Alchip Technologies (3661) Earnings Skyrocket with Dec. Sales Hitting NT$3.51B, Surging by 114.6%

Alchip Technologies on Smartkarma

Alchip Technologies (3661 TT) has been in the spotlight recently due to its potential inclusion in the Yuanta/P-Shares Taiwan Top 50 ETF. According to Brian Freitas, an analyst on Smartkarma, Alchip could replace Feng Tay Enterprise (9910 TT) in the ETF at the December rebalance. This could lead to other global passive trackers buying Alchip’s stock, which could reduce its real float. However, shorts have been increasing on both stocks, with shorts in Alchip building up while shorts in Feng Tay surging in the last few months.

Another significant development for Alchip is its upcoming global deposit receipts (GDRs) offering, as discussed by Clarence Chu, an analyst on Smartkarma. The company is looking to raise around US$375 million through this offering, which is a relatively small amount compared to its current market capitalization. However, the process is expected to be a drawn-out one, with regulatory and approval loops that Alchip needs to navigate before the issuance. This GDR listing has been well-flagged by the company, similar to its previous GDR listings.

Janaghan Jeyakumar, an analyst on Smartkarma, also provided insights on Alchip’s potential inclusion in the Quiddity Leaderboard T50/100 in December 2023. Currently, there are no expected index changes for the T50 index, but there could be one change for the T100 index. Of note, five potential deletions for the T100 index are also members of the TDIV index, which could have significant index flows. This makes it worth tracking their rankings over the next two months.

A look at Alchip Technologies Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Alchip Technologies, a leading provider of silicon design and manufacturing services, has received strong ratings from Smartkarma Smart Scores. With a growth score of 5, Alchip is expected to see significant expansion in the coming years. This is supported by its high resilience and momentum scores of 5, indicating its ability to withstand market fluctuations and maintain its upward trajectory. Additionally, Alchip’s solid score of 2 for value suggests that it is priced attractively for investors. While its dividend score of 1 may not be as high, the company’s focus on growth and resilience makes it a promising long-term investment option. Alchip’s diverse range of SoC design solutions for various industries and its global customer base further add to its strong outlook.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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