Taiwan Tech Focused Senior Analyst

Patrick Liao

Equity Bottom-Up

<ul>
<li>In the 3rd quarter of 2024, revenue was NT$4,284 million, the gross margin (GM) was 55%, the operating profit margin (OPM) was 24%, and the net margin was 15%.  </li>
<li>The Gen-4 product line is ramping up and is expected to contribute around 4% of total revenue by the end of 2025. </li>
<li>Chinese current economic stimulus programs may impact demand in the Consumer segment.  </li>
</ul>


In the 3rd quarter of 2024, revenue was NT$4,284 million, the gross margin (GM) was 55%, the operating profit margin (OPM) was 24%, and the net margin was 15%.  
The Gen-4 product line is ramping up and is expected to contribute around 4% of total revenue by the end of 2025. 
Chinese current economic stimulus programs may impact demand in the Consumer segment.  


Silergy (6415.TT): It Will Grow in 4Q24, While Auto Is Expected to Grow to 15% by the End of 2025.

<ul>
<li>China's central bank cuts rates and unveils new measures to combat economic slowdown, creating a more relaxed monetary policy environment to stimulate consumption and investment.</li>
<li>Silergy's Automotive segment remains a driving force, especially with the addition of the Electric Vehicle ( EV) market.</li>
<li>While Silergy faced demand insufficiency previously, it has indicated that the end demand is expected to revive by the end of 2024 from the 4th quarter.</li>
</ul>


China's central bank cuts rates and unveils new measures to combat economic slowdown, creating a more relaxed monetary policy environment to stimulate consumption and investment.
Silergy's Automotive segment remains a driving force, especially with the addition of the Electric Vehicle ( EV) market.
While Silergy faced demand insufficiency previously, it has indicated that the end demand is expected to revive by the end of 2024 from the 4th quarter.


Silergy (6415.TT): Positive Optimistic Future Outlook

<ul>
<li>We are surprised that <a href="https://www.smartkarma.com/entities/silergy-corp" target="_blank" data-smartkarma-citation="entities:13998:1" rel="noopener">Silergy Corp (6415 TT)</a> is using <a href="https://www.smartkarma.com/entities/vanguard-international-semi" target="_blank" data-smartkarma-citation="entities:16011:1" rel="noopener">Vanguard Intl Semiconductor (5347 TT)</a> to trial-run products.</li>
<li>The outlook for 2024 remains unchanged at over 20% YoY, and we still see a path to recovery ahead.</li>
<li>We consider the recent drop from NTD$526 on June 14th to NTD$429 on July 5th as an opportunity to consider entering the stock.</li>
</ul>


We are surprised that Silergy Corp (6415 TT) is using Vanguard Intl Semiconductor (5347 TT) to trial-run products.
The outlook for 2024 remains unchanged at over 20% YoY, and we still see a path to recovery ahead.
We consider the recent drop from NTD$526 on June 14th to NTD$429 on July 5th as an opportunity to consider entering the stock.


Silergy (6415.TT): Trial-Run with Vanguard, and Recent Stock Drops Represent an Entry Opportunity.

<ul>
<li>Company's 2Q24 overall performance exceeded expectations, and 3Q and 4Q are expected to be flat and to grow by 10-20% per quarter, respectively.</li>
<li>With expectations of continued improvement in ASP and cost structure, overall gross profit margin is expected to continue to grow.</li>
<li>Gen4 (12") is mainly applied in EV, AI server, and new energy sectors, as these applications have higher specification requirements.</li>
</ul>


Company's 2Q24 overall performance exceeded expectations, and 3Q and 4Q are expected to be flat and to grow by 10-20% per quarter, respectively.
With expectations of continued improvement in ASP and cost structure, overall gross profit margin is expected to continue to grow.
Gen4 (12") is mainly applied in EV, AI server, and new energy sectors, as these applications have higher specification requirements.


Silergy (6415.TT): 2024 Can Be Operating Trough, and Revenue in 2025 Is Expected to Grow by 20-30%.

