Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Equity Bottom-Up

Fitipower Integrated Technology / Equity Bottom-Up

<ul>
<li>We had a call with Fitipower management to understand the company’s latest situation in light of its weak share price and light analyst coverage. </li>
<li>Compared to the overall semiconductor industry, Fitipower’s inventory status is exceptionally better than the industry median and thus the company will be under less pressure in the coming quarters.</li>
<li>Fitipower has a large T$12bn net cash position, equivalent to 48% of its market cap. For 2022E, we expect T$4.5-5bn in EBITDA, which is about 18-20% of its market cap.</li>
</ul>


We had a call with Fitipower management to understand the company’s latest situation in light of its weak share price and light analyst coverage. 
Compared to the overall semiconductor industry, Fitipower’s inventory status is exceptionally better than the industry median and thus the company will be under less pressure in the coming quarters.
Fitipower has a large T$12bn net cash position, equivalent to 48% of its market cap. For 2022E, we expect T$4.5-5bn in EBITDA, which is about 18-20% of its market cap.


Fitipower: Large % Market Cap as Cash Makes for Acquisition Target Price Support

Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

Hon Hai Precision Industry / Equity Bottom-Up

<ul><li>Nokia and Foxconn are collaborating to manufacture 5G products in northern Vietnam, potentially boosting the country's tech industry.</li><li>Huawei's entry into the automotive tier-1 market raises questions about its impact on traditional car manufacturers.</li><li>The UK semiconductor industry and Taiwan Semiconductor Manufacturing Company (TSMC) are highlighted at London Tech Week, showcasing their importance in the tech world.</li></ul>

Nokia and Foxconn are collaborating to manufacture 5G products in northern Vietnam, potentially boosting the country's tech industry.Huawei's entry into the automotive tier-1 market raises questions about its impact on traditional car manufacturers.The UK semiconductor industry and Taiwan Semiconductor Manufacturing Company (TSMC) are highlighted at London Tech Week, showcasing their importance in the tech world.

Tech Supply Chain Tracker (15-Jun-2024): 5G products made by Nokia and Foxconn in northern Vietnam.

<ul><li>Foxconn's Hyderabad factory to begin producing Airpods in August, as confirmed by Telangana official. </li><li>Qualcomm CEO backs Arm's forecast of 50% Windows PC market share in 5 years. </li><li>UnaBiz achieves record-breaking 90% accuracy with AI-enabled Wi-Fi geolocation; Nvidia and Foxconn unveil advanced computing center in Taiwan. EU establishes AI office to enforce AI Act. Tower Semi awaits wafer fab approval in India post-elections. Win Semiconductors propelled by mobile phone surge into 2024.</li></ul>

Foxconn's Hyderabad factory to begin producing Airpods in August, as confirmed by Telangana official. Qualcomm CEO backs Arm's forecast of 50% Windows PC market share in 5 years. UnaBiz achieves record-breaking 90% accuracy with AI-enabled Wi-Fi geolocation; Nvidia and Foxconn unveil advanced computing center in Taiwan. EU establishes AI office to enforce AI Act. Tower Semi awaits wafer fab approval in India post-elections. Win Semiconductors propelled by mobile phone surge into 2024.

Tech Supply Chain Tracker (06-Jun-2024): Foxconn Hyderabad factory to make Airpods from August.

<ul><li>SK Hynix leads in next-gen HBM innovation, setting pace with Indian startup FermionIC aiming for market domination.</li><li>AMD releases new processors for data centers and PCs promising improved performance and efficiency with Instinct, Ryzen, and EPYC.</li><li>India partners with Taiwan for semiconductor ecosystem development, while Russia plans to produce 350nm chips with self-developed EUV machines in 2024.</li></ul>

SK Hynix leads in next-gen HBM innovation, setting pace with Indian startup FermionIC aiming for market domination.AMD releases new processors for data centers and PCs promising improved performance and efficiency with Instinct, Ryzen, and EPYC.India partners with Taiwan for semiconductor ecosystem development, while Russia plans to produce 350nm chips with self-developed EUV machines in 2024.

Tech Supply Chain Tracker (04-Jun-2024): Chinese semiconductors & tech.

