Posted by Alpha Trader > 2015-04-28 23:00 | Report Abuse

Unisem superb results rm23m even q1 is the weakest, expect at least rm120m this year, just trading at 15x this year

Posted by mach > 2015-04-28 23:05 | Report Abuse

rather buy kkb profit up 7x

Posted by peiyen2006 > 2015-04-28 23:23 | Report Abuse

The increase because of greater demand for its products and services, as well as disposal of unprofitable subsidiary. This showS the company now has greater growth potential for coming quarters. Fronken,supermax, globetronics all showed similar transformation pattern before make super advances in prices.

Posted by Alpha Trader > 2015-04-28 23:34 | Report Abuse

Peiyen, i agree with you, unisem could possibly make more than rm120m for the year, maybe rm150m, could well worth rm3.20 but rerating will come next quarter, the company is paying down its debt damn fast, margin expansion for better product mix, totally a good stock to hold

Posted by peiyen2006 > 2015-04-28 23:36 | Report Abuse

The price will soon reflect the good result to close the gap for a growth stock

Posted by johnny cash > 2015-04-29 08:16 | Report Abuse

A strong start
Unisem’s 1Q15 core net profit was slightly ahead of our expectation at 25% of
our full-year estimate, but in line with consensus at 21%. Unisem posted a
RM21.5m core net profit in 1Q15 vs. RMo.1m core net loss in 1Q14 on the back
of a higher utilisation rate and improving product mix from advanced
packages. Management’s guidance of a 10-15% sequential revenue growth for
2Q15 due to robust demand from wafer-level chip scale package (WLCSP) and
bumping services for the communication segment was a positive surprise for
us. As such, we raise our FY15-17 EPS forecasts by 6-20% and increase our
target price to RM2.65, based on 17x CY16 P/E, 1 s.d. above its historical mean.
Sustainable margin improvements and a higher dividend payout are potential
catalysts that support our Add rating.
1Q15 results review
Revenue grew by 22.8% yoy from RM228m to RM280m due to higher
utilisation rates, robust demand from advanced packages, and the
strengthening USD against the ringgit. Unisem’s strategy on higher margin
packages is also gaining traction given the expansion in EBITDA margin, which
grew by 4.9% pts to 24.6% in 1Q15 vs. 19.7% in 1Q14 on the back of improving
earnings quality and better operating efficiency following the cost
rationalisation exercises carried over the past two years. Unisem posted a
significantly higher core net profit of RM21.5m in 1Q15, after adjusting for a
RM2m gain on asset disposal, compared to a RM0.1m core net loss in 1Q14.
Demand to pick up from 2Q onwards
Management is guiding for a 10-15% sequential revenue growth in 2Q15, driven
by robust demand for its leadless, wafer-level package and test segment which
have exposure in the smartphone segment. Meanwhile, we also expect the
recovery in seasonal demand to help boost its utilisation rates in 2Q15. We
think this is still reasonable as the industry is expected to grow at about a 6-7%
level in 2014. Unisem is allocating about RM100m for capex in FY15 driven by
expansion in its bumping and WLCSP production capacity.
Maintain Add
A sustainable margin recovery, higher dividend payouts and a stronger
contribution from the smartphone and automotive segments could be catalysts.

