|Bid||N/A x N/A|
|Ask||N/A x N/A|
|Day's range||5.90 - 5.90|
|52-week range||4.44 - 5.90|
|Beta (5Y monthly)||0.77|
|PE ratio (TTM)||9.02|
|Forward dividend & yield||0.46 (7.74%)|
|Ex-dividend date||30 Mar 2021|
|1y target est||N/A|
(Bloomberg) -- A global semiconductor shortage has upended the supply of everyday devices from smartphones to gaming consoles to tech-dependent cars. With companies warning the issue may last into the second half, the fallout threatens to weigh on share prices for months to come.Since news broke in November that Apple Inc. faced a shortage of chips for its latest iPhone, warnings about the impact have been coming thick and fast. Truckmaker Volvo Group and electric-vehicle company Nio Inc. last week joined a long list of auto producers that have idled assembly lines.The lack of chips has been caused by booming demand for tech gear, in large part because of the pandemic, and winter weather in Texas and a fire in Japan have added to the problem. It’s been a boon for companies such as Applied Materials Inc. and Lam Research Corp. that produce the equipment semiconductor makers need to boost output.Here’s a look at the companies with the most at stake as the global chip shortage rages on, and how their stocks have been affected:AutomakersAuto stocks have come roaring back from their pandemic lows. Now both the chip shortage and concern over a resurgence of the coronavirus pandemic have pulled a Bloomberg index of global manufacturers down 14% from its Jan. 25 record high.Volvo Group slumped 7% Tuesday after saying it will have to suspend production due to the lack of semiconductors, while China’s Nio slid 4.8% Friday when it said it will stop output at a factory in Anhui province.A fire March 19 at a Japanese factory operated by Renesas Electronics Corp., one of the biggest makers of automotive chips, hit the industry hard. It triggered a 6.7% drop in General Motors Corp. shares over three days last week. In Japan, shares of Toyota Motor Corp., which touched a six-year high March 18, slumped 6.1% in the subsequent four sessions.“The automotive sector has arguably experienced the greatest level of disruption, with more and more OEMs either slowing production or closing manufacturing plants on a temporary basis,” said Thomas Fitzgerald, a fund manager at EdenTree Investment Management Ltd., referring to original equipment manufacturers.China’s Geely Automobile Holdings Ltd. slid 19% over three days last week after reporting disappointing earnings. Daiwa Securities cited the chip shortage in downgrading the stock and cutting estimates for this year and next. China is dealing with unrelated chip-supply issues of its own.READ, Chip Shortage May Put Market-Beating Rally at Risk: Taking StockSmartphones, Consumer ElectronicsBeyond the auto industry, it’s harder to tease out the stock market impact on companies that depend on semiconductors. Shares of Apple, for example, didn’t react in November to the impact of the shortage, and they’re up more than 5% since then. Smartphone maker Xiaomi Corp. slumped 4.4% Thursday after warning that parts shortages could slow its growth for the next few quarters.One positive aspect of the chip shortage: With demand for consumer electronics as strong as it is, it gives companies the power to raise prices and pass on higher costs, said Neil Campling, an analyst at Mirabaud Securities. “The share prices haven’t reacted particularly negatively to the news, and I think that’s because the important part is that you’re seeing a snapback in demand for these goods,” he said.Lenovo Group Ltd. said in August that its profit margins took a hit from the chip shortage, and in November it said it couldn’t fill all customer orders due to the lack of components. Still, demand for the company’s laptops is soaring because of purchases by people working at home, and the stock has doubled since August.Sony Corp. said last month it might be unable to fully sate demand for its new gaming console in 2021 because of production bottlenecks. The stock touched a 21-year high in February, though it’s dipped 8.2% since then.While Samsung Electronics Co.’s foundry business making chips for other companies benefits from the favorable supply-demand equation, the South Korean firm also has its own line of consumer products that are hurt. Samsung this month warned of problems, including the possible cancellation of the launch of its new Galaxy Note, one of its best-selling smartphone models.Makers of networking equipment also have been feeling the pinch. Analysts at Oddo BHF flagged a DigiTimes report that the lead times for deliveries of networking chips are extending to as long as 50 weeks, suggesting that the chip shortage has also reached the networking segment and will likely last into early next year.ChipmakersWhile automakers have struggled, the flip side of the semiconductor shortage is that the companies supplying those chips could see a boost to their business. Most semiconductor companies should report strong results for the first quarter and give good guidance for the second, said Janardan Menon, an analyst at Liberum Capital Ltd.