2021-09-17-Credit_Suisse-供应链生态系统小册子_110页_3mb

ASEAN Technology Sector Supply Chain Ecosystem Summary

Core Content

This document provides an overview of the technology supply chain ecosystem in ASEAN, with a focus on the semiconductor industry. It highlights the strategic positioning of ASEAN within the global supply chain, identifies key players, and outlines their financial performance and valuation metrics. The report also discusses the potential for ASEAN to move up the value chain and offers insights into the regional distribution of semiconductor companies and their performance indicators.

Main Points

• ASEAN's Position in the Global Supply Chain: ASEAN is well positioned to serve as a hedge for global tech supply chains due to its growing manufacturing capabilities and attractiveness for investment. It is noted that 59% of the listed semiconductor companies in ASEAN are based in Malaysia, and 44% of the 46 identified companies are downstream EMS firms.

• Key Themes for Growth:

  • Apple Supply Chain: Companies like Inari and Nanofil are leveraged to Apple's supply chain.
  • Automotive/EV Content Growth: Pentamaster, Hana Microelectronics, KCE Electronics, and Delta Electronics Thailand are highlighted for their growth in automotive and electric vehicle sectors.
  • 5G Development: Frontken is noted for its role in the 5G sector.

• Pecking Order: The report presents a ranked list of companies, with the following rated as OUTPERFORM:

  • Inari
  • KCE Electronics
  • Pentamaster
  • Frontken
  • Nanofilm
  • Hana Microelectronics
  • Venture
  • Delta Electronics Thailand is rated as UNDERPERFORM due to overvaluation relative to fundamentals.

• Market Cap and Valuation Metrics: The report includes detailed financial metrics such as market cap, target price, share price, upside, EBITDA margins, and PE ratios for various companies in Malaysia, Singapore, Thailand, Indonesia, and the Philippines.

• Fund Flows and Short Selling: For Malaysian companies, the report provides data on fund flows and short selling activities, indicating the direction and volume of investment and speculation.

• Performance Trends: The price performance of companies is analyzed over different periods, including YTD, 1M, 3M, 6M, and 1Y, providing insights into their recent trends.

Key Information

Malaysia Semiconductor/Semiconductor Services

• Inari Amertron: Market Cap $3,135M, Rating OUTPERFORM, Upside 27%, EBITDA margins 32% (2021), 30% (2023), PE 38.7 (2021)
• Malaysian Pacific Industries: Market Cap $2,271M, Rating NC, Upside 74.1%, EBITDA margins 28% (2021), 28% (2023), PE 30.7 (2021)
• Vitrox: Market Cap $2,128M, Rating NC, Upside 29.3%, EBITDA margins 28% (2021), 28% (2023), PE 43.5 (2021)
• Greatech Technology: Market Cap $2,077M, Rating NC, Upside 53.4%, EBITDA margins 36% (2021), 38% (2023), PE 38.5 (2021)
• Unisem: Market Cap $1,648M, Rating NC, Upside 34.6%, EBITDA margins 28% (2021), 29% (2023), PE 26.9 (2021)
• D&O Green Technologies: Market Cap $1,634M, Rating NC, Upside 143.4%, EBITDA margins 22% (2021), 24% (2023), PE 48.7 (2021)
• Frontken: Market Cap $1,364M, Rating OUTPERFORM, Upside 19%, EBITDA margins 37% (2021), 37% (2023), PE 51.7 (2021)
• Pentamaster: Market Cap $887M, Rating OUTPERFORM, Upside 30%, EBITDA margins 29% (2021), 30% (2023), PE 45.0 (2021)
• MI Technovation: Market Cap $818M, Rating NC, Upside -3.8%, EBITDA margins 22% (2021), 23% (2023), PE 47.9 (2021)
• DUFU Technology: Market Cap $552M, Rating NC, Upside 29.4%, EBITDA margins NA, PE NA
• JF Technology: Market Cap $302M, Rating NC, Upside -10.5%, EBITDA margins NA, PE NA
• Genetec Technology: Market Cap $435M, Rating NC, Upside 1819.1%, EBITDA margins 43% (2021), 51% (2023), PE 63.4 (2021)
• Elssoft Research: Market Cap $149M, Rating NC, Upside 9.4%, EBITDA margins 43% (2021), 51% (2023), PE 63.4 (2021)
• Aemulus: Market Cap $144M, Rating NC, Upside 64.5%, EBITDA margins 31% (2021), 25% (2023), PE 73.7 (2021)
• KESM Industries: Market Cap $128M, Rating NC, Upside -9.6%, EBITDA margins 26% (2021), 28% (2023), PE 67.5 (2021)
• MMS Ventures: Market Cap $54M, Rating NC, Upside 41.0%, EBITDA margins NA, PE NA
• VisDynamics: Market Cap $42M, Rating NC, Upside 32.5%, EBITDA margins NA, PE NA