Posted by johnny cash > 2015-04-29 08:17 | Report Abuse

Key takeaways from briefing
About 20-25 analysts and fund managers attended Unisem’s briefing at Menara
Hap Seng in Kuala Lumpur. The briefing was hosted by Unisem’s Chief
Operating Officer, Mr. Lee Hoong Leong, who sounded upbeat on the coming
quarter and second half outlook, driven by improving industry demand,
expansion in advanced packages capacity and better operating efficiency. The
company expects sequential revenue growth of 10-15% in 2Q15.
Management’s high level of enthusiasm was a positive surprise for us, even
though we agree that Unisem’s strategy of moving into higher-margin packages
is gaining traction and is supported by its lean operating structure. Unisem is
expecting an 8-10% revenue growth in FY15, higher than the 5% in FY14. We
believe this is reasonable given that industry research groups are still expecting
semiconductor industry sales to grow by 6-7% in FY15. Moreover, the company
should benefit from the robust demand in smartphone devices due to its
exposure to communication components such as RF switch, MEMS sensor and
Wi-Fi modules.
In addition, Unisem also plans to pare down its borrowings completely by FY15
and increase its dividend payout to reward shareholders as the company returns
to profitability. We also expect a further improvement in Unisem’s operating
efficiency from the lean operating structure, following the cost rationalisation
exercises that were carried over the last two years.
Expansion in bumping and WLCSP production capacity
The company is allocating about RM100m for capex in FY15 driven by the
expansion in its bumping and WLCSP production capacity. Unisem had already
spent about RM37.5m in 1Q15. Management said the wafer bumping utilisation
rate in 1Q15 was about 85%. Unisem expects to raise its wafer-bumping capacity
from 16k wafers/mth to 22k wafers/mth for its Ipoh plant and 7k wafers/mth to
12k wafers/mth for its Chengdu plant by 4Q15. In addition, the company is also
investing to increase its WLCSP production capacity from 5-6m units/day to 8m
units/day by the end of 2Q15. We think that Unisem is heading in the right
direction as it continues to invest in capacity for higher-margin packages.
Communication and consumer segments remain key drivers
The communications segment remains an important source of revenue growth
for Unisem given that it contributes about 32% of its total revenue. The
company expects to increase its smartphone content volume growth, driven by
new sensors application for smartphones. We also expect the increase in China
4G adoption to drive communication package demand. Communication
segment revenue in 1Q15 grew by 36% yoy from RM66m to RM90m. Meanwhile,
the consumer segment also reported a decent 14% growth yoy from RM62m to
RM70m. Overall, we see Unisem’s plans to reduce its exposure to cyclical
segments such as smartphones and tablets, and expand its automotive segment.
We think this as a good strategy for Unisem as it should provide stable income
growth given the long-term nature of this business.

Posted by johnny cash > 2015-04-29 08:18 | Report Abuse

target price by CIMB 2.65 from 2.50

Posted by Gji Gan > 2015-04-29 09:10 | Report Abuse

GOgogooo

Posted by Unbeatable Nick > 2015-04-29 09:47 | Report Abuse

why drop now?

Posted by gaussian > 2015-04-29 09:57 | Report Abuse

Sell on news

Posted by AhSeng > 2015-04-29 09:57 | Report Abuse

Buy for rumors, sell for news

Posted by gaussian > 2015-04-29 10:05 | Report Abuse

Don't worry it will drop more tomorrow

Posted by cipapo > 2015-04-29 10:50 | Report Abuse

whoa....a...profit buy laosai like mad....

Posted by gaussian > 2015-04-29 10:54 | Report Abuse

The syndicate is very good

Posted by runnerman > 2015-04-29 10:55 | Report Abuse

Relax....time to buy unisem ws

Posted by Unbeatable Nick > 2015-04-29 11:12 | Report Abuse

amazing how syndicate operate!

Posted by runnerman > 2015-04-29 11:16 | Report Abuse

After dis will fly higher....jgn takut harga turun....it manipulate

Posted by rmjkl > 2015-04-29 11:21 | Report Abuse

why fall like this? can anybody tell?

Posted by gaussian > 2015-04-29 11:23 | Report Abuse

It will touch 2.23 soon

Posted by gaussian > 2015-04-29 11:26 | Report Abuse

That's why the syndicate used foul language on me cos I know their game plan

Posted by gaussian > 2015-04-29 11:28 | Report Abuse

Where are they hiding now?

Posted by Gji Gan > 2015-04-29 11:30 | Report Abuse

Free fall ~~~~

Posted by flash777 > 2015-04-29 11:32 | Report Abuse

As long as retailers are still bullish on this stock, any rebound will b short lived

Posted by flash777 > 2015-04-29 11:55 | Report Abuse

As long as u dare to buy, syndicate is willing to distribute.

