PFC Device Inc. Overview
PFC Device is a small, vertically integrating, fabless-turning-fab supplier of own-brand power discrete semiconductors. Its main products are Schottky barrier rectifiers (including super-low-VF and trench/MOS Schottky types) and power MOSFETs. These sell mainly into AC-DC adapters and power supplies for TVs, PCs, notebooks, and mobile chargers, with smaller exposure to industrial, automotive and solar junction-box applications.
The group combines three pieces:
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a Taiwan design and R&D team;
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an assembly and packaging plant in Shunde, Guangdong;
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outsourced wafer fabrication from PRC and Taiwan foundries.
Revenue peaked at US$27.6m in FY2017. It troughed at US$18.0m in FY2019 and recovered to US$21.1m in FY2020, with the 2021 shortage cycle lifting it further.
Repeated wafer shortages pushed management toward an approximately US$32m in-house MOSFET wafer fab in Shunde. That plan was far too large for the company's cash generation, and the minority-shareholder response to the 2021 rights issue was weak. Together these led the controlling Shell Electric group to privatise the company in March 2022. It is now an unlisted captive of the Yung family's Shell group. [S1, S7, S9]
The company's own description (latest filings)
In its FY2020 annual report, the Board said the group designs, manufactures and sells its own-branded power discrete semiconductors, namely Schottky and MOSFET devices. The Board reported no significant change in principal activities during the year. [S7]
The FY2016 annual report gave more detail on the core application segments:
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power supplies and adapters for TVs, PCs and notebooks;
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chargers for mobile phones, tablets and portable devices;
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industrial and automotive power applications;
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from 2017 onward, solar junction-box applications. [S6, S5]
The ESG section of the FY2020 report states the vision as becoming a first-tier provider of high-efficiency, energy-saving components. The mission is product innovation through advanced technology, best-in-class quality and service, and environmental compliance. [S7]
Independent characterisation
Business model. PFC Device is effectively a "fab-lite" discrete house. It works in four steps:
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It owns device design and process IP, held in PFC Device Corp. (Taiwan), which is the assignee of US patents on trench MOS P-N junction and MOS Schottky diode structures. [S11]
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It buys epitaxial wafers (EPI) and has outside foundries fabricate wafers to its designs.
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It performs die saw, assembly and packaging (for example TO-220 and ITO-220 lines) at its Shunde plant, outsourcing back-grinding and plating to subcontractors in Shenzhen and Huizhou.
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It sells finished, PFC-branded devices to power-supply OEM/ODMs and distributors. [S6, S7]
Until Q3 2019 it also resold some purchased EPI to the PRC foundries that processed its wafers. This created a low-value "Trading of Raw Materials" segment. [S9]
Revenue model. Revenue is 100% product sales, recognised at a point in time. There is no service, subscription or licensing revenue disclosed. Credit terms are 30–60 days after the month of delivery. [S12]
Value-chain position. The company sits in the mid-stream. Upstream are EPI and wafer suppliers and foundries: the top five suppliers accounted for 71–81% of purchases between FY2015 and FY2020. Downstream are power-supply and adapter makers in the PRC and Taiwan, whose end products are mostly exported to the US and Europe. Customer concentration is high: the top five customers were 52–62% of revenue over FY2015–FY2020. [S6, S9, S7]
Customer types. These are power-supply, adapter and charger OEM/ODMs and distributors. In 2016 the company agreed terms with three new PRC distributors to reach industrial, automotive and solar customers. [S6]
End-markets. Consumer electronics power (TV, PC, notebook, gaming), mobile chargers, servers and networking/communications power, industrial, automotive and solar. In FY2020, management cited stay-at-home demand for TV, gaming and computing, and expected growth from 5G and AI computing devices in 2021. [S7]
Revenue mix (as reported)
| Revenue line (USD K) | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|---|---|---|---|---|---|
| Sales of power discrete semiconductors (USD 000) | 16,694 | 20,220 | — | 21,442 | 17,463 | 21,098 |
| Trading of raw materials (USD 000) | 1,401 | 2,620 | — | 1,912 | 534 | 0 |
| Total revenue (USD 000) | 18,095 | 22,840 | 27,617 | 23,354 | 17,997 | 21,098 |
Sources: AR2016, AR2019, FY2020 results announcement [S6, S9, S12]. For 9M2017 it was 17,962 power discrete and 1,864 raw materials [S5].
