Taiwan Tech Focused Senior Analyst

Patrick Liao

Equity Bottom-Up

<ul>
<li>Phison reached to NT$17.1bn, 32%, 14% and NT$10.49 for revenue, GM, NM and the Diluted EPS in 1Q22.</li>
<li>We estimate it could be a slight positive growth in 2022, which could reach NT$18.1bn/32.5% for revenue/GM respectively.</li>
<li>Phison and its competitors shall continuously strive in Flash card and the related business.</li>
</ul>


Phison reached to NT$17.1bn, 32%, 14% and NT$10.49 for revenue, GM, NM and the Diluted EPS in 1Q22.
We estimate it could be a slight positive growth in 2022, which could reach NT$18.1bn/32.5% for revenue/GM respectively.
Phison and its competitors shall continuously strive in Flash card and the related business.


Phison (8299.TT): 2Q22 Could Expect a Slightly Growth QoQ

<ul>
<li>We estimate Phison could reach NT$14.1bn sales and GM 25% outlook in 1Q22.</li>
<li>For 2022, it stars with a good beginning for 5~10% NAND price lifted, and Phison’s insistence on NAND Flash controller technology and allied with AMD.</li>
<li>Phison would maintain its solid dividend policy and it’s 80% in the past. It was ~NT$63 EPS in 2021. </li>
</ul>


We estimate Phison could reach NT$14.1bn sales and GM 25% outlook in 1Q22.
For 2022, it stars with a good beginning for 5~10% NAND price lifted, and Phison’s insistence on NAND Flash controller technology and allied with AMD.
Phison would maintain its solid dividend policy and it’s 80% in the past. It was ~NT$63 EPS in 2021. 


Phison (8299.TT): Insistence in NAND Flash Technology

External broker reports(aggregated public sources), Masterlink Securities Corp

Masterlink Securities

External broker reports(aggregated public sources)

<p>For long-term applications, Phison has expanded from traditional consumer modules to high-margin industrial control, game consoles and large volume of embedded ODM modules. The company is one of the first developers for PCIe Gen4 SSDs, and has received certification for Gen4 SSDs for NBs in 2021. Gen5 SSDs are slated for mass production in 1Q22 to mainly satisfy the demand from high-end gaming applications and entry-level enterprise storage applications. Meanwhile, Gen6 SSDs already entered early-stage R&amp;D. Phison has extended from PCIe Gen5 SSD controller chips to the new product Gen5 Redriver, and conducted testing and introduction of the new product in cooperation with the leading motherboard and server manufacturers. The company plans to tape out the design of Gen5 Retimer in 2Q22. We estimate Phison’s total sales to stand above NT$60bn in 2021 and NT$70bn in 2022. In view of the company’s automotive market expansion plan for 2023, and contributions from data centers and enterprise class SSDs in 2024-2025, Phison has set its long-term sales guidance at NT$100bn, and its EPS is expected to reach NT$70 based on net profit margin of 13-14%.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

For long-term applications, Phison has expanded from traditional consumer modules to high-margin industrial control, game consoles and large volume of embedded ODM modules. The company is one of the first developers for PCIe Gen4 SSDs, and has received certification for Gen4 SSDs for NBs in 2021. Gen5 SSDs are slated for mass production in 1Q22 to mainly satisfy the demand from high-end gaming applications and entry-level enterprise storage applications. Meanwhile, Gen6 SSDs already entered early-stage R&amp;D. Phison has extended from PCIe Gen5 SSD controller chips to the new product Gen5 Redriver, and conducted testing and introduction of the new product in cooperation with the leading motherboard and server manufacturers. The company plans to tape out the design of Gen5 Retimer in 2Q22. We estimate Phison’s total sales to stand above NT$60bn in 2021 and NT$70bn in 2022. In view of the company’s automotive market expansion plan for 2023, and contributions from data centers and enterprise class SSDs in 2024-2025, Phison has set its long-term sales guidance at NT$100bn, and its EPS is expected to reach NT$70 based on net profit margin of 13-14%.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Phison (8299 TT) Switched to App & Technology Oriented NAND Solutions

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

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<ul><li>Good price momentum, earnings on an upcycle trend, and low debt levels relative to its sector</li><li>Shipments of new PCIe solid-state drives (SSD) should gain momentum due to  growing demand for faster computing; the average selling price of PCIe SSDs is two times higher than that of older standard SATA</li><li>In order to support growing demand Phison’s new factory in Miaoli with a total investment of US$25m has commenced its operations in 2Q17; the company plans to double headcount</li><li>Trades slightly above Asian Info Tech at 17CE* 3.1x PB but offers better ROE, higher dividend yield and is net cash</li><li>Risks: Slowdown in smartphone and PC markets</li></ul><p><em>* Consensus Estimates</em></p>

Good price momentum, earnings on an upcycle trend, and low debt levels relative to its sectorShipments of new PCIe solid-state drives (SSD) should gain momentum due to  growing demand for faster computing; the average selling price of PCIe SSDs is two times higher than that of older standard SATAIn order to support growing demand Phison’s new factory in Miaoli with a total investment of US$25m has commenced its operations in 2Q17; the company plans to double headcountTrades slightly above Asian Info Tech at 17CE* 3.1x PB but offers better ROE, higher dividend yield and is net cashRisks: Slowdown in smartphone and PC markets* Consensus Estimates

Phison (8299 TT): New Solid-State Drives to Drive Growth

Asia and Global Semiconductor and Tech Research

Andrew Lu

<h2>Never ended recovery</h2><p><a href="https://www.smartkarma.com/entities/13382" target="_blank" data-smartkarma-citation="entities:13382:1">Micron Technology Inc (MU US)</a> reports 3Q17 sales growth of 10% q/q (reaching high end of earlier guidance) and 91% y/y to US$6.14bn with better than guided operating margin of 40.8%, net margin of 38.6%, and GAAP EPS of US$1.99, comparing to Bloomberg consensus estimates of 38.3% for operating margin, 34.2% for net margin, and GAAP EPS of NT$1.75.</p><p>Despite the growth from 4Q17 guidance to decelerate, Micron guides solid 4Q17 sales growth of -1% to 6% q/q (vs. Bloomberg's -1%…</p>

Never ended recoveryMicron Technology Inc (MU US) reports 3Q17 sales growth of 10% q/q (reaching high end of earlier guidance) and 91% y/y to US$6.14bn with better than guided operating margin of 40.8%, net margin of 38.6%, and GAAP EPS of US$1.99, comparing to Bloomberg consensus estimates of 38.3% for operating margin, 34.2% for net margin, and GAAP EPS of NT$1.75.Despite the growth from 4Q17 guidance to decelerate, Micron guides solid 4Q17 sales growth of -1% to 6% q/q (vs. Bloomberg's -1%…

Micron - Will the Recovery Ever Reach the End?

Taiwan

Phison Electronics Corp. manufactures and markets USB (Universal Serial Bus) flash pen drives, card readers, adapters, flash memory controllers, and integrated circuits (ICs).

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