Lavella network is a bangalore based startup company where ASM tech has both equity investment and working partnership.
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Hi
Any update whether ASM is into manufacturing of semiconductors
Also it is mentioned that they have Expanded this year in geographies like taiwan and Vietnam.
I believe both these countries are into manufacturing of semiconductors
So whether ASM has taken any stake in any such manufacturing company??
Thanks
ASM Tech AGM Notes
“Last year we have ventured into semi conductor equipment / electronics equipment segment. We have been doing the design part, now we will do design led prototype and manufacturing in this space”.
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This semi conductor thing is a new development. I have not much idea what they intent to do here.
Let us wait for a conference call to discuss these things.
Expanding to Semi conductor design/prototype development etc not a new thing for indian IT companies.
Look at some of the past deals.
In the case of ASM tech, we should focus how they are scaling up their EnggRnD segment (apprx 40-50% of current revenue) and digital revenue (25 cr).
That is where we should focus as of now.
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The semiconductor activities that is being talked about here - there are 2 aspects.
- Wafer manufacturing involving fabs (fabs costing $500 million - $6-7 billion.) Each wafer is a 12" disc where same design is printed as many times as design size allows . Then each design printed on wafer is cut out for packaging. Each cut is called die. Each die needs to packaged
- Wafer packaging - relatively cheaper equipment where each die is coated fully with resin to protect the die from impurities / atmosphere but with lead wires connecting the die to external world i.e PCB or printed circuit board. There are litterally 100s of types of packaging (Wirebond / Flipchip /WLCSP) but they are usually about a few main types.
For ASM,
(1) above can be ruled out. They arent many fabs in India.
(2) is likely. It is mentioned in their website. I also have a fair bit of exposure to this field professionally.
if there are any technical questions, I can strive to answer. Honestly, I have been trying to contribute to this forum but I havent had a chance. I am an out and out engineer and finance area is new to me. I am hoping to learn and catchup but I am unfortunately caught up work-wise in the world wide chip shortage saga .
please advise if above is usefull. Will delete if not appropriate.
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The company looks like an interesting prospect for investment. Thanks everybody for their detailed posts.
The company sold off a division in 2016, which resulted in big decrease in revenue from the next year. However, ignoring the above reduction in revenue, I have a question. The company has not shown consistent growth in the past. Besides the tailwinds in the target sectors, what are the reasons to believe that the future will be appreciably better than the past performance? One can claim that tailwinds have been there in these sectors even in the past.
The company looks very interesting if we can form conviction that the future performance will be better.
Disc: Not invested but interested.
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Very difficult for a small company to scale up in EnggRnD segment. How we can expect large MNC companies to outsource RnD works to a small unknown company. There is a lot of trust factor involved. Winning a new client is extremely tough, this is evident from the fact that ASM had only 3 major clients till 2020.
But what is changing now.
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Semcon -a large EnggRnD company having large client base assures that they will support the ASM digital (semcon india) to scale up. Read semcon announcement and AR of that company in this regard.
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Recent client additions - pls see the AR of ASM tech.
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Some of the key investee/subsidiary companies have a pretty futuristic looking websites with inputs through blog.
https://www.formsandgears.com/
forms and gears have certain marquee clients like RE, Caterpillar, Cummins, Toshiba across different machine enabled industries.
Is it the subsidiary of ASM technology ??
Q1 result looks good to me.
Consolidated numbers given below.
Q1 fy 22 Q4 fy 21
Revenue 41.6 cr 40.8 cr
Ebitda 4.9 cr 4.2 cr
Ebitda% 11.8% 9.8%
Employee exp 28.2 cr 26.8 cr
PAT 3 cr 1.48 cr
Note : Not considering YOY numbers as they are not comparable due to aquisition etc.
Margin expansion inspite of further increase in employee expense is the best thing I seen in this result.
Dividend announced 1 Rs per share, out of 3 Rs EPS.
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Thank you sir for your response
Is there any management commentary
d4219378-1bd9-4b71-bfdc-c55eb1c4b65f.pdf (249.7 KB)
ASM Tech Board meeting on 22nd August for raising funds.
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11067C6B-0DD4-44BB-860C-158DB5733AAB-112936 (2).pdf (239.4 KB)
The Board of Directors has considered and approved raising of funds through issuance and allotment of equity shares of = 10 each (“Equity Shares”) to the eligible equity shareholders of the Company on Rights basis, on such terms and at such price and ratio as may be decided by the Board or a duly constituted committee of the Board at a later date, as on the record date (to be notified subsequently), for an amount aggregating upto = 15 crores, subject to receipt of regulatory/statutory approvals, in accordance with the applicable laws including the provisions of the , including Securities and Exchange Board ofIndia (Issue of Capital and Disclosure Requirements) Regulations, 2018, SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015 and the Companies Act, 2013
and rules made thereunder, as amended from timeto time (“Rights Issue”).
Note : Company not clarified the reason for this right issue.
Most likely for any expansion or aquisition sir ?? Your view on that … Plus not clarifications on to whom and at which price it’s alloted
I think we should wait for management commentary in this regard.
Right issue does for existing shareholders only at a discounted price to market price.