Asia and Global Semiconductor and Tech Research

Andrew Lu

Equity Bottom-Up

Taiwan Semiconductor (TSMC) / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/11230" target="_blank" data-smartkarma-citation="entities:11230:1">Taiwan Semiconductor Mfg. Co. Ltd.</a> reports a better 2Q16 and guides a stronger 3Q16 but hints 4Q16 inventory and demand adjustment. We believe most of analysts will remain their views unchanged but be struggling between long term positive catalysts vs. short term seasonal adjustments after recent strong share price performance (26% ytd vs. 11% std on Taiwan Weighted Index). Analysts will need to know what will be likely seasonal sales decline and margin contraction in 4Q16 and 1Q17 in order to…

Taiwan Semiconductor Mfg. Co. Ltd. reports a better 2Q16 and guides a stronger 3Q16 but hints 4Q16 inventory and demand adjustment. We believe most of analysts will remain their views unchanged but be struggling between long term positive catalysts vs. short term seasonal adjustments after recent strong share price performance (26% ytd vs. 11% std on Taiwan Weighted Index). Analysts will need to know what will be likely seasonal sales decline and margin contraction in 4Q16 and 1Q17 in order to…

Thematic (Sector/Industry)

Starting July 14, 2016, TSMC will first report 2Q16 results and provide 3Q16 guidance to kick off semi/tech earnings season. Our report takeaways suggest strengths in foundry, fabless, and display vendors to drive Taiwan semi sales recovery of 17% y/y in June and 8 out 12 vendors reported a beat on 2Q16 sales guidance. Despite the strengths, we saw weaknesses in power amplifier, touch panel, and solar vendors and our semi leading indicator fell to 8% in June 2016 from this year peak of 31% in…

Starting July 14, 2016, TSMC will first report 2Q16 results and provide 3Q16 guidance to kick off semi/tech earnings season. Our report takeaways suggest strengths in foundry, fabless, and display vendors to drive Taiwan semi sales recovery of 17% y/y in June and 8 out 12 vendors reported a beat on 2Q16 sales guidance. Despite the strengths, we saw weaknesses in power amplifier, touch panel, and solar vendors and our semi leading indicator fell to 8% in June 2016 from this year peak of 31% in…

Special Situations, Content Strategist, Smartkarma

Crispin Francis

Special Situations, Content Strategist

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Event-Driven

Official Announcement:Taiwan, Hsinchu &ndash; September 7, 2015 &ndash; MediaTek Inc. (TSE: 2454) announced its Board of Directors had approved a Letter of Intent (&ldquo;LOI&rdquo;) with Richtek Technology Corporation (TSE: 6286; hereinafter &ldquo;Richtek&rdquo;) today. Per the LOI, MediaTek and/or its subsidiaries and affiliates (collectively and individually, hereinafter, &ldquo;MediaTek&rdquo;) shall launch a tender offer for Richtek common stock.This offer has two-stages:Stage 1 - Partial Tender offer at TWD 195/share for 51% of shares outstanding with 35% minimum acceptance condition.&nbsp;If Stage one goes through;Stage 2 - Tender Offer or Scheme for remaining shares outstanding at TWD 195/share.

Official Announcement:Taiwan, Hsinchu &ndash; September 7, 2015 &ndash; MediaTek Inc. (TSE: 2454) announced its Board of Directors had approved a Letter of Intent (&ldquo;LOI&rdquo;) with Richtek Technology Corporation (TSE: 6286; hereinafter &ldquo;Richtek&rdquo;) today. Per the LOI, MediaTek and/or its subsidiaries and affiliates (collectively and individually, hereinafter, &ldquo;MediaTek&rdquo;) shall launch a tender offer for Richtek common stock.This offer has two-stages:Stage 1 - Partial Tender offer at TWD 195/share for 51% of shares outstanding with 35% minimum acceptance condition.&nbsp;If Stage one goes through;Stage 2 - Tender Offer or Scheme for remaining shares outstanding at TWD 195/share.

