OREANDA-NEWS. March 12, 2015. Last week the Semiconductor Industry Association announced that worldwide sales of semiconductors reached \\$28.5 billion for the month of January 2015, the industry’s highest-ever January total and an increase of 8.7% from January 2014 when sales were \\$26.3 billion. This followed on from record-setting sales in 2014. As noted in the January Market Update – Recent Highlights in the Semiconductor Sector – this association defines a semiconductor defines a semiconductor as a microchip that can control all modern electronics) and the Internet-of-Things and security are the two key challenges faced by the industry (click here to view).

Within the Information Technology (IT) Sector, semiconductor-categorised companies are either manufacturers of semiconductors, semiconductor equipment or the related products. This is according to the Global Industry Classification Standard GICS®.

Singapore Exchange (SGX) lists more than 90 stocks that are categorised to the IT sector. Within the IT sector, there are 13 stocks that are classified to the Semiconductors & Semiconductor Equipment industry. These 13 stocks have a combined market capitalisation of S\\$1.8 billion and they averaged 17.9% gain in the year thus far.

The five largest capitalised Semiconductors stocks are – Stats ChipPAC, UMS Holdings, CDW Holdings, Micro-Mechanics Holdings, and Global Testing Corporation. They have a combined market capitalisation of S\\$1.6 billion and averaged a 12.1% gain in the year thus far. The five stocks also maintain a dividend yield of 4.6%.

The five best performing Semiconductors stocks in the 2015 year thus far were Manufacturing Integration Technology (+72.7%), Global Testing Corporation (+37.9%), Smartflex Holdings (+25.7%), Avi-Tech Electronics (+21.6%), and Ellipsiz (19.1%).

Details of the 13 Semiconductors stocks are listed in the tables below – please note that the table is sorted according to market capitalisation.

Company Name SGX Code Mkt Cap S\\$M % Total Return YTD % Total Return. [1 Year] % Total Return [3 Years] % Total Return [5 Years] Dvd Yld (%)
STATS ChipPAC Ltd. S24 1,090.1 3.1 57.1 0.0 -35.3 -
UMS Holdings Limited 558 225.3 2.9 11.3 81.2 519.4 11.4
CDW Holding Limited D38 90.2 12.4 50.0 180.4 357.9 8.7
Micro-Mechanics (Holdings) Ltd. 5DD 89.7 7.2 19.5 95.2 - 4.7
Global Testing Corporation Limited G31 89.1 37.9 75.0 110.0 68.0 -
Ellipsiz Ltd E13 59.7 21.7 34.7 24.2 20.7 3.7
Manufacturing Integration Technology Ltd. M11 34.5 72.7 121.4 58.6 20.0 3.2
ASTI Holdings Limited 575 32.7 -2.1 -7.4 -17.8 -22.3 0.0
Avi-Tech Electronics Limited CT1 30.8 21.6 36.4 - -40.1 6.7
Smartflex Holdings Ltd. 5RE 27.8 25.7 184.5 - - 3.2
AEM Holdings Ltd. A10 20.0 - -43.0 -27.3 62.4 0.0
Advanced Systems Automation Limited 5TY 10.5 0.0 -55.6 -83.9 -93.6 -
CPH Ltd. 539 7.4 - -25.0 -14.3 -65.7 -

Source: S&P Capital IQ (Data as of 10 March 2015)

Company Name SGX Code Mkt Cap S\\$M % Price Change YTD 30 Day Moving Average (SGD) Last Close (SGD) 52 Week Low Price (SGD) 52 Week High Price (SGD)
STATS ChipPAC Ltd. S24 1,090.1 3.1 0.483 0.495 0.310 0.775
UMS Holdings Limited 558 225.3 2.9 0.519 0.525 0.480 0.580
CDW Holding Limited D38 90.2 12.4 0.190 0.190 0.130 0.200
Micro-Mechanics (Holdings) Ltd. 5DD 89.7 4.0 0.645 0.645 0.515 0.690
Global Testing Corporation Limited G31 89.1 37.9 0.096 0.120 0.068 0.130
Ellipsiz Ltd E13 59.7 19.1 0.096 0.112 0.081 0.118
Manufacturing Integration Technology Ltd. M11 34.5 72.7 0.136 0.152 0.046 0.164
ASTI Holdings Limited 575 32.7 -2.1 0.053 0.047 0.044 0.062
Avi-Tech Electronics Limited CT1 30.8 21.6 0.089 0.090 0.056 0.094
Smartflex Holdings Ltd. 5RE 27.8 25.7 0.189 0.220 0.070 0.225
AEM Holdings Ltd. A10 20.0 - 0.047 0.045 0.040 0.081
Advanced Systems Automation Limited 5TY 10.5 0.0 0.004 0.004 0.004 0.013
CPH Ltd. 539 7.4 - 0.006 0.006 0.005 0.011

Source: S&P Capital IQ (Data as of 10 March 2015)

STATS ChipPAC

STATS ChipPAC, together with its subsidiaries, provides semiconductor packaging design, bump, probe, assembly, test, and distribution services for communications, digital consumer, and computing market applications. The company markets its services through direct sales force in the United States, South Korea, Japan, China, Singapore, Malaysia, Taiwan, and Switzerland. STATS ChipPAC Ltd. was founded in 1994 and is headquartered in Singapore. STATS ChipPAC operates as a subsidiary of Singapore Technologies Semiconductors Pte Ltd.

