Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on IQE. We currently have 97 research reports from 8 professional analysts.
Chinese search giant Baidu is facing stiff competition from newer rivals and has seen over $60 billion of its value wiped off since its peak last year. At its peak in mid-May 2018, Baidu was worth around $99 billion - with its shares priced at $284. Stocks of the search giant have fallen to $96.7 a share with its market cap plunging to $33.8 billion. Baidu is part of China's internet trio - Baidu, Alibaba and Tencent - which have collectively been named "BAT." But it's facing an increasingly tough advertising market and has been falling behind the other two rivals.
Companies: Amino Technologies IQE
Nvidia Corp on Thursday said new high-end graphics chips for video gamers was bringing its core business back to "Normalized" levels and raising profitability, as the company posted quarterly results ahead of Wall Street targets, sending shares up 5% in extended trading. South Korean panel maker Samsung Display said on Friday it is considering suspending one of its liquid crystal display production lines at home due to a supply glut. Samsung Display, a unit of Samsung Electronics Co Ltd, currently operates two LCD production sites in South Korea and one in China. Applied Materials Inc beat Wall Street estimates for quarterly revenue on Thursday, but the chip gear maker cautioned that recovery in the memory chip market is unlikely before 2020. The company, whose results are often seen as a barometer for the semiconductor industry, said spending by memory chip customers was lower in the third quarter, compared with a year earlier.
Companies: ENET IQE TCM XPP CML
An official at China's central bank has said the institution is nearing the launch of its digital currency. Speaking at an event in China over the weekend, Mu Changchun, deputy director of the payments unit at the People's Bank of China, said its researchers have been hard at work since last year to complete the systems needed to support the digital yuan offering and that it is "Close to being out." The news was reported by Bloomberg on Monday.
Companies: AMO BGO BOKU IQE TECH
Japan's cabinet approved a plan to remove South Korea from a list of countries that enjoy minimum export controls, a move likely to escalate tensions fuelled by a dispute over compensation for wartime forced laborers. The decision to drop South Korea from the "White list," a step that has been protested fiercely by Seoul, comes a month after Japan tightened curbs on exports to South Korea of three high-tech materials needed to make memory chips and display panels. Apple stock dropped sharply after President Donald Trump said on Thursday that the US will put an additional 10% tariff on $300 billion worth of goods imported from China starting on September 1. The company assembles iPhones and other computers in China, making it vulnerable to price increases if a tariff were to be placed on Chinese exports, although it is unconfirmed which Apple products may be affected by the proposed tariff. The Pentagon has decided to put on hold its decision to award a $10 billion cloud computing contract after President Donald Trump said his administration was examining Amazon's bid following complaints from other tech companies. Oracle lobbied aggressively and expressed concerns about the award process for the contract, including asking about the role of a former Amazon employee who worked on the project at the Defence Department but then recused himself, then later left the Defence Department and returned to Amazon Web Services.
Companies: Amino Technologies IQE
After holding the title for more than a decade, Apple has been dethroned as the king of cash by Alphabet. The Google parent's holdings of cash and marketable securities, net of debt, topped $117 billion in the most recent quarter, exceeding Apple's recently reported cash pile of $102 billion, according to the Financial Times, which first reported the shift. British fintech firm Revolut is jumping into the online brokerage space with its own commission-free stock trading platform. The new service will allow users to buy a fraction of a share, with the minimum amount being $1 worth of stock. AMD reported mixed results in its earnings report Tuesday. The stock was down Wednesday as total revenue declined year over year, with the chipmaker blaming lower graphics channels sales and lower semi-custom product revenue for the declining revenue.
Companies: BGO BOKU CML EQLS ENET IQE TECH TCM XPP
IQE has recently announced the successful qualification, commencement of initial production and receipt of additional orders of wireless products destined for Asian supply chains, as well as the commencement of initial vertical cavity surface emitting laser (VCSEL) production for a second major customer at its new foundry in Newport. The share price has risen by 29% following the announcements, which demonstrate that IQE’s dominant position in the outsourced compound semiconductor epitaxy market gives resilience to reduced demand from individual customers.
Texas Instruments provided some relief that a global slowdown in microchip demand would not be as long as feared, posting quarterly profit and revenue that beat Wall Street estimates on Tuesday. Shares of the company rose 6.4% to $127.70 in extended trading and were on track to open at a record high on Wednesday.