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Sino American Silicon Products / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/sino-american-silicon-products-inc" target="_blank" data-smartkarma-citation="entities:3441:1" rel="noopener">Sino American Silicon Products (5483 TT)</a>  is a Taiwan-based company mainly engaged in the research, development, design, manufacture, and distribution of semiconductor wafer products with subsidiaries in both listed and unlisted companies including <a href="https://www.smartkarma.com/entities/globalwafers-co-ltd" target="_blank" data-smartkarma-citation="entities:17916:1" rel="noopener">Globalwafers (6488 TT)</a> , <a href="https://www.smartkarma.com/entities/parade-technologies-ltd" target="_blank" data-smartkarma-citation="entities:6987:1" rel="noopener">Parade Technologies (4966 TT)</a> , <a href="https://www.smartkarma.com/entities/actron-technology-corp" target="_blank" data-smartkarma-citation="entities:4989:1" rel="noopener">Actron Technology (8255 TT)</a> and <a href="https://www.smartkarma.com/entities/advanced-wireless-semiconduc" target="_blank" data-smartkarma-citation="entities:16559:1" rel="noopener">Advanced Wireless Semiconduc (8086 TT)</a> with only in Globalwafers - SAS owns more than 51%.
The large discount between SAS and its subsidiaries could be due to 1) lack of bulge-bracket coverage, 2) higher polysilicon price 3) and 3) weak 1H demand from the solar and the semiconductor from COVID-19 plague which caused investors to care less about the value dislocation between SAS and its subsidiaries.
With a somewhat certain 28-30% gain in the earning as early Q1 2022, investors should start slowly building positions in SAS as the risk-off beast may disturb the confidence in the equity market much longer than what investors would like. The second scenario of increasing stake in Parade Tech should be treated as a call option as when it happens, it is a bonus of another 24%. Thus the total upside could be around 54%. 
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Besides the above-mentioned reasons, <a href="https://www.smartkarma.com/entities/sino-american-silicon-products-inc" target="_blank" data-smartkarma-citation="entities:3441:1" rel="noopener">Sino American Silicon Products (5483 TT)</a> remains a smart way to gain exposure in Globalwafers which trades at 24x PER, compared to SAS that trades at 13x PER. The other factor is that Globalwafers dividend yield is 2.28% while SAS is 5.22%. 
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Sino American Silicon Products (5483 TT)  is a Taiwan-based company mainly engaged in the research, development, design, manufacture, and distribution of semiconductor wafer products with subsidiaries in both listed and unlisted companies including Globalwafers (6488 TT) , Parade Technologies (4966 TT) , Actron Technology (8255 TT) and Advanced Wireless Semiconduc (8086 TT) with only in Globalwafers - SAS owns more than 51%.
The large discount between SAS and its subsidiaries could be due to 1) lack of bulge-bracket coverage, 2) higher polysilicon price 3) and 3) weak 1H demand from the solar and the semiconductor from COVID-19 plague which caused investors to care less about the value dislocation between SAS and its subsidiaries.
With a somewhat certain 28-30% gain in the earning as early Q1 2022, investors should start slowly building positions in SAS as the risk-off beast may disturb the confidence in the equity market much longer than what investors would like. The second scenario of increasing stake in Parade Tech should be treated as a call option as when it happens, it is a bonus of another 24%. Thus the total upside could be around 54%. 

Besides the above-mentioned reasons, Sino American Silicon Products (5483 TT) remains a smart way to gain exposure in Globalwafers which trades at 24x PER, compared to SAS that trades at 13x PER. The other factor is that Globalwafers dividend yield is 2.28% while SAS is 5.22%. 


Sino American Silicon (5483): Entry to Globalwafers and Others

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)

Looking Long or Short Term on TSMC?

Taiwan Semiconductor Mfg. Co. Ltd. reports a better 2Q16 and guides a stronger 3Q16 but hints 4Q16 inventory and demand adjustment. We believe most...

Andrew Lu

Points from Taiwan Semi/Tech 2Q Sales

Starting July 14, 2016, TSMC will first report 2Q16 results and provide 3Q16 guidance to kick off semi/tech earnings season. Our report takeaways...

Andrew Lu

Two-Stage Taiwanese Deal

Official Announcement:Taiwan, Hsinchu – September 7, 2015 – MediaTek Inc. (TSE: 2454) announced its Board of Directors had approved a Letter of...

Crispin Francis

Sino American Silicon (5483): Entry to Globalwafers and Others

Sino American Silicon remains a smart way to gain exposure in Globalwafers (24x PER), compared to SAS (13x PER). The other factor is that...

Henry Soediarko

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