Global Semiconductor Sales Increase 20 Percent Year-to-Year in April; Double-Digit Annual Growth Projected for 2018. https://www.design-reuse.com/news/44211/april-2018-semiconductor-sales.html

0.75 tomorrow

The PHLX Semiconductor index was up 0.41% yesterday. very bullish.

U.S. Job Openings Rise to Record, Exceeding Number of Unemployed

https://www.bloomberg.com/news/articles/2018-06-05/job-openings-in-u-s-increased-in-april-to-record-6-7-million

电子产品带动　4月出口意外飙升14% http://www.orientaldaily.com.my/s/246083

China Industrial Profit Growth Accelerates on Improved Margins

April industrial profits rose 21.9 percent from year earlier
Profit boosted by improved margins at steel, chemical sectors

https://www.bloomberg.com/news/articles/2018-05-27/china-industrial-profit-growth-accelerates-on-improved-margins

China April industrial profit growth rebounds to six month high http://www.klsescreener.com/v2/news/view/384331

Great

China April industrial profit growth rebounds to six month high
-
http://www.klsescreener.com/v2/news/view/384331

China April industrial profit growth rebounds to six month high | http://www.klsescreener.com/v2/news/view/384331

Unhappiness at Hengyuan https://www.thestar.com.my/business/business-news/2018/05/26/unhappiness-at-hengyuan-government-funds-cut-stake-in-myeg-times-are-achangin/

Ringgit to extend downward momentum http://m.thesundaily.my/node/550503

Ringgit to extend downward momentum http://m.thesundaily.my/node/550503

Trump retreats from China tariffs amid White House trade discord
https://www.hudsonvalley360.com/article/trump-retreats-china-tariffs-amid-white-house-trade-discord

Malaysia to review mega projects
http://www.theedgemarkets.com/article/govt-review-mega-projects-%E2%80%94-azmin

automotive semiconductor stock--- Kesm

Trump retreats from China tariffs amid White House trade discord
https://www.hudsonvalley360.com/article/trump-retreats-china-tariffs-amid-white-house-trade-discord

China will cut the tariff to around 13.8%, the Ministry said, from the current level of 25%, while reducing the levy on imported car parts to 6% from 10%, in an effort to open the market further to foreign competition. The reductions will take effect on July 1, the Ministry said in a statement..

https://www.thestreet.com/markets/china-slashes-auto-import-tariffs-as-trump-s-trade-push-gets-big-early-win-14596825

CIMB Research does not expect the appreciation in ringgit against US$ to bring material earnings impact to KESM, given that the majority of its transactions are in ringgit.
https://www.thestar.com.my/business/business-news/2018/03/09/kesm-to-post-robust-earnings-until-fy20-says-cimb-research/#YWVdgFYPsTqk3mgB.99

http://www.malaysiastock.biz/Blog/BlogArticle.aspx?tid=18788
Malaysia says to review rail project to Singapore, east coast

It is not that only KESM has something to do with wafer. All Malaysian semiconductor companies have something to do with wafer.

Wafer Burn-in Test – Pentamaster

It is designed to perform burn-in test on LEDs and wafers. It places them under high temperature, high humidity or high voltage for a set period of time to find the early defects caused by faults in manufacturing practice. It offers a user friendly experience with built-in precision SMU, thermal control and data
http://www.pentamaster.com.my/solutions/consumer-end-product-led-test-solution/wafer-burn-in-test/

Unisem spent RM45.1mil in capex in 1Q18 (vs. RM71.2mil in 1Q17) to buy flip-chip bonders, bumping and wafer level equipment and test probers to support its new business in China.

“We cut our FY18-20F EPS by 15%-30% to account for the narrowing margins of its legacy packages and higher staff cost.

“Although Unisem is facing a challenging near-term outlook due to forex volatility, we believe the group’s fundamental growth remains intact driven by its strategic expansion towards 8-inch and 12-inch wafer bumping capacity in Ipoh and Chengdu that will allow it to gain better economies of scale than its OSAT peers in the next 12-18 months. Also, we expect narrowing losses in its Batam operation,” it said.
TAGS / KEYWORDS:

Read more at https://www.thestar.com.my/business/business-news/2018/04/25/cimb-research-retains-add-for-unisem-but-lowers-target-price/#zFlFp0x3SUhfBjZO.99

Start buying Kesm tomorrow . The next QR announcement is likely to be very good. Its outlook in the second half of the year is also very good.

