Forensic Analyst

Jason Yap, CFA

Equity Bottom-Up

<div><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> is a fabless semiconductor that specialises in high-speed video interfacing and processing products, and expected to see large passive inflows from an MSCI rebalance (<a href="https://www.smartkarma.com/insights/msci-nov-2021-index-rebalance-preview-go" target="_blank" data-smartkarma-citation="insights:59067" rel="noopener">MSCI Nov 2021 Index Rebalance Preview: Go!</a>).</div>The review period for price cut-off started on 18 October 2021 and will run to 29 October 2021. MSCI is expected to announce the results of the review on 12 November 2021, with changes implemented after the close of trading on 30 November 2021. In this Insight, we provide a primer on Parade Technologies including an analysis in respect of where in the value chain it sits, in particular as a key display supplier to <a href="https://www.smartkarma.com/entities/apple-inc" target="_blank" data-smartkarma-citation="entities:666:1" rel="noopener">Apple Inc (AAPL US)</a>, potential investment catalysts, and valuation.

Parade Technologies (4966 TT) is a fabless semiconductor that specialises in high-speed video interfacing and processing products, and expected to see large passive inflows from an MSCI rebalance (MSCI Nov 2021 Index Rebalance Preview: Go!).The review period for price cut-off started on 18 October 2021 and will run to 29 October 2021. MSCI is expected to announce the results of the review on 12 November 2021, with changes implemented after the close of trading on 30 November 2021. In this Insight, we provide a primer on Parade Technologies including an analysis in respect of where in the value chain it sits, in particular as a key display supplier to Apple Inc (AAPL US), potential investment catalysts, and valuation. 

Parade Technologies (4966 TT) - Expensive Now, But Accumulate on Weakness Given Structural Positives

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

Thematic (Sector/Industry)

August semiconductor revenues set new records worldwide and in nearly every region.  This is a continuation of a growth trend that has been playing out since the end of 2019, with each month setting new records since December of last year.

August semiconductor revenues set new records worldwide and in nearly every region.  This is a continuation of a growth trend that has been playing out since the end of 2019, with each month setting new records since December of last year.

August Semiconductor Revenues Break Records Once Again

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

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.

Equity Capital Markets

Renesas Electronics / Equity Capital Markets

Renesas, along with INCJ, aims to raise around US$3.4bn via selling a mix of primary and secondary shares.The current deal would be of somewhat similar size as two of the past deals that we have covered for Renesas:<ul>
<li dir="ltr" aria-level="1">US$2.8bn bn in 2017 <a href="https://www.smartkarma.com/insights/renesas-electronics-placement-additional-thoughts-on-valuation-flotation-and-ownership" target="_blank" rel="noopener">Renesas Electronics Placement: Additional Thoughts on Valuation, Flotation, and Ownership</a></li>
<li dir="ltr" aria-level="1">US$2.4bn in 2018 <a href="https://www.smartkarma.com/insights/renesas-placement-tighter-effective-discount-and-placement-overhangs-but-statistic-supports-a-bid" target="_blank" rel="noopener">Renesas Placement: Tighter Effective Discount and Placement Overhangs but Statistic Supports a Bid</a></li>
</ul>In this insight, we'll run the deal through our ECM framework and talk about deal dynamics.

Renesas, along with INCJ, aims to raise around US$3.4bn via selling a mix of primary and secondary shares.The current deal would be of somewhat similar size as two of the past deals that we have covered for Renesas:
US$2.8bn bn in 2017 Renesas Electronics Placement: Additional Thoughts on Valuation, Flotation, and Ownership
US$2.4bn in 2018 Renesas Placement: Tighter Effective Discount and Placement Overhangs but Statistic Supports a Bid
In this insight, we'll run the deal through our ECM framework and talk about deal dynamics.

Renesas Placement - Very Well Flagged, past Deals Have Done Well but Large Size Warrants Correction

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

<a href="https://www.smartkarma.com/entities/intel-corp" target="_blank" data-smartkarma-citation="entities:16764:1" rel="noopener">Intel</a> last week <a href="https://d1io3yog0oux5.cloudfront.net/_ca7702ae49c039154861b9bb46736c56/intel/news/2020-10-22_Intel_Reports_Third_Quarter_2020_Financial_1424.pdf" target="_blank" rel="noopener">reported</a> Q3 revenues of $18.3 billion, marginally exceeding their forecast. Net income came in at $4.3 billion, again largely in line with expectations. Looking ahead, Intel pegged fourth quarter earnings at a respectable $17.4 billion, implying a FY 2020 revenue of $73.5 billion, $300 million higher than the July forecast and $1.5 billion higher than the January forecast. These notable results notwithstanding, Intel's share price was immediately down 10% the following day and, after the latest market rout on Monday, is now down 14% since just prior to earnings. What was it about Intel's latest earnings report that triggered such a negative response? Here's what we think is going on.

Intel last week reported Q3 revenues of $18.3 billion, marginally exceeding their forecast. Net income came in at $4.3 billion, again largely in line with expectations. Looking ahead, Intel pegged fourth quarter earnings at a respectable $17.4 billion, implying a FY 2020 revenue of $73.5 billion, $300 million higher than the July forecast and $1.5 billion higher than the January forecast. These notable results notwithstanding, Intel's share price was immediately down 10% the following day and, after the latest market rout on Monday, is now down 14% since just prior to earnings. What was it about Intel's latest earnings report that triggered such a negative response? Here's what we think is going on. 

Intel. Reality Bites As Margins Shrink On The Back Of Mix, 10nm Yields & Growing Competition

Taiwan

Taiwan Semiconductor Co., Ltd. designs, manufactures, and distributes rectifiers, thermal bar code printers, and color photo printers.

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Taiwan Semiconductor Co. (5425 TT)

Parade Technologies (4966 TT) - Expensive Now, But Accumulate on Weakness Given Structural Positives

We provide a primer on Parade Technologies including an analysis in respect of where in the value chain it sits, in particular as a key display...

Jason Yap, CFA

August Semiconductor Revenues Break Records Once Again

Once again the semiconductor market has set a new revenue record. Just-reported August revenues make it the highest month in history. There's no...

Jim Handy

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

Renesas Placement - Very Well Flagged, past Deals Have Done Well but Large Size Warrants Correction

Renesas, along with INCJ, aims to raise around US$3.4bn via selling a mix of primary and secondary shares. The current deal would be of somewhat...

Sumeet Singh

Intel. Reality Bites As Margins Shrink On The Back Of Mix, 10nm Yields & Growing Competition

Despite delivering results slightly ahead of expectations and updating the FY 2020 outlook by a further $300 million, Intel shares are presently...

William Keating

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