In today’s briefing:
- Kioxoa Pre-IPO – Peer Comparison
- Kioxoa Pre-IPO – Thoughts on Valuations
- Kioxia (285A JP) IPO: The Bull Case
- Tencent/Netease: Second Month of Game Approval Disappointment
- Kioxia IPO: Initial Thoughts on Financials and Valuation
- Nippo Ltd. (9913 JP) : Research Update
- Intel Finalises US CHIPS Funding But With Some Rather Unusual T&C’s
- 日邦産業株式会社 (9913 JP) : リサーチアップデート日本語サマリー
- Delta Electronics Thailand (Delta.BK): Buying Opportunity
- Tech Supply Chain Tracker (29-Nov-2024): China smartphone market, Q3 2024
Kioxoa Pre-IPO – Peer Comparison
- Kioxia Holdings (6600 JP) is aiming to raise around US$700m (including over-allocation) from its Japan IPO.
- It was the world’s largest pure-play NAND flash memory supplier, in terms of both revenue and unit shipments in 2023, according to TechInsights.
- We have looked at the company’s past performance in our earlier notes. In this note we undertake a peer comparison.
Kioxoa Pre-IPO – Thoughts on Valuations
- Kioxia Holdings (285A JP) is aiming to raise around US$700m (including over-allocation) from its Japan IPO.
- It was the world’s largest pure-play NAND flash memory supplier, in terms of both revenue and unit shipments in 2023, according to TechInsights.
- We have looked at the company’s past performance in our earlier notes. In this note we talk about valuations.
Kioxia (285A JP) IPO: The Bull Case
- Kioxia Holdings (6600 JP) is a leading player in the NAND flash memory market. It will list on 18 December and seek to raise up to US$740 million.
- Bain Capital, Toshiba Corp (6502 JP) and Hoya Corp (7741 JP) currently own 56.23%, 40.64% and 3.13% of the voting rights, respectively.
- The bull case rests on an attractive market opportunity, a return to revenue growth, margins close to all-time highs, a favourable cash conversion cycle, and modest leverage.
Tencent/Netease: Second Month of Game Approval Disappointment
- China announced game approval for the November batch. The number of games approved remained at a higher level than 2023.
- The pace of China game approval appears to have accelerated to the same level as pre-tightening.
- None of the companies that we are tracking got any approval for November batch.
Kioxia IPO: Initial Thoughts on Financials and Valuation
- Kioxia Holdings (285A JP) ’s long waited IPO is now live and plans to raise US$700m at a much lower valuation of US$4.8bn vs price paid by Bain 6-years ago.
- The company’s IPO is very timely as earnings have almost approached the cycle peak, but margins have continued to trail peers who have a more balanced product portfolio.
- Kioxia’s valuation has declined while market sentiment for memory names has also been that great. We will discuss our valuation in a follow-up insight.
Nippo Ltd. (9913 JP) : Research Update
- FY24 1H results and update on the ongoing long-term plan
Intel Finalises US CHIPS Funding But With Some Rather Unusual T&C’s
- Intel is now set to receive $7.86 billion in CHIPs Act funding, down from the $8.5 billion originally touted back in March 2024
- The funding comes with a raft of restrictions and caveats regarding what happens in the event of any changes in Intel’s organizational structure and/or ownership
- The US Department of Commerce also reserves the right to withhold funding and/or weigh in on decisions around outsourcing if Intel fails to meet key, critical milestones. Ouch!
日邦産業株式会社 (9913 JP) : リサーチアップデート日本語サマリー
- FY24上期決算と長期計画のアップデート
Delta Electronics Thailand (Delta.BK): Buying Opportunity
- Delta Electronics Thailand (DELTA TB) is a prominent data center and EV charging solution provider in Thailand.
- Rich valuation, especially against the parent company, but its PEG ratio says otherwise.
- It is proven that the share price weakness due to SET suspension is a buying opportunity.
Tech Supply Chain Tracker (29-Nov-2024): China smartphone market, Q3 2024
- China smartphone market grows significantly in 3Q 2024, demonstrating strong demand for mobile devices.
- Lam Research establishes new office at Tata-PSMC wafer fab, enhancing their presence in the semiconductor industry.
- LG shifts focus to solutions over products in major restructuring, while BYD plans cost cuts in anticipation of potential tariffs.
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