The US Department of Justice said on Tuesday that it's opening a broad antitrust review of big tech companies, sending shares of Amazon, Alphabet and Facebook lower in extended trading. While the DOJ didn't disclose specific company names, it's launching the review based on "New Washington threats" from Facebook, Google, Amazon and Apple, according to a report by the Wall Street Journal. Snap shares surged more than 12% in after-hours trading on Tuesday after the app developer reported quarterly results that soared past analysts' estimates. The company, which is the maker of Snapchat, posted a slimmerthan-expected loss for the second quarter while exceeding expectations for user growth and revenue. Texas Instruments provided some relief that a global slowdown in microchip demand would not be as long as feared, posting quarterly profit and revenue that beat Wall Street estimates on Tuesday. Shares of the company rose 6.4% to $127.70 in extended trading and were on track to open at a record high on Wednesday.
Microsoft yesterday beat analysts' estimates for fourth-quarter revenue and profit, driven by continued sales increases from its cloud business and sending its shares to all-time highs. Shares of CrowdStrike climbed as much as 7% on Thursday after the cybersecurity company reported earnings for the first time since its IPO. For the quarter, CrowdStrike's loss per share was in line with analysts' estimates and revenue was slightly better than expected. Apple will begin soon trial production of AirPods in Vietnam to circumvent tariff fees imposed on Chinese-produced goods by Trump Administration. By expanding production outside of China, Apple can reduce the expenses caused by tariffs put in place by the Trump Administration.
Companies: KAPE AMO IQE
Australia's top three banks said on Thursday they have agreed to partner with IBM and shopping mall owner Scentre Group to test blockchain technology to digitize bank guarantees. The companies are exploring how to move away from paper-based bank guarantees to cut processing time and the risk of fraud, Australia and New Zealand Banking Group, Westpac Banking Corp and Commonwealth Bank of Australia said in a statement. The US government said on Wednesday it was reviewing licence requests from US companies seeking to export products to China's Huawei "Under the highest national security scrutiny" since the company is still blacklisted. In an email to Reuters, the Commerce Department said that as it reviewed applications, it was applying the "Presumption of denial" standard associated with Entity Listed companies, meaning applications are unlikely to be approved. Symantec shares surged more than 20% in extended trading on Tuesday after Bloomberg reported that Broadcom is in advanced talks to acquire the security software vendor. The deal is reported to be worth more than $16bn, implying an EV/Sales multiple of 3.40x (Bloomberg). Agreement on a deal was close but could be delayed until after the July 4 holiday, according to people briefed on the move.
Companies: KAPE AVST CNS DFX ECSC FLX IGP NCC OSI SWG SOPH TECH AMO IQE
Companies: KAPE AMO IQE AVST CNS DFX ECSC FLX IGP NCC OSI SOPH
Huawei was granted a temporary reprieve as part of a broader accord between the Trump administration and the Chinese central government at a much-anticipated meeting between the countries’ leaders. The autonomous vehicle industry has two big challenges it needs to overcome before self-driving cars become widespread - technology and business models that can make money, according to Michelle Avary, head of autonomous mobility at the World Economic Forum. US chip gear maker Applied Materials on Monday agreed to buy Japanese peer Kokusai Electric for $2.2 billion from KKR & Co Inc, as it bets on rising demand for memory chips used in data centres, 5G phones and AI-powered devices.
Companies: AMO IQE TRAK SEE CPX TCM TRCS QTX
In this video CFO Tim Pullen, who joined IQE in February 2019, discusses his early impressions of the business as well as its medium- to longer-term outlook. He explains why management remains confident that there will be an inflection in demand for compound semiconductors and the initiatives that IQE has implemented across photonics/3D sensing, wireless and other applications to capitalise on this. He also discusses the benefits that management expects to generate from the optimisation and investment in the company’s manufacturing facilities, and the path to profitability and cash generation from here.
IQE has cut its FY19 revenue and profit guidance in response to reduced demand from wireless customers and an internal issue affecting a major photonics (not VCSEL - vertical cavity surface emitting laser) customer. Following a 25% share price fall, the shares are trading within the range created by photonics peers on most metrics.
