Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

Ingenuity

Our focus is exclusively on in-depth research & consulting in the broader semiconductor industry. We focus on the key players, namely Intel, Micron, Qualcomm, Apple, Samsung, NVIDIA, AMD, TSMC & Global Foundries - as well as some of the lesser known, but nonetheless critical, companies such as ASML (for EUV), Mellanox, Cavium, Xilinx etc. We specialise in their products, roadmaps, process technologies, competitive advantages & threats etc. We also help our clients understand the implications of new and emerging technologies, e.g. 3D X-Point, 3D NAND, Carbon Nanotubes, Autonomous Driving, Graphene, Silicon Photonics, Wafer-Level Optics, Artificial Intelligence, FPGA, GPU, ASIC etc. 

Semiconductor Analysis & Research

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix</a> this week <a href="https://news.skhynix.com/sk-hynix-to-acquire-intel-nand-memory-business/" target="_blank" rel="noopener">announced</a> their intention to acquire <a href="https://www.smartkarma.com/entities/intel-corp" target="_blank" data-smartkarma-citation="entities:16764:1" rel="noopener">Intel's</a> NAND memory business in a complex deal valued at $9 billion. The move comes as little surprise following comments relating to the loss-making memory division made by Intel CEO Bob Swan earlier this year. What is surprising is the structure of the deal. While $7 billion in cash will be payable once the deal clears regulatory hurdles, thought to be in lat 2021, the remaining $2 billion will only be paid on "final closure" in March 2025. What are the implications of this deal for the broader NAND industry? Is the deal a good one for both Intel and SK Hynix?  Why is the deal structured in such a complex and drawn-out fashion? Here's our thoughts.

SK Hynix this week announced their intention to acquire Intel's NAND memory business in a complex deal valued at $9 billion. The move comes as little surprise following comments relating to the loss-making memory division made by Intel CEO Bob Swan earlier this year. What is surprising is the structure of the deal. While $7 billion in cash will be payable once the deal clears regulatory hurdles, thought to be in lat 2021, the remaining $2 billion will only be paid on "final closure" in March 2025. What are the implications of this deal for the broader NAND industry? Is the deal a good one for both Intel and SK Hynix?  Why is the deal structured in such a complex and drawn-out fashion? Here's our thoughts.

Intel. Thoughts On The Proposed NAND Flash Sale To SK Hynix.

Semiconductors, Memory and SSDs Specialist, Objective Analysis

Jim Handy

Semiconductors, Memory and SSDs Specialist

Objective Analysis

Objective Analysis offers third-party independent market research and data for the semiconductor industry and investors in the semiconductor industry.

Semiconductors, Memory and SSDs

The Wall Street Journal today published a leak that Intel and SK hynix are in negotiations for SK hynix to acquire Intel's memory business.  This Smartkarma Insight analyzes such a sale to determine its feasibility.

The Wall Street Journal today published a leak that Intel and SK hynix are in negotiations for SK hynix to acquire Intel's memory business.  This Smartkarma Insight analyzes such a sale to determine its feasibility.

Intel's Memory Business Sale.  Does It Make Sense?

Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

ASA Capital Management

ASA Capital Management is a boutique Research and Investment Advisory firm focusing on primary research in India. ASA provides bespoke research services to Institutional Clients with a focus on due diligence backed with primary research, Field Trips & Channel Checks.

Alibaba Group Holding  / Equity Bottom-Up

Our objective with this weekly is to highlight notable developments in the India internet and consumer sector focusing on public and private companies. The sub-sectors covered include payment providers, e-commerce retailers,  social media platforms and consumer companies.
<ul>
<li>
<a href="https://www.smartkarma.com/entities/tata-group" target="_blank" data-smartkarma-citation="entities:25998:1" rel="noopener">Tata Group (1396Z IN)</a> is aiming to become a serious contender in the Indian E-Commerce race with a potential stake in <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group (BABA US)</a> backed BigBasket</li>
<li>
<a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a> re-gains its top slot in global smartphones thanks to market share gains in India</li>
<li>
<a href="https://www.smartkarma.com/entities/facebook-inc-a" target="_blank" data-smartkarma-citation="entities:665:1" rel="noopener">Facebook Inc A (FB US)</a> backed Whatsapp Pay gets its act together in the already competitive Indian Payments Market, expected to roll out soon. </li>
<li>India bans import of AC units, but we see no major market share gains for top players. </li>
</ul>

Our objective with this weekly is to highlight notable developments in the India internet and consumer sector focusing on public and private companies. The sub-sectors covered include payment providers, e-commerce retailers,  social media platforms and consumer companies.


Tata Group (1396Z IN) is aiming to become a serious contender in the Indian E-Commerce race with a potential stake in Alibaba Group (BABA US) backed BigBasket

Samsung Electronics (005930 KS) re-gains its top slot in global smartphones thanks to market share gains in India

Facebook Inc A (FB US) backed Whatsapp Pay gets its act together in the already competitive Indian Payments Market, expected to roll out soon. 
India bans import of AC units, but we see no major market share gains for top players. 


India Internet & Consumer Weekly | Bigbasket, Samsung, Whatsapp Pay, India's AC Ban

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Event-Driven

Samsung Electronics Pref Shares / Event-Driven

Samsung beat the street consensus for 3Q, and the local market now expects Samsung to do so for the next quarter as well.






