@Slogon: 2020 (Glove) - Don't ask, just Buy 2021 - (Tech)- Technology is the future 2022 - ? ________________ Slogan 2022 is all mankind will die n no need stock market anymore if MR PUTIN really press the nuclear ballistic bomb button !
Rising interest rate vs. chip demand. Malaysia?s technology sector has mirrored the Nasdaq?s performance, which has slipped 13% since the beginning of the year amid expectations of rising interest rates due to worsening inflationary pressures. This is the aftermath of the pandemic which created supply bottlenecks while monetary policies such as raising interest rates have limited impact in easing these disruptions.
On the other hand, semiconductor demand remains robust. According to the Semiconductor Industry Association (SIA), the industry sold 1.15tril chips (up 10% YoY) in 2021, totalling US$555.9bil (up 27% YoY). Global sales for January 2022 continue to be strong with a 27% YoY growth. This is led by sales in Americas which grew 40%, followed by Europe 29% (Exhibit 4). As such, we remain optimistic on the industry, supported by resilient semiconductor demand from the adoption of 5G network infrastructure and devices; vehicle electrification and autonomous driving; and the increasing application of Internet of Things (IoT) among businesses and consumers.
Minimal Russia-Ukraine war impact. We view the Russian military assault on Ukraine as having minimal impact on the local technology sector. Based on World Semiconductor Trade Statistics (WSTS), Russia is not a significant direct consumer of semiconductors, accounting for less than 0.1% of global chip purchases. In addition, the global nature of the semiconductor industry is supported by a diverse set of suppliers for key materials, hence posing neither a significant nor immediate supply chain risk from the invasion. Therefore, we are of the view that the war, which resulted in sanctions on Russia, will have an insignificant impact to global semiconductor demand.
We reiterate our OVERWEIGHT stance on the technology sector and believe investors should seize the recent sell-off as an opportunity to accumulate companies with strong fundamentals. Our top picks are:
MPI: We continue to like MPI for its core strength in investing in the right technology at the right time. MPI is set to benefit from: (i) its early move to produce silicon carbide and gallium nitride power products with applications in electric vehicles, servers, renewable energy and consumer gadgets; (ii) continuous investments in automation for cost optimisation; and (iii) its strong net cash position of RM865mil as at Dec 2021 (11% of market capitalization), which allows for strategic investments, M&A opportunities and greenfield expansions.
Inari: We remain upbeat on Inari?s prospects as a proxy to the rapid growth of 5G telecommunications technology through its radio frequency (RF) business, which is set to benefit from the expected increase in demand for 5G smartphones. The group?s bright earnings outlook arises from: (i) the resilience of its RF earnings due to higher chip complexity in 5G phones; (ii) net cash of RM2bil as at Dec 2021, which translates to 17% of its market cap; and (iii) its continuous efforts to enhance and diversify revenue streams by joint-venturing into outsourced semiconductor assembly and test manufacturing in China.
Risks to the sector stem from: Persistent supply chain disruptions; Resurgence of new Covid-19 variants and the efficacy of existing vaccines towards the variants; and Weaker-than-expected sales due to customers cutting back on production on the back of supply shortages, as well as margin compression from higher material costs and logistics cost, with the latter being further exacerbated by the Russia-Ukraine conflict.
during war and interest rate hike period, usually growth stocks are not in favour for investors. because the stock prices are reflected based on the future earnings profile. Since there is a rate hike + war = economic growth slower, thus expectation of high growth rate tech stocks will be lower = lower p/e ratio
Berkshire Hathaway (Warren Buffet) largest holding in value is APPLE Inc. What is Apple main source of revenue? iPhones. What is Inari main source of revenue? RF chips for iPhones.
Who has the contract to supply RF chips to Apple? Broadcom. Who is Inari's best customer and initial startup investor? Broadcom. Where is Broadcom original HQ location? Singapore. Which country that Inari mainly export to? Singapore
Apple had 51 suppliers based in China and Hong Kong in 2020, according to a Nikkei Asia analysis of the annual Apple supplier list released last week.3 Jun 2021.
Apple uses contract manufacturers to produce its devices in China. For example, Foxconn, Pegatron, and Wistron employ hundreds of thousands of workers to assemble Apple devices in China.
Apple has tried to expand its chain of contracted manufacturers to other Asian countries such as India as part of efforts to diversify.
The world's largest iPhone factory, operated by Foxconn Technology Group in the central Chinese city of Zhengzhou, has kept up with its production schedule, despite a jump in new Covid-19 cases...
done paktua reload for last n final.. done eat at rm2.78-2.79.. now hold huge evrge at 2.88+ from now.. will hold until all cloud is clear.. wait back at least 3 month..
See if he will be back in a few days time ------------------------------- paktua73 done paktua reload for last n final.. done eat at rm2.78-2.79.. now hold huge evrge at 2.88+ from now.. will hold until all cloud is clear.. wait back at least 3 month..
no laa paktua if come only chit chat.. inari paktua lalui pahit manis sejak 2018.. pernah hold almost 3 year.. pernah pegang sejak 1.33.. pernah lawan sejak rm3.50(2018) so pattern is back.. laa rehat n wait jerla.. if down hit rm2.48 paktua cut lost 57% simple..
tut tut relax time
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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....
ken2004
1,424 posts
Posted by ken2004 > 2022-03-07 14:11 | Report Abuse
Seriously, everything is dropping, not about tech stock or not, it is war time now....