Written by Chen Zirong
Wanbao Investment Advisor Chen Zirong pointed out that U.S. stocks tumbled on Wednesday due to bad inflation, and Taiwan stocks were dragged down by U.S. stocks on Thursday (5/19), closing at 16,020 points, down 276 points, with a turnover of 230.7 billion yuan. Two feet. This wave of Taiwan stocks rebounded quickly and quickly. From the recent bottom of 15,616 points, the V-shaped rebound has risen by nearly 700 points. The share price of TSMC (2330-TW) also took the lead from 505 yuan and rose by about 7%. Changes. For three consecutive days, more than 9,000 copies of TSMC were bought, but foreign capital also turned over quickly. Although the turnover ratio of electronic stocks returned to more than 60%, Taiwan stocks were still at the bottom, but some electronic groups had fallen to the bottom and led the gains.
This wave of IC design popularity has gathered. In addition to the high-priced stocks Silicon-KY (6415-TW) and Xiangshuo (5269-TW), which successfully made a bowl-shaped bottom, there are also legal persons in small and medium-sized IC design stocks, including Andes Technology ( 6533-TW), Etron (5351-TW), Weifeng Electronics (6756-TW), Genesys (6104-TW), after falling deep and rebounding, are expected to rebound further.
TSMC will increase all processes by 6% in 2023, and UMC (2303-TW) and NSMC (6770-TW) may follow up with an increase of 5% to 20% in the second half of the year. In addition, South Korea’s Samsung also reported that the second half of the year will be adjusted. If the foundry fee is increased by 15% to 20%, the market estimates that the average annual compound growth rate of the foundry will be 16% before 2025, and the output value will be as high as 181 billion US dollars.
The foundry industry is strong, and the IP stocks and ASIC factories with high linkages will naturally rise with the tide, including Faraday (3035-TW), Liwang (3529-TW), Chuangyi (3443-TW), M31 (6643-TW) TW), Jin Like (3228-TW). In addition, the IC electronics group related to 5G communication and automobiles is also expected to benefit from the strong demand for terminals.
Lithium Iron Phosphate (LFP) cathode material factory Likai-KY (5227-TW) announced the signing of an authorization memorandum with American companies to assist customers in LFP mass production and complete supply chain. Likai-KY currently has 41 customers around the world, covering energy storage, Electric vehicles and solid-state batteries, among which the energy storage battery has a relatively short certification time, and the benefits are quicker. At present, 5 energy storage and EV battery customers have completed the final certification, and at least 10 customers are in the process of detailed consultation, of which 3 to 5. In the future, it will become an LFP battery material manufacturer with an annual output of more than 100,000 tons.
Wanbao Investment Advisor Chen Zirong pointed out that on 5/3, I would recommend Likai-KY for everyone. The stock price was only 64.3 yuan at the time. Likai-KY’s accumulated revenue in the first four months was 45 million yuan, an annual increase of 163.47%. With the expansion of the business, the revenue of authorized gold will be increased step by step.
IC carrier board Jingshuo (3189-TW) benefited from the increase in shipments of the new ABF carrier board production line in the first quarter of this year, coupled with the optimization of server, HPC, and AI product mix, single-quarter EPS of 3.39 yuan, an increase of 495% over the same period last year , With the deferred benefits of shipments unsealed in Kunshan and Suzhou in mainland China, it is estimated that revenue in the second quarter will increase by 5% to 10% quarterly, rewriting a new high, and EPS is 3.74 yuan; Jingshuo’s net profit will increase by 15%. Under the pressure of the interest rate hike cycle, the dollar will maintain an upward trend, which will be of great help to Jingshuo’s profit performance this year.
On 5/12, Jingshuo’s stock price was recommended for everyone when it was at a low level. In just a few trading days, the stock price has risen by 9%. Under the optimistic medium and long-term trend, the stock price is still on the high side.
Wanbao Investment Consultant Chen Zirong pointed out that Taiwan stocks are still volatile, and the author continues to choose aggressive stocks to enter, expecting excess profits:
VIA (2388-TW) accumulated revenue of 2.926 billion yuan in the first four months, an annual increase of 43.59%; it is rumored that the Apple iPhone will adopt Type-C charging port next year, VIA and its little golden chicken, Weifeng Electronics, are expected to benefit. VIA currently has three major Businesses including processor platforms, embedded platforms, and VIA’s chip business maintained positive growth this year, and continued to attack edge computing, cloud connectivity and other products to seize the territory of the Metaverse; this year also broke the record of 17 consecutive years of undistributed dividends , decided to distribute a cash dividend of 1 yuan, and foreign investors bought Super VIA for nearly 9 consecutive trading days.
Etron (5351-TW) saw a 49.3% quarterly decline in its first-quarter profit and a single-quarter EPS of RMB 0.81 due to falling prices of niche memory and rising foundry costs. The shortage of materials will ease in the second half of the year. DDRX Memory IC products will enhance growth; Etron’s self-developed KOOLDRAM has been successfully mass-produced and entered the automotive market. The proportion of automotive revenue has increased by more than 2 times last year. At present, in addition to existing Japanese customers, there are also many European and American customers. Customers, this year’s automotive and communications are still the biggest growth drivers. In the past 4 trading days, foreign capital has bought more than 8,000 Chaoyuchuang.
Maqima (4721-TW) has a steady rise in the ASP of Maqima’s battery products due to the increase in international metal raw material prices. In addition, it has invested in the recycling field to reduce costs in recent years, making its first-quarter financial report particularly dazzling. The quarterly revenue was 1.282 billion yuan, an annual increase of 98%, the net profit was 168 million yuan, an annual increase of 219%, and the single-quarter EPS was 2.24 yuan, which not only set a new high in a single quarter; And actively rush into the ranks of suppliers such as CATL, LG Chem in South Korea, and Panasonic in Japan.
Of course, there are still some good stocks under the downward revision of the index. Good stocks with good fundamentals and bargaining advantages are selected, including automotive and electric stocks, semiconductors, steel, shipping raw materials, economic unblocking and other related stocks. Due to the limited space, please go directly to the fan group to have a look, I hope it will be helpful to the readers.
Join Chen Zirong’s fan group for free now and get more information to share
War Center Chen Zirong LINE Fan Group
War Center Chen Zirong FB Club
Chen Zirong’s telegram fan group
Individual securities recommended for analysis by the company
No Improper Financial Interests Past Performance Does Not Guarantee Future Profits
Investors should make independent judgments and prudent assessments and assume investment risks at their own risk