Information Technology Consultant

Ishita Jain

Thematic (Sector/Industry)

The shared economy companies&nbsp;are threatened by laws and regulation. But then, which <a href="http://en.wikipedia.org/wiki/Disruptive_innovation" target="_blank">disruptive</a> businesses are not? Uber and Airbnb are likely to be darlings of Wall Street if they decide to go public. But will they live up to the hype? Possibly in the long run, some things could go downhill. But with access to capital, low debts and high reach, these companies are likely to cover their tracks and stay on top in the near future. But skeptics would compare these possible high profile IPOs to <a href="http://www.forbes.com/sites/joanlappin/2013/11/11/two-years-after-its-busted-ipo-groupon-still-cant-turn-a-profit/" target="_blank">Groupon</a> and <a href="http://www.cnbc.com/id/102020026" target="_blank">Alibaba</a> which saw decline in shares after going public. Time will tell.

The shared economy companies&nbsp;are threatened by laws and regulation. But then, which disruptive businesses are not? Uber and Airbnb are likely to be darlings of Wall Street if they decide to go public. But will they live up to the hype? Possibly in the long run, some things could go downhill. But with access to capital, low debts and high reach, these companies are likely to cover their tracks and stay on top in the near future. But skeptics would compare these possible high profile IPOs to Groupon and Alibaba which saw decline in shares after going public. Time will tell.

Will the 'shared economy' pioneers be the next Twitter or Facebook?

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/renesas-electronics-corp" target="_blank" data-smartkarma-citation="entities:15933:1" rel="noopener">Renesas Electronics (6723 JP)</a> on 8 February 2021 announced that they had signed an agreement to acquire <a href="https://www.smartkarma.com/entities/dialog-semiconductor-plc-664a1f83-2a21-4690-a91f-fb971832e7ad" target="_blank" data-smartkarma-citation="entities:21607:1" rel="noopener">Dialog Semiconductor (DLG GR)</a> for an equity value of €4.9bn. The company on the same day <a href="https://www.renesas.com/eu/en/about/press-room/notice-concerning-filing-shelf-registration-statement-issuance-new-shares" target="_blank" rel="noopener">announced</a> a shelf registration to issue up to ¥270bn of shares to pay for the deal.<section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/211/854/original/Screenshot+2021-06-08+at+10.38.41+AM.png?1623120032" class="editor-image img-responsive" data-smartkarma-image-id="211854"></figure></section>Renesas shares fell on the news, bounced, then fell, and have traded in a range of ¥1,100-1,300/share since then. In the interim (it will take until the end of 2021 to get the Dialog deal past foreign review boards and anti-trust regulators), the company experienced <a href="https://www.renesas.com/eu/en/node/1509341" target="_blank" rel="noopener">a fire at its Naka Factory</a> which will cost a ¥24bn impact in H1, there is an ongoing global chip shortage affecting both semiconductor makers and their customers, and the end of May saw the company finally <a href="https://www.renesas.com/eu/en/about/press-room/renesas-announces-issuance-new-shares-and-secondary-offering-shares" target="_blank" rel="noopener">announce</a> its equity offering - large at nearly US$4bn. This seemed like an overhang, but has ended up not being so much of one.The interim period, while showing a sideways trend for Renesas, saw its Peers outperform dramatically. The announcement of the equity offering and its size looked like it would present significant overhang. It has not turned out to be the case. There has been a "buy the news" reaction. It is a big offering. There are a bunch of moving parts. And lots of index flow.

Renesas Electronics (6723 JP) on 8 February 2021 announced that they had signed an agreement to acquire Dialog Semiconductor (DLG GR) for an equity value of €4.9bn. The company on the same day announced a shelf registration to issue up to ¥270bn of shares to pay for the deal.Renesas shares fell on the news, bounced, then fell, and have traded in a range of ¥1,100-1,300/share since then. In the interim (it will take until the end of 2021 to get the Dialog deal past foreign review boards and anti-trust regulators), the company experienced a fire at its Naka Factory which will cost a ¥24bn impact in H1, there is an ongoing global chip shortage affecting both semiconductor makers and their customers, and the end of May saw the company finally announce its equity offering - large at nearly US$4bn. This seemed like an overhang, but has ended up not being so much of one.The interim period, while showing a sideways trend for Renesas, saw its Peers outperform dramatically. The announcement of the equity offering and its size looked like it would present significant overhang. It has not turned out to be the case. There has been a "buy the news" reaction. It is a big offering. There are a bunch of moving parts. And lots of index flow.

