Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>Fadu is getting ready to complete its IPO in Korea in August. Fadu is one of the most highly anticipated IPOs in Korea in 2023. </li>
<li>The expected market cap at the top end of the IPO price range is 1.6 trillion won. The IPO price range is from 26,000 won to 31,000 won.</li>
<li>Fadu is a system semiconductor fabless company specializing in data centers.</li>
</ul>


Fadu is getting ready to complete its IPO in Korea in August. Fadu is one of the most highly anticipated IPOs in Korea in 2023. 
The expected market cap at the top end of the IPO price range is 1.6 trillion won. The IPO price range is from 26,000 won to 31,000 won.
Fadu is a system semiconductor fabless company specializing in data centers.


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>Microchip Technology had a strong quarter.</li><li>Non-GAAP gross margin exceeded the company's forecast by 171 basis points to an all-time high of 68.3% in the most recent quarter.</li><li>Additionally, the non-GAAP operating margin, which increased by 292 basis points from the same quarter last year to an all-time high of 47.65%, came in just below the high end of their forecast.</li></ul>

Microchip Technology had a strong quarter.Non-GAAP gross margin exceeded the company's forecast by 171 basis points to an all-time high of 68.3% in the most recent quarter.Additionally, the non-GAAP operating margin, which increased by 292 basis points from the same quarter last year to an all-time high of 47.65%, came in just below the high end of their forecast.

Microchip Technology: Analog & Data Centre Business Upside Is Strong – Key Drivers

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>The upcoming rebalance of the MVIS US Listed Semiconductor 25 Index will be implemented on 17 March. There are no constituent changes, but there are float and capping changes.</li>
<li>The <a href="https://www.smartkarma.com/entities/vaneck-vectors-semiconductor" target="_blank" data-smartkarma-citation="entities:32807:1" rel="noopener">VanEck Vectors Semiconductor (SMH US)</a> ETF tracks the index and has an AUM of US$7.2bn.</li>
<li>Estimated one-way turnover is 4.8% resulting in a one-way trade of US$356m. The stocks are extremely liquid, the impact on the stocks in terms of ADV to trade is small.</li>
</ul>


The upcoming rebalance of the MVIS US Listed Semiconductor 25 Index will be implemented on 17 March. There are no constituent changes, but there are float and capping changes.
The VanEck Vectors Semiconductor (SMH US) ETF tracks the index and has an AUM of US$7.2bn.
Estimated one-way turnover is 4.8% resulting in a one-way trade of US$356m. The stocks are extremely liquid, the impact on the stocks in terms of ADV to trade is small.


MVIS US Listed Semiconductor 25 Index Rebalance: Big Flow, Small Impact

<ul><li>Microchip had a solid fourth quarter that surpassed Wall Street expectations in terms of revenues as well as earnings.</li><li>Microchip has also increased the raw materials inventory to protect the internal manufacturing chains.</li><li>In terms of new launches, Microchip launched the MIC69303RT, a 3A Low-Dropout Voltage Regulator in the previous quarter.</li></ul>

Microchip had a solid fourth quarter that surpassed Wall Street expectations in terms of revenues as well as earnings.Microchip has also increased the raw materials inventory to protect the internal manufacturing chains.In terms of new launches, Microchip launched the MIC69303RT, a 3A Low-Dropout Voltage Regulator in the previous quarter.

Microchip Technology Inc: New Launches & Other Drivers

<ul><li>Microchip’s quarterly result was solid and it managed to surpass Wall Street expectations in terms of revenues as well as earnings.</li><li>The company’s positive performance was driven by strong execution of the management and resilient end markets.</li><li>Market demand increased sequentially at roughly the same rate as their sell-in-recognition-based GAAP net sales.</li></ul>

Microchip’s quarterly result was solid and it managed to surpass Wall Street expectations in terms of revenues as well as earnings.The company’s positive performance was driven by strong execution of the management and resilient end markets.Market demand increased sequentially at roughly the same rate as their sell-in-recognition-based GAAP net sales.

United States

Microchip Technology Incorporated designs, manufactures, and markets microcontrollers, related mixed-signal and memory products, and application development systems for high-volume embedded control applications. The Company also designs, develops, and markets linear/mixed-signal, power management, and thermal management products.

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Microchip Technology (MCHP US)

Fadu IPO Preview

Fadu is a Korean system semiconductor fabless company specializing in data centers. It is getting ready to complete its IPO in August. Fadu is one...

Douglas Kim

Microchip Technology: Analog & Data Centre Business Upside Is Strong – Key Drivers

Microchip Technology had a strong quarter. Non-GAAP gross margin exceeded the company's forecast by 171 basis points to an all-time high of 68.3%...

Baptista Research

MVIS US Listed Semiconductor 25 Index Rebalance: Big Flow, Small Impact

No constituent changes, but there are float/capping changes. Estimated one-way turnover is 4.8% resulting in a one-way trade of US$356m. Stocks are...

Brian Freitas

Microchip Technology Inc: New Launches & Other Drivers

Microchip had a solid fourth quarter that surpassed Wall Street expectations in terms of revenues as well as earnings. Microchip has also...

Baptista Research

Microchip Inc: Major Drivers

Microchip’s quarterly result was solid and it managed to surpass Wall Street expectations in terms of revenues as well as earnings. The company’s...

Baptista Research

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