Hey all, this time we are going to cover a theme that has good growth potential, especially with the boom in semconductor sector.
But we know political uncertainty is not helping us at all. Can we still consider this theme?
Well, while we are not in control of what could happen politically, we should always be prepared in case situation turns to our favour. So getting to know a good sector with a good theme is always beneficial to us.
We are going to cover the Automated Test Equipment(ATE) theme for you guys!
First of all, what is ATE?
Automated test equipment (ATE) is computer-controlled equipment that tests electronic devices for functionality and performance. ATE also conducts stress testing with minimal human interaction. ATE includes the control hardware, sensors, and software that collects and analyzes the test results. ATE is considered cost efficient for high-volume testing.
Automated test equipment uses a range of sensing techniques, including machine vision. In addition to the semiconductor industry, ATE is used in the automotive, medical equipment, airplane, and other manufacturing industries.
If you want to get a more visual approach of understanding what is the need for ATE, then you can watch it here:
In Bursa Malaysia, these are the list of companies that are producing ATEs:
2) PENTAMASTER (PENTA)
3) GREATECH (GREATEC)
4) MI TECHNOVATION (MI)
5) ELSOFT RESEARCH (ELSOFT)
6) MMS VENTURES (MMSV)
7) AEMULUS HOLDINGS (AEMULUS)
8) VISDYNAMICS HOLDINGS (VIS)
Why are we talking about this segment now?
As we all know, there is currently a semiconductor demand boom due to the increased demand for new technology in various sectors such as digital devices, automotive, medical and manufacturing industries.
Source : https://www.channelnewsasia.com/news/business/chips-are-down-semiconductor-shortage-15352778
With the rise of demand for chips, we are in need of AUTOMATION to ensure there is a smoother transition to create high volume flawless end products and that's where automated test equipments play a major role.
Let's take a look at how some of the companies perform recently?
2) MI TECHNOVATION (MI)
We are anticipating the rest of the companies who have not posted their quarter results to ride on the wave of increased revenue too.
Some of the companies that are coming up with their quarter results include PENTA, MMSV and ELSOFT.
These are some key highlights/prospects (as an example) for MMSV
Source : https://www.thestar.com.my/business/business-news/2021/07/05/penang-air-cargo-to-improve-further
Source : https://www.thestar.com.my/business/business-news/2021/03/22/mms-ventures-to-ship-out-semicon-test-equipment
So with that, all the best in studying further about this theme and also on your trading journey. Automation is probably going to be the best thing that could happend to the rise in semiconductor demand across all sectors.
Kindly apply your Fundamental and Technical Analysis before making any decisions to buy and sell.
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Disclaimer : All notes expressed here are solely individual point of views and we are not responsible for any buy or sell decisions made by others. Kindly use this as a reference reading material to add value to your current research and please verify any information stated here with a licensed individual in the capital markets industry before making any decisions.
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u should also delve into different types of ATEs.
The brain, the eye, the hands, the heart... Theyre all different.
Good theme play write up at early stages..FANTASTIC