Income statement (₩T)
2019 1Q
2019 2Q
2019 3Q
2019 4Q
2020 1Q
2020 2Q
2020 3Q


Revenue
52.4
56.1
62.0
59.9
55.3
53.0
66.0


Operating profit
6.2
6.6
7.8
7.2
6.4
8.1
12.3


Profit before income tax
6.9
7.2
8.6
7.7
6.8
7.8
-


Net profit
5.0
5.2
6.3
5.2
4.9
5.6
-

Revenue by Segment

SEMI
14.5
16.1
17.6
16.8
17.6
18.2
-


DP
6.1
7.6
9.3
8.0
6.6
6.7
-


IM
27.2
25.9
29.3
25.0
26.0
20.8
-


CE
10.0
11.1
10.9
12.7
10.2
10.3
-


Harman
2.2
2.5
2.6
2.7
2.1
1.5
-

Operating profit by Segment

SEMI
4.1
3.4
3.0
3.4
4.0
5.4
5.7


DP
-0.6
0.7
1.2
0.2
-0.3
0.3
0.3


IM
2.3
1.6
2.9
2.5
2.6
2.0
5.0


CE
0.5
0.7
0.5
0.8
0.5
0.7
1.3


Harman
0.01
0.09
0.10
0.12
-0.19
-0.09
-


OPM
11.9
11.8
12.5
12.0
11.7
15.4
18.6

Source: Samsung Electronics 


The local consensus on FY20 OP got bumped up to ₩37T, up 12.4% since a month ago.It means that 4Q OP will be around ₩10T, which is substantially higher than the initial market expectation.










FY2020 - consolidated (₩T)
2020. 10. 13
T-1M
T-3M
T-6M
T-1Y


Sales
238.1
233.9
231.6
236.3
252.4


OP
37.0
32.9
32.6
34.5
37.1


NP to controlling stake
27.7
24.8
25.1
26.6
28.8


EPS (₩)
4,077
3,648
3,696
3,915
4,238


PER (x)
14.80
16.20
14.30
12.60
11.60


12M PER (x)
12.04
12.94
11.85
11.13
12.09


TP (₩)
76,008
72,592
65,957
64,577
58,071

Source: FnGuide













FY2017~2022E - consolidated (₩T)
2017
2018
2019
2020E
2021E
2022E


Sales
239.6
243.8
230.4
238.1
263.8
281.0


- YoY
18.68%
1.75%
-5.48%
3.34%
10.81%
6.49%


OP
53.6
58.9
27.8
37.0
46.8
54.3


- YoY
83.46%
9.77%
-52.84%
33.07%
26.56%
16.11%


NP
42.2
44.3
21.7
27.8
35.6
41.6


- YoY
85.63%
5.12%
-50.98%
27.92%
28.03%
16.72%


NP to controlling stake
41.3
43.9
21.5
27.7
35.4
41.2


EPS (₩)
5,421
6,024
3,166
4,077
5,206
6,061


BPS (₩)
28,971
35,342
37,528
40,429
44,034
48,597


DPS (₩)
850
1,416
1,416
1,475
1,517
1,536


PER (x)
9.40
6.42
17.63
14.82
11.60
9.97


PBR (x)
1.76
1.10
1.49
1.49
1.37
1.24

Source: FnGuide



Samsung 1P Going Strong on Expectations of Special Dividend & New 3-Yr Return Plan

Thematic (Sector/Industry)

The World Semiconductor Trade Statistics for August have just been released, and revenues increased for the second sequential month, a positive sign in a puzzling year.  All in all, it appears that the semiconductor sector is faring well despite the pandemic.  It's far too soon to call this growth a trend, though, but it currently appears that the industry is poised to grow at its historical 3.9% annual average rate.

The World Semiconductor Trade Statistics for August have just been released, and revenues increased for the second sequential month, a positive sign in a puzzling year.  All in all, it appears that the semiconductor sector is faring well despite the pandemic.  It's far too soon to call this growth a trend, though, but it currently appears that the industry is poised to grow at its historical 3.9% annual average rate.

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 (005930 KS)

Intel. Thoughts On The Proposed NAND Flash Sale To SK Hynix.

SK Hynix proposed acquisition of Intel's NAND flash business comes as little surprise. What is surprising it that the deal won't finally close...

William Keating

Intel's Memory Business Sale. Does It Make Sense?

The Wall Street journal today published a leak that Intel and SK hynix are in

Jim Handy

India Internet & Consumer Weekly | Bigbasket, Samsung, Whatsapp Pay, India's AC Ban

Tata Group joins the e-commerce race eyeing a stake on BABA backed Bigbasket, India helps Samsung regain its global spot, WhatsApp Pay expected to...

Pranav Bhavsar

Samsung 1P Going Strong on Expectations of Special Dividend & New 3-Yr Return Plan

Samsung Electronics is expected to beat the street for the next quarter as well. So, 1P is going strong on the expectations of a year-end special...

Sanghyun Park

August Semiconductor Sales Increase

The World Semiconductor Trade Statistics for August have just been released, and revenue

Jim Handy

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