Taiwan Tech Focused Senior Analyst

Patrick Liao

Equity Bottom-Up

King Yuan Electronics Co, Ltd. / Equity Bottom-Up

<ul>
<li>In 1Q24, it was reported that the revenue growth was -3.35% QoQ, slightly exceeding our expectation of a 5% QoQ decline.</li>
<li>For 2Q24, revenue is expected to grow, but the increase is projected to be less than 5% QoQ.  </li>
<li>NVIDIA revenue in KYEC is forecasted to reach 15% by the end of 2024F, up from about 2% in 2023, driven by the increasing demand for AI.</li>
</ul>


In 1Q24, it was reported that the revenue growth was -3.35% QoQ, slightly exceeding our expectation of a 5% QoQ decline.
For 2Q24, revenue is expected to grow, but the increase is projected to be less than 5% QoQ.  
NVIDIA revenue in KYEC is forecasted to reach 15% by the end of 2024F, up from about 2% in 2023, driven by the increasing demand for AI.


KYEC (2449.TT): 1Q24F Was a Seasonal Dip, but 2Q24F Should Be Picking up Below 5% QoQ.

<ul>
<li>It was declined by 5% for 2023 verses 2022, which was not a surprise because the overall sentiment should be dim in 2023.</li>
<li>For the coming 1Q24F, it could be a bit downside by 5%, assumed as a normal seasonality.</li>
<li>AI demand remain the biggest driving force, and all eyes are on the CoWoS. </li>
</ul>


It was declined by 5% for 2023 verses 2022, which was not a surprise because the overall sentiment should be dim in 2023.
For the coming 1Q24F, it could be a bit downside by 5%, assumed as a normal seasonality.
AI demand remain the biggest driving force, and all eyes are on the CoWoS. 


KYEC (2449.TT): 2024F Could Be a Prosperous Year Although 4Q23 Saw a 5% Decline QoQ.

<ul>
<li>It's a greater chance that there will be an upward pickup in 2024F revenue for <a href="https://www.smartkarma.com/entities/king-yuan-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:6630:1" rel="noopener">King Yuan Electronics Co, Ltd. (2449 TT)</a>, but the magnitude is hard to predict in 1H24.  </li>
<li>It is expected the revenue to decline by approximately -5% in 1Q24F.</li>
<li>However, the demand for CoWoS at a corporate level is expected to increase by about 10% in 2024F .</li>
</ul>


It's a greater chance that there will be an upward pickup in 2024F revenue for King Yuan Electronics Co, Ltd. (2449 TT), but the magnitude is hard to predict in 1H24.  
It is expected the revenue to decline by approximately -5% in 1Q24F.
However, the demand for CoWoS at a corporate level is expected to increase by about 10% in 2024F .


KYEC (2449.TT): The Revenue Outlook Will Be an Upward Pickup in 2024F.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nvidia-corp" target="_blank" data-smartkarma-citation="entities:5891:1" rel="noopener">NVIDIA Corp (NVDA US)</a> drives <a href="https://www.smartkarma.com/entities/king-yuan-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:6630:1" rel="noopener">King Yuan Electronics Co, Ltd. (2449 TT)</a> stock price, but their growth is still limited in 2023F.</li>
<li>
<a href="https://www.smartkarma.com/entities/king-yuan-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:6630:1" rel="noopener">King Yuan Electronics Co, Ltd. (2449 TT)</a> acts as a buffer for <a href="https://www.smartkarma.com/entities/mediatek-inc" target="_blank" data-smartkarma-citation="entities:772:1" rel="noopener">Mediatek Inc (2454 TT)</a> end demand during 2023F.</li>
<li>Although it is not yet the time to reverse the downturn in 2023F, <a href="https://www.smartkarma.com/entities/king-yuan-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:6630:1" rel="noopener">King Yuan Electronics Co, Ltd. (2449 TT)</a> is expected to continue its upward trend throughout 2H23F.</li>
</ul>



NVIDIA Corp (NVDA US) drives King Yuan Electronics Co, Ltd. (2449 TT) stock price, but their growth is still limited in 2023F.

King Yuan Electronics Co, Ltd. (2449 TT) acts as a buffer for Mediatek Inc (2454 TT) end demand during 2023F.
Although it is not yet the time to reverse the downturn in 2023F, King Yuan Electronics Co, Ltd. (2449 TT) is expected to continue its upward trend throughout 2H23F.


