Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

Equity Bottom-Up

Macronix International / Equity Bottom-Up

<ul>
<li>
Building on <a href="https://www.smartkarma.com/insights/macronix-shows-nor-flash-cycle-turning-as-ai-infrastructure-reshapes-memory-demand" target="_blank" rel="noopener">our Jan 28 analysis</a> of the NOR flash cycle trough, Macronix January revenue of NT$3.2bn, +35%YoY (+40% for NOR) and recent industry developments, signal strength amid tightening supply.</li>
<li>
AI's memory narrative often spotlights HBM and advanced NAND, but NOR memory is the quiet enabler in the datacenter's backbone—storing boot code, servers firmware, BMCs, and configuration data for networking.</li>
<li>
 Macronix International (2337 TT) and Winbond Electronics (2344 TT) together control the majority of global NOR supply. We've increased our model forecasts for Macrionix, see further upside for the stock.</li>
</ul>



Building on our Jan 28 analysis of the NOR flash cycle trough, Macronix January revenue of NT$3.2bn, +35%YoY (+40% for NOR) and recent industry developments, signal strength amid tightening supply.

AI's memory narrative often spotlights HBM and advanced NAND, but NOR memory is the quiet enabler in the datacenter's backbone—storing boot code, servers firmware, BMCs, and configuration data for networking.

 Macronix International (2337 TT) and Winbond Electronics (2344 TT) together control the majority of global NOR supply. We've increased our model forecasts for Macrionix, see further upside for the stock.


Macronix (2337 TT): NOR Flash Shortage Intensifies as AI Racks Drive New Type of Demand

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Capital Markets

Wuxi Lead Intelligent Equipmen / Equity Capital Markets

Wuxi Lead Intelligent Equipmen (300450 CH)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/wuxi-lead-intelligent-equipmen" target="_blank" data-smartkarma-citation="entities:27971:1" rel="noopener">Wuxi Lead Intelligent Equipment (470 HK)</a> has a lukewarm H-share IPO response, but is still priced at the maximum of HK$45.80. This places it on 29.2x PER for FY26F.</li>
<li>We consider an appropriate HA discount to be roughly 25-30%, implying a fair value of HK$45.6-48.8, or 6.6% downside/upside, and it is almost fairly-valued. </li>
<li>At the top-end of our estimated fair value, its multiples do not appear attractive against the A-share and other global peers, so HK$48.8 is the ceiling. </li>
</ul>



Wuxi Lead Intelligent Equipment (470 HK) has a lukewarm H-share IPO response, but is still priced at the maximum of HK$45.80. This places it on 29.2x PER for FY26F.
We consider an appropriate HA discount to be roughly 25-30%, implying a fair value of HK$45.6-48.8, or 6.6% downside/upside, and it is almost fairly-valued. 
At the top-end of our estimated fair value, its multiples do not appear attractive against the A-share and other global peers, so HK$48.8 is the ceiling. 


Wuxi Lead Equipment (470 HK): Almost Fair

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Montage Technology   / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/montage-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:28236:1" rel="noopener">Montage Technology (688008 CH)</a> (MT), a provider of memory interface chips and interconnect chips, raised around US$1bn in its H-share listing</li>
<li>MT’s product portfolio, mainly comprises memory interface chips and interconnect chips, addresses interconnect bottlenecks while enhancing data rate/bandwidth, reliability, and power efficiency, as per the company.</li>
<li>We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the trading dynamics.</li>
</ul>



Montage Technology (688008 CH) (MT), a provider of memory interface chips and interconnect chips, raised around US$1bn in its H-share listing
MT’s product portfolio, mainly comprises memory interface chips and interconnect chips, addresses interconnect bottlenecks while enhancing data rate/bandwidth, reliability, and power efficiency, as per the company.
We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the trading dynamics.


Aequitas: Montage Technology A/H Trading - Highest Insti Coverage so Far

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.

Montage Technology / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/montage-technology-co-ltd-c827a672-7027-4114-b744-0fc66a5d1d98" target="_blank" data-smartkarma-citation="entities:46333:1" rel="noopener">Montage Technology (6809 HK)</a> priced its H Share at HK$106.89, raising HK$7,043 million (US$901 million) in gross proceeds. The H Share will be listed tomorrow.</li>
<li>I discussed the H Share listing in <a href="https://www.smartkarma.com/insights/montage-technology-h-share-listing-the-investment-case" target="_blank" data-smartkarma-citation="insights:216984" rel="noopener">Montage Technology H Share Listing: The Investment Case</a> and <a href="https://www.smartkarma.com/insights/montage-technology-h-share-listing-6809-hk-valuation-insights" target="_blank" data-smartkarma-citation="insights:219421" rel="noopener">Montage Technology H Share Listing (6809 HK): Valuation Insights</a>. </li>
<li>Montage's international and retail oversubscription rates were significantly above the median of recent large AH listings. The AH discount remains attractive.</li>
</ul>