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

<ul>
<li>Hon Hai shares have hit a new all-time high and have just risen past our target price of NT$155, surging after investors flocked to Hon Hai on AI news.</li>
<li>Hon Hai showcased two key technologies at Nvidia's GTC conference last week: Nvidia-based AI servers with liquid cooling systems and an AI autonomous driving controller using Nvidia's Orin X processor.</li>
<li>Hon Hai's sharp rally appears to have partly been caused by a short squeeze; While we like the long-term fundamentals and increased TP to NT$170, Hon Hai appears near-term overbought.</li>
</ul>


Hon Hai shares have hit a new all-time high and have just risen past our target price of NT$155, surging after investors flocked to Hon Hai on AI news.
Hon Hai showcased two key technologies at Nvidia's GTC conference last week: Nvidia-based AI servers with liquid cooling systems and an AI autonomous driving controller using Nvidia's Orin X processor.
Hon Hai's sharp rally appears to have partly been caused by a short squeeze; While we like the long-term fundamentals and increased TP to NT$170, Hon Hai appears near-term overbought.


Hon Hai (Foxconn): After the 50% Surge, Where Can It Go From Here?

Taiwan

Hon Hai Precision Industry Co., Ltd. provides electronic manufacturing services for computers, communications, and consumer electronic products.  The Company's business operations include desktop and notebook PC assembly, connector production, cable assembly, PCB assembly, handset manufacturing, networking equipment, and other consumer electronic devices manufacturing.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Hon Hai Precision Industry (2317 TT)

Fitipower: Large % Market Cap as Cash Makes for Acquisition Target Price Support

We had a call with Fitipower management to understand the company’s latest situation in light of its weak share price and light analyst coverage.

Vincent Fernando, CFA

Tech Supply Chain Tracker (15-Jun-2024): 5G products made by Nokia and Foxconn in northern Vietnam.

Nokia and Foxconn are teaming up to produce 5G products in northern Vietnam, while Huawei makes gains in automotive tier-1 and London Tech Week...

Tech Supply Chain Tracker

Tech Supply Chain Tracker (06-Jun-2024): Foxconn Hyderabad factory to make Airpods from August.

Foxconn's Hyderabad factory to produce Airpods; Arm predicts 50% of Windows PC market; UnaBiz achieves 90% accuracy with AI geolocation; Nvidia and...

Tech Supply Chain Tracker

Tech Supply Chain Tracker (04-Jun-2024): Chinese semiconductors & tech.

China's semiconductor industry advances as SK Hynix leads in innovation, AMD releases new processors, Indian startup FermionIC aims for market...

Tech Supply Chain Tracker

Hon Hai (Foxconn): After the 50% Surge, Where Can It Go From Here?

Hon Hai shares surged to new all-time high after showcasing AI technologies at Nvidia's GTC conference. We believe a short squeeze may have been...

Vincent Fernando, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Fitipower: Large % Market Cap as Cash Makes for Acquisition Target Price Support

We had a call with Fitipower management to understand the company’s latest situation in light of its weak share price and light analyst coverage.

Vincent Fernando, CFA

Tech Supply Chain Tracker (15-Jun-2024): 5G products made by Nokia and Foxconn in northern Vietnam.

Nokia and Foxconn are teaming up to produce 5G products in northern Vietnam, while Huawei makes gains in automotive tier-1 and London Tech Week...

Tech Supply Chain Tracker

Tech Supply Chain Tracker (06-Jun-2024): Foxconn Hyderabad factory to make Airpods from August.

Foxconn's Hyderabad factory to produce Airpods; Arm predicts 50% of Windows PC market; UnaBiz achieves 90% accuracy with AI geolocation; Nvidia and...

Tech Supply Chain Tracker

Tech Supply Chain Tracker (04-Jun-2024): Chinese semiconductors & tech.

China's semiconductor industry advances as SK Hynix leads in innovation, AMD releases new processors, Indian startup FermionIC aims for market...

Tech Supply Chain Tracker

Hon Hai (Foxconn): After the 50% Surge, Where Can It Go From Here?

​Hon Hai shares surged to new all-time high after showcasing AI technologies at Nvidia's GTC conference. We believe a short squeeze may have been...

Vincent Fernando, CFA

Hon Hai shares surged to new all-time high after showcasing AI technologies at Nvidia's GTC conference. We believe a short squeeze may have been...