In today’s briefing:
- [ACM Research (ACMR US)]: Preferred Local Tool Supplier Beginning Global Ascent
- ChipMOS Industry View: Display Downturn Rebounding, Memory Delayed, Guidance Proving Prescient
- Estun Is on Track of Achieving Its Sales Target
- China Healthcare Weekly (May.5)- 2nd Wave of COVID, Valuation Logic of China’s Core Assets, Lifetech
- Clinuvel Pharmaceuticals (CUV AU): Portfolio Expansion Ensures Continued Profitable Growth
- Acer Q1’23 Revenue NT$52.46 Billion, -12% QoQ, -33% YoY.
[ACM Research (ACMR US)]: Preferred Local Tool Supplier Beginning Global Ascent
- ACMR reported C1Q23 top-line, GAAP EBIT and non-IFRS net profit (2.8%), 42% and 35% vs. our est., and in-line, and positive vs. negative, respectively.
- We estimate ACMR’s China wafer clean/ECD share was 11%/45%~ in 1Q23, +4/28ppts YoY, while guidance implies 45%/50%~ in 4Q23, respectively;
- We maintain BUY and US$ 30 TP, implying 2.0x FY24 EV/Sales
ChipMOS Industry View: Display Downturn Rebounding, Memory Delayed, Guidance Proving Prescient
- Chipmos Technologies (8150 TT) reported results last week, beating expectations and showing an increase in capacity utilization QoQ.
- The company reported notable strength in Display Driver related demand, and capacity utilization for the segment may have bottomed back in 3Q22.
- Memory is expected to have a delayed recovery according to ChipMOS, potentially coming in 3Q23. Adjusted our model — We continue to believe ChipMOS is cheap through the cycle.
Estun Is on Track of Achieving Its Sales Target
- MIR forecasts China’s industrial robot market growth to accelerate to ~12% y/y in 2023 and will sustain at double digit y/y for the next several years.
- Management sees order growth back to normal in Mar and Apr.
- Industrial robot sales volume is expected to increase to ~25K in 2023, growing by ~45% y/y.
China Healthcare Weekly (May.5)- 2nd Wave of COVID, Valuation Logic of China’s Core Assets, Lifetech
- Many people have begun to pay attention to whether there would be a second wave of COVID-19 in China. We think it is necessary to share our views.
- The overvaluation or undervaluation of China’s core assets cannot be explained solely by classic valuation models such as PE/PB/DCF, but rather by considering the deep meaning represented by the companies.
- Lifetech’s future growth space depend more on the performance of pacemakers and IBS, but they are facing different challenges. Therefore, we recommend short-term trade rather than long term hold.
Clinuvel Pharmaceuticals (CUV AU): Portfolio Expansion Ensures Continued Profitable Growth
- Clinuvel Pharmaceuticals (CUV AU) recorded 19% YoY revenue growth in H1FY23, driven by the growth of network of prescriber, treatment demand, and number of prescriptions of Scenesse.
- In March, Clinuvel announced the test launch of the first dermatocosmetic product Cyacêlle, a polychromatic screen, formulated to protect skin against ultraviolet A & B and high-energy visible lights.
- Clinuvel has published encouraging initial readouts of the DNA repair programs. In March 2023, the company has initiated Prénumbra Instant trial in acute ischemic stroke patients.
Acer Q1’23 Revenue NT$52.46 Billion, -12% QoQ, -33% YoY.
- Q1’23 was Acer’s fifth consecutive quarter of sequentially declining revenues
- Called Q1’23 the trough but no specific guidance on the current quarter
- Chromebook sales surged 44.4% QoQ. What was the reason for this?
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