WAF GR

Siltronic AG

TMT


Presented:05/09/2024
Price:€73.10
Cap:$2.44B
Current Price:€61.05
Cap:$2.04B

Presented

Date05/09/2024
Price€73.10
Market Cap$2.44B
Ent Value$3.66B
P/E Ratio15.48x
Book Value€65.17
Div Yield0%
Shares O/S30.00M
Ave Daily Vol59,348
Short IntN/A

Current

Price€61.05
Market Cap$2.04B
Siltronic AG engages in the manufacture of semiconductor silicon wafers made from hyper pure silicon. Its products include polished wafers, epitaxial wafers, and special wafers. It operates through the following geographical segments: Germany, Europe excluding Germany, United States, Taiwan and (Mainland) China, South Korea, and Asia excluding Taiwan, (mainland) China and South Korea. The company was founded in 1953 and is headquartered in Munchen, Germany.

Publicly traded companies mentioned herein: Applied Materials Inc (AMAT), Samsung Electronics Co Ltd (005930 KS), Siltronic AG (WAF GR)

Highlights

The presenter is long shares of Siltronic AG (WAF GR), a European provider of wafers, noting that wafers trade at a ~90% correlation with DRAM on a one-year lag, and DRAM is currently increasing. The stock is range-bound between 1x – 2x BV and currently trades at 1.2x BV. While it could remain around this level for the next 6 months, wafer supply will tighten once the semiconductor cycle picks back up, driving prices and margins and allowing the stock to rerate closer to 2x BV (equivalent to ~10x mid-cycle EBIT). Based on this analysis, he sees 100% base case upside and 10% bear case downside from the current €74 share price.

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Idea Discussion

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