Research Tree provides access to ongoing research coverage, media content and regulatory news on IQE. We currently have 97 research reports from 8 professional analysts.
|23Jul19 07:00||RNS-R||Wireless Qualification Update|
|30Apr19 07:00||RNS-R||IQE Unveils Advanced RF Filter Materials Portfolio|
|18Mar19 12:00||RNS-R||IQE participates in 5G communications project|
|12Nov18 16:40||RNS||Second Price Monitoring Extn|
|12Nov18 16:35||RNS||Price Monitoring Extension|
|29May18 16:00||GNW||IQE plc : Holding(s) in Company|
|15May18 16:00||GNW||IQE plc : Holding(s) in Company|
Arcontech has reported a strong set of FY19 results that have driven large but still conservative upgrades to our existing 2020 estimates. In this report, we also present an in-depth review of the Arcontech investment case, which we split into two parts. For Arcontech’s organic business, we expect that the company’s robust structural position can continue to deliver at least 6% revenue growth (FY19 +12%) and at least 7% EPS growth (FY19 +26%) in 2020-21. Meanwhile, we believe that Arcontech’s strong balance sheet creates a range of options for Arcontech as an acquirer or target, or could alternatively facilitate greater shareholder returns. We upgrade our price target to 200p based on 25x 2020 EPS, and Arcontech trades on 12m fwd multiples of 19x P/E, an EFCF yield of 3.8%, and a dividend yield of 1.4%.
Companies: Arcontech Group
Tencent shares slumped as much as 3.88% on Thursday after the Chinese technology giant missed analyst expectations, despite beating forecast on earnings. Revenue rose 21% year-on-year to 88.82 billion yuan. Profit attributable to shareholders beat analyst forecasts, rising 35% year-on-year to 24.14 billion yuan. The company's gaming division returned to growth, posting revenue of 27.3 billion yuan, up 8% year-on-year, with mobile games performing particularly well.
Companies: KAPE AVST BIDS CDM CNS DFX ECSC FLX FDEV GFIN IGP KWS NCC OSI SOPH SUMO TM17
Interims to June report performance in line with unchanged expectations. Our previous note title, “sunshine and Cloud”, remains appropriate: with targeted expansion in sales resources, the group has experienced 48% growth in the total value of pipeline deals since January, with all-time highs in volume of larger opportunities, within which SaaS business has expanded sharply. Against an unusually strong 1H comparative, we are confident of FY forecasts, tailored for 2H strength as well as increasing proportion of SaaS deals, which will also enhance multi-year visibility. Underlying commercial momentum is increasing in tandem with Sopheon’s earnings quality from growing recurring revenue (currently $15.3m ARR), as the use cases of the Accolade software product broadens and with it the sales funnel. Target 1,425p reiterated.
Wameja (formerly eServGlobal) is a direct 35.68% investment in the well-funded HomeSend (HS) JV with Mastercard, a partnership with a payment industry global leader in the $127 trillion cross-border payments market. The sale of the legacy business removes distraction and appeases risk, enabling focus on the value and opportunity in HS as payment platforms such as TransferWise and Monzo – cross-border in particular – see valuations soar. The 2Q update highlights strong growth and, with Mastercard backing, success is surely inevitable. Although patience may be required, Wameja is built for it and the longer the inevitable corporate action takes, the higher peer group multiples grow. With a fair value of 30-50p, we reiterate our 20p 12-month target price as the market gains awareness of value of the platform, in anticipation of a corporate event.
Sopheon’s interim results reflect a return to a stronger second half weighting, as flagged in July’s trading update – although EBITDA is $0.5m ahead of the number in that announcement. Alongside the delays in closing some license contracts in the first half, management reiterates the strength of the new business pipeline and the supportive underlying market conditions, and notes customers apparently reverting to a year-end buying pattern. With a sharp increase in the proportion of SaaS business in the pipeline – reflective of industry procurement trends - we expect to see higher recurring revenues over time (bringing greater visibility) and enhanced lifetime customer revenue. Chairman Barry Mence comments that the future prospects for Sopheon ‘have never been brighter’ when highlighting the positive trends for the Group in the outlook statement – and we note the pipeline and the long-term value being built within the growing SaaS business.
Converting new business opportunities into revenue is proving more challenging than we had anticipated and we are revising our forecasts following today's trading update. The deferral of business means the outlook for 2020E remains positive. We move our recommendation to Hold until we see momentum returning.
In January, we provided a list of 11 stocks for 2019 that we believed would perform strongly with attractive catalysts that could lead to material outperformance. In this Quarterly Research Outlook, we revisit these views, analysing what has happened and how the remaining six months of the year could play out.
Companies: AMS ANX ARS ATYM AVON BLVN PIER BUR CGS CAML CALL CSRT TIDE CYAN DTG DEMG ELM EMR FPO FST GTLY GENL GRI GEEC GKP HMI HAYD HEAD HILS HTG HUR HYR IBPO IOG INDI JHD JOG KAPE KEYS KCT KGH LAM LIT LOK MACF MANO PCA PANR PXC PHC PMO RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG SOM TWD TRAK TSG TRI VNET VTC ZOO ZTF
Bigblu has secured £12m in funding to accelerate the growth of its UK Fixed Wireless Access (FWA) subsidiary QCL. By combining this money with grants from BDUK and investment from internal cashflows, QCL expects to quadruple its subscriber base to 30,000 by November 2022.
