In today’s briefing:
- Shift Up Delays the IPO and Stellar Blade Tops Number One Game in the US in April
- Sakura Internet Placement – Beneficiary of the AI-Wave Looking to Double Down
- Maxell (6810) Launches New MTMP, A “TSE ‘ATIMAoCoC&SP'” Notice, And A Buyback
- Tech Supply Chain Tracker (06-Jun-2024): Foxconn Hyderabad factory to make Airpods from August.
- Vanguard (5347.TT): Setup 12″ Fab in Singapore With 60% Stake, with NXP Investing Remaining 40%.
- Intel’s Latest SCIP With Apollo. Yikes!
- Raydium Semiconductor – Acceleration of Revenue in 1Q24 Has Positive Implications
- Marvell Earnings
- Lasertec (6920): Some of the Accusations Are Disgraceful, Some Not
- Astera Labs: 1Q’FY24 GAAP Net Loss Could Disappoint Investors, Selling Stockholders Offer ~3M Shares
Shift Up Delays the IPO and Stellar Blade Tops Number One Game in the US in April
- On 5 June, Shift Up announced that it will be postponing its IPO to July. The original book building period for the institutional investors was from 3 to 13 June.
- The final book building date has been postponed to 27 June. The subsequent public offering subscription for general investors was also postponed to 2 to 3 July.
- A major investment positive of Shift Up is enormous initial success of Stellar Blade which was the best selling game in the U.S. and numerous other countries in April 2024.
Sakura Internet Placement – Beneficiary of the AI-Wave Looking to Double Down
- Sakura internet (3778 JP) is looking to raise US$127m from its primary follow-on. Proceeds will be used towards purchasing GPU servers, and constructing new data center facilities.
- While 11% of total shares outstanding are offered here, the deal would be easily digested by the market, representing just 0.8 days of its three month ADV.
- In this note, we run the deal through our ECM framework and comment on deal dynamics.
Maxell (6810) Launches New MTMP, A “TSE ‘ATIMAoCoC&SP'” Notice, And A Buyback
- Today, Maxell Ltd (6810 JP) announced its new MTMP “MEX26 – Commit to Value (CorporateValue,ProfitGrowth)” with lots of consultant-speak and corporate homily.
- But they present a capital investment plan, and a capital return plan. These may interest investors. The buyback is the same size as 2019 and 2022. They popped and faded.
- Todays tidbits were all announced during the lunch break today, and the stock popped 6% in the PM session on the news.
Tech Supply Chain Tracker (06-Jun-2024): Foxconn Hyderabad factory to make Airpods from August.
- Foxconn’s Hyderabad factory to begin producing Airpods in August, as confirmed by Telangana official.
- Qualcomm CEO backs Arm’s forecast of 50% Windows PC market share in 5 years.
- UnaBiz achieves record-breaking 90% accuracy with AI-enabled Wi-Fi geolocation; Nvidia and Foxconn unveil advanced computing center in Taiwan. EU establishes AI office to enforce AI Act. Tower Semi awaits wafer fab approval in India post-elections. Win Semiconductors propelled by mobile phone surge into 2024.
Vanguard (5347.TT): Setup 12″ Fab in Singapore With 60% Stake, with NXP Investing Remaining 40%.
- Vanguard announce the establishment of a 12” Fab in Singapore with 60% stake, with Nxp Semiconductors Nv (NXPI US) will invest remaining 40%.
- The nodes produced will span from 40nm to 130nm, encompassing mixed-signal, PMIC, and analog ICs to support automotive, industrial, consumer, and mobile applications.
- Vanguard will uphold a healthy cash balance, along with large debt and a follow-up cash offering.
Intel’s Latest SCIP With Apollo. Yikes!
- Apollo-Managed funds and affiliates will lead an investment of $11 billion to acquire from Intel a 49% equity interest in a joint venture entity related to Intel’s Fab 34
- This deal follows a similar mid-2022 deal with Brookfield to co-invest in two new leading edge fabs in Arizona at a cost of up to $30 billion
- Why make the deal with Fab 34 in Ireland instead of the Ohio fab under construction?
Raydium Semiconductor – Acceleration of Revenue in 1Q24 Has Positive Implications
- Surge in revenue during 1Q24 may have implications for a return to strong profit growth
- There is no evidence of structurally weaker core costs, like COGS and SGA and even R&D
- ROE is now above 20% and this after it large capital raising in FY22
Marvell Earnings
Marvell had a pretty solid result and guided to sequentially better revenue.
The market didn’t like this, but I thought, looking through the result, I liked this result quite a bit. Shares did not.
- Marvell Technology reports Q1 EPS $0.24 ex-items vs FactSet $0.24.
Lasertec (6920): Some of the Accusations Are Disgraceful, Some Not
- Lasertec shares dropped nearly 8% following a scathing 53-page report by Scorpion Capital, accusing management of “colossal fraud.”
- The SC report is shrill, in our view, and therefore, we think we add value by contributing a second opinion.
- In our view, Lasertec is due for a correction even if SC’s report is inundated by hyperbole.
Astera Labs: 1Q’FY24 GAAP Net Loss Could Disappoint Investors, Selling Stockholders Offer ~3M Shares
- Astera Labs announced financial results for 1Q’FY24 in May. According to IPO prospectus, ~5.9M shares became eligible for sale following public release of earnings for the first quarter of FY24.
- The high-growth semiconductor company filed form S-8 on May 8, 2024. The selling stockholders, including current employees and service providers, offered additional ~3M shares as early lock-up expired.
- Astera Labs shares currently trade at rich multiples of ~37x EV/FY24E Revenue and ~25x EV/FY25E Revenue on my revised forecasts.
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