IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jsr-corp" target="_blank" data-smartkarma-citation="entities:17620:1" rel="noopener">JSR Corp (4185 JP)</a>'s pre-conditional tender offer from JIC is JPY4,350 per share. Since the deal announcement on 26 June, the gross spread has averaged 6.4%.</li>
<li>The wide gross spread reflects the risk in satisfying the pre-conditions related to country approvals, particularly in China. JIC, unusually can waive all or part of the conditions precedent.</li>
<li>The wild card is geopolitical developments. There are three China approval scenarios. The likely scenario is the deal approval under a normal procedure with a delay to the tender start.</li>
</ul>



JSR Corp (4185 JP)'s pre-conditional tender offer from JIC is JPY4,350 per share. Since the deal announcement on 26 June, the gross spread has averaged 6.4%.
The wide gross spread reflects the risk in satisfying the pre-conditions related to country approvals, particularly in China. JIC, unusually can waive all or part of the conditions precedent.
The wild card is geopolitical developments. There are three China approval scenarios. The likely scenario is the deal approval under a normal procedure with a delay to the tender start.


JSR Corporation (4185 JP): Tender Offer Risk/Reward

Taiwan Tech Focused Senior Analyst

Patrick Liao

Equity Bottom-Up

King Yuan Electronics Co, Ltd. / Equity Bottom-Up

<ul>
<li>KYEC reached revenue, GM, OPM and Diluted EPS of NT$8,984mn, 35.8%, 25.6% and NT$1.47 respectively in 1Q22.</li>
<li>KYEC could reach to ~10% revenue QoQ growth in 2Q22 because of some orders delayed in Suzhou for COVID-19 controlling measure in 1Q22.</li>
<li>The mainland China smartphone is not strong in 2Q22, but the smartphone chipset testing demand could still be the largest demand in KYEC. </li>
</ul>


KYEC reached revenue, GM, OPM and Diluted EPS of NT$8,984mn, 35.8%, 25.6% and NT$1.47 respectively in 1Q22.
KYEC could reach to ~10% revenue QoQ growth in 2Q22 because of some orders delayed in Suzhou for COVID-19 controlling measure in 1Q22.
The mainland China smartphone is not strong in 2Q22, but the smartphone chipset testing demand could still be the largest demand in KYEC. 


KYEC (2449.TT): It Could Reach ~10% QoQ Growth in 2Q22 Because Some Orders Were Delayed in 1Q22.

<ul>
<li>It is usually the low season in the 1st quarter, and we expect the revenue/GM is about NT$8.55bn/25.5% in 1Q22 respectively.    </li>
<li>KYEC’s main clients are MediaTek, NVDA, XLNX and etc., and some demands in Automotive also rising up quickly.</li>
<li>In real terms, the shareholder might receive the same dividend amount of about NT$2.5+ for 2021. We think it likely targets a 5% dividend yield.</li>
</ul>


It is usually the low season in the 1st quarter, and we expect the revenue/GM is about NT$8.55bn/25.5% in 1Q22 respectively.    
KYEC’s main clients are MediaTek, NVDA, XLNX and etc., and some demands in Automotive also rising up quickly.
In real terms, the shareholder might receive the same dividend amount of about NT$2.5+ for 2021. We think it likely targets a 5% dividend yield.


KYEC (2449.TT): A Slow 1Q22 Is Likely to Occur, Which Could Present an Entry Point.

Value Investing

Vladimir Dimitrov, CFA

Advanced Micro Devices / Equity Bottom-Up

<ul>
<li>AMD continued to deliver astonishing top-line growth numbers over the past year, reaching more than 90% in the last quarter.</li>
<li>Contrary to the outstanding operational performance, share price underperformed the market on a risk-adjusted basis.</li>
<li>High-growth expectations already built into the price are largely to blame, while the cyclical nature of the industry should also be considered.</li>
</ul>


AMD continued to deliver astonishing top-line growth numbers over the past year, reaching more than 90% in the last quarter.
Contrary to the outstanding operational performance, share price underperformed the market on a risk-adjusted basis.
High-growth expectations already built into the price are largely to blame, while the cyclical nature of the industry should also be considered.


Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<p>As we had speculated previously, it turns out that AMD’s teaser benchmarks for its graphics cards, at the Ryzen 5000 series presentation, were not for its highest end card. The company’s presentation on its newest line-up underscores the enormous improvement in competitiveness that AMD has engineered over the last few years and has implications not just for its direct competitors but also supplier TSMC and Nvidia customer, Nintendo.</p>

As we had speculated previously, it turns out that AMD’s teaser benchmarks for its graphics cards, at the Ryzen 5000 series presentation, were not for its highest end card. The company’s presentation on its newest line-up underscores the enormous improvement in competitiveness that AMD has engineered over the last few years and has implications not just for its direct competitors but also supplier TSMC and Nvidia customer, Nintendo.

AMD – RX6000 Series Should Make Intel and Nvidia Sweat and TSMC and Nintendo Smile a Touch

United States

Xilinx, Inc. designs, develops, and markets complete programmable logic solutions. The Company's solutions include advanced integrated circuits, software design tools, predefined system functions delivered as cores of logic, and field engineering support. Xilinx sells its products through several channels of distribution to customers in the United States and overseas.

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Xilinx Inc (XLNX US)

JSR Corporation (4185 JP): Tender Offer Risk/Reward

The wide gross spread reflects the risk in satisfying the pre-conditions related to country approvals, particularly in China. In this note, we...

Arun George

KYEC (2449.TT): It Could Reach ~10% QoQ Growth in 2Q22 Because Some Orders Were Delayed in 1Q22.

KYEC could reach to ~10% revenue QoQ growth in 2Q22. The mainland China smartphone is not strong in 2Q22, but the smartphone chipset testing demand...

Patrick Liao

KYEC (2449.TT): A Slow 1Q22 Is Likely to Occur, Which Could Present an Entry Point.

We expect the revenue/GM is about NT$8.55bn/26% in 1Q22 respectively. The shareholder might receive the same paying amount for ~NT$2.5+ for 2021....

Patrick Liao

AMD: Still Too Expensive

AMD continued to deliver astonishing top-line growth numbers over the past year, reaching more than 90% in the last quarter. Contrary to the...

Vladimir Dimitrov, CFA

AMD – RX6000 Series Should Make Intel and Nvidia Sweat and TSMC and Nintendo Smile a Touch

AMD's ability to suddenly match or better Intel and Nvidia in CPUs and GPUs bodes well for the company but we also feel that GPU developments are...

Mio Kato

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