Renesas Equity Offering - Priced To Go With Index Demand Now and Later

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.

Automakers are starting to struggle with chip shortages as the Nikkei reports <a href="https://asia.nikkei.com/Business/Automobiles/Global-chip-shortage-threatens-automakers-worldwide" target="_blank" rel="noopener">here</a>, <a href="https://asia.nikkei.com/Business/Automobiles/Nissan-to-cut-car-production-due-to-lack-of-chips" target="_blank" rel="noopener">here</a> and <a href="https://asia.nikkei.com/Business/Automobiles/Honda-cuts-car-production-on-massive-chip-shortage" target="_blank" rel="noopener">here</a>. This is an extension of a broad chip shortage globally as WFH demand, the launch of new consoles, GPUs and CPUs and rapidly recovering auto sales pour some short-term fuel on the long-term fire of expanding electrification and digitalisation. No wonder then that TSMC is up 134% from its March lows, but Renesas is up an even more impressive 248% since its lows of 2020 and could continue to outperform.

Automakers are starting to struggle with chip shortages as the Nikkei reports here, here and here. This is an extension of a broad chip shortage globally as WFH demand, the launch of new consoles, GPUs and CPUs and rapidly recovering auto sales pour some short-term fuel on the long-term fire of expanding electrification and digitalisation. No wonder then that TSMC is up 134% from its March lows, but Renesas is up an even more impressive 248% since its lows of 2020 and could continue to outperform.

Renesas – Auto Chip Shortage Could Drive Further Gains

Equity Analyst, LightStream Research

Aqila Ali

Equity Analyst

Event-Driven

In December last year, <a href="https://www.smartkarma.com/entities/broadcom-inc" target="_blank" data-smartkarma-citation="entities:998:1" rel="noopener">Broadcom Limited (AVGO US)</a> reported that it wants to sell its wireless chip unit and that it is working with the Credit Suisse Group to find potential buyers for the RF unit, a segment within the wireless chip unit. This comes as the company categorises the unit as non-core, given its change in focus to become a software business (seen as being more lucrative). This insight takes a quick look at the potential buyers of Broadcom’s wireless business and the potential value of the business.
<div style="text-align: center;" class="content-caption">Summary</div>
<table class="table table-striped">
<tbody>
<tr>
<td style="width: 162.95pt;">
Wireless Unit Segments
</td>
<td style="width: 162.95pt;">
Implied Valuation (USD bn)
</td>
<td style="width: 162.95pt;">
Potential Buyers
</td>
</tr>
<tr>
<td style="width: 162.95pt;">
RF
</td>
<td style="width: 162.95pt;">
9.6
</td>
<td style="width: 162.95pt;">
Apple, Qorvo, Skyworks, MACOM, Murata
</td>
</tr>
<tr>
<td style="width: 162.95pt;">
Bluetooth/Wi-Fi Unit
</td>
<td style="width: 162.95pt;">
8.8
</td>
<td style="width: 162.95pt;">
Skyworks, Murata, NXP Semiconductors
</td>
</tr>
<tr>
<td style="width: 162.95pt;">
Touch controller/ Wireless charging
</td>
<td style="width: 162.95pt;">
1.2
</td>
<td style="width: 162.95pt;">
Apple
</td>
</tr>
</tbody>
</table>
<div class="content-remarks">
Source: Company Disclosures, News Articles, CapIQ, LSR
</div>

