come back 7.00 and start to fish

I will let it stabilize around 7.00-7.20 before taking any action. Wait and see.

pressed down for collection eh? 7.00 coming?

1QFY21 CNP of RM45.8m (+761% YoY; -25% QoQ) is in line with our/street expectation at 20/22% of full-year estimate. The QoQ drop is due to hiring costs and new equipment added to cater for overwhelming orders for subsequent quarters. Unisem is optimistic, expecting high single-digit QoQ growth in 2QFY21 on the back of strong demand for wafer bumping in its Chengdu plant and WLCSP which command higher margins than normal leaded/leadless packages. Phase 3 expansion in Chengdu will commence soon with completion expected in 2H 2022. Maintain OUTPERFORM with an unchanged TP of RM10.00.

Within expectations. In the quarter that is typically it’s weakest, this best ever 1Q CNP delivery of RM45.8m (+761% YoY; -25% QoQ) met our high expectations representing 20% and 22% of our and street’s full year forecast.

YoY, 1QFY21 revenue surged by 47% to RM373.9m (+50% in USD terms to US$91.9m), as the group registered higher loading volumes for all its packages across the board due to pent-up demand for semiconductor chips.

QoQ, 1QFY21 CNP fell 24.8% to RM45.8m despite a 2.1% increase in revenue to RM373.9m. The larger quantum of decline in CNP could be explained partially by the 4.4% higher depreciation cost as new equipment was added to the facility. In addition, there was an increase in payroll cost with newly added 280 new operators and technicians in Chengdu plant post-Chinese New Year holidays coupled with upward adjustments in salary to retain and incentivise its workforce.

Bright prospects. The group indicated that the margin impact from the newly added staff will be temporary as the extra workforce is well needed to accommodate the overwhelming demand in its Chengdu plant, especially for wafer bumping and wafer-level chip scale packaging (WLCSP). Phase 3 expansion in Chengdu is expected to commence very soon and will be completed by 2HFY22, which will double its current floor space. While Ipoh plant is experiencing strong orders in other packages, its bumping facility utilisation rate is relatively lower than Chengdu as its American customers in Ipoh did not manage to secure enough wafers. That said, the group is optimistic that the roaring demand in Chengdu will be able to offset the temporary shortfall until bumping orders return to Ipoh site strongly in 3Q or 4Q 2021. To capitalise on that, Unisem is also revisiting the idea of building a plant in its 32 acres land in Gopeng.

Maintain FY21E and FY22E CNP of RM235.3m and RM254.6m.

Maintain OUTPERFORM with unchanged Target Price of RM10.00 based on higher FY21E PER of 31x at +1.5SD to 3-year mean.

Risks to our call include: (i) weaker-than-expected USD/MYR, (ii) slower-than-expected adoption of 5G, and (iii) worsening US-China trade war.

Source: Kenanga Research - 28 Apr 2021

Unisem’s 1Q21 core net profit of RM45m (QoQ: -32%, YoY: -RM6m in 1Q20) was in line. Although top line gained sequentially, bottom line was weaker attributable to unfavourable sales mix, higher manpower cost and D&A. 2Q21 revenue outlook is guided to be +5-8% QoQ as order visibility remains robust. Chengdu is expected to see stronger growth ahead and contribute about 55% to the group over Ipoh’s 45%. Reiterate BUY with unchanged TP of RM9.88, pegged to 33x of FY22 EPS.

Within expectations. 1Q21 core earnings of RM45m (QoQ: -32%, YoY: -RM6m in 1Q20) matched our and street full year estimates at 23% and 21%, respectively. This is deemed to be in line considering seasonal weakness. 1Q21 one-off items include inventories write-down (+RM69k), forex gain (-RM445k) and grant income received (- RM275).

Dividend. None (1Q20: None).

QoQ. Despite unfavourable forex (1Q21: RM4.06/USD vs 4Q20: RM4.11/USD), top line gained 2% on the back of higher sales volume achieved. In USD term, sales expanded by 3% to USD92m. However, core earnings shrunk by 32% to RM45m due to (1) unfavourable revenue mix (higher contribution from lower-margin leaded and leadless products); (2) higher payroll costs due to salary increment, bonus and newly hired 250 operators in Chengdu; and (3) higher D&A (+4%).

YoY. While impacted by less favourable forex (1Q20: RM4.17/USD), top line gained 37%, mainly driven by higher sales volume. From continuing operations, sales actually strengthened 47% (50% in USD term). Bottom line turned profitable from 1Q20’ core loss of RM6m as Unisem was impacted by Covid-19 disruptions in Ipoh and Chengdu while winding down Batam plant.

Chengdu. Utilization rates remain high in both wafer bumping, assembly and test. It has awarded contracts for construction of Phase 3 building with target completion in Sept 2022.