Pentamaster's net profit increased significantly QoQ.

Pentamaster Outlook

The Group expects 2018 to be another good year as evidenced by the size of
outstanding secured orders received up to 31 March 2018 that is expected to be
delivered in 2018. In view of the smart sensing and electric vehicle trends in 2018, the
Group expects sales growth momentum to be driven by both the telecommunication and
automotive sectors. With the expected completion of the new production plant in June
2018, the Group forecasts better delivery of projects involving large-scale factory
automation lines in the second half of the year.

Its net profit increased significantly QoQ, but its net profit attributable to shareholder decreased QoQ 30.07%.

Outlook

The Group expects 2018 to be another good year as evidenced by the size of
outstanding secured orders received up to 31 March 2018 that is expected to be
delivered in 2018. In view of the smart sensing and electric vehicle trends in 2018, the
Group expects sales growth momentum to be driven by both the telecommunication and
automotive sectors. With the expected completion of the new production plant in June
2018, the Group forecasts better delivery of projects involving large-scale factory
automation lines in the second half of the year.

An analyst has already mentioned the ease of wafer supply constraints.

Malaysian Pacific Industries Bhd
(May 21, RM8.66)
Upgraded to buy with a fair value (FV) of RM9.79:

We came away from MPI’s third quarter in the financial year ended 2018 (3QFY18) analyst briefing giving reassurance that earnings will be stronger sequentially, given the ease of wafer supply constraints. In addition, management anticipates to deliver more flip-chip packaging for power management components in cryptocurrency mining machines. While the impact on earnings is unquantifiable at this juncture, we believe the business would offer handsome margins given its niche.
http://www.theedgemarkets.com/article/mpi-focuses-highmargin-ops

First Quarter 2018 Silicon Wafer Shipments Increase Quarter-Over-Quarter to Record Level
Milpitas, Calif. — May 14, 2018 — Reaching their highest recorded quarterly level ever, worldwide silicon wafer area shipments jumped to 3,084 million square inches during the first quarter 2018, a 3.6 percent increase over fourth quarter 2017 area shipments of 2,977 million square inches and a 7.9 percent rise over first quarter 2017 shipments, according to the SEMI Silicon Manufacturers Group (SMG) in its quarterly analysis of the silicon wafer industry.

"Global silicon wafer shipment volumes started the year at historic levels,” said Neil Weaver, chairman SEMI SMG and Director, Product Development and Applications Engineering of Shin-Etsu Handotai America. “As a result, silicon shipments, like device shipments, are positioned to be strong this year.”

Silicon wafers are the fundamental building material for semiconductors, which, in turn, are vital components of virtually all electronics goods, including computers, telecommunications products, and consumer electronics. The highly engineered thin round disks are produced in various diameters (from one inch to 12 inches) and serve as the substrate material on which most semiconductor devices or "chips" are fabricated.

All data cited in this release includes polished silicon wafers, including virgin test wafers and epitaxial silicon wafers, as well as non-polished silicon wafers shipped by the wafer manufacturers to end users.

The Silicon Manufacturers Group acts as an independent special interest group within the SEMI structure and is open to SEMI members involved in manufacturing polycrystalline silicon, monocrystalline silicon or silicon wafers (e.g., as cut, polished, epi, etc.). The purpose of the group is to facilitate collective efforts on issues related to the silicon industry including the development of market information and statistics about the silicon industry and the semiconductor market.
http://www.semi.org/en/first-quarter-2018-silicon-wafer-shipments-increase-quarter-over-quarter-record-level

Today Malaysian semiconductor stocks were bullish.
-------------------------
Globetronics +1.38%
MPI + 9.01%
Unisem + 5.24%
Pentamaster +4.05%
Inari + 2.37%
Vitrox +2.33%
KESM -0.12%

Japan's exports accelerate in April as volumes rise, outlook positive
https://www.reuters.com/article/us-japan-economy-trade/japans-exports-accelerate-in-april-as-volumes-rise-outlook-positive-idUSKCN1IM03F

Exports of cars rose 15.3 percent in April from the same period a year ago, while exports of semiconductor manufacturing equipment rose 18.2 percent year-on-year, finance ministry data showed on Monday.

