Taiwan Tech Focused Senior Analyst

Patrick Liao

Equity Bottom-Up

ASE Technology Holding   / Equity Bottom-Up

<ul>
<li>In the 2Q22 guidance, the revenue for ATM/EMS is ~NT$76.7bn/NT$61.2bn, the GM for ATM is ~27.5% and OPM for EMS is ~8.8%.</li>
<li>In the first quarter, ASE Holding already surpassed the historical peak of 27% gross margins. And ASE Holding will see that trend continue.</li>
<li>It's a normal phenomenon that ASE Holding is seeing inventory level being higher than before.</li>
</ul>


In the 2Q22 guidance, the revenue for ATM/EMS is ~NT$76.7bn/NT$61.2bn, the GM for ATM is ~27.5% and OPM for EMS is ~8.8%.
In the first quarter, ASE Holding already surpassed the historical peak of 27% gross margins. And ASE Holding will see that trend continue.
It's a normal phenomenon that ASE Holding is seeing inventory level being higher than before.


ASE Holding (ASX.US; 3711.TT): 1Q22 Results/ 2Q22 Outlook- 2022 Outlook Is Bright

United Microelectronics Corp / Equity Bottom-Up

<ul>
<li>UMC delivered a shining GM and outlook. The GM outlook is 45% in 2Q22, which beat our forecast.</li>
<li>UMC believes 22/28 nanometer will be a long-lasting node driven by applications, such as Wi-Fi 6, 6E, networking and OLED driver IC.</li>
<li>The overall business covered by LTA is close to 30%-40%.</li>
</ul>


UMC delivered a shining GM and outlook. The GM outlook is 45% in 2Q22, which beat our forecast.
UMC believes 22/28 nanometer will be a long-lasting node driven by applications, such as Wi-Fi 6, 6E, networking and OLED driver IC.
The overall business covered by LTA is close to 30%-40%.


UMC (UMC.US; 2303.TT): 1Q22 Results/2Q22 Preview- GM Beats Results and Forecast

<ul>
<li>The 1Q22 revenue beat the prior guidance, GM was in-line the guidance. The guidance is within our expectation in 2Q22.  </li>
<li>MediaTek believes they shall be on the right track to grow revenue 20% and the GM 48-50%, and MediaTek has a 3-year target to grow mid-teens percentage from 2022.</li>
<li>For shareholders, the board had approved NTD$37 for cash dividend in this year.</li>
</ul>


The 1Q22 revenue beat the prior guidance, GM was in-line the guidance. The guidance is within our expectation in 2Q22.  
MediaTek believes they shall be on the right track to grow revenue 20% and the GM 48-50%, and MediaTek has a 3-year target to grow mid-teens percentage from 2022.
For shareholders, the board had approved NTD$37 for cash dividend in this year.


MediaTek (2454.TT): 1Q22 Results/ 2Q22 Outlook-1Q Revenue Beat, 2Q22 Forecast Is in Line.

<ul>
<li>ASE Holding revenue was NTD$144.4bn in 1Q22, which was 20.9% YoY and -16.5% QoQ. We expect the GM is 19.5% in 1Q22.</li>
<li>ASE Holding could target at NTD$148.1bn/20.5% GM in 2Q22. We expect the gross margin of IC ATM and EMS portions are around 26.8%/9.1% respectively.</li>
<li>We think it should be picking up since 2Q22 because of the seasonality, and it's likely to peak out until 4Q22.</li>
</ul>


ASE Holding revenue was NTD$144.4bn in 1Q22, which was 20.9% YoY and -16.5% QoQ. We expect the GM is 19.5% in 1Q22.
ASE Holding could target at NTD$148.1bn/20.5% GM in 2Q22. We expect the gross margin of IC ATM and EMS portions are around 26.8%/9.1% respectively.
We think it should be picking up since 2Q22 because of the seasonality, and it's likely to peak out until 4Q22.