Ipoh. Utilization rates are wafer bumping in UAT is low due to wafer shortage. Assembly and test is optimal except wafer level packaging.

Outlook. 2Q21 revenue is expected to be +5% to +8% QoQ (in USD term) with good order visibilities across all market segments. Contribution split between Chengdu and Ipoh in assembly and test is 55:45 and the former is expected to see stronger growth.

Forecast. Unchanged.

Reiterate BUY with unchanged TP of RM9.88, pegged to 33x of FY22 EPS. Despite trade war and Covid-19 risks, Unisem’s prospect has improved with (1) closure of loss-making Batam plant; (2) favourable forex; (3) gradual synergistic relationship with TSHT; and (4) healthy balance sheet.

results are good, Q1 results of 2021 45mil profit, last Q1 2020, -6 mil loss! Any drop below 8.00, another chance to collect.

normally end of Apr for quarterly results. (but it may be shifted to May). Interest is picking up slowly. 8.15 now

rebounded nicely on Friday. Let's aim for RM8.50 resistance when results are out.

https://www.thestar.com.my/business/business-news/2021/04/14/global-semiconductor-equipment-sales-hit-record-us712bil-in-2020

8.30 hovering, selling pressure, let's go further to 8.50-8.60

broke 8.15 level, moving up strong as expected....go go go to test 8.50

Should try to test 8.15 resistance again, and let's aim for 8.50-8.60 level

directors are acquiring the shares....early Apr.

Quarterly results expected end of Apr, thus the accumulation phase has started it seems and the bull is slowly coming back....

Translation:

February sales surge semiconductor shares
(Kuala Lumpur 6th) In February this year, global semiconductor sales have surged 14.7% year-on-year, and the month will slightly reduce 1% to $ 39.6 billion (about 163.6 billion yuan).

Dachen analysts said that the latest data showed that monthly, the monthly trend was consistent with a few seasonal trends in February, and the rising rose on the year, it was visible for two consecutive months. February growth and strong wafer demand and orders observed by domestic semiconductor operators were driven together.


The World Semiconductor Trade Statistics Organization (WSTS) predicts that after 5.1% to 440.4 billion last year, this year's global semiconductor sales will further grow by 6.6%, to a record $ 46.4 billion.


From the individual areas, most regional economic slowdown, resulting in a micro-falling 1% in February. Compared to year, China, Asia Pacific (excluding China) and Europe rose 18.9%, 18.2%, and 6.8% respectively, all more than January, but promoted sales in February 14.7% year-on-year. This also offset a negative effect of 9.7% and 7.6% of the United States and Japan, respectively.


The shipments have new high

At the same time, in February, the shipments rose 3.2% monthbook, and 32% increased from year to 31 billion US dollars, and the history is high. This also recorded monthly growth in the third consecutive month, as well as a year-on-year increase in the 17th consecutive month; strong increase in strong demand for semiconductors throughout the terminal market, as well as global digitalization accelerated development.



Since semiconductor sales reach a record level last year, the wafer factory has increased capacity to meet global needs, and semiconductor shipments are expected to grow further this year. In addition, including the world's launch of the 5th generation of telecommunications technology (5G) equipment, emerging technology development, and China's huge investment in the wafer factory, will also drive the semiconductor demand.

Aspects, analysts sustain Yi Nagi Meichang (INARI, 0166, Masterboard Technology stock), Yisisen (UNISEM, 5005, Masterboard Technology stock), Mathard (MPI, 3867, motherboard technology stock) and Elsoft, 0090, the "Buy" rating of the main board technology stocks, target price is 4.33, 10.87, 54.35 吉, 86 fairy.


This is mainly because the outer semiconductor assembly and testing prospects of the above stocks are not good, and have clear order visibility and profit growth prospects. Comprehensive factors, analysts reiterated the "increase" rating of the semiconductor industry.


It is worth mentioning that the Matthasia rose 76 fairy or 1.9% on Tuesday, reported 40.46 to 1.85,5600 shares, the largest rising stock in the audience.



Related Stocks

ELSOFT 0.725
INARI 3.390
MPI 40.020
UNISEM 8.120
Comments

the most boring time like this is the time to fish ....

trying to fish at lower price daily....

let it come down slightly, don't rush in yet.

closing in on 8.50 yippie! Any chance to drop back to 8.20? Bullets ready to pick up more if any drop to 8.00. if not, just ride the wave....

@Kevin Tam,
For research reports are considered just personal opinions and not a yardstick for my trading decision. In fact, once they painted a very negative light on Unisem and set a lower price when it was trading at higher price. But in the industry, the recovery was in the pipeline.

If research house starts to give high targets, I will start to be cautious and adjust accordingly.
Example: Unisem price at 7++, Research said 8.00
It doesn't mean it will not go down to 6-7 first, and later only hit 8.00 if company performance is maintained.

