After last few days drop of about 20%, PE becomes 27.
Are they doing the same even though they are OSAT. MPI focused more on automotive EV, and 5G. Now still facing shortages esp automotive parts.
I am looking to buy cheap MPI back this round of selling. I have some MPI but taken profit end of 2021.
Extract from Ambank Report
We raise our FY22, FY23 and FY24 core profit forecasts by 20%, 34% and 32% to RM366.6mil, RM459.6mil and RM509.0mil respectively. This is to account for brighter automotive and industrial outlook, which is poised to benefit MPI due to its strategic position underpinned by its power products investments, such as silicon carbide (SiC) and gallium nitride (GaN).
End-user segment update: MPI’s revenue growth largely came from the automotive and industrial segments, which expanded 15% and 12% QoQ respectively, contributing 37% and 31% of its revenue. The consumer & communication segment’s growth remained flattish, while growth for the PC & notebook segment declined 5% QoQ.
Capital expansion progress: MPI continues to invest in identified technology drivers for growth such as 5G, SiC, GaN, electrification, sensors and safety for the automotive sector. In Sep 2021, the group completed its 2nd phase of level 2 expansion for Carsem Suzhou, adding 4,400 sq metres to the plant. The group is also scouting for new land in China, with aim of setting up another facility to cater for growth in SiC-related products.
Semicon parts for EV should have very long growth going forward, at least next 10 years while semicon for PC may flat or drop marginally...
MPI’s venture into silicon carbide (SiC) power modules in 2020 offers promising prospects given the increasing popularity among electric vehicle (EV) manufacturers.
Silicon Carbide (SiC) is an innovative technology that will replace silicon in many applications. The idea of using SiC for electric vehicles (EVs) was born when efforts were made to increase the efficiency and range of such vehicles, while reducing the weight and cost of the entire vehicle and thus increasing the power density of control electronics.
Power electronics for EVs can effectively be enhanced with Silicon carbide solutions that meet design parameters and make an essential contribution to system performance and long-term reliability.
Below is PE for Msia tech stocks as reference only but also not a good comparison as difference companies have difference product mix, expansion plans, clients etc. Msia Osat players namely MPI, Inari and Unisem all have difference product mix, growth rate, mkt segment etc, eg Unisem net profit is not growing qoq and yoy whereas MPI and Inari has good growth qoq and yoy.
PE as of 14 Jan 2022 price
Inari : PE 34.07 MPI : PE 27.23 Unisem : PE 24.36 Vitrox : PE 51.65 Greatech : PE 44.54 D&O : PE 56.90 KESM : PE 36.27 UWC : PE 59.83
This is a major correction not game over for tech. Unlike glove which thrives during covid only
Technology affects almost every aspect of 21st century life, from transport efficiency and safety, to access to food and healthcare, socialization and productivity. Pick a good tech stock to buy during this correction.
Donkeystock did a research in semiconductor industry. He has more information on his hands. Hope he would share more with us about benchmarking against global players within the industry.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
firehawk
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Posted by firehawk > 2022-01-14 16:20 | Report Abuse
too few semiconductor counters for investors .... push to too high valuation, buyers are exposed to high risk .....