ASM International

ASM International

Documents

081114 ASM Int'l - What will happen next after AMAT and FP pulled out? 081114 ASM Int'l - What will happen next after AMAT and FP pulled out?

What will happen next after AMAT and FP pulled out?

080606 ASM International - AMAT wants ALD and PECVD 080606 ASM International - AMAT wants ALD and PECVD

AMAT wants ALD and PECVD.

080617 ASM International - AMAT's right of first refusal 080617 ASM International - AMAT's right of first refusal

AMAT's right of first refusal.

080624 ASM International - buying time 080624 ASM International - buying time

ASMI – buying time. EGM postponed until 15 October.

080424 ASM International - change will take place, either way 080424 ASM International - change will take place, either way

Change Will Take Place, Either Way.

080818 ASM International - Chuck del Prado side-lined? 080818 ASM International - Chuck del Prado side-lined?

Chuck del Prado side-lined?

070928 ASM International - still negative front-end value despite change 070928 ASM International - still negative front-end value despite change

Still negative front-end value despite change.

080611 ASM International - white knight: a dream-scenario with a happy ending? 080611 ASM International - white knight: a dream-scenario with a happy ending?

White knight: a dream-scenario with a happy ending?

100519 ASM Intl. -to extend current dividend policy for at least two years 100519 ASM Intl. -to extend current dividend policy for at least two years

At the upcoming AGM on May 20th 2010, management of ASMI will propose to its shareholders to pass on all future dividends it receives from ASM PT to ASMI's shareholders for at least two years. Not only has the market not attached any value to the ASMI share will respect to the future steady and strong dividend payments, neither has it recognized the profit potential of the Front-end activities when the recovery of the capital spending on semiconductor equipment kicks in. In the next coming quarter we believe ASMI will convince investors it has successfully redesigned its Front-end operations and that it will not be a drag on the company's cash flow. With the impressive progress it has made lowering its cost base, we believe these activities will start to generate a solid cash flow. We continue to believe that the ASM International shares will continue to significantly outperform the market.

101215 ASMI - Closing the gap 101215 ASMI - Closing the gap

In this report we present three good reasons why we believe the negative value for the Front-end activities is unreal and should disappear: 1) positive cash flow should have positive valuation, 2) the ASM Int'l shares are a near clone of ASM PT share and 3) the Front-end activities are virtually negligible and for valuation purposes only the Back-end operations matter, i.e. ASMP PT's valuation. We reiterate our view that it is unreal that ASM Int'l trades at such a huge discount to ASM PT shares. This gap of EUR9.50 per share has and will be closed in the mid to short term.

080619 ASMI - has Mr. del Prado overplayed his hand? 080619 ASMI - has Mr. del Prado overplayed his hand?

Has Mr. Del Prado overplayed his hand?

090407 ASMI - wrap-up one on one 7 April 2009 090407 ASMI - wrap-up one on one 7 April 2009

Wrap-up company visit.

110118 ASM International - Merger proposal 110118 ASM International - Merger proposal

In our previous report we present three reasons why we believe the negative value for the Front-end activities is unreal and should disappear. In this report we would like to take it one step further, which could once and for all end the discussion about the negative value of ASM Int'l's Front-end activities. We like to propose a full merger between ASM Int'l and - its subsidiary - ASM Pacific Technology. A deal can be structured in such a way it will be beneficiary both to shareholders of ASM Int'l and ASM PT.

131205 ASM International | take note of the new node 131205 ASM International | take note of the new node

No. pages 12
Description ASM Int'l has maneuvered itself into a position whereby in the segment of most advanced ICs the semiconductor company cannot leave out doing business. When investments are made for nodes of 22 nm and 14 nm & below these companies need to use the ALD systems of ASM Int'l. However, the issue of its holding structure is still pressuring its valuation. If the company is willing to adjust its holding structure the valuation for the Front-end operations will move towards the peer group average. All in all ASM Int'l offers a lot of share price performance and much more if management of the company to tackle the issue of its holding structure.
Contents
  • new node era, new technology, new market leader
  • impact on ASM Int'l top line
  • implied valuation Front-end business turned positive
  • ample room for another repayment of capital in a fiscal friendly matter
  • downside risk ASM PT reduced significantly
  • valuation
  • conclusions

140311 ASMI | starting of strongly 140311 ASMI | starting of strongly


No. pages 8
Description The semiconductor industry is stepping up investments in the most advanced nodes. ASM Int'l has maneuvered itself into a position whereby in this segment semiconductor companies must deal with the company. This is reflected by its outlook statement which indicates that 14H1 profits will strongly beat 2013 full year profits. We remain enthusiastic about this investment case. However, there is a concern. What are the company's true intentions with its cash and near cash position?
Contents
     
  • 2013| partial disposal of ASM PT's interest and ALD breakthrough
  • excellent start of the year
  • profits to surge on the short term
  • profits continue to increase sharply on the long term
  • EV to EBIT(DA) multiples to drop sharply
  • shareholders not ranked as its most important stakeholder
  • capital repayment
  • dividend proposal
  • conclusions

141107 ASM Int'l | share buy back program, a start but not enough to overcome the undervaluation 141107 ASM Int'l | share buy back program, a start but not enough to overcome the undervaluation

No. pages 6
Description

Although we cheer management's announcement to execute a EUR100m share buy back program it will not structurally lift the company's - implied - valuation to peer group average, we argue. At year-end 2015, when the share buy back program has been completed, we foresee that net cash is back on the level when it started this program. To structurally lift ASM Int'l valuation to peer group average it needs to take more dramatical steps. As long as the company holds on to its 40% interest in ASM PT, it will continue to trade at a massive discount.

Contents
  • update earnings outlook
  • implied valuation
  • EUR100m share buy back
  • conclusions

150708 ASM International | capital structure determines investment case 150708 ASM International | capital structure determines investment case

No. pages 10
Description

Whether or not ASM Int'l will obtain a valuation multiple for its Front-end operations in line with its peers and will add another EUR1bn - some EUR15 per share -  in market capitalisation in the next couple of years to the implied valuation of these asset depends in full if the company's management will make a serious effort to return the excess cash in the amount of approx. EUR1.5bn to its shareholders. As long as it holds on to its substantial minority interest in ASM PT and its - mainly US Dollar dominated - cash pile, it will continue to trade at a significant discount to its peers.

Contents

1 another EUR1bn in implied EV for ASM Int'l's Front-end?
2 valuation multiple expanded but still below peer group average
3 normalized net earnings determined by three parameters
4 steps to bring its valuation in line with its peers
5 conclusion

160907 ASM Int'l | leading ALD player trading at EV to EBITDA of 3.5 160907 ASM Int'l | leading ALD player trading at EV to EBITDA of 3.5

No. pages 14
Description

On the back of the company's guidance for the remainder of the current fiscal year, investors lost their appetite holding ASM International shares. Its shares lost some 10% but the implied value of its front-end activities decreased by between 20% and 25%.

At the current share price we turn positive once again on ASMI's investment case. The company is trading at a very attractive multiple of 3.5 times EV to EBITDA, which represent a discount of approx 65% to its peer group. The considerable undervaluation of the company is confirmed by our discounted cash flow model.

At this moment we can only conclude that ASMI is heavily undervalued.

Contents

1 introduction
2 ASM International at a glance
3 implied enterprise value ASM International
4 earnings estimates for the next couple of years
5 ASMI's valuation multiples compared to its peer group
6 ASMI's DCF model
7 summary and conclusions
8 appendix

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