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

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<a href="https://www.bloomberg.com/news/articles/2023-03-10/chip-equipment-maker-asmpt-is-said-to-draw-takeover-interest" target="_blank" rel="noopener">Bloomberg reported</a> that PAG and other parties have expressed interest in taking <a href="https://www.smartkarma.com/entities/asm-pacific-technology-ltd" target="_blank" data-smartkarma-citation="entities:15061:1" rel="noopener">ASM Pacific Technology (522 HK)</a> private. PAG also sounded out several lenders.</li>
<li>ASMPT has three substantial shareholders (<a href="https://www.smartkarma.com/entities/asm-international-nv" target="_blank" data-smartkarma-citation="entities:21096:1" rel="noopener">Asm International Nv (ASM NA)</a>, FIL Limited and <a href="https://www.smartkarma.com/entities/schroders-plc" target="_blank" data-smartkarma-citation="entities:22134:1" rel="noopener">Schroders PLC (SDR LN)</a>) which suggests a requirement for a reasonable takeover premium.</li>
<li>ASMPT previously denied a privatisation rumour in 2020. Nevertheless, peers and historical multiples imply a fair price range of HK$82-97 per share, 11-31% premium to the last close.  </li>
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Bloomberg reported that PAG and other parties have expressed interest in taking ASM Pacific Technology (522 HK) private. PAG also sounded out several lenders.
ASMPT has three substantial shareholders (Asm International Nv (ASM NA), FIL Limited and Schroders PLC (SDR LN)) which suggests a requirement for a reasonable takeover premium.
ASMPT previously denied a privatisation rumour in 2020. Nevertheless, peers and historical multiples imply a fair price range of HK$82-97 per share, 11-31% premium to the last close.  


ASMPT (522 HK): PAG Potential Privatisation?

Equity Bottom-Up

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<a href="https://www.smartkarma.com/entities/pentamaster-corp-bhd" target="_blank" data-smartkarma-citation="entities:15302:1" rel="noopener">Pentamaster Corp (PENT MK)</a> specialises in the manufacturing of automated testing equipment (ATE segment) and the provision of factory automated solutions (FAS segment). </li>
<li>Pentamaster's solid track record, exposure to structural trends (electric vehicles), profitability, cash generation and healthy balance sheet are attractive. The shares are up 12.9% YTD.</li>
<li>However, the shares reflect this story and the valuation looks full compared to peers and historical multiples. We like the fundamentals and would be buyers of any prolonged weakness.</li>
</ul>



Pentamaster Corp (PENT MK) specialises in the manufacturing of automated testing equipment (ATE segment) and the provision of factory automated solutions (FAS segment). 
Pentamaster's solid track record, exposure to structural trends (electric vehicles), profitability, cash generation and healthy balance sheet are attractive. The shares are up 12.9% YTD.
However, the shares reflect this story and the valuation looks full compared to peers and historical multiples. We like the fundamentals and would be buyers of any prolonged weakness.


Pentamaster Corp (PENT MK): Good Story, at What Price?

Semiconductors, Memory and SSDs Specialist, Objective Analysis

Jim Handy

Semiconductors, Memory and SSDs Specialist

Objective Analysis

Objective Analysis offers third-party independent market research and data for the semiconductor industry and investors in the semiconductor industry.

Semiconductors, Memory and SSDs

<p>Our expectations for Micron's upcoming earnings call are very positive for four reasons:</p><ul>
<li>DRAM and NAND pricing is up</li>
<li>Demand has been solid for the whole first half, with no signs of softening</li>
<li>The company is shifting its mix to higher-margin products</li>
<li>Costs are being reduced through process leadership</li>
</ul>

Our expectations for Micron's upcoming earnings call are very positive for four reasons:
DRAM and NAND pricing is up
Demand has been solid for the whole first half, with no signs of softening
The company is shifting its mix to higher-margin products
Costs are being reduced through process leadership


What to Expect from the June 30 Micron Earnings Call

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>With speculation regarding ASM PT going private <a href="https://www.nasdaq.com/articles/exclusive-hong-kong-listed-semiconductor-maker-asm-pacific-plans-to-go-private-sources" target="_blank" rel="noopener">emerging</a> we provide below, an examination of the company’s valuation history and its multiples compared to a variety of peers. Our analysis suggests that if the company is indeed subject to an offer, relatively significant upside remains.</p>

With speculation regarding ASM PT going private emerging we provide below, an examination of the company’s valuation history and its multiples compared to a variety of peers. Our analysis suggests that if the company is indeed subject to an offer, relatively significant upside remains.

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

China Evergrande New Energy Vehicle / Event-Driven

China Evergrande New Energy Vehicle (708 HK)

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<p>This week in StubWorld ...</p>
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<p>Three days after raising HK$4bn via a top-up placement, <strong><a href="https://www.smartkarma.com/entities/evergrande-health-industry-group-ltd" target="_blank" data-smartkarma-citation="entities:713:1" rel="noopener">Evergrande Auto (708 HK)</a> </strong>("EA") also officially known as <strong>China Evergrande New Energy Vehicle Group</strong> announces an intention to list on Shanghai's Sci-Tech Board (also know as the "STAR Market").</p>
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<p>Preceding my comments on <strong>EA</strong> <em>and </em><a href="https://www.smartkarma.com/entities/asm-pacific-technology-ltd" target="_blank" data-smartkarma-citation="entities:15061:1" rel="noopener">Asm Pacific Technology (522 HK)</a>, are at the top of the weekly setup/unwind tables for Asia-Pacific Holdcos.</p>
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<p>These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.</p>
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This week in StubWorld ...



Three days after raising HK$4bn via a top-up placement, Evergrande Auto (708 HK) ("EA") also officially known as China Evergrande New Energy Vehicle Group announces an intention to list on Shanghai's Sci-Tech Board (also know as the "STAR Market").



Preceding my comments on EA and Asm Pacific Technology (522 HK), are at the top of the weekly setup/unwind tables for Asia-Pacific Holdcos.





These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.




StubWorld: Evergrande Auto (708 HK) Tapping All & Sundry; ASM Pacific Going Private?

Netherlands

ASM International N.V. develops, manufactures, markets, and services machines used to produce semiconductors.  The Company manufactures machines that process silicon wafers, and assemble and package semiconductors.  ASM operates in Europe, the United States, Japan, and elsewhere in Asia.

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Asm International Nv (ASM NA)

ASMPT (522 HK): PAG Potential Privatisation?

Bloomberg reported that PAG and other parties have expressed interest in taking ASMPT private. Peers and historical multiples imply a fair price...

Arun George

Pentamaster Corp (PENT MK): Good Story, at What Price?

The shares have had a strong run and the valuation looks full compared to peers and historical multiples. We like the fundamentals and would be...

Arun George

What to Expect from the June 30 Micron Earnings Call

Micron Technology is poised to disclose strong growth and earnings in tomorrow's quarterly call. This Smartkarma Insight provides four reasons why.

Jim Handy

ASM Pacific – Valuations Vs. Peers

With speculation regarding ASM PT going private emerging we provide below, an examination of the company’s valuation history and its multiples...

Mio Kato

StubWorld: Evergrande Auto (708 HK) Tapping All & Sundry; ASM Pacific Going Private?

This week in StubWorld ... Shareholders are the big loser as the US, UK and China turn HSBC Holdings (5 HK) into a political...

David Blennerhassett

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