QoQ in Q2'23 
Outperforming both peers &amp; the market with &gt;50% revenues now coming from gaming...


ASUS Q1'23 Revenues NT$ 102,376 Million,- 13% QoQ & -20% YoY. PC Segment to Grow ~20% in Q2'23

<ul>
<li>Q1'23 was Acer's fifth consecutive quarter of sequentially declining revenues</li>
<li>Called Q1'23 the trough but no specific guidance on the current quarter</li>
<li>Chromebook sales surged 44.4% QoQ. What was the reason for this?</li>
</ul>


Q1'23 was Acer's fifth consecutive quarter of sequentially declining revenues
Called Q1'23 the trough but no specific guidance on the current quarter
Chromebook sales surged 44.4% QoQ. What was the reason for this?


Acer Q1'23 Revenue NT$52.46 Billion, -12% QoQ, -33% YoY.

Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

<ul>
<li>Asustek, Acer, and HP's recent quarterly results indicate decreases in inventory days, highlighting potential improvement happening at the leading edge of the PC industry chain.</li>
<li>Asustek (Asus) has substantially underperformed Acer YTD with one factor likely being Asus reporting worse margin performance. Asus is flat YTD after its post-results drop vs. +15% YTD for Acer.</li>
<li>Long/Short: One can explore Long Asustek vs. Short Acer based on expectations of normalization of relative operational performance.</li>
</ul>


Asustek, Acer, and HP's recent quarterly results indicate decreases in inventory days, highlighting potential improvement happening at the leading edge of the PC industry chain.
Asustek (Asus) has substantially underperformed Acer YTD with one factor likely being Asus reporting worse margin performance. Asus is flat YTD after its post-results drop vs. +15% YTD for Acer.
Long/Short: One can explore Long Asustek vs. Short Acer based on expectations of normalization of relative operational performance.


PC Industry Monitor: Signs of Inventory Improvement at PC Industry's Leading Edge; Shares Diverged

Taiwan Semiconductor (TSMC) - ADR / Equity Bottom-Up

<ul>
<li>The U.S. is reportedly working to implement China semiconductor restrictions with South Korean firms, after doing the same with Japanese and Dutch firms.</li>
<li>Nanya management sees a bottom for Memory prices in 1Q23E; we look at Long Micron vs. Short Nanya.</li>
<li>Firms are significantly expanding semiconductor capacity in Singapore, with the latest being Applied Materials and French firm Soitec.</li>
</ul>


The U.S. is reportedly working to implement China semiconductor restrictions with South Korean firms, after doing the same with Japanese and Dutch firms.
Nanya management sees a bottom for Memory prices in 1Q23E; we look at Long Micron vs. Short Nanya.
Firms are significantly expanding semiconductor capacity in Singapore, with the latest being Applied Materials and French firm Soitec.


Taiwan Tech Weekly: U.S. Pushing South Korea China Restrictions, Nanya Says Memory Bottom in 1Q23E

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>After announcing a weak outlook in the last quarter and causing its stock price to plummet, Dell has shown a decent recovery.</li><li>Its stock price has continued to recover after the company delivered an all-around beat in a challenging demand environment.</li><li>Overall, we remain neutral on Dell and give it a ‘Hold’ rating with a revised target price.</li></ul>

After announcing a weak outlook in the last quarter and causing its stock price to plummet, Dell has shown a decent recovery.Its stock price has continued to recover after the company delivered an all-around beat in a challenging demand environment.Overall, we remain neutral on Dell and give it a ‘Hold’ rating with a revised target price.

United States

Dell Technologies Inc. provides computer products. The Company offers laptops, desktops, tablets, workstations, servers, monitors, printers, gateways, software, storage, and networking products. Dell Technologies serves customers worldwide.

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Dell Technologies (DELL US)

ASUS Q1'23 Revenues NT$ 102,376 Million,- 13% QoQ & -20% YoY. PC Segment to Grow ~20% in Q2'23

Q1’23 revenues of NT$ 102,376 million, down 13% QoQ and down 20% YoY. PC segment +20% but Components segment -5% QoQ in Q2'23. Outperforming peers...

William Keating

Acer Q1'23 Revenue NT$52.46 Billion, -12% QoQ, -33% YoY.

Q1'23 was Acer's fifth consecutive quarter of sequentially declining revenues. Called Q1'23 the trough but no specific guidance on the current...

William Keating

PC Industry Monitor: Signs of Inventory Improvement at PC Industry's Leading Edge; Shares Diverged

Asus has substantially underperformed Acer YTD with one likely factor being Asus reporting worse margin performance. Asus is flat YTD vs. +15% YTD...

Vincent Fernando, CFA

Taiwan Tech Weekly: U.S. Pushing South Korea China Restrictions, Nanya Says Memory Bottom in 1Q23E

Firms are also significantly expanding semiconductor capacity in Singapore, with the latest being Applied Materials and French firm Soitec.

Vincent Fernando, CFA

Dell Technologies: Major Drivers

After announcing a weak outlook in the last quarter and causing its stock price to plummet, Dell has shown a decent recovery. Its stock price has...

Baptista Research

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