The overlooked second-order beneficiary of the memory supercycle.
Trading with a 6% dividend yield
This company is simple to understand.
The market is treating it as if future growth is unclear, but its not because the business is sitting in a tailwind created by the expansion of capacity of RAM memory by SK Hynix, Samsung, and Micron.
-Second-order beneficiary of the RAM shortage.
-Growing topline revenue at double digits.
-Two segments growing at 30%+ annually with customers like Meta, and now recently Google. A subsegment expected to double shipments this year.
-6% dividend yield.
-It trades at low multiples. PE 12~ (Below its historical average).
-Its biggest revenue segment is currently supressed, partly due to a slowdown in the sale of laptops- because of the rise of memory prices, not an actual demand destruction of laptops.
-The business itself is also evolving to one with more of a qualification moat.
As the other segments experience 30% and double digit growth you get a more diversified company- and when their biggest segment bounces back eventually you will most likely have growth from every product.
This is not a moonshot. And its Moat is not impenetrable, but it’s an undervalued company based on three factors:
1- Future Growth in memory will clearly benefit them.
2- Growth is deviating towards higher-margin segments.
3- Valuation is below historical mean, and this doesn’t take into account point 1 and 2.