Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Independent, Fundamental Quantitative Research

Propitious Research

Fully independent, fundamental and quantitative equity research, focused on companies in the Telecommunication, Media, Technology, Internet and Healthcare sectors in the Global Emerging Markets. Idea generation focused on Quality stocks, trading below their intrinsic Value, with sound Corporate Governance.

Equity Bottom-Up

<ul>
<li>Revenue growth is slowing and would require additional capacity and new products to re-accelerate core segment growth</li>
<li>Gross margin expectations are high, leaving very little margin of error</li>
<li>The near-term revenue growth visibility and medium-term demand outlook remain robust</li>
</ul>


Revenue growth is slowing and would require additional capacity and new products to re-accelerate core segment growth
Gross margin expectations are high, leaving very little margin of error
The near-term revenue growth visibility and medium-term demand outlook remain robust


Forensic Analyst

Jason Yap, CFA

<div><a href="https://www.smartkarma.com/entities/parade-technologies-ltd" target="_blank" data-smartkarma-citation="entities:6987:1" rel="noopener">Parade Technologies (4966 TT)</a> is a fabless semiconductor that specialises in high-speed video interfacing and processing products, and expected to see large passive inflows from an MSCI rebalance (<a href="https://www.smartkarma.com/insights/msci-nov-2021-index-rebalance-preview-go" target="_blank" data-smartkarma-citation="insights:59067" rel="noopener">MSCI Nov 2021 Index Rebalance Preview: Go!</a>).</div>The review period for price cut-off started on 18 October 2021 and will run to 29 October 2021. MSCI is expected to announce the results of the review on 12 November 2021, with changes implemented after the close of trading on 30 November 2021. In this Insight, we provide a primer on Parade Technologies including an analysis in respect of where in the value chain it sits, in particular as a key display supplier to <a href="https://www.smartkarma.com/entities/apple-inc" target="_blank" data-smartkarma-citation="entities:666:1" rel="noopener">Apple Inc (AAPL US)</a>, potential investment catalysts, and valuation.

Parade Technologies (4966 TT) is a fabless semiconductor that specialises in high-speed video interfacing and processing products, and expected to see large passive inflows from an MSCI rebalance (MSCI Nov 2021 Index Rebalance Preview: Go!).The review period for price cut-off started on 18 October 2021 and will run to 29 October 2021. MSCI is expected to announce the results of the review on 12 November 2021, with changes implemented after the close of trading on 30 November 2021. In this Insight, we provide a primer on Parade Technologies including an analysis in respect of where in the value chain it sits, in particular as a key display supplier to Apple Inc (AAPL US), potential investment catalysts, and valuation. 

Parade Technologies (4966 TT) - Expensive Now, But Accumulate on Weakness Given Structural Positives

<a href="https://www.smartkarma.com/entities/parade-technologies-ltd" target="_blank" data-smartkarma-citation="entities:6987:1" rel="noopener">Parade Technologies (4966 TT)</a> is a high-speed mixed-signal fabless semiconductor company that designs, develops, and sells next-generation high-speed interface, display and touch solutions for computing, consumer, and handset markets. 
This is a high-quality tech company, with significant revenue growth and earnings momentum, generating returns well above its cost of capital, a net cash balance sheet, and an attractive sustainable 2%+ dividend yield. 
Although current valuation levels are above historical average levels, and fair at best, further revenue growth expectation upgrades coupled with fair gross margin expansion forecasts, and a management team confident of having secured sufficient manufacturing capacity to address exceptionally strong end-product demand, makes the continuation of the earnings upgrade cycle seem probable, which in turn should continue to be a positive share price catalyst. Parade Technologies is also expected to see large passive inflows during November 2021 following the MSCI November 2021 Semi-Annual Index Review.

Parade Technologies (4966 TT) is a high-speed mixed-signal fabless semiconductor company that designs, develops, and sells next-generation high-speed interface, display and touch solutions for computing, consumer, and handset markets. 
This is a high-quality tech company, with significant revenue growth and earnings momentum, generating returns well above its cost of capital, a net cash balance sheet, and an attractive sustainable 2%+ dividend yield. 
Although current valuation levels are above historical average levels, and fair at best, further revenue growth expectation upgrades coupled with fair gross margin expansion forecasts, and a management team confident of having secured sufficient manufacturing capacity to address exceptionally strong end-product demand, makes the continuation of the earnings upgrade cycle seem probable, which in turn should continue to be a positive share price catalyst. Parade Technologies is also expected to see large passive inflows during November 2021 following the MSCI November 2021 Semi-Annual Index Review.