<ul>
<li>We presume Silergy is likely to see demand recovery or inventory rebuilding starting from 2Q24.</li>
<li>Silergy's wafer demand is projected to increase by 30-40% QoQ from 2Q24 onwards.  </li>
<li>Silergy's primary focus remains on China, Taiwan, and Korea, but the US market is promising for potential growth.  </li>
</ul>


We presume Silergy is likely to see demand recovery or inventory rebuilding starting from 2Q24.
Silergy's wafer demand is projected to increase by 30-40% QoQ from 2Q24 onwards.  
Silergy's primary focus remains on China, Taiwan, and Korea, but the US market is promising for potential growth.  


Silergy (6147.TT): The Wafer Demand Is Projected to Increase by 30-40% QoQ from 2Q24 Onwards.

China

Silergy Corp designs and manufactures a broad range of high performance analog integrated circuits.  The Company's products include single output step down regulators, dual output regulators, single output step by step regulators, power management ICs, step up LED backlight regulator, AC-DC LED lighting controller, DC input LED lighting drivers, LDO regulators, and protection switch

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Silergy Corp (6415 TT)

Silergy (6415.TT): It Will Grow in 4Q24, While Auto Is Expected to Grow to 15% by the End of 2025.

3Q24 revenue at NT$4,284mn with GM at 55%, OPM at 24%, and NM at 15%. Gen-4 products to contribute 4% of total revenue by end of 2025. Chinese...

Patrick Liao

Silergy (6415.TT): Positive Optimistic Future Outlook

China's central bank eases monetary policy to boost economy, Silergy sees growth in Automotive EV markets, expects demand to pick up by end of 2024.

Patrick Liao

Silergy (6415.TT): Trial-Run with Vanguard, and Recent Stock Drops Represent an Entry Opportunity.

Silergy Corp surprises by using Vanguard Intl Semiconductor for product trial-runs, with a positive outlook for 2024 and a potential entry...

Patrick Liao

Silergy (6415.TT): 2024 Can Be Operating Trough, and Revenue in 2025 Is Expected to Grow by 20-30%.

Company's strong 2Q24 performance surpasses expectations, with flat 3Q and 10-20% growth in 4Q; Gen4 mainly used in EV, AI server, and new energy...

Patrick Liao

Silergy (6147.TT): The Wafer Demand Is Projected to Increase by 30-40% QoQ from 2Q24 Onwards.

Silergy anticipates demand recovery in 2Q24 with a projected 30-40% increase in wafer demand, focusing on China, Taiwan, Korea, and potential...

Patrick Liao

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Silergy (6415.TT): It Will Grow in 4Q24, While Auto Is Expected to Grow to 15% by the End of 2025.

3Q24 revenue at NT$4,284mn with GM at 55%, OPM at 24%, and NM at 15%. Gen-4 products to contribute 4% of total revenue by end of 2025. Chinese...

Patrick Liao

Silergy (6415.TT): Positive Optimistic Future Outlook

​China's central bank eases monetary policy to boost economy, Silergy sees growth in Automotive EV markets, expects demand to pick up by end of 2024.

Patrick Liao

Silergy (6415.TT): Trial-Run with Vanguard, and Recent Stock Drops Represent an Entry Opportunity.

​Silergy Corp surprises by using Vanguard Intl Semiconductor for product trial-runs, with a positive outlook for 2024 and a potential entry...

Patrick Liao

Silergy (6415.TT): 2024 Can Be Operating Trough, and Revenue in 2025 Is Expected to Grow by 20-30%.

​Company's strong 2Q24 performance surpasses expectations, with flat 3Q and 10-20% growth in 4Q; Gen4 mainly used in EV, AI server, and new energy...

Patrick Liao

Silergy (6147.TT): The Wafer Demand Is Projected to Increase by 30-40% QoQ from 2Q24 Onwards.

​Silergy anticipates demand recovery in 2Q24 with a projected 30-40% increase in wafer demand, focusing on China, Taiwan, Korea, and potential...

Patrick Liao

China's central bank eases monetary policy to boost economy, Silergy sees growth in Automotive EV markets, expects demand to pick up by end of 2024.

Silergy Corp surprises by using Vanguard Intl Semiconductor for product trial-runs, with a positive outlook for 2024 and a potential entry...

Company's strong 2Q24 performance surpasses expectations, with flat 3Q and 10-20% growth in 4Q; Gen4 mainly used in EV, AI server, and new energy...

Silergy anticipates demand recovery in 2Q24 with a projected 30-40% increase in wafer demand, focusing on China, Taiwan, Korea, and potential...