ASE Holding (3711.TT): 1Q22 Results/​​ 2Q22 Outlook- The Hope Might Be in 2H22

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

Shin Kong Financial Holding / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shin-kong-financial-holding" target="_blank" data-smartkarma-citation="entities:15351:1" rel="noopener">Shin Kong Financial Holding (2888 TT)</a> (SKFH) aims to raise around US$400m via an accelerated primary GDS offering.</li>
<li>This will be the third fundraising by the company in as many years. Both the prior deals did well and this one too appears to be well flagged.</li>
<li>In this note, we will talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>



Shin Kong Financial Holding (2888 TT) (SKFH) aims to raise around US$400m via an accelerated primary GDS offering.
This will be the third fundraising by the company in as many years. Both the prior deals did well and this one too appears to be well flagged.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.


Shin Kong Financial Holdings Placement - Deal Appears to Be Very Well Flagged

Taiwan

Taiwan Semiconductor Manufacturing Company Ltd. manufactures integrated circuits based on its proprietary designs.  The Company offers a comprehensive set of integrated circuit fabrication processes to manufacture CMOS logic, mixed-mode, volatile and non-volatile memory and BiCMOS chips.  Taiwan Semiconductor is an affiliate of Philips Electronics N.V.

Taiwan Semiconductor (TSMC) - ADR (TSM US)

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Taiwan Semiconductor (TSMC) - ADR (TSM US)

ASE Holding (ASX.US; 3711.TT): 1Q22 Results/ 2Q22 Outlook- 2022 Outlook Is Bright

In the 2Q22 guidance, the revenue for ATM/EMS is ~NT$76.7bn/NT$61.2bn, the GM for ATM is ~27.5% and OPM for EMS is ~8.8%. ASE Holding already...

Patrick Liao

UMC (UMC.US; 2303.TT): 1Q22 Results/2Q22 Preview- GM Beats Results and Forecast

The GM outlook is 45% in 2Q22, which beat our forecast. UMC believes 22/28 nanometer will be a long-lasting node driven by applications, such as Wi...

Patrick Liao

MediaTek (2454.TT): 1Q22 Results/ 2Q22 Outlook-1Q Revenue Beat, 2Q22 Forecast Is in Line.

The 1Q22 revenue was beating the prior guidance, GM was in-line the guidance. The guidance is within our expectation in 2Q22. MediaTek believes to...

Patrick Liao

ASE Holding (3711.TT): 1Q22 Results/ 2Q22 Outlook- The Hope Might Be in 2H22

ASE Holding revenue was NTD$144.4bn in 1Q22, which was 20.9% YoY and -16.5% QoQ. We expect the GM is 19.5% in 1Q22. ASE Holding could target at...

Patrick Liao

Shin Kong Financial Holdings Placement - Deal Appears to Be Very Well Flagged

Shin Kong Financial Holding (2888 TT) aims to raise around US$400m via an accelerated primary GDS offering. This will be the third fund raising by...

Sumeet Singh

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ASE Holding (ASX.US; 3711.TT): 1Q22 Results/ 2Q22 Outlook- 2022 Outlook Is Bright

In the 2Q22 guidance, the revenue for ATM/EMS is ~NT$76.7bn/NT$61.2bn, the GM for ATM is ~27.5% and OPM for EMS is ~8.8%. ASE Holding already...

Patrick Liao

UMC (UMC.US; 2303.TT): 1Q22 Results/2Q22 Preview- GM Beats Results and Forecast

The GM outlook is 45% in 2Q22, which beat our forecast. UMC believes 22/28 nanometer will be a long-lasting node driven by applications, such as Wi...

Patrick Liao

MediaTek (2454.TT): 1Q22 Results/ 2Q22 Outlook-1Q Revenue Beat, 2Q22 Forecast Is in Line.

The 1Q22 revenue was beating the prior guidance, GM was in-line the guidance. The guidance is within our expectation in 2Q22. MediaTek believes to...

Patrick Liao

ASE Holding (3711.TT): 1Q22 Results/​​ 2Q22 Outlook- The Hope Might Be in 2H22

ASE Holding revenue was NTD$144.4bn in 1Q22, which was 20.9% YoY and -16.5% QoQ. We expect the GM is 19.5% in 1Q22. ASE Holding could target at...

Patrick Liao

Shin Kong Financial Holdings Placement - Deal Appears to Be Very Well Flagged

Shin Kong Financial Holding (2888 TT) aims to raise around US$400m via an accelerated primary GDS offering. This will be the third fund raising by...

Sumeet Singh

ASE Holding (3711.TT): 1Q22 Results/ 2Q22 Outlook- The Hope Might Be in 2H22