“This is all great news for the semiconductor vendor,” Liberum’s Menon said by phone. “This kind of tightness -- of capacity utilization, rising prices, very, very strong demand -- invariably means that their results are very, very strong.”However, Menon cautioned that share prices may not follow, given the market is now worried that the peak of the semiconductor cycle is approaching.European auto chip supplier Infineon Technologies AG is up 12% for the year while STMicroelectronics NV has gained just 5.6%. In the U.S., Texas Instruments Inc. is up 15%, while NXP Semiconductors NV and ON Semiconductor Corp. have done better, up 25% and 24% respectively, versus the Philadelphia Semiconductor Index’s 11% rise.There are also broader winners from the shortages in the semiconductor industry, with chip foundries such as leader Taiwan Semiconductor Manufacturing Co. running at close to full capacity to try to keep up with the surge in demand. TSMC shares are down 12% from their record set Jan. 21 but are still up 11% on the year.Semiconductor-Equipment ManufacturersThe makers of equipment used to produce semiconductors are benefiting from the supply crunch as chipmakers rush to add capacity to their factories and governments concerned about national security risks are looking at measures to encourage local production. The combination has created a spending environment that some analysts say will benefit the industry for years.Applied Materials, the biggest equipment maker, has seen its shares double in the past six months, while Lam Research has gained 77% over the same period, nearly twice the return for the Philadelphia semiconductor index. ASML Holding NV is up 74%.TSMC committed to as much as $28 billion in capital spending in 2021, up from $17 billion the year before, while Intel Corp. unveiled a plan on March 23 to pour billions of dollars into production facilities.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- As Softbank Group Corp. tries to rebuild its reputation as a startup investor, the Japanese conglomerate will be able to point to several recent successes, including an obscure Chinese property startup that pulled off a blockbuster initial public offering.SoftBank invested $1.35 billion last November in a Beijing-based company called KE Holdings Inc., which went public this August. Shares in the company, also known as Beike, soared from offering through Sept. 30 to lift the value of SoftBank’s reported stake to $6.4 billion, a 375% return. KE’s stock is up another 20% since the quarter’s close.SoftBank founder Masayoshi Son is certain to highlight such winners when he announces quarterly earnings results on Nov. 9. The Japanese billionaire scored hits early in his career by backing Alibaba Group Holding Ltd. and Yahoo! Inc. But his reputation suffered from recent troubles at other startups, including the office-sharing firm WeWork, leading to record losses in the last fiscal year.“SoftBank is recovering from the worst,” Shinji Moriyuki, an analyst at SBI Securities Co. “Internet companies can lead to huge returns. It should be okay for SoftBank to find one company that will become like Alibaba in future.”SoftBank shares rose as much as 5.2% on Monday and have gained almost 50% this year.The KE investment, coupled with likely gains on several American tech giants, could help SoftBank surpass estimates for the second fiscal quarter. The company is expected to report 150.3 billion yen ($1.4 billion) of net income for the three months ended Sept. 30, according to the mean consensus by three analysts compiled by Bloomberg. It posted a 700 billion yen loss for the quarter a year earlier.Estimating earnings for the company has grown increasingly difficult as it moved away from the predictable telecom industry into complex financial instruments. The firm said in August it will stop disclosing its operating income as it doesn’t reflect gains from its securities investments and dividend.In October, Son talked up Beike at SoftBank World, an event he holds annually to explain the company and its startups. He highlighted how the company uses artificial intelligence to match buyers and sellers in the Chinese property market.“It is an awesome firm,” Son said, showing graphics to detail the company’s business. “It’s growing rapidly and posting huge profits already.”SoftBank has engineered a comeback this year after missteps with startups like WeWork and concerns about fallout from the coronavirus pandemic. It unveiled plans to sell 4.5 trillion yen in assets and buy back a record 2.5 trillion yen of its own stock, pushing shares to a two-decade high in October.The IPO market has also improved, opening the door for SoftBank portfolio companies to go public. ByteDance Ltd., the developer of the TikTok app and backed by Son, is considering a listing in Hong Kong, Bloomberg News reported. Even WeWork expects to revisit plans for an IPO after its disastrous attempt in 2019.“With investors getting used to the COVID-19 pandemic, unicorn stocks are appreciating,” Yoshio Ando, an analyst at Daiwa Securities Co., said in a report dated Oct. 26. “We expect Softbank Group’s profile to change dramatically this year. We look to the firm to navigate its way through a world unknown to investors.”WeWork’s New CEO Is Eyeing an IPO Again - After He Turns ProfitSoftBank also benefited from the Nasdaq’s strong third quarter. If it held its stakes in Netflix Inc., Amazon.com Inc. and 23 other U.S. firms disclosed in U.S. securities filings for the period, its paper gain would be about $570 million, according to calculations by Bloomberg. The return for those securities was 15%, compared with 11% for the index.Son has increasingly discouraged investors and analysts from focusing on quarterly profit -- one of the reasons he eliminated the disclosure of operating income. While profit was a reasonable indicator of performance when SoftBank was primarily a telecom operator, it’s less relevant as the company has evolved into an investment holding company, he has said.Accounting rules mean that investment gains or losses are treated differently on SoftBank’s income statements if they come from the Vision Fund or the parent company -- even though the effect on the company is essentially the same. He would prefer investors focus on the value of SoftBank’s holdings, like its stakes in Alibaba and KE Holdings, rather than net income.“What is more important is the shareholder value,” he said on the earnings call in August.(Updates with SoftBank shares in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.