In December last year, Broadcom Limited (AVGO US) reported that it wants to sell its wireless chip unit and that it is working with the Credit Suisse Group to find potential buyers for the RF unit, a segment within the wireless chip unit. This comes as the company categorises the unit as non-core, given its change in focus to become a software business (seen as being more lucrative). This insight takes a quick look at the potential buyers of Broadcom’s wireless business and the potential value of the business.
Summary




Wireless Unit Segments


Implied Valuation (USD bn)


Potential Buyers




RF


9.6


Apple, Qorvo, Skyworks, MACOM, Murata




Bluetooth/Wi-Fi Unit


8.8


Skyworks, Murata, NXP Semiconductors




Touch controller/ Wireless charging


1.2


Apple





Source: Company Disclosures, News Articles, CapIQ, LSR


Potential Buyers for Broadcom’s Wireless Business Unit

After its share price lost two thirds of its value over the last year <a href="https://www.smartkarma.com/entities/15933" target="_blank" data-smartkarma-citation="entities:15933:1">Renesas Electronics (6723 JP)</a> is surging today after a <a href="https://www.nikkei.com/nkd/company/article/?ba=1&amp;ng=DGXMZO37104840Q8A031C1000000&amp;scode=6723" target="_blank">positive interview with its CEO Bunsei Kure was published in the Nikkei</a> this morning (Japanese only). This article does have the faint whiff of a puff piece and even has the CEO directly suggesting that the share price seemed cheap relative to competitors. This is a somewhat uncommon statement coming from Japanese management and indicates some concern regarding the situation. A likely reason prompting this in-depth interview delving into the company's recent M&amp;A activity, potential synergies and its outlook for the future.While the share price move feels a little strong given the lack of concrete catalysts mentioned, we believe the article illustrates the positives for Renesas well and also hints at the CEO's understanding of international M&amp;A, gained at <a href="https://www.smartkarma.com/entities/7245" target="_blank" data-smartkarma-citation="entities:7245:1">Nidec Corp (6594 JP)</a> no less.

After its share price lost two thirds of its value over the last year Renesas Electronics (6723 JP) is surging today after a positive interview with its CEO Bunsei Kure was published in the Nikkei this morning (Japanese only). This article does have the faint whiff of a puff piece and even has the CEO directly suggesting that the share price seemed cheap relative to competitors. This is a somewhat uncommon statement coming from Japanese management and indicates some concern regarding the situation. A likely reason prompting this in-depth interview delving into the company's recent M&amp;A activity, potential synergies and its outlook for the future.While the share price move feels a little strong given the lack of concrete catalysts mentioned, we believe the article illustrates the positives for Renesas well and also hints at the CEO's understanding of international M&amp;A, gained at Nidec Corp (6594 JP) no less.

Renesas: Surges 10% on Positive Nikkei Interview with CEO Suggests Solid M&A Knowhow

United States

Maxim Integrated Products, Inc. designs, develops, manufactures, and markets a broad range of linear and mixed-signal integrated circuits.  The Company also provides a range of high-frequency design processes and capabilities that can be used in custom design.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Maxim Integrated Products (MXIM US)

Will the 'shared economy' pioneers be the next Twitter or Facebook?

The shared economy companies are threatened by laws and regulation. But then, which disruptive businesses are not? Uber and Airbnb are likely to be...

Ishita Jain

Renesas Equity Offering - Priced To Go With Index Demand Now and Later

Renesas will offer up to 373mm shares or what should be ~$4bn of new and used stock. Pricing (with pushing and shoving before) should be 9 June....

Travis Lundy

Renesas – Auto Chip Shortage Could Drive Further Gains

Renesas could continue to outperform despite a 248% rally from its 2020 lows as automotive electrification joins work from home demand to create a...

Mio Kato

Potential Buyers for Broadcom’s Wireless Business Unit

In December last year, Broadcom Limited (AVGO US) reported that it wants to sell its wireless chip unit and that it is working with the Credit...

Aqila Ali

Renesas: Surges 10% on Positive Nikkei Interview with CEO Suggests Solid M&A Knowhow

After its share price lost two thirds of its value over the last year Renesas Electronics (6723 JP) is surging today after a positive interview...

Mio Kato

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)