Parade Technologies: Further Revenue Growth Upgrades, and Dividends, Should Support Valuation

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Sino American Silicon Products / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/sino-american-silicon-products-inc" target="_blank" data-smartkarma-citation="entities:3441:1" rel="noopener">Sino American Silicon Products (5483 TT)</a>  is a Taiwan-based company mainly engaged in the research, development, design, manufacture, and distribution of semiconductor wafer products with subsidiaries in both listed and unlisted companies including <a href="https://www.smartkarma.com/entities/globalwafers-co-ltd" target="_blank" data-smartkarma-citation="entities:17916:1" rel="noopener">Globalwafers (6488 TT)</a> , <a href="https://www.smartkarma.com/entities/parade-technologies-ltd" target="_blank" data-smartkarma-citation="entities:6987:1" rel="noopener">Parade Technologies (4966 TT)</a> , <a href="https://www.smartkarma.com/entities/actron-technology-corp" target="_blank" data-smartkarma-citation="entities:4989:1" rel="noopener">Actron Technology (8255 TT)</a> and <a href="https://www.smartkarma.com/entities/advanced-wireless-semiconduc" target="_blank" data-smartkarma-citation="entities:16559:1" rel="noopener">Advanced Wireless Semiconduc (8086 TT)</a> with only in Globalwafers - SAS owns more than 51%.
The large discount between SAS and its subsidiaries could be due to 1) lack of bulge-bracket coverage, 2) higher polysilicon price 3) and 3) weak 1H demand from the solar and the semiconductor from COVID-19 plague which caused investors to care less about the value dislocation between SAS and its subsidiaries.
With a somewhat certain 28-30% gain in the earning as early Q1 2022, investors should start slowly building positions in SAS as the risk-off beast may disturb the confidence in the equity market much longer than what investors would like. The second scenario of increasing stake in Parade Tech should be treated as a call option as when it happens, it is a bonus of another 24%. Thus the total upside could be around 54%. 
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Besides the above-mentioned reasons, <a href="https://www.smartkarma.com/entities/sino-american-silicon-products-inc" target="_blank" data-smartkarma-citation="entities:3441:1" rel="noopener">Sino American Silicon Products (5483 TT)</a> remains a smart way to gain exposure in Globalwafers which trades at 24x PER, compared to SAS that trades at 13x PER. The other factor is that Globalwafers dividend yield is 2.28% while SAS is 5.22%. 
</div>

Sino American Silicon Products (5483 TT)  is a Taiwan-based company mainly engaged in the research, development, design, manufacture, and distribution of semiconductor wafer products with subsidiaries in both listed and unlisted companies including Globalwafers (6488 TT) , Parade Technologies (4966 TT) , Actron Technology (8255 TT) and Advanced Wireless Semiconduc (8086 TT) with only in Globalwafers - SAS owns more than 51%.
The large discount between SAS and its subsidiaries could be due to 1) lack of bulge-bracket coverage, 2) higher polysilicon price 3) and 3) weak 1H demand from the solar and the semiconductor from COVID-19 plague which caused investors to care less about the value dislocation between SAS and its subsidiaries.
With a somewhat certain 28-30% gain in the earning as early Q1 2022, investors should start slowly building positions in SAS as the risk-off beast may disturb the confidence in the equity market much longer than what investors would like. The second scenario of increasing stake in Parade Tech should be treated as a call option as when it happens, it is a bonus of another 24%. Thus the total upside could be around 54%. 

Besides the above-mentioned reasons, Sino American Silicon Products (5483 TT) remains a smart way to gain exposure in Globalwafers which trades at 24x PER, compared to SAS that trades at 13x PER. The other factor is that Globalwafers dividend yield is 2.28% while SAS is 5.22%. 


Sino American Silicon (5483): Entry to Globalwafers and Others

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.

<ul><li>Improving asset turnover, earnings on an upcycle trend, and low debt levels relative to its sector</li><li>Parade is the sole supplier of embedded display ports (eDP) for <a href="https://www.smartkarma.com/entities/666" target="_blank" data-smartkarma-citation="entities:666:1">Apple Inc (AAPL US)</a> iPad and MacBook. Unit sales of iPads and MacBooks increased 10% YoY in the last quarter; Apple accounts for almost 50% of total sales</li><li>Revenue should be further accelerated by wider adoption of high-speed USB C interconnectors in smartphones and notebooks which are already built in Apple MacBooks and Samsung Galaxy S8</li><li>Trades above Asian Info Tech at 18CE* 4.6x PB, but offers better ROE and the company is net cash</li><li>Risks: Relying on few big customers</li></ul>* Consensus Estimates

Improving asset turnover, earnings on an upcycle trend, and low debt levels relative to its sectorParade is the sole supplier of embedded display ports (eDP) for Apple Inc (AAPL US) iPad and MacBook. Unit sales of iPads and MacBooks increased 10% YoY in the last quarter; Apple accounts for almost 50% of total salesRevenue should be further accelerated by wider adoption of high-speed USB C interconnectors in smartphones and notebooks which are already built in Apple MacBooks and Samsung Galaxy S8Trades above Asian Info Tech at 18CE* 4.6x PB, but offers better ROE and the company is net cashRisks: Relying on few big customers* Consensus Estimates

Parade (4966 TT): Apple Supplier Leading the Parade

United States

Parade Technologies Ltd is a fabless semiconductor company that specialzies in high-speed video interfacing and processing products used in personal computer and consumer electronics applications, such as digital TVs, DVDs, monitors and display panels, and set-top boxes.

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Parade Technologies (4966 TT)

Top Three Takeaways: Parade Technologies

In this insight, we take a detailed look at the top 3 investment takeaways following Parade Technologies recently released 4Q21/FY2021 results, and...

Wium Malan, CFA