Japan exports jump on strong U.S. car demand
https://www.marketwatch.com/story/japan-exports-jump-on-strong-us-car-demand-2018-05-21

Japan exports jump on strong U.S. car demand
https://www.marketwatch.com/story/japan-exports-jump-on-strong-us-car-demand-2018-05-21

Iron and steel exports to the U.S. jumped 14%, despite the imposition of a 25% tariff on steel imports to the U.S. Ministry officials said it was hard to isolate the impact of the tariffs due to the many factors that affect monthly export volumes of iron and steel. The Trump administration has refused to give Japan a temporary or permanent exemption on its steel and aluminum tariffs, which prompted Japan to say it reserved the right under the World Trade Organization rules to impose retaliatory tariffs.

Japan exports jump on strong U.S. car demand

Iron and steel exports to the U.S. jumped 14%, despite the imposition of a 25% tariff on steel imports to the U.S. Ministry officials said it was hard to isolate the impact of the tariffs due to the many factors that affect monthly export volumes of iron and steel. The Trump administration has refused to give Japan a temporary or permanent exemption on its steel and aluminum tariffs, which prompted Japan to say it reserved the right under the World Trade Organization rules to impose retaliatory tariffs.
https://www.marketwatch.com/story/japan-exports-jump-on-strong-us-car-demand-2018-05-21

China-US agree to abandon trade war: China's vice premier
https://www.channelnewsasia.com/news/asia/china-us-agree-to-abandon-trade-war-china-s-vice-premier-10251524

China-US agree to abandon trade war: China's vice premier
Read more at https://www.channelnewsasia.com/news/asia/china-us-agree-to-abandon-trade-war-china-s-vice-premier-10251524

China-US agree to abandon trade war: China's vice premier
Read more at https://www.channelnewsasia.com/news/asia/china-us-agree-to-abandon-trade-war-china-s-vice-premier-10251524

Tomorrow semeconductor stocks are likely to surge!

On Monday semeconductor stocks are likely to surge!

China-US agree to abandon trade war: China's vice premier

Read more at https://www.channelnewsasia.com/news/asia/china-us-agree-to-abandon-trade-war-china-s-vice-premier-10251524

China-US agree to abandon trade war: China's vice premier
Read more at https://www.channelnewsasia.com/news/asia/china-us-agree-to-abandon-trade-war-china-s-vice-premier-10251524

China Agrees to Buy More U.S. Goods and Services
http://news.morningstar.com/all/dow-jones/us-markets/201805189333/china-agrees-to-buy-more-us-goods-and-services.aspx

Chip foundry sales have been a leading indicator for global semiconductor and semiconductor capital equipment shipments. After dropping to near zero in mid-2017, foundry growth is now rebounding.

Chart 4 compares 3/12 (3-month) growth rates of global semiconductor and semiconductor equipment sales to chip foundry sales. The foundry 3/12 has historically led semiconductors and SEMI equipment and is pointing to a coming cyclical upturn. It will be interesting to see how China’s semiconductor industry buildup impacts this historical foundry leading indicator’s performance.
http://electroiq.com/blog/2018/05/global-u-s-electronics-supply-chains-see-healthy-midyear-business-conditions/

Silicon wafer shipments hit a new record in Q1 Just wait for CIMB to raise Kesm's target price.

KWAP has been accumulating Kesm.

18-May-2018 Insider KUMPULAN WANG PERSARAAN (DIPERBADANKAN) (a substantial shareholder) acquired 20,000 shares on 17-May-2018.

16-May-2018 Insider KUMPULAN WANG PERSARAAN (DIPERBADANKAN) (a substantial shareholder) acquired 15,000 shares on 15-May-2018.

TOKYO (May 17): Ringgit consolidates after a six-day decline, but the currency is predicted to stay under pressure, amid concern over the new government’s fiscal policies.

Buy export oriented stocks.

Silicon Wafer Shipments Set New Record in Q1
http://www.businesskorea.co.kr/news/articleView.html?idxno=22340

S. Korean chipmakers' outlook solid for 2018
http://english.yonhapnews.co.kr/news/2018/05/17/0200000000AEN20180517003400320.html

Oil price is very high. Malaysian stocks cannot collapse even with limited inflow of foreign funds.

Inari may rise higher, says RHB Retail Research | http://www.klsescreener.com/v2/news/view/378831

Ringgit could hit 4.20 to the US dollar by year end — DBS | http://www.klsescreener.com/v2/news/view/379145