Malaysia EMS

• UWC: Market Cap $1,471M, Rating NC, Upside 13.5%, EBITDA margins 45% (2021), 43% (2023), PE 66.9 (2021)
• VS Industry: Market Cap $1,323M, Rating NC, Upside 12.2%, EBITDA margins 11% (2021), 11% (2023), PE 22.2 (2021)
• ATA IMS: Market Cap $767M, Rating NC, Upside 10.5%, EBITDA margins 6% (2021), 5% (2023), PE 21.2 (2021)
• SKP Resources: Market Cap $714M, Rating NC, Upside 7.0%, EBITDA margins 9% (2021), 9% (2023), PE 23.1 (2021)
• Globetronics: Market Cap $346M, Rating NC, Upside -21.3%, EBITDA margins 37% (2021), 38% (2023), PE 25.1 (2021)
• Uchi Tech: Market Cap $347M, Rating NC, Upside 22.3%, EBITDA margins 56% (2021), 55% (2023), PE 16.5 (2021)
• P.I.E Industrial: Market Cap $315M, Rating NC, Upside 39.7%, EBITDA margins 11% (2021), 12% (2023), PE 24.7 (2021)
• JHMC Consolidated: Market Cap $257M, Rating NC, Upside 12.2%, EBITDA margins 21% (2021), 21% (2023), PE 24.9 (2021)
• VSTECS: Market Cap $90M, Rating NC, Upside 29.4%, EBITDA margins NA, PE NA

Singapore Semiconductor/Semiconductor Services

• Nanofilm: Market Cap $2,011M, Rating OUTPERFORM, Upside 32%, EBITDA margins 38% (2021), 39% (2023), PE 39.2 (2021)
• AEM: Market Cap $955M, Rating NC, Upside 18.8%, EBITDA margins 23% (2021), 24% (2023), PE 16.3 (2021)
• Aztech: Market Cap $611M, Rating NC, Upside NA, EBITDA margins 16% (2021), 16% (2023), PE 10.9 (2021)
• ISDN: Market Cap $220M, Rating NC, Upside 64.2%, EBITDA margins 12% (2021), 12% (2023), PE 12.1 (2021)
• UMS: Market Cap $687M, Rating NC, Upside 55.6%, EBITDA margins 35% (2021), 35% (2023), PE 15.9 (2021)

Singapore EMS

• Venture: Market Cap $4,064M, Rating OUTPERFORM, Upside 18%, EBITDA margins 13% (2021), 13% (2023), PE 16.8 (2021)
• Frenken: Market Cap $789M, Rating NC, Upside 75.8%, EBITDA margins 13% (2021), 13% (2023), PE 17.9 (2021)
• Grand Venture Technology: Market Cap $303M, Rating NC, Upside 284.8%, EBITDA margins 22% (2021), 22% (2023), PE 50.1 (2021)
• Valuetronics: Market Cap $190M, Rating NC, Upside -0.8%, EBITDA margins 12% (2021), 11% (2023), PE 7.7 (2021)

Thailand Semiconductor/Semiconductor Services

• KCE Electronics: Market Cap $2,863M, Rating OUTPERFORM, Upside 24%, EBITDA margins 15% (2021), 17% (2023), PE 28.0 (2021)
• Hana Microelectronics: Market Cap $1,810M, Rating OUTPERFORM, Upside 24%, EBITDA margins 15% (2021), 17% (2023), PE 28.0 (2021)
• Cal-Comp Electronics: Market Cap $416M, Rating NC, Upside 38.4%, EBITDA margins 6% (2021), 6% (2023), PE 17.4 (2021)
• SVI: Market Cap $317M, Rating NC, Upside 12.1%, EBITDA margins 6% (2021), 6% (2023), PE 17.4 (2021)
• Stars Microelectronics: Market Cap $153M, Rating NC, Upside 138.2%, EBITDA margins NA, PE NA
• METCO: Market Cap $168M, Rating NC, Upside 32.0%, EBITDA margins NA, PE NA
• Team Precision: Market Cap $97M, Rating NC, Upside 376.2%, EBITDA margins NA, PE NA

Thailand EMS

• Delta Electronics: Market Cap $22,066M, Rating UP, Upside -16%, EBITDA margins 12% (2021), 12% (2023), PE 97.2 (2021)
• SVI: Market Cap $317M, Rating NC, Upside 12.1%, EBITDA margins 6% (2021), 6% (2023), PE 17.4 (2021)
• Stars Microelectronics: Market Cap $153M, Rating NC, Upside 138.2%, EBITDA margins NA, PE NA
• METCO: Market Cap $168M, Rating NC, Upside 32.0%, EBITDA margins NA, PE NA
• Team Precision: Market Cap $97M, Rating NC, Upside 376.2%, EBITDA margins NA, PE NA

Philippines EMS

• Integrated Microelectronics: Market Cap $377M, Rating NC, Upside -6.8%, EBITDA margins 4% (2021), 6% (2023), PE 116.7 (2021)

Indonesia EMS

• Sat Nusapersada: Market Cap $109M, Rating NC, Upside 25.9%, EBITDA margins NA, PE NA

Conclusion

The ASEAN technology sector, particularly in the semiconductor industry, is well-positioned for growth as global supply chains diversify post-pandemic. The region has a significant concentration of semiconductor companies in Malaysia, with notable players in downstream EMS and strategic alignment with major tech firms like Apple. The report emphasizes the potential for ASEAN to move up the value chain, supported by increasing capital inflows. It also provides detailed financial and valuation data, as well as insights into fund flows and short selling trends, to help investors understand the current landscape and future opportunities.