Montage Technology (6809 HK) priced its H Share at HK$106.89, raising HK$7,043 million (US$901 million) in gross proceeds. The H Share will be listed tomorrow.
I discussed the H Share listing in Montage Technology H Share Listing: The Investment Case and Montage Technology H Share Listing (6809 HK): Valuation Insights. 
Montage's international and retail oversubscription rates were significantly above the median of recent large AH listings. The AH discount remains attractive.


Montage Technology H Share Listing (6809 HK): Trading Debut

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>Our base case valuation of Montage Technology (6809 HK) is target price of HK$144.1 per share, representing 35% higher than the listing price of HK$106.89.</li>
<li>To value Montage Technology, we used three comps including GigaDevice Semiconductor (3986 HK), Renesas Electronics (6723 JP), and Rambus (RMBS US).</li>
<li>We have chosen to use a significant premium to value Montage Technology mainly due to its much stronger expected sales growth and net margins versus the comps. </li>
</ul>


Our base case valuation of Montage Technology (6809 HK) is target price of HK$144.1 per share, representing 35% higher than the listing price of HK$106.89.
To value Montage Technology, we used three comps including GigaDevice Semiconductor (3986 HK), Renesas Electronics (6723 JP), and Rambus (RMBS US).
We have chosen to use a significant premium to value Montage Technology mainly due to its much stronger expected sales growth and net margins versus the comps. 


Montage Technology Hong Kong IPO Valuation Analysis

China

GigaDevice Semiconductor Inc. is a fabless semiconductor company specializing in advanced memory technologies, microcontrollers (MCUs), sensors, and analog products. Its offerings include SPI NOR Flash, SPI NAND Flash, Parallel NAND Flash, and MCUs based on ARM and RISC-V architectures. The company was founded in April 2005 and is headquartered in Beijing, China.

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GigaDevice Semiconductor (3986 HK)

Macronix (2337 TT): NOR Flash Shortage Intensifies as AI Racks Drive New Type of Demand

Macronix's strong revenue growth signals NOR flash cycle turning amid tightening supply, highlighting its importance in datacenter infrastructure.

Vincent Fernando, CFA

Wuxi Lead Equipment (470 HK): Almost Fair

Wuxi Lead Intelligent Equipment's lukewarm IPO response leads to a fair value estimate of HK$45.6-48.8, suggesting it is almost fairly-valued with...

Osbert Tang, CFA

Aequitas: Montage Technology A/H Trading - Highest Insti Coverage so Far

Montage Technology (688008 CH) (MT), a provider of memory interface chips and interconnect chips, raised around US$1bn in its H-share listing. In...

Sumeet Singh

Montage Technology Hong Kong IPO Valuation Analysis

Our base case valuation of Montage Technology (6809 HK) is target price of HK$144.1 per share, representing 35% higher than the listing price of...

Douglas Kim

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Macronix (2337 TT): NOR Flash Shortage Intensifies as AI Racks Drive New Type of Demand

​Macronix's strong revenue growth signals NOR flash cycle turning amid tightening supply, highlighting its importance in datacenter infrastructure.

Vincent Fernando, CFA

Wuxi Lead Equipment (470 HK): Almost Fair

​Wuxi Lead Intelligent Equipment's lukewarm IPO response leads to a fair value estimate of HK$45.6-48.8, suggesting it is almost fairly-valued with...

Osbert Tang, CFA

Aequitas: Montage Technology A/H Trading - Highest Insti Coverage so Far

Montage Technology (688008 CH) (MT), a provider of memory interface chips and interconnect chips, raised around US$1bn in its H-share listing. In...

Sumeet Singh

Montage Technology H Share Listing (6809 HK): Trading Debut

Montage's international and retail oversubscription rates were significantly above the median of recent large AH listings. The AH discount remains...

Arun George

Montage Technology Hong Kong IPO Valuation Analysis

Our base case valuation of Montage Technology (6809 HK) is target price of HK$144.1 per share, representing 35% higher than the listing price of...

Douglas Kim

Macronix's strong revenue growth signals NOR flash cycle turning amid tightening supply, highlighting its importance in datacenter infrastructure.

Wuxi Lead Intelligent Equipment's lukewarm IPO response leads to a fair value estimate of HK$45.6-48.8, suggesting it is almost fairly-valued with...