At an annual general meeting held Tuesday, TSMC Chairman Mark Liu (劉德音) said the company has left its forecast for 2020 sales growth unchanged at 14-19 percent higher than a year earlier and expects to continue to benefit from solid demand for 5G applications and high performance computing (HPC) devices.
Following the spark US/China/Huawei tech war, many have rushed to develop their semiconductor capabilities, especially in leading edge (≤7nm) frontend fabrication (foundry) to be self-sufficient on the back of national strategic and security interests
Expect robust capex in near to mid-term on frontend subsector benefiting companies like Frontken, UWC & SAM.
Global peers valuation at forward PE of 35 times.
SAM Engineering
A hidden gem? Under-researched SAM Engineering and Equipment (not rated) has morphed into a sizable semiconductor contract manufacturer after successful diversification strategy from aerospace market. Its equipment business has outgrown aerospace in FY20 with revenue and PBT accounted for 52% and 63% of overall.
Supported by strong parents (SAM Group and Accuron Technologies), SAM has exposure in semiconductor frontend and storage devices with reputable customers (Agilent, Teradyne, KLA Tencor, Bosch, P&G and etc) in telecommunication, medical and automotive sectors. Conservatively, assuming that any slack from aerospace will be compensated by equipment’s strength and yield a flattish bottom line for FY21 (RM80m), SAM is currently trading at undemanding 13.6x PE. However, we do note the concerns of liquidity and severe-than-expected slump in aerospace segment which should be mitigated by its initiatives to divert capacity to equipment business.
Frontken revenue is growing..i can see why not we hold this company for its long term prospect, especially its involvement in 5G. I bought this stock at 50c when we all were talking about its prospect with tsmc. I can see more upside as our technology is advancing
As gloveisgold said..they benefit indirectly from the 5G development..u just want to make me look stupid. Go on. I invested in frontken since end of 2017 and i believe what they can achieve in the long term.
The global demand for semiconductors, which remains strong in the long term, will continue to grow. According to IHS Markit, the deployment of 5G will be the main factor propelling a recovery for the semiconductor industry from the significant downturn in 2019, not only because of the renewed growth it will bring to the wireless industry, but also due to the wider benefits the wireless technology will bestow on global businesses and economies. IHS Markit further highlighted that the market in 2020 will be driven by two significant factors: one, the return to growth for global server expansion, and two, the introduction of 5G handsets. The Group believes that these developments in the electronic and technology space will be positive for our semiconductor business for years to come..i quote this from their QR4 2019
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....
sten_still
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Posted by sten_still > 2020-06-09 14:43 | Report Abuse
frontkn is inactive from the list of taiko semicon compare to uwc and inari