Posted by cheeseburger > 2015-04-29 12:00 | Report Abuse

the problem is no one dare now...hahahaha

Posted by ketupatlazat > 2015-04-29 12:05 | Report Abuse

results were good. what is wrong ?

Posted by runnerman > 2015-04-29 12:06 | Report Abuse

Collect low n sell high...pluang now...100% return

Posted by sg999 > 2015-04-29 12:18 | Report Abuse

good drop until rm1 let buybuybuy

Posted by speakup > 2015-04-29 12:20 | Report Abuse

Results good? Look properly. Results so so only.

Posted by chia88 > 2015-04-29 15:50 | Report Abuse

Where got good look like selling down deep.

Posted by gaussian > 2015-04-29 17:09 | Report Abuse

Tomorrow another round of blood bath...

Posted by 林俊松 > 2015-04-29 17:42 | Report Abuse

http://www.thestar.com.my/Business/Business-News/2015/04/29/Unisem-earnings-ahead-of-expectations/?style=biz

Posted by Alpha Trader > 2015-04-29 18:38 | Report Abuse

I stil thin can hold, rerating earnings, but pull back, weird

Posted by Unbeatable Nick > 2015-04-29 19:56 | Report Abuse

hopefully will rebound tmr......

Posted by gaussian > 2015-04-29 20:13 | Report Abuse

Tomorrow another 10 sen down

Posted by Unbeatable Nick > 2015-04-29 20:13 | Report Abuse

gaussian....can let it up 2-3 cents first or not....LOL

Posted by gaussian > 2015-04-29 20:18 | Report Abuse

Hahaha. .. can just 3 sen to cover the dealer commission. ..

Posted by gaussian > 2015-04-29 20:19 | Report Abuse

I also hope it will rebound as I bought a lot today to average it

Posted by Unbeatable Nick > 2015-04-29 20:19 | Report Abuse

lol

Posted by Unbeatable Nick > 2015-04-29 20:20 | Report Abuse

i averaged down too!

Posted by lwalk > 2015-04-29 20:24 | Report Abuse

results were okay. so there should be no cause for the drop...
staying on course!

Posted by alphajack > 2015-04-29 20:33 | Report Abuse

he he give discount to me buy he he he

Posted by optimusprime > 2015-04-29 20:37 | Report Abuse

Posted by alphajack > Apr 29, 2015 08:33 PM | Report Abuse

he he give discount to me buy he he he


thanks god u still alive!

have u checked whether your double degree in ivy league university certificate says COMPLETED?

WKAKAKAKAK

Posted by alphajack > 2015-04-29 20:39 | Report Abuse

wakakakaka you jelly bro... My Ifca still 6x profit. You mad?

Posted by optimusprime > 2015-04-29 20:41 | Report Abuse

happy for you. as long as you still alive.

Posted by chia88 > 2015-04-29 21:31 | Report Abuse

Market will fall tomorrow due to long holidays.................................................

Posted by alphajack > 2015-04-29 23:43 | Report Abuse

Make 500k until March and lose 100k in April from MYEG. It's ok la..it is life..cant win all the time. But Unisem I am confident can make another 50% from the warrant easily within 6 months

Posted by optimusprime > 2015-04-29 23:45 | Report Abuse

Posted by alphajack > Apr 29, 2015 11:43 PM | Report Abuse

Make 500k until March and lose 100k in April from MYEG. It's ok la..it is life..cant win all the time. But Unisem I am confident can make another 50% from the warrant easily within 6 months


again, go check your double major degree from ivy league to see whether i says "completed"

unisem-w expired in 3.5 month.

Posted by optimusprime > 2015-04-29 23:46 | Report Abuse

p.s, also please check carefully if u had made 500k (gain or loss)

wakakaka.


ok bro, i like to joke.