The Woo Group Predicts Cyclical Turn of
Semiconductor Equipment Manufacturer
Hong Kong based equity researcher The Woo Group believes new
technologies developed by Ultratech will significantly boost earnings.
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
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
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.