Technology
Following a protracted downturn from 3Q22 to 3Q23, Parade has witnessed a recovery back to positive Y/Y revenue growth. During 1H24 revenue was up +24% Y/Y driven by both its Display Port and its High-Speed Interface Solutions segments, while gross margin has stabilised at c.43%. Parade remains one of the higher-quality EM IT companies and finished Q2 with NT$10.1bn net cash (16% of its Market Cap). In this report, Wium Malan analyses the group’s revenue growth outlook, margin expectations, dividend payout ratio optionality and current valuation level.
Edition: 193
- 23 August, 2024
Technology
Can the stellar share price performance continue? This is a high-quality fabless semiconductor company, with significant revenue growth, generating returns well above its cost of capital, a net cash balance sheet, and an attractive sustainable dividend. Although current valuation levels are above historical average levels, Wium Malan expects a continuation of the earnings upgrade cycle to provide a positive share price catalyst. The stock is also likely to see large passive inflows following the MSCI November Semi-Annual Index Review.
Edition: 122
- 29 October, 2021