Asia and Global Semiconductor and Tech Research

Andrew Lu

Event-Driven

Advanced Semiconductor Engr / Event-Driven

<h2>FTC says yes to the ASE/SPIL merger</h2><p>Taiwan Fair Trade Commission approves the <a href="https://www.smartkarma.com/entities/721" target="_blank" data-smartkarma-citation="entities:721:1">Advanced Semiconductor Engr (2311 TT)</a>/<a href="https://www.smartkarma.com/entities/720" target="_blank" data-smartkarma-citation="entities:720:1">Siliconware Precision Inds (2325 TT)</a> merger today after few months of delay. Taiwan FTC says the economic benefits of the merger to be larger than the restrict competition and highlight the following key points.</p><ol><li>
<strong>Unlikely see a price raise post the merger: </strong>Taiwan FTC says the new entity unlikely to increase the price as there are over 70 OSAT (OutSourcing Assembly and Test) vendors in…</li></ol>

FTC says yes to the ASE/SPIL mergerTaiwan Fair Trade Commission approves the Advanced Semiconductor Engr (2311 TT)/Siliconware Precision Inds (2325 TT) merger today after few months of delay. Taiwan FTC says the economic benefits of the merger to be larger than the restrict competition and highlight the following key points.
Unlikely see a price raise post the merger: Taiwan FTC says the new entity unlikely to increase the price as there are over 70 OSAT (OutSourcing Assembly and Test) vendors in…

Taiwan Fair Trade Commission Says Yes to the ASE/SPIL Merger

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.

Thematic (Sector/Industry)

<ul><li><strong>The biggest SGX-listed stocks that respectively represent the hardware, software and semiconductors industries are Venture Corporation, Silverlake Axis and UMS Holdings. </strong></li><li><strong>These three stocks have averaged a 19.2% total return in the 2016 year-to-date.</strong></li><li><strong>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.</strong></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 Bottom-Up

<h2>Amazing beats for both 3Q16 results and 4Q16 guidance</h2><ul><li>
<strong>Amazing results beat</strong>: <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>3Q16 results and 4Q16 guidance beat Bloomberg consensus</h2><ul>
<li>
<strong>Results beat</strong>: <a href="https://www.smartkarma.com/entities/11409" target="_blank" data-smartkarma-citation="entities:11409:1">Amkor Technology Inc (AMKR US)</a> reports 3Q16 EPS of US$0.25, which was US$5 cents better than Bloomberg consensus' US$0.20 due to 3% higher in sales and 2ppts better on gross and operating margin for a better mix and stronger utilization.</li>
<li>
<strong>Guidance beats</strong>: Helped by solid demand from nearly all end markets, Amkor guides better than seasonal 4Q16 sales decline of 1% to 9% q/q (midpoint as -5% q/q vs. Bloomberg's -6% q/q) but up…</li>
</ul>

3Q16 results and 4Q16 guidance beat Bloomberg consensus

Results beat: Amkor Technology Inc (AMKR US) reports 3Q16 EPS of US$0.25, which was US$5 cents better than Bloomberg consensus' US$0.20 due to 3% higher in sales and 2ppts better on gross and operating margin for a better mix and stronger utilization.

Guidance beats: Helped by solid demand from nearly all end markets, Amkor guides better than seasonal 4Q16 sales decline of 1% to 9% q/q (midpoint as -5% q/q vs. Bloomberg's -6% q/q) but up…


Amkor Beats on Structural Improvement or Pre-Merger Windows Dressing?

Advanced Semiconductor Engr / Equity Bottom-Up

<h2>Summary</h2><ul>
<li>
<strong>Miss on results and guidance</strong>: ASE reports a worse than expected 3Q16 EPS of NT$0.67 on 11% weaker EMS sales, unexpected SPIL purchase price allocation on goodwill, and CB value reset. ASE guides weaker 4Q16 IC ATM sales decline of 0-5% due to Android smartphone weakness.</li>
<li>
<strong>Underperformance in q/q and y/y sales growth: </strong>Worse than most of the supply chain vendors, ASE guides 4Q16 ATM sales decline of 0-5% q/q and 2016 consolidated sales decline of 3% y/y. We attribute the 4Q16 weakness to Note…</li>
</ul>

Summary

Miss on results and guidance: ASE reports a worse than expected 3Q16 EPS of NT$0.67 on 11% weaker EMS sales, unexpected SPIL purchase price allocation on goodwill, and CB value reset. ASE guides weaker 4Q16 IC ATM sales decline of 0-5% due to Android smartphone weakness.

Underperformance in q/q and y/y sales growth: Worse than most of the supply chain vendors, ASE guides 4Q16 ATM sales decline of 0-5% q/q and 2016 consolidated sales decline of 3% y/y. We attribute the 4Q16 weakness to Note…


ASE Guides a Softer ATM Sales on Android Smartphone Weakness

Taiwan

Siliconware Precision Industries Co Ltd operates integrated circuit packaging consultation, design, simulation, assembly, and final test. The current products are quad flat package (QFP) and small outline package (SO).

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Siliconware Precision Inds (2325 TT)

Taiwan Fair Trade Commission Says Yes to the ASE/SPIL Merger

FTC says yes to the ASE/SPIL mergerTaiwan Fair Trade Commission approves the Advanced Semiconductor Engr (2311 TT)/Siliconware Precision Inds (2325...

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)

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

Amkor Beats on Structural Improvement or Pre-Merger Windows Dressing?

3Q16 results and 4Q16 guidance beat Bloomberg consensus Results beat: Amkor Technology Inc (AMKR US) reports 3Q16 EPS of US$0.25, which was US$5...

Andrew Lu

ASE Guides a Softer ATM Sales on Android Smartphone Weakness

Summary Miss on results and guidance: ASE reports a worse than expected 3Q16 EPS of NT$0.67 on 11% weaker EMS sales, unexpected SPIL purchase...

Andrew Lu

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