In summary, the investors who had first hand access to the data of supply /demand will able to position themselves early into the game.

The swinging action is a heaven for short term traders to take advantage of ups and downs. Medium-long term traders are always caught in it.

That is where the technical analysis can help to at least reduce the risk of being caught or have a better trading plan.

Monitor the movement of shares on daily/hour basis is even more intense but a short term trader has to do that.

So, got to ask, what are own goals for this counter, etc.

In general, I am medium term, but looking at Unisem's trend for past 1 year, I had to adapt and switch to short term trading. Yes, it takes more time and effort, but that is the price to pay if you wish for higher gains in short period while the trend is favorable to the trading plan.

can sell some lah at 8.10-8.20, later if drop back 8.00, buy again why not? keep some for bonus run too. Enjoy!

Bingo, hit the target 8.10-8.20 range. offloading and lock profits!

Nice opening, those already want to jump now, later don't complain got trap here and there. During the base building, that's the time to buy. When it goes up fast, that's the time sellers will gladly offload to the chasers.
You want to jump in also need to know when to cut loss for short term position.

slowly inching up for a base building. Let's wait for next target 8.10-8.20

hovering around 7.70-7.90 range. Look like the selling pressure is absorbed. Keep an eye for accumulation phase.

nasdaq ain't pretty. More selling pressure or not? Keep an eye for bargains.

those bought when it dipped to 7.50 below, good to lock some profit, and see how if it can cross 8.20-8.30. If not, start to buy back again at correction when it drop again.

well, definitely can always sell on strength and buy back later. Company's fundamentals and growth is still bright for 2021 outlook based on industry's future in 2021.

In choppy trends, rather lock profits, buy back lower, sell again on strength and repeat. Good luck.

inching up again....

rebounded as expected. Can expected those who got trapped at higher price, will start to offload, then hope to come down again and buy. See saw.

so in the next 3-4 months, goreng again towards RM10, then the results will match it. As long as market will to pay for it, why not?

let's wait if this is a knee jerk reaction. Let things calm down first

back again a rebound, don't sell in panic. Sell into strength, buy back on dips. Don't get influence by sell calls.

https://www.thestar.com.my/business/business-news/2021/03/10/tech-is-still-intact

it is a roller coaster ride, not for the faint hearted. If cannot take it, reduce and stay sideline till stabilized.

those who have done own research, you know the company fundamentals are still in place. Stay strong. A rebound in the cards.

grab back some again, see-saw plays....

those already lock profit , surely now fishing again. Of course, don't expect traders to keep posting buy and sell calls here. Monitor own self.

another opportunity for those already lock profit to collect back?

Dividend declared, profit taking has started. Let's see how it will hold and absorb the sellers for next build up.

those who are negative on this stock, suddenly quiet down.
Well, I can say for them. Don't buy it's a trap later go down. Stay far.

Then again, it is never wise to chase a stock. One should have bought it earlier. Unless it drops back to below 9.00

of course, look at the long term potential and be nimble to adjust to external situations.

just take a pinch of salt when reading targets set. By the way, the targets are normally reset once the stocks already up a lot.
In fact, RM10 is kind of conservative now. Later when hit RM12, only want to say bullish stuff RM13 target blah blah.

Do own research, if you are know that the company can grow faster and market is willing to pay for a high valuation, RM10 is nothing since you can see it has potential to go RM12 above. Then, you can plan further your trades and not be panicky.

no worries, we put our opinion here and not a buy call. Sideline is also a position to take.

this is just the beginning. Next coming quarter will be nicer.

yes, those want to sell later at RM9.50 level, don't regret when it hit RM10

may see outflow of funds into other O&G stocks due to rising oil price. Then, they will swarm back here into chips are this is the future for 2021.

If short term traders, they will in and out, thus causing the fluctuations.
If mid / long terms investors, sure will collect on dips and hold. Can also sell into strength, why not?

Collapse, very low chance. Demand is high till chips production also cannot meet the orders. Have to wait your turn. Applies to most factories especially related to automative.

so don't chase when broken a new high. Collect again if you want to in and out.

up and down, those manage to sell above 9.00 can buy back again..hehe

it is going to be a choppy ride, as expected. It won't be a up up trend all the time.

1. Don't chase when it is high or broke a new level. You will be trapped.
2. Buy on dips after breaking a new level. (if you still want to ride it)
3. ALWAYS have a cut loss pricing (at least 10% for a fast moving stock if not you cut too early and it bounced back)
4. Monitor the volume, price action before jumping in or trigger sell.
5. Staying sideline is a position too! (DO NOTHING)
6. If it is not fit to your risk profile, just move on to other stocks. No need to condemn or give negative inputs. Those who are in, knows their risk profile I hope.
7. No contra please, but if you bought into it and it started moving so fast up within contra period, I would trigger sell within 7% gain window. (happened before)