Taiwan Tech Focused Senior Analyst

Patrick Liao

Equity Bottom-Up

Novatek Microelectronics Corp / Equity Bottom-Up

<ul>
<li>The supply chain received good news that <a href="https://www.smartkarma.com/entities/novatek-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:10904:1" rel="noopener">Novatek Microelectronics Corp (3034 TT)</a> as successfully passed iPhone 16 OLED DRIVER IC (DDIC) qualification.</li>
<li>Novatek's recent alliance with ARM to develop Neoverse V2 is a noteworthy development.</li>
<li>Novatek's 1Q24F forecast remains unchanged, but the outlook for 2024F is likely to show positive growth.</li>
</ul>


The supply chain received good news that Novatek Microelectronics Corp (3034 TT) as successfully passed iPhone 16 OLED DRIVER IC (DDIC) qualification.
Novatek's recent alliance with ARM to develop Neoverse V2 is a noteworthy development.
Novatek's 1Q24F forecast remains unchanged, but the outlook for 2024F is likely to show positive growth.


Novatek (3034.TT): It Had Been Qualified by the IPhone 16 for OLED Driver IC.

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>Market dynamics have mildly deteriorated in recent weeks on concerns over less accommodative monetary policy and the Omicron variant.</li>
<li>Despite recent deterioration, critical supports are holding on the broad global indexes, and our global outlook remains neutral as we continue to expect more consolidation and mixed markets.</li>
<li>Growth continues to outperform relative to value. Actionable Themes: Services, Technology, and Consumer Discretionary.</li>
</ul>


Market dynamics have mildly deteriorated in recent weeks on concerns over less accommodative monetary policy and the Omicron variant.
Despite recent deterioration, critical supports are holding on the broad global indexes, and our global outlook remains neutral as we continue to expect more consolidation and mixed markets.
Growth continues to outperform relative to value. Actionable Themes: Services, Technology, and Consumer Discretionary.


Add To Growth On This Pullback; Actionable Themes: Services, Technology, and Consumer Discretionary

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

Thematic (Sector/Industry)

<p>We highlight 14 stocks in Asia that look interesting to us based upon our FVMR Methodology. Our research team constantly reviews the Asian markets to try to find interesting ideas based on Fundamentals or Valuation or Momentum or Risk or some combination thereof.</p>

We highlight 14 stocks in Asia that look interesting to us based upon our FVMR Methodology. Our research team constantly reviews the Asian markets to try to find interesting ideas based on Fundamentals or Valuation or Momentum or Risk or some combination thereof.

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Capital Markets

Viewtrix Technology / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/viewtrix-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:48923:1" rel="noopener">Viewtrix Technology (3310 HK)</a>, a leading AMOLED DDIC company, is looking to raise HK$997m. Its size is not large, but its scale is rapidly growing.</li>
<li>For the next three years, it will remain in the red, despite a 30% CAGR in revenue. The higher R&amp;D expenses will still weigh negatively on margins.</li>
<li>At 5.4x P/S for FY26, it is almost the highest among comparable peers. While stronger growth is a merit, this appears to have been well priced in. </li>
</ul>



Viewtrix Technology (3310 HK), a leading AMOLED DDIC company, is looking to raise HK$997m. Its size is not large, but its scale is rapidly growing.
For the next three years, it will remain in the red, despite a 30% CAGR in revenue. The higher R&amp;D expenses will still weigh negatively on margins.
At 5.4x P/S for FY26, it is almost the highest among comparable peers. While stronger growth is a merit, this appears to have been well priced in. 


Viewtrix Technology (3310 HK) IPO: More or Less Fairly Priced

South Korea

LX Semicon Co., Ltd. designs, develops, and markets mixed-signal semiconductors. The Company utilizes its own algorithm and technologies to enhance the features and capabilities of flat panel displays that are used in electronic devices and mobile handsets. LX Semicon markets its products worldwide.

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LX Semicon (108320 KS)

Novatek (3034.TT): It Had Been Qualified by the IPhone 16 for OLED Driver IC.

Novatek's successful qualification for iPhone 16 OLED DDIC and partnership with ARM for Neoverse V2 development signal positive growth in 2024.

Patrick Liao

Add To Growth On This Pullback; Actionable Themes: Services, Technology, and Consumer Discretionary

Growth continues to outperform relative to value, shown by the intact uptrend on the MSCI ACWI ex-US Growth vs. Value ratio. We highlight...

Vermilion Research

The Stocks to Own in Asia – Vol. 33

Since its inception, our FVMR Asia strategy has generated a before-fee total return of 95% versus the MSCI Asia ex Japan of 97%.

A. Stotz Investment Research

The Stocks to Own in Asia – Vol. 32

Our research team constantly reviews the Asian markets to try to find interesting ideas based on Fundamentals or Valuation or Momentum or Risk or...

A. Stotz Investment Research

Viewtrix Technology (3310 HK) IPO: More or Less Fairly Priced

Viewtrix is seeking to raise HK$997m, despite remaining in the red for the next three years due to high R&D expenses. Trading at 5.4x P/S for...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Novatek (3034.TT): It Had Been Qualified by the IPhone 16 for OLED Driver IC.

​Novatek's successful qualification for iPhone 16 OLED DDIC and partnership with ARM for Neoverse V2 development signal positive growth in 2024.

Patrick Liao

Add To Growth On This Pullback; Actionable Themes: Services, Technology, and Consumer Discretionary

Growth continues to outperform relative to value, shown by the intact uptrend on the MSCI ACWI ex-US Growth vs. Value ratio. We highlight...

Vermilion Research

The Stocks to Own in Asia – Vol. 33

Since its inception, our FVMR Asia strategy has generated a before-fee total return of 95% versus the MSCI Asia ex Japan of 97%.

A. Stotz Investment Research

The Stocks to Own in Asia – Vol. 32

Our research team constantly reviews the Asian markets to try to find interesting ideas based on Fundamentals or Valuation or Momentum or Risk or...

A. Stotz Investment Research

Viewtrix Technology (3310 HK) IPO: More or Less Fairly Priced

​Viewtrix is seeking to raise HK$997m, despite remaining in the red for the next three years due to high R&D expenses. Trading at 5.4x P/S for...

Osbert Tang, CFA

Novatek's successful qualification for iPhone 16 OLED DDIC and partnership with ARM for Neoverse V2 development signal positive growth in 2024.

Viewtrix is seeking to raise HK$997m, despite remaining in the red for the next three years due to high R&D expenses. Trading at 5.4x P/S for...