Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

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

Equity Bottom-Up

<ul>
<li>Memory Market Diverges: AI Demand Continues to Surges While Legacy Segments Struggle in November</li>
<li>Diverging Demand Trends Highlight Market Decoupling -- AI Driving HBM, Server DRAM, QLC NAND Demand</li>
<li>Outlook for the Memory Market -- Decoupling Trade: Long SK Hynix vs. Short Nanya Tech Trade</li>
</ul>


Memory Market Diverges: AI Demand Continues to Surges While Legacy Segments Struggle in November
Diverging Demand Trends Highlight Market Decoupling -- AI Driving HBM, Server DRAM, QLC NAND Demand
Outlook for the Memory Market -- Decoupling Trade: Long SK Hynix vs. Short Nanya Tech Trade


Memory Monitor: Decoupling Trade Long SK Hynix Vs. Short Nanya Tech

Founder/CEO of ROK Advisory, ROK Advisory LLC

Ken S. Kim

Founder/CEO of ROK Advisory

ROK Advisory LLC

ROK is an independent research advisory firm. We guide you to minimize the information gap between foreign and local investors in Northeast Asia with a focus in Korea, Taiwan and Japan.

Independent Research Advisory Firm

Thematic (Sector/Industry)

<ul>
<li>Forget government pressure, will peer pressure help fast forward Korea Corp Value Up program? </li>
<li>Japanese shame game versus Korean pride of the chaebols ? </li>
<li>Heading into 2025 we are seeing major Korean companies come out with longer term shareholder return plans</li>
</ul>


Forget government pressure, will peer pressure help fast forward Korea Corp Value Up program? 
Japanese shame game versus Korean pride of the chaebols ? 
Heading into 2025 we are seeing major Korean companies come out with longer term shareholder return plans


Corporate Value Up Korea; Will It Start Working Now and into 2025?

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Kioxia Holdings  / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kioxia-holdings-corp" target="_blank" rel="noopener">Kioxia Holdings (6600 JP)</a> is a leading player in the NAND flash memory market. It will list on 18 December and seek to raise up to US$740 million.   </li>
<li>Bain Capital, <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a> and <a href="https://www.smartkarma.com/entities/hoya-corp" target="_blank" data-smartkarma-citation="entities:8990:1" rel="noopener">Hoya Corp (7741 JP)</a> currently own 56.23%, 40.64% and 3.13% of the voting rights, respectively. </li>
<li>The bull case rests on an attractive market opportunity, a return to revenue growth, margins close to all-time highs, a favourable cash conversion cycle, and modest leverage. </li>
</ul>



Kioxia Holdings (6600 JP) is a leading player in the NAND flash memory market. It will list on 18 December and seek to raise up to US$740 million.   
Bain Capital, Toshiba Corp (6502 JP) and Hoya Corp (7741 JP) currently own 56.23%, 40.64% and 3.13% of the voting rights, respectively. 
The bull case rests on an attractive market opportunity, a return to revenue growth, margins close to all-time highs, a favourable cash conversion cycle, and modest leverage. 


Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kioxia-holdings-corp" target="_blank" data-smartkarma-citation="entities:29243:1" rel="noopener">Kioxia Holdings (6600 JP)</a> is aiming to raise around US$700m (including over-allocation) from its Japan IPO.</li>
<li>It was the world’s largest pure-play NAND flash memory supplier, in terms of both revenue and unit shipments in 2023, according to TechInsights.</li>
<li>We have looked at the company's past performance in our earlier notes. In this note we undertake a peer comparison.</li>
</ul>



Kioxia Holdings (6600 JP) is aiming to raise around US$700m (including over-allocation) from its Japan IPO.
It was the world’s largest pure-play NAND flash memory supplier, in terms of both revenue and unit shipments in 2023, according to TechInsights.
We have looked at the company's past performance in our earlier notes. In this note we undertake a peer comparison.