On 29 January 2015, the company reported their revenue for the quarter ended 28 December 2014, increased by 3.0% to US\\$ 406.7 million year on year. The company attributed the improvement to higher wireless communications revenue driven by new high-end smartphone ramps and stronger than seasonal demand in China lower tier smartphones (click here to view more). A week earlier on 22 January 2015, the company also announced that it has acquired 100% of the issued and paid up capital of Bloomeria Limited, a public limited company incorporated in Singapore, for total cash consideration of S\\$2.00 (click here to view more).

STATS ChipPAC has a market capitalisation of S\\$ 1.1 billion. The five biggest substantial shareholders of STATS ChipPAC are Singapore Technologies Semiconductors, Phillip Capital Management (S), Mariana Jusuf, Morph Investments, and Maybank Asset Management Sdn Bhd.

UMS Holdings

UMS Holdings manufactures and sells high precision front-end semiconductor components; and offers electromechanical assembly and final testing services. It operates in two segments, Semiconductor and Contract Equipment Manufacturing (CEM). The Semiconductor segment provides precision machining components and equipment modules for semiconductor equipment manufacturers. The CEM segment supplies base components to oil and gas original equipment manufacturers. It primarily operates in Singapore and the United States, as well as in the People’s Republic of China, Poland, Malaysia, Taiwan, and South Korea. UMS Holdings Limited was incorporated in 2001 and is headquartered in Singapore.

On 26 February 2015, the company announced their revenue for the quarter ended 31 December 2014, decreased by 36% to S\\$ 22.1 million year on year. The company attributed this to the drop in performance noted in the semiconductor industry towards the later part of FY2014 (click here to view more).  

UMS Holdings has a market capitalisation of S\\$ 225.3 million. Shares in the stock will go ex-dividend on 5 May 2015, distributing S\\$ 0.02 + S\\$ 0.01 per share. The five biggest substantial shareholders of UMS Holdings are Luong Andy, Morgan Stanley Investment Banking and Brokerage Investments, Applied Ventures LLC, Phillip Capital Management (S), and Dimensional Fund Advisors LP.

CDW Holding

CDW Holding produces and supplies precision components for mobile communication equipment, gamebox entertainment equipment, consumer and information technology equipment, office equipment, and electrical appliances. The company operates through three segments: LCD Backlight Units, Office Automation, and LCD Parts and Accessories. The company primarily operates in the People’s Republic of China, Hong Kong, and Japan. CDW Holding Limited was founded in 1991 and is headquartered in Shatin, Hong Kong.

On 27 February 2015, the company reported their gross profit for the quarter ended 31 December 2014, increased by 1.5% to US\\$ 10.5 million year on year (click here to view more). On 27 January 2015, the company also announced that the company’s wholly-owned subsidiary, Crystal Display Components (Shanghai) Co., Limited (“SHCD”) has on 27th January 2015 entered into an Investment Master Agreement together with 6 other third parties, namely Suzhou Pengfu Photoelectric Technology Company Limited (Pengfu), Mr Teng Zhonghua, Mr Peng Disheng, Mr Fu Tingshui, Shanghai Jingjia STEP Investment Center and Mr Deng Changguo. Upon the completion of the Agreement, SHCD shall hold a total of 25% equity interest in Pengfu (click here to view more).

CDW Holding has a market capitalisation of S\\$ 90.2 million. Shares in the stock went ex-dividend on 2 September 2014, distributing US\\$ 0.005 per share. The five biggest substantial shareholders of CDW Holding are Yoshimi Kunikazu, OSK International Asset Management Sdn Bhd, DBS Group Holdings Asset Management Arm, Lion Global Investors Limited, and Lim & Tan Securities, Asset Management Arm.

Micro-Mechanics (Holdings)

Micro-Mechanics (Holdings) designs, manufactures, and markets high precision tools, parts, and assemblies for the semiconductor, medical, aerospace, and other high technology industries. The company operates in six segments: Singapore, Malaysia, Philippines, Thailand, USA, and China. In addition to semiconductor tools, the company manufactures precision parts and assemblies on a contract basis for OEMs. Micro-Mechanics (Holdings) Ltd. was founded in 1983 and is based in Singapore.

On 31 January 2015, the company reported their net profit for the quarter ended 31 December 2014, increased by 96% to S\\$ 2.7 million. The company attributed the sterling improvement to the back of revenue growth of 23.0% to S\\$12.9 million, higher gross profit margin of 54.7% and a tight rein on overhead expenses. Micro-Mechanics’ results were also lifted by an improved performance of its semiconductor tooling division (click here to view more).

Micro-Mechanics (Holdings) has a market capitalisation of S\\$ 89.7 million. Shares in the stock went ex-dividend on 5 February 2015, distributing S\\$ 0.01 + S\\$ 0.01 per share. The five biggest substantial shareholders of Micro-Mechanics (Holdings) are Sarcadia LLC, Borch Christopher Reid, Low Ming Wah, Mawer Investment Management, and Chow Kam Wing.