KYEC (2449.TT): Beneficiary of AI with Contribution of CoWoS Testing

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

Taiwan Semiconductor (TSMC) - ADR / Equity Bottom-Up

<ul>
<li>Taiwan Tech Rallies Along With Rebound In Global Tech; Hon Hai, Asustek Top Gainers; KYEC a Top Loser After Announcing China Market Divestment</li>
<li>PC Monitor: The Next Version of MSFT CoPilot Will Be the Killer App for a Global AI PC Upgrade Cycle </li>
<li>ASMedia GDR Early Look - Momentum Has Been Strong, and Raising Would Grow Its Cash Base Almost 6x </li>
</ul>


Taiwan Tech Rallies Along With Rebound In Global Tech; Hon Hai, Asustek Top Gainers; KYEC a Top Loser After Announcing China Market Divestment
PC Monitor: The Next Version of MSFT CoPilot Will Be the Killer App for a Global AI PC Upgrade Cycle 
ASMedia GDR Early Look - Momentum Has Been Strong, and Raising Would Grow Its Cash Base Almost 6x 


Taiwan Tech Weekly: Hon Hai New All-Time Highs; Asustek Soars; Leading Chip Testing Firm Exits China

Taiwan

King Yuan Electronics Co., Ltd. provides integrated circuit (IC) testing services to semiconductor manufacturers.  The Company tests the logic, memory, and burn-in functions of ICs.  King Yuan also specializes in IC reeling, packaging, and wafer grinding.

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King Yuan Electronics Co, Ltd. (2449 TT)

KYEC (2449.TT): 1Q24F Was a Seasonal Dip, but 2Q24F Should Be Picking up Below 5% QoQ.

1Q24 revenue growth was -3.35% QoQ, slightly exceeding our expectation of a 5% QoQ decline. 2Q24 revenue is projected to be less than 5% QoQ....

Patrick Liao

KYEC (2449.TT): 2024F Could Be a Prosperous Year Although 4Q23 Saw a 5% Decline QoQ.

Despite a 5% decline in 2023, the outlook remains dim due to normal seasonality in 1Q24F. AI demand continues to drive the industry, with focus on...

Patrick Liao

KYEC (2449.TT): The Revenue Outlook Will Be an Upward Pickup in 2024F.

KYEC is projected to have a potentially positive growth in 2024, with a predicted decline in 1Q24F. However, there is expected to be an increase...

Patrick Liao

KYEC (2449.TT): Beneficiary of AI with Contribution of CoWoS Testing

It is not yet the time to judge, the upturn in 2023F, KYEC is expected to continue its upward trend throughout 2H23F. Nvidia is the driver of...

Patrick Liao

Taiwan Tech Weekly: Hon Hai New All-Time Highs; Asustek Soars; Leading Chip Testing Firm Exits China

Taiwan tech gains alongside global tech, with Hon Hai and Asustek leading. MSFT's next CoPilot expected to drive AI PC upgrades. ASMedia GDR shows...

Vincent Fernando, CFA

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KYEC (2449.TT): 1Q24F Was a Seasonal Dip, but 2Q24F Should Be Picking up Below 5% QoQ.

1Q24 revenue growth was -3.35% QoQ, slightly exceeding our expectation of a 5% QoQ decline. 2Q24 revenue is projected to be less than 5% QoQ....

Patrick Liao

KYEC (2449.TT): 2024F Could Be a Prosperous Year Although 4Q23 Saw a 5% Decline QoQ.

​Despite a 5% decline in 2023, the outlook remains dim due to normal seasonality in 1Q24F. AI demand continues to drive the industry, with focus on...

Patrick Liao

KYEC (2449.TT): The Revenue Outlook Will Be an Upward Pickup in 2024F.

​KYEC is projected to have a potentially positive growth in 2024, with a predicted decline in 1Q24F. However, there is expected to be an increase...

Patrick Liao

KYEC (2449.TT): Beneficiary of AI with Contribution of CoWoS Testing

It is not yet the time to judge, the upturn in 2023F, KYEC is expected to continue its upward trend throughout 2H23F. Nvidia is the driver of...

Patrick Liao

Taiwan Tech Weekly: Hon Hai New All-Time Highs; Asustek Soars; Leading Chip Testing Firm Exits China

​Taiwan tech gains alongside global tech, with Hon Hai and Asustek leading. MSFT's next CoPilot expected to drive AI PC upgrades. ASMedia GDR shows...

Vincent Fernando, CFA

Despite a 5% decline in 2023, the outlook remains dim due to normal seasonality in 1Q24F. AI demand continues to drive the industry, with focus on...

KYEC is projected to have a potentially positive growth in 2024, with a predicted decline in 1Q24F. However, there is expected to be an increase...

Taiwan tech gains alongside global tech, with Hon Hai and Asustek leading. MSFT's next CoPilot expected to drive AI PC upgrades. ASMedia GDR shows...