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GlobalWafers Co Ltd 6488

Morningstar Rating
TWD 555.00 +7.00 (1.28%)
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Company Report

SAS and GlobalWafers' Earnings Underwhelm, but the End of the Tunnel Is Near

After raising our long-term forecasts, we lift our respective fair value estimates for GlobalWafers and its parent Sino-American Silicon, or SAS, to TWD 710 per share from TWD 590, and to TWD 281 from TWD 227. Our long-term view is more bullish as the group has a clearer plan for financing its US expansion—making it more likely to enjoy a monopoly in US advanced wafer supply while rivals balk at having new US sites. SAS is undervalued and is our favorite in the sector, while GlobalWafers is fairly valued, in our view. We think the market remains worried about the current inventory correction and has overlooked the prospects regarding artificial intelligence beyond the cutting edge. The group’s expansion in the US and Japan remains on schedule.

Price vs Fair Value

6488 is trading at a 20% discount.
Price
TWD 565.00
Fair Value
TWD 544.00
Uncertainty
High
1-Star Price
TWD 5,915.60
5-Star Price
TWD 785.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

GlobalWafers’ diversified geographical presence gives it an edge in transportation costs.

Bears

Chinese entrants like National Silicon Industry Group will limit industry profitability once they scale up 300mm wafer production.

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Trading Information

Previous Close Price
TWD 545.00
Day Range
TWD 545.00558.00
52-Week Range
TWD 447.00639.00
Bid/Ask
TWD 555.00 / TWD 556.00
Market Cap
TWD 242.04 Bil
Volume/Avg
3.5 Mil / 2.2 Mil

Key Statistics

Price/Earnings (Normalized)
14.39
Price/Sales
3.54
Dividend Yield (Trailing)
3.15%
Dividend Yield (Forward)
3.15%
Total Yield
3.15%

Company Profile

GlobalWafers is 51.14%-owned by Sino-American Silicon Products Inc, after being spun off in 2011. The main source of the company’s revenue is selling silicon wafers to chipmakers like Taiwan Semiconductor and Texas Instruments. It also derives sales from nonsilicon wafers and green energy. GlobalWafers runs 17 production sites in nine countries across Asia, North America, and Europe. GlobalWafers is headquartered in Hsinchu, Taiwan, and employs over 7,000 people. GlobalWafers had nearly 18% market share in silicon wafers in 2023.
Sector
Technology
Industry
Semiconductors
Stock Style Box
Large Core
Total Number of Employees
657

Competitors

Valuation

Metric
6488
SOI
3436
Price/Earnings (Normalized)
14.3919.3214.35
Price/Book Value
3.643.071.46
Price/Sales
3.544.451.90
Price/Cash Flow
10.7214.666.76
Price/Earnings
6488
SOI
3436

Financial Strength

Metric
6488
SOI
3436
Quick Ratio
1.062.721.21
Current Ratio
1.213.512.28
Interest Coverage
36.5814.58117.04
Quick Ratio
6488
SOI
3436

Profitability

Metric
6488
SOI
3436
Return on Assets (Normalized)
9.87%9.76%9.71%
Return on Equity (Normalized)
28.87%17.64%16.69%
Return on Invested Capital (Normalized)
14.32%12.11%11.90%
Return on Assets
6488
SOI
3436
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