Technology / Semiconductor / Internet Research

Nicolas Baratte

<ul>
<li>Kioxia has been under-investing in Capex (27% of revenue versus competitors 37%) and R&amp;D (5% versus 11%) because Free Cash Flow is low, too low to pay back debt. </li>
<li>The Memory cycle peaked in June-24 and NAND prices have been declining since. Memory stocks (Micron, Samsung, SK Hynix) peaked in June. </li>
<li>The valuations multiples that reconcile with a US$4.9bn market value are half or one-third that of competitors. A huge discount is applied, reflecting the financial and technological weakness of Kioxia. </li>
</ul>


Kioxia has been under-investing in Capex (27% of revenue versus competitors 37%) and R&amp;D (5% versus 11%) because Free Cash Flow is low, too low to pay back debt. 
The Memory cycle peaked in June-24 and NAND prices have been declining since. Memory stocks (Micron, Samsung, SK Hynix) peaked in June. 
The valuations multiples that reconcile with a US$4.9bn market value are half or one-third that of competitors. A huge discount is applied, reflecting the financial and technological weakness of Kioxia. 


Kioxia Part 2: Financials (Under-Investments, Razor-Thin FCF), Valuations (Memory Cycle Has Peaked)

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.

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Samsung Electronics (SMSD LI)

Memory Monitor: Decoupling Trade Long SK Hynix Vs. Short Nanya Tech

AI demand is driving growth in memory market, while legacy segments struggle, creating opportunities for investors to capitalize on decoupling...

Vincent Fernando, CFA

Corporate Value Up Korea; Will It Start Working Now and into 2025?

Will Korea Corp Value Up program start to really work in 2025? What will drive this program to work is not government pressure but peer pressure

Ken S. Kim

Kioxia (285A JP) IPO: The Bull Case

The bull case rests on an attractive market opportunity, a return to revenue growth, margins close to all-time highs, a favourable cash conversion...

Arun George

Kioxia Pre-IPO - Peer Comparison

Kioxia Holdings (6600 JP) is aiming to raise around US$700m (including over-allocation) from its Japan IPO. In this note, we undertake a peer...

Sumeet Singh

Kioxia Part 2: Financials (Under-Investments, Razor-Thin FCF), Valuations (Memory Cycle Has Peaked)

Kioxia's underinvestment in Capex and R&D due to low Free Cash Flow, which also makes repaying debt impossible. Significant valuations discount...

Nicolas Baratte

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52-week Range

Market Cap (USDm)

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Memory Monitor: Decoupling Trade Long SK Hynix Vs. Short Nanya Tech

​AI demand is driving growth in memory market, while legacy segments struggle, creating opportunities for investors to capitalize on decoupling...

Vincent Fernando, CFA

Corporate Value Up Korea; Will It Start Working Now and into 2025?

Will Korea Corp Value Up program start to really work in 2025? What will drive this program to work is not government pressure but peer pressure

Ken S. Kim

Kioxia (285A JP) IPO: The Bull Case

The bull case rests on an attractive market opportunity, a return to revenue growth, margins close to all-time highs, a favourable cash conversion...

Arun George

Kioxia Pre-IPO - Peer Comparison

Kioxia Holdings (6600 JP) is aiming to raise around US$700m (including over-allocation) from its Japan IPO. In this note, we undertake a peer...

Sumeet Singh

Kioxia Part 2: Financials (Under-Investments, Razor-Thin FCF), Valuations (Memory Cycle Has Peaked)

​Kioxia's underinvestment in Capex and R&D due to low Free Cash Flow, which also makes repaying debt impossible. Significant valuations discount...

Nicolas Baratte

AI demand is driving growth in memory market, while legacy segments struggle, creating opportunities for investors to capitalize on decoupling...

Kioxia's underinvestment in Capex and R&D due to low Free Cash Flow, which also makes repaying debt impossible. Significant valuations discount...