A handbook on ASEAN’s technology supply chain ecosystem. In this booklet, we present the players in the ASEAN technology competitive landscape. We have identified 46 players spanning across different sub-segments of the tech landscape in ASEAN. This list includes covered and non-covered names. We profile their business strategies, and recent financial metrics, for ease of reading. We also provide an update on every company’s most recent results and fund flows (for Malaysian companies only). 

ASEAN well positioned as a hedge for global tech supply chain. As the world continues to think about diversifying their supply chain post COVID-19, ASEAN is well positioned to capture this movement. Among the 46 listed technology (semiconductor) companies which we discovered, we note that most of them are downstream EMS companies, forming 44% of the lot, though it is also interesting to note that 59% of these listed companies are located in Malaysia. Equipped with a strong foundation already, we believe there is scope for ASEAN to move up the value chain over time as capital continues to flow form the US and North Asia into the region. 

Three key themes to drive ASEAN; adding five stocks to the coverage list. We believe that the best-placed stocks for ASEAN’s ecosystem rise would be those that are leveraged to Apple’s supply chain (Inari, Nanofilm), content growth in automotive/EV (Pentamaster, Hana Microelectronics, KCE Electronics and Delta Electronics Thailand) and 5G (Frontken).  

Pecking order. Our pecking order (all rated OUTPERFORM) for our coverage universe would be Inari, KCE Electronics, Pentamaster, Frontken, Nanofilm, Hana Microelectronics and Venture. We rate Delta Electronics Thailand UNDERPERFORM, given that valuations have moved ahead of fundamentals (its Taiwan-listed peer trades at around a quarter of its valuation).