Companies: Bigblu Broadband
A stronger than expected H2 means FY Mar 2019 earnings beat forecasts already upgraded with the post-YE trading update in April. We expect robust demand for data solutions to continue and we reiterate FY 2020 growth expectations. Note that IFRS15 adoption brought £1.7m revenue and £1.0m profit from FY 2018 (restated) into FY 2019, enhancing the growth rate. The 57% EPS growth was further skewed by a very low tax-rate in FY 2019. Thus revenue and earnings appear to fluctuate sharply. Underlying that, however, D4T4 is steadily growing revenue and maintaining margins, while simultaneously improving quality and reliability of earnings through term licences, PaaS and recurring revenue while also investing in US expansion. Overall, this is another year of excellent performance and we raise our TP to 310p in line with the sector.
Companies: D4T4 Solutions
ReAssure Group plc - The Group is a leading closed book life insurance consolidator in the United Kingdom with 4.3m policies, £68.7 billion of assets under administration on a Post-L&G Illustrative Basis. It is considering a premium listing segment of the main market. Voyager AIR The Company will focus on the acquisition, leasing and management of primarily widebody aircraft, with asset management services to be provided by Amedeo Limited he IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m· IMC Exploration Group (NEX: IMCP), focused on acquiring and exploring prospecting licence areas which have high potential for natural resource, is looking to admit its shares to the standard list and will withdraw for the NEX Exchange. TBC Uniphar, a diversified healthcare services business with a workforce of over 2,000, is looking to join AIM. Raise TBC, expected mid-July 2019
Companies: SRT CHH VELA CREO ASH MIRA ECO AQX ARCM DRV
The Juniper related pipeline is healthy but converting this into sales has been more challenging than anticipated. Management is also rebuilding the sales team in North America and overheads will consequently tick up this year. Corero's sales pipeline remains strong and growing but we revise our forecasts and move to Hold until we see sales traction returning.
Companies: Corero Network Security
This morning, Bango announced final results for the year to December 2018. During the period End User Spend (EUS) continued the trend of recent years and has more than doubled to £558.2m and revenue up 60% to £6.6m (FY18: £4.2m). Adjusted LBITDA improved to -£0.9m (FY18: -£1.6m), with positive EBITDA achieved during Q4/18. Following the Audiens acquisition in early 2018 and investment in further development, December 2018 saw launch of Bango Marketplace. This is a new business segment, adding a potentially significant and high margin revenue stream, monetising the extensive and growing amount of transactional data from the Bango Platform. There remains a growing pipeline of new MNO/App Store integrations and further Google Play upgrades, representing a significant pipeline of over US$4 billion in EUS.
Interims are in line with the positive trading update of 4 March, and unchanged expectations. As heralded, revenue of £19.1m (1H18: £18.1m) delivered EBITDA of £4.4m (£4.3m), all pre IFRS15, with a period-end net cash balance of £18.7m. Forecasts are unchanged even with IFRS15 adoption. Rail Technology & Services demonstrated the opportunity from TRACS Enterprise, with a five-year framework agreement with a major Train Operating Group responsible for several Train Operating Company franchises – in itself potentially significant as the contracts get underway, as well as highlighting the opportunity from further TRACS Enterprise deals. Traffic & Data Services, traditionally strongly 2H weighted in line with Traffic Survey timings and SEP’s summer events focus, benefited from the acquisitions of Compass and CTM in January, which will lift 2H revenue even further. As CEO (since 2004) John McArthur moves aside to focus on M&A, we look forward to acquisitions as well as the positive effect of incoming CEO Chris Barnes’s skill set in taking Tracsis onwards and upwards. Target 775p reiterated.
IMImobile have announced the acquisition of 3Cinteractive (‘3C’), a leading US-based messaging platform company for $53.2m (£42.8m) to be funded through a combination of new debt, an equity fundraise and consideration shares. The strategic rationale is compelling, accelerating IMImobile’s presence in the high-growth US market, consolidating a leading position in Rich Content Services (‘RCS’), and offering a number of cross-sell/ upsell opportunities and cost synergies. Based on our conservative assumptions the acquisition and placing will enhance earnings forecasts by 1% in FY’20E, rising to 11% in FY’21E. IMImobile’s EV/FY’20E proforma gross profit multiple of 2.7x looks compelling, and we see risks in forecasts to the upside.