Asia and Global Semiconductor and Tech Research

Andrew Lu

Thematic (Sector/Industry)

<h2>Summary</h2><ul>
<li>
BB ratio down to 0.91 for the first time in four-year and below parity in 11 months: North America-based manufacturers of semiconductor equipment posted $1.49 billion in orders worldwide in October 2016 (three-month average basis) and a book-to-bill ratio of 0.91, according to SEMI.</li>
<li>
Sign of a downturn? For the time being, we identify the downturn as a seasonal one.  However, we would be cautious after Philadelphia and Taiwan Semiconductor index both reached record high levels.</li>
<li>
Checkpoint…</li>
</ul>

Summary

BB ratio down to 0.91 for the first time in four-year and below parity in 11 months: North America-based manufacturers of semiconductor equipment posted $1.49 billion in orders worldwide in October 2016 (three-month average basis) and a book-to-bill ratio of 0.91, according to SEMI.

Sign of a downturn? For the time being, we identify the downturn as a seasonal one.  However, we would be cautious after Philadelphia and Taiwan Semiconductor index both reached record high levels.

Checkpoint…


N.A. Semiconductor Equipment BB Ratio to Four Year Low - Sign of a Downturn?

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

<ul><li>The biggest SGX-listed stocks that respectively represent the hardware, software and semiconductors industries are Venture Corporation, Silverlake Axis and UMS Holdings. </li><li>These three stocks have averaged a 19.2% total return in the 2016 year-to-date.</li><li>These three current leaders of the Sector have also had to embrace innovation and transformation for the last 25-30 years. The foundations of the trio track back to the 1980s.</li></ul>

The biggest SGX-listed stocks that respectively represent the hardware, software and semiconductors industries are Venture Corporation, Silverlake Axis and UMS Holdings. These three stocks have averaged a 19.2% total return in the 2016 year-to-date.These three current leaders of the Sector have also had to embrace innovation and transformation for the last 25-30 years. The foundations of the trio track back to the 1980s.

Innovative Transformation of Singapore's Technology Sector

Equity Capital Markets

Shenzhen Goodix Technology / Equity Capital Markets

<h2>Summary</h2><ul>
<li>Valuation risk: By trading at over 80x of our revised 2016/2017 EPS and over 25x on 2016/2017 book value, Huiding Technology is apprently overvalued over peers'. Also, Huiding's market cap should not be larger than <a href="https://www.smartkarma.com/entities/772" target="_blank" data-smartkarma-citation="entities:772:1">Mediatek</a>'s US$10.8bn as MediaTek has a larger global smartphone IC market share of 35-40%, higher net per smartphone solution, less competitors, more stable pricing, and stronger bargaining power with foundry/OSAT. </li>
<li>
Fingerprint sensor pricing risk: Although we are raising our…</li>
</ul>

Summary
Valuation risk: By trading at over 80x of our revised 2016/2017 EPS and over 25x on 2016/2017 book value, Huiding Technology is apprently overvalued over peers'. Also, Huiding's market cap should not be larger than Mediatek's US$10.8bn as MediaTek has a larger global smartphone IC market share of 35-40%, higher net per smartphone solution, less competitors, more stable pricing, and stronger bargaining power with foundry/OSAT. 

Fingerprint sensor pricing risk: Although we are raising our…


Goodix/Huiding - Time to Highlight the Risks After 7.8x Upside at over 25x Book

Equity Bottom-Up

<h2>Amazing beats for both 3Q16 results and 4Q16 guidance</h2><ul><li>
Amazing results beat: <a href="https://www.smartkarma.com/entities/5891" target="_blank" data-smartkarma-citation="entities:5891:1">Nvidia Corp (NVDA US) </a>reports 3Q16 EPS of US$0.83, which was US$27 cents better than Bloomberg consensus' mainly due to 19% beat on sales to US$2bn (40% q/q, 54% y/y), 2ppts better on operating margin to 32%, and 6ppts higher on net margin to 27%. Nvidia said a breakout quarter driven by new Pascal GPUs are fully ramped and enjoying great success in gaming, VR, self-driving cars (please see our earlier report "<a href="https://www.smartkarma.com/insights/andrew-on-tech-automotive-semis-the-next-wave" target="_blank" data-smartkarma-citation="insights:5122">Andrew on</a>…</li></ul>

Amazing beats for both 3Q16 results and 4Q16 guidance
Amazing results beat: Nvidia Corp (NVDA US) reports 3Q16 EPS of US$0.83, which was US$27 cents better than Bloomberg consensus' mainly due to 19% beat on sales to US$2bn (40% q/q, 54% y/y), 2ppts better on operating margin to 32%, and 6ppts higher on net margin to 27%. Nvidia said a breakout quarter driven by new Pascal GPUs are fully ramped and enjoying great success in gaming, VR, self-driving cars (please see our earlier report "Andrew on…

Nvidia Is Firing All Cylinders on Gaming, Self-Driving Cars, and Datacenter AI

<h2>Summary</h2><ul>
<li>
Raising the import tariffs on technology products: The new Trump government might raise the import tariffs on technology products to stop China dump their products. This should lead the part of the Apple assembly business back to the US. US solar and electric/self-driving automotive industry will be protected.  Consumers will see the cost increase of buying imported technology products, but the action might also drive China's counter-tariff trade war against the US in future. 
</li>
<li>
Cut taxes to…</li>
</ul>

Summary

Raising the import tariffs on technology products: The new Trump government might raise the import tariffs on technology products to stop China dump their products. This should lead the part of the Apple assembly business back to the US. US solar and electric/self-driving automotive industry will be protected.  Consumers will see the cost increase of buying imported technology products, but the action might also drive China's counter-tariff trade war against the US in future. 


Cut taxes to…


How Will Trump Shape up the Global Technology Industry in Next Four Years?

Taiwan

MediaTek Inc. is a fabless semiconductor company for wireless communications and digital multimedia solutions. The company provides SOC system solutions for wireless communications, high-definition TV, optical storage, DVD and Blu-ray products.

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Mediatek Inc (2454 TT)

N.A. Semiconductor Equipment BB Ratio to Four Year Low - Sign of a Downturn?

Summary BB ratio down to 0.91 for the first time in four-year and below parity in 11 months: North America-based manufacturers of semiconductor...

Andrew Lu

Innovative Transformation of Singapore's Technology Sector

The biggest SGX-listed stocks that respectively represent the hardware, software and semiconductors industries are Venture Corporation, Silverlake...

Singapore Exchange Ltd (SGX)

Goodix/Huiding - Time to Highlight the Risks After 7.8x Upside at over 25x Book

Summary Valuation risk: By trading at over 80x of our revised 2016/2017 EPS and over 25x on 2016/2017 book value, Huiding Technology is apprently...

Andrew Lu

Nvidia Is Firing All Cylinders on Gaming, Self-Driving Cars, and Datacenter AI

Amazing beats for both 3Q16 results and 4Q16 guidance Amazing results beat: Nvidia Corp (NVDA US) reports 3Q16 EPS of US$0.83, which was US$27...

Andrew Lu

How Will Trump Shape up the Global Technology Industry in Next Four Years?

Summary Raising the import tariffs on technology products: The new Trump government might raise the import tariffs on technology products to stop...

Andrew Lu

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