The Woo Group Predicts Cyclical Turn of Semiconductor Equipment ...

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Nov 1, 2013 (3 years and 7 months ago)

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The Woo Group Predicts Cyclical Turn of Semiconductor Equipment
Manufacturer
Date: 09-11-2013 08:14 PM CET
Category:
Business, Economy, Finances, Banking & Insurance
Press release from:
The Woo Group
Jul. 24, 2013 - HONG KONG -- Ultratech (NASDAQ:UTEK) is a small company that produces a range of semiconductor
related products; the management identifies gaps in the market, and looks to take market share. Their core business is in
advanced packaging lithography, which is the case where the semiconductor is housed. These cases protect the chip from
impact and corrosion. Ultratech currently holds nearly 80% of the market share, and has been the market leader for the last
decade.
“Demand is constantly increasing in this sector as technology advances, demand for more advanced packaging increases as
well. The stock is clearly undervalued at the current price” said Anthony Scott, Technology Analyst at The Woo Group in
Hong Kong.
Another important operating sector for Ultratech is annealing. Silicon wafers are annealed, meaning that they are heated in
order to modify the electrical properties of the semiconductor. Traditionally this process was done in furnaces, but Ultratech is
developing laser spike annealing. This process allows the material to be heated to a much hotter temperature in far less time, it
is integral for the manufacturing of smaller semiconductors.
The semiconductor industry is extremely cyclical, and Ultratech is nearing the bottom and approaching the upswing. Ultratech
officials have recently stated the company expects a two quarter slow down as problems have occurred with the production of
the Company’s first generation new types of semiconductor. Manufacturers are therefore hesitant.
“Whichever new product they choose, it is irrelevant for Ultratech, as their systems will be needed no matter what decision is
made, so this slowdown can be seen as a temporary window of opportunity for investment” said Dr. Lian Cheung, Head of
Investment Analysis.
“Recently there have been a number of acquisitions in the semiconductor equipment sector, and I believe that Ultratech will
receive purchase offers from larger competitors especially if their laser spike annealing technologies become the industry
standard. I am expecting them to hit their upswing early next year with share prices increasing more than 40% from their
current prices. I will be recommending my clients to buy in the coming weeks as Ultratech has not quite reached the bottom of
their cycle, said Dr Lian Cheung.
About The Company
The Woo Group is privately owned and funded by the Woo family here in Hong Kong, we have no shareholders or investors.
The Woo Group was established in 2002 by the founding fathers Jon and Jason Woo, of the Hong Kong Woo family, whose
enormous wealth and expertise in the financial industry ensured immediate success, which The Woo Group continues to enjoy
today.
In its infancy The Woo Group employed only 15 members of staff, a number that has now grown to over 800 making The
Woo Group the largest, not to mention most prestigious equity research house in Hong Kong.
The Woo Group is privately owned and funded by the Woo family here in Hong Kong, we have no shareholders or investors.
The Woo Group
Two International Finance Centre,
8 Finance Street,
Seite 1 / 2
Hong Kong 999077
Tel: +852 5808 0780
Fax: +852 3006 291
Email:
contactus@thewoogroup.com
Website:
www.thewoogroup.com/
You can find this press release here
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