China Wafer Level CSP Co., Ltd. (603005.SS) $603005.SS #China #Stocks #Semiconductors Good Value Stock Worth Looking At
Rise in demand for miniaturization of devices and improved system performances and optimization of advances packaging drive the global advanced packaging market
China Wafer Level CSP
Ticker: 603005.SS
Price: CNY78.50
Recommendation: Strong Buy
Sector Outlook
The global advanced packaging industry was pegged at $29.42 billion in 2019, and is anticipated to hit $64.19 billion by 2027, growing at a CAGR of 10.2% from 2020 to 2027.
Rise in demand for miniaturization of devices and improved system performances and optimization of advances packaging drive the global advanced packaging market. However, high cost of advanced packaging hampers the market growth. On the contrary, emerging trends of fan-out wafer level packaging would open new opportunities for the market players in the coming years.
COVID-19 scenario: The novel coronavirus pandemic has had a significant impact on the packaging industry.
- The market is likely to suffer during the pandemic due to disruptions in the supply chain, economic restraints, and paused manufacturing procedures.
- The shutdown of other supporting sectors including electronics, automotive, industrial, and aerospace have resulted in declined demand.
The fan-out WLP segment to manifest highest growth through 2027
Based on type, the fan-out WLP segment is expected to register the fastest CAGR of 14.0% during the forecast period. This is due to its significant technical advantages, which has led to its huge commercialization. On the other hand, the flip-chip ball grid array segment held the largest share in 2019, accounting for nearly one-third of the global advanced packaging market. This is due to the applications it offers including chipsets for PC, servers, microprocessors for PC & servers, memory, network products, and cellular base stations.
Business Summary
China Wafer Level CSP Co., Ltd is a China-based company principally engaged in the packaging and testing in sensor industry.
The main products of the Company include image sensor chips, environment light sensor chips, biometric identification chips, microelectromechanical systems (MEMS), environment light induced chips, medical electronics and radio frequency chips, among others.
The Company’s products are applied in various areas, such as consumer electronics, including mobile phones, computers, cameras and game consoles; security monitoring; identification; automotive electronics; virtual reality; smart cards and medical electronics.
The Company distributes its products primarily in overseas markets.
Shayne Heffernan Trade Idea
“Our current price target of China Wafer Level CSP will come in around CNY91.35 giving the stock a price increase of +14.52%.”
Price Performance
Relative Valuation
Technical Indicators
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 67.60.
The projected upper bound is: 87.34.
The projected lower bound is: 72.72.
The projected closing price is: 80.03.
Candlesticks
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support.
Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white candles.
Momentum Indicators
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
Stochastic Oscillator
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 89.6600. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 18 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 68.20. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 82 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 240.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 period(s) ago.
MACD
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 10 period(s) ago.
Rex Takasugi – TD Profile
CHINA WAFER closed up 4.670 at 79.580. Volume was 28% below average (neutral) and Bollinger Bands were 44% narrower than normal.
Open High Low Close Volume 74.750 80.020 74.150 79.580 15,957,170
Technical Outlook Short Term: Overbought Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 71.11 68.20 45.96 Volatility: 62 67 92 Volume: 16,884,186 17,020,234 21,491,880
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
Summary
CHINA WAFER is currently 73.2% above its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods.
Our volume indicators reflect moderate flows of volume into 603005.SS (mildly bullish). Our trend forecasting oscillators are currently bearish on 603005.SS and have had this outlook for the last 20 periods.
China Wafer Level CSP Co., Ltd. (603005.SS) Good Value Stock Worth Looking At added by HEFFX on
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