Semiconductors, Memory and SSDs Specialist, Objective Analysis

Jim Handy

Semiconductors, Memory and SSDs Specialist

Objective Analysis

Objective Analysis offers third-party independent market research and data for the semiconductor industry and investors in the semiconductor industry.

Semiconductors, Memory and SSDs

Thematic (Sector/Industry)

The SIA has released April's semiconductor shipment numbers, and they look positive enough.  There is still considerable uncertainty both from the COVID pandemic and from the on-again, off-again US/China Trade War.

The SIA has released April's semiconductor shipment numbers, and they look positive enough.  There is still considerable uncertainty both from the COVID pandemic and from the on-again, off-again US/China Trade War.

Semiconductors in April: COVID Impact Still Small

Global Healthcare Analyst

Tina Banerjee

Equity Capital Markets

<ul>
<li>SG Micro launched Hongkong IPO to raise up to HK$4.6B. They are a leading analog IC company in China who design, develop and sell high-performance analog ICs and sensors.  </li>
<li>SG Micro intends to use the IPO proceeds to expand overseas sales network, investment &amp; acquisition opportunities, enhance R&amp;D capabilities and working capital.</li>
<li>Prima facie, in terms of the valuation that the company is seeking, the company seems overvalued. Investors can avoid the issue for now.</li>
</ul>


SG Micro launched Hongkong IPO to raise up to HK$4.6B. They are a leading analog IC company in China who design, develop and sell high-performance analog ICs and sensors.  
SG Micro intends to use the IPO proceeds to expand overseas sales network, investment &amp; acquisition opportunities, enhance R&amp;D capabilities and working capital.
Prima facie, in terms of the valuation that the company is seeking, the company seems overvalued. Investors can avoid the issue for now.


SG Micro IPO: Issue Valuation Sought Does Not Seem Analogous With Inherent Prospects

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sg-micro-corp-5c356907-201f-4bd8-8190-24de284e1329" target="_blank" data-smartkarma-citation="entities:50247:1" rel="noopener">SG Micro (3661 HK)</a>, a leading analog IC company, has a solid track record of earnings. Its IPO targets to raise net proceeds of HK$4.5bn, which is reasonably sizeable.</li>
<li>The market is expecting 3-year EPS CAGR of 33.1%, putting the IPO price at 59.3x FY26 PER. The 107% earnings growth in 1Q26 affirms its outlook. </li>
<li>We value it on 2.1x PEG, same as global peers, translating into 70x PER, or 18% upside. Our estimated fair value of HK$100.50 means a H-A discount of 34.1%.  </li>
</ul>



SG Micro (3661 HK), a leading analog IC company, has a solid track record of earnings. Its IPO targets to raise net proceeds of HK$4.5bn, which is reasonably sizeable.
The market is expecting 3-year EPS CAGR of 33.1%, putting the IPO price at 59.3x FY26 PER. The 107% earnings growth in 1Q26 affirms its outlook. 
We value it on 2.1x PEG, same as global peers, translating into 70x PER, or 18% upside. Our estimated fair value of HK$100.50 means a H-A discount of 34.1%.  


SG Micro Corp (3661 HK) IPO: A High-Growth Play

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sg-micro-corp-5c356907-201f-4bd8-8190-24de284e1329" target="_blank" data-smartkarma-citation="entities:50247:1" rel="noopener">SG Micro (3661 HK)</a>, a leading analog IC company in China, has launched an H Share listing to raise US$587 million.</li>
<li>I discussed the H Share listing in <a href="https://www.smartkarma.com/insights/sg-micro-h-share-listing-the-investment-case" target="_blank" data-smartkarma-citation="insights:242274" rel="noopener">SG Micro H Share Listing: The Investment Case</a>. </li>
<li>The proposed AH discount of 42.3% (based on the close on 16 June A Share price) is attractive, and I would participate in the H Share listing.</li>
</ul>



SG Micro (3661 HK), a leading analog IC company in China, has launched an H Share listing to raise US$587 million.
I discussed the H Share listing in SG Micro H Share Listing: The Investment Case. 
The proposed AH discount of 42.3% (based on the close on 16 June A Share price) is attractive, and I would participate in the H Share listing.


SG Micro H Share Listing (3661 HK): Valuation Insights

WSTS, the agency that tracks monthly semiconductor revenues, reported this week that the decline of the semiconductor market has continued to slow in January.  Still, excessive capital spending, COVID-19, and trade wars are likely to prevent the market from realizing a full recovery in 2020.

WSTS, the agency that tracks monthly semiconductor revenues, reported this week that the decline of the semiconductor market has continued to slow in January.  Still, excessive capital spending, COVID-19, and trade wars are likely to prevent the market from realizing a full recovery in 2020.

United States

Texas Instruments Incorporated operates as a semiconductor design and manufacturing company. The Company develops analog ICs and embedded processors. Texas Instruments has manufacturing or sales operations worldwide.

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Texas Instruments (TXN US)

Semiconductors in April: COVID Impact Still Small

The SIA has released April's semiconductor shipment numbers, and they look positive enough. There is still considerable uncertainty both from the...

Jim Handy

SG Micro IPO: Issue Valuation Sought Does Not Seem Analogous With Inherent Prospects

SG Micro launches Hong Kong IPO to raise up to HK$4.6B for expansion, acquisitions, R&D. In terms of the valuation that company is seeking, it...

Tina Banerjee

SG Micro Corp (3661 HK) IPO: A High-Growth Play

SG Micro is a leading analog IC company with a solid earnings record, aiming to raise HK$4.5bn in its IPO. With a 33.1% EPS CAGR, the IPO is...

Osbert Tang, CFA

WSTS Reports Slowing Chip Decline

WSTS, the agency that tracks monthly semiconductor revenues, reported this week that the decline of the semiconductor market has continued to slow...

Jim Handy

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Market Cap (USDm)

P/E

Dividend (Yield)

Semiconductors in April: COVID Impact Still Small

The SIA has released April's semiconductor shipment numbers, and they look positive enough. There is still considerable uncertainty both from the...

Jim Handy

SG Micro IPO: Issue Valuation Sought Does Not Seem Analogous With Inherent Prospects

​SG Micro launches Hong Kong IPO to raise up to HK$4.6B for expansion, acquisitions, R&D. In terms of the valuation that company is seeking, it...

Tina Banerjee

SG Micro Corp (3661 HK) IPO: A High-Growth Play

​SG Micro is a leading analog IC company with a solid earnings record, aiming to raise HK$4.5bn in its IPO. With a 33.1% EPS CAGR, the IPO is...

Osbert Tang, CFA

SG Micro H Share Listing (3661 HK): Valuation Insights

SG Micro, a leading analog IC company in China, has launched an H Share listing to raise US$587 million. In this note, I discuss the H Share...

Arun George

WSTS Reports Slowing Chip Decline

WSTS, the agency that tracks monthly semiconductor revenues, reported this week that the decline of the semiconductor market has continued to slow...

Jim Handy

SG Micro launches Hong Kong IPO to raise up to HK$4.6B for expansion, acquisitions, R&D. In terms of the valuation that company is seeking, it...

SG Micro is a leading analog IC company with a solid earnings record, aiming to raise HK$4.5bn in its IPO. With a 33.1% EPS CAGR, the IPO is...