Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

Openedges Technology / Equity Capital Markets

<ul>
<li><span>Our valuation analysis suggests an implied target price of 24,813 won per share, representing 38% higher than the high end of the IPO price range of 18,000 won. </span></li>
<li><span>Given the solid upside, we have a Positive view of the Open Edges Technology, despite the weak IPO market conditions. </span></li>
<li>
<a href="https://biz.chosun.com/stock/market_trend/2022/08/16/6JZRHBLIEBHWZL2WTNYPLZZTZA/?utm_source=naver&amp;utm_medium=original&amp;utm_campaign=biz" target="_blank" rel="noopener">Open Edges Technology</a> is one of the leading companies in Korea that specializes in the semiconductor design asset platforms. </li>
</ul>


Our valuation analysis suggests an implied target price of 24,813 won per share, representing 38% higher than the high end of the IPO price range of 18,000 won. 
Given the solid upside, we have a Positive view of the Open Edges Technology, despite the weak IPO market conditions. 

Open Edges Technology is one of the leading companies in Korea that specializes in the semiconductor design asset platforms. 


Open Edges Technology IPO Valuation Analysis

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Digital transformation is accelerating across various industries thanks to generational trends like 5G, hyperscale computing, and autonomous vehicles supported by AI, ML, and data analytics.</li><li>These trends are boosting design activity, creating a strong secular tailwind for the core end-to-end EDA, IP, and expanding systems portfolio.</li><li>Cadence also acquired Future Facilities during the quarter to expand its CFD portfolio to include data centres.</li></ul>

Digital transformation is accelerating across various industries thanks to generational trends like 5G, hyperscale computing, and autonomous vehicles supported by AI, ML, and data analytics.These trends are boosting design activity, creating a strong secular tailwind for the core end-to-end EDA, IP, and expanding systems portfolio.Cadence also acquired Future Facilities during the quarter to expand its CFD portfolio to include data centres.

Cadence Design Systems Inc: The Future Facilities Acquisition & Other Drivers

Cadence Design Sys / Equity Capital Markets

<ul><li>Cadence Design delivered a particularly strong 2021 generating over $1 billion in operating cash flow.</li><li>The company expects its innovative solutions to continue driving broad-based business momentum in 2021 and 2022, accelerating revenue growth and profitability, with robust design activity providing a strong tailwind.</li><li>With their digital full flow and an expansion of their system design and analysis products in 2021, Cadence Design strengthened its relationship with Oppo, China's leading mobile phone manufacturer.</li></ul>

Cadence Design delivered a particularly strong 2021 generating over $1 billion in operating cash flow.The company expects its innovative solutions to continue driving broad-based business momentum in 2021 and 2022, accelerating revenue growth and profitability, with robust design activity providing a strong tailwind.With their digital full flow and an expansion of their system design and analysis products in 2021, Cadence Design strengthened its relationship with Oppo, China's leading mobile phone manufacturer.

Cadence Design Systems: Financial & Price Forecasts

<ul><li>In the new metaverse era, there is a definite scope for software companies that have the ability to bridge the gap between the digital and the real world.</li><li>This presents an excellent macro-economic scenario for computer aided design and simulation companies like Ansys and Cadence.</li><li>It will be interesting to compare their financial metrics side by side in order to figure out the fundamentally stronger stock.</li></ul>

In the new metaverse era, there is a definite scope for software companies that have the ability to bridge the gap between the digital and the real world.This presents an excellent macro-economic scenario for computer aided design and simulation companies like Ansys and Cadence.It will be interesting to compare their financial metrics side by side in order to figure out the fundamentally stronger stock.

Ansys vs. Cadence Design: Which Design Software Player Is A More Robust Investment? (12/2021)

<ul><li>Cadence Design reported another solid quarter with a 12% growth in its core product and maintenance revenues.</li><li>Its top-line was driven by Cadence Digital Full Flow which saw excellent traction and added 13 new customers.</li><li>The company’s Cadence Cerebrus solution is also witnessing strong momentum and was deployed by many of its semiconductor clientele.</li></ul>

Cadence Design reported another solid quarter with a 12% growth in its core product and maintenance revenues.Its top-line was driven by Cadence Digital Full Flow which saw excellent traction and added 13 new customers.The company’s Cadence Cerebrus solution is also witnessing strong momentum and was deployed by many of its semiconductor clientele.

Cadence Design Systems Inc - Investment Thesis

United States

Cadence Design Systems, Inc. provides software technology, design and consulting services and technology.  The Company licenses its electronic design automation software technology and provides a variety of professional services.  Cadence's design realization solutions are used to design and develop complex chips and electronic systems, including semiconductors.

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Cadence Design Sys (CDNS US)

Open Edges Technology IPO Valuation Analysis

Our valuation analysis suggests an implied target price of 24,813 won per share, representing 38% higher than the high end of the IPO price range...

Douglas Kim

Cadence Design Systems Inc: The Future Facilities Acquisition & Other Drivers

Digital transformation is accelerating across various industries thanks to generational trends like 5G, hyperscale computing, and autonomous...

Baptista Research

Cadence Design Systems: Financial & Price Forecasts

Cadence Design delivered a particularly strong 2021 generating over $1 billion in operating cash flow. The company expects its innovative...

Baptista Research

Ansys vs. Cadence Design: Which Design Software Player Is A More Robust Investment? (12/2021)

In the new metaverse era, there is a definite scope for software companies that have the ability to bridge the gap between the digital and the...

Baptista Research

Cadence Design Systems Inc - Investment Thesis

Cadence Design reported another solid quarter with a 12% growth in its core product and maintenance revenues. Its top-line was driven by Cadence...

Baptista Research

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