In today’s briefing:
- WT Microelectronics Placement – Wouldn’t Be Difficult to Digest
- XP Power – Fully funded for medium-term growth
- AEye, Inc. – 3Q23 Earnings Show Expenses Now in Line with Automotive-First Strategy
WT Microelectronics Placement – Wouldn’t Be Difficult to Digest
- WT Microelectronics (3036 TT) major shareholder, WPG Holdings (3702 TT), seeks to raise up to approximately NT5.15bn (US$159m) through a secondary block deal, selling approximately 40m shares (4.5% of TSO).
- The deal is a small one to digest at 3.6 days of three month ADV and 4.1% of current mcap.
- In this note, we will talk about the placement and run the deal through our ECM framework.
XP Power – Fully funded for medium-term growth
With weaker end demand than originally expected in Q323, XP Power’s trading update confirmed a lower outlook for FY23 operating profit and a consequent rise in net debt. To mitigate the risk of hitting debt covenants, the company has initiated a series of cost and cash saving measures, renegotiated its debt covenants and undertaken a fundraise. With revised debt covenants in place and reduced gearing, we believe XP is now well positioned for growth as end market conditions improve.
AEye, Inc. – 3Q23 Earnings Show Expenses Now in Line with Automotive-First Strategy
- 3Q23 revenue of $0.2 million was slightly below expectations, but EPS was slightly better than expected at a loss of $0.05 versus consensus of a loss of $0.06.
- CEO Matt Fisch said, “the lidar market has shifted from a ‘battle for the best technology’ to a ‘battle for the best path to commercialization.’”
- Fisch continues to be bullish and upbeat as AEye’s technology continues to win awards.
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