Strategy
Stated strategic themes (FY2016–FY2021 filings, paraphrased)
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Expand product portfolio and customer base. Add MOSFETs (super junction, synchronous), SiC rectifiers and solar Schottky products to move beyond adapter Schottky. [S6, S5, S9]
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Grow packaging capacity and efficiency. Add TO-220 and ITO-220 lines (FY2016). Install variable-frequency drives on moulding equipment (about 14,000 kWh per year saved). [S6, S9]
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Secure wafer supply through vertical integration. From 2020–21, management judged that sustaining the business required reducing reliance on outside foundries. The first step was an in-house fab at Shunde, mainly for MOSFET wafers, costing about US$32m over two years. [S1]
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Cost discipline. Staff cost controls, inventory reduction and subcontractor optimisation. In FY2017 the group considered outsourcing manufacturing; it later reversed toward insourcing. [S5, S9]
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Reduce exposure to low-value activity. Exit EPI raw-material trading (Q3 2019). [S9]
Initiatives in the last 24 months of public life (Oct 2019 – Mar 2022)
| Initiative | Timing | Scale / target | Status at last disclosure |
|---|---|---|---|
| 20 new MOSFET products | 2019, ramp H1 2020 | — | Launched |
| Qualify additional foundry | Q2 2021 target | — | In progress (AR2020) |
| Shunde MOSFET wafer fab | Sep 2020 – 2022 | About US$32m capex; US$16.8m contracted by 30 Sep 2021 | Equipment ordered and cleanroom under construction (Jan 2022) |
| Share consolidation and rights issue | Apr–Jul 2021 | About HK$32.4m gross | Completed; about 93% taken up by the controlling shareholder |
| Shareholder-loan commitment from Shell group | 2021–22 | Size n/d | Pledged; expected to be needed by early 2022 |
| Privatisation | Nov 2021 – Mar 2022 | Up to about HK$51.7m cash | Completed |
ESG commitments: No numerical emissions targets were disclosed. Measures listed were LED lighting, VFD compressors, travel reduction and SA8000-aligned labour policies. [S7]
Medium-term financial guidance: None was ever published. Management's outlook was qualitative, for example expecting 2021 to be a strong growth year for semiconductors but with wafer supply as the main constraint. [S7]
Post-privatisation strategy: Not publicly disclosed. The offeror stated it did not intend to re-list the company or its business elsewhere, and that it intended to accelerate the fab plan. [S1]
Products & Services
Product-level pricing, unit volumes and SKU counts were never disclosed. The catalogue below is assembled from annual reports, the company website and an aggregator description. Aggregator-sourced items are flagged.
Pricing model: Not publicly disclosed. Sales are per-unit device sales in US$ and NT$, and ASPs declined in 2017. [S5, S6]
Quality certifications (Guangdong PFC Device): ISO 9001:2015, IATF 16949 (automotive quality management) and ISO 45001:2018 / GB/T45001-2020. RoHS-compliant products. [S7]
Product Portfolio
| Product line | Description / key capabilities | Target applications | Launch / latest disclosed | Source |
|---|---|---|---|---|
Schottky barrier rectifiers (core) | Low-VF rectifiers for the secondary side of AC-DC converters. The Schottky volume ramp drove revenue growth in FY2016 and 9M2017. | Adapters and power supplies for TV, PC, notebook; mobile chargers | Core line since pre-IPO | S6, S5 |
Super Low VF (SLVF) Schottky, 150V series | Higher-voltage super-low forward-voltage Schottky line | High-efficiency adapters and PSUs | Mass production 1 Apr 2019 | S10 |
MOS / trench Schottky | MOS-gated Schottky structures; covered by PFC Device Corp. patents (trench MOS P-N junction diode, US 9029235) | High-efficiency rectification | Patent-protected; dates n/d | S10, S11 |
Schottky for solar junction boxes | Five new Schottky devices tailored to PV junction-box bypass applications | Solar | Introduced FY2016; expanded 2017 | S6, S5 |
Power MOSFETs (low RDS(on)) | Low on-resistance MOSFETs. 20 new MOSFET products were added in 2019 with production ramped in H1 2020. The planned Shunde fab was mainly for MOSFET wafers. | Power supplies, adapters, networking/communication power | Ongoing; 2019–2020 expansion | S9, S1 |
Super Junction MOSFET | High-voltage SJ MOSFETs | PFC stage and primary side of PSUs | Released FY2016 | S6 |
Synchronous rectification MOSFET | MOSFETs for synchronous rectification on the secondary side | Adapters and chargers | Released FY2016 | S6 |
SiC rectifiers | High-energy silicon carbide rectifiers (listed on website and aggregators) | PFC boost stage, high-efficiency PSUs | Dates n/d | S10, S8 (aggregator) |
Ultra-fast rectifiers | Fast-recovery silicon rectifiers | PSUs, industrial | — | S10 |
IGBTs (field-stop) | Field-stop IGBTs (aggregator listing; no revenue disclosure) | Industrial, appliance | — | S8 (aggregator) |
Bridge rectifiers | Input bridge rectifiers | AC input stage | — | S8 (aggregator) |
Packaging services and package types | In-house assembly; TO-220 and ITO-220 capacity expanded in 2016. Package products for mobile-phone chargers. | Internal; chargers | 2016 capacity additions | S6, S8 |
Financial Narrative
All figures are in USD 000 from audited HKFRS statements (AR2016, AR2019, FY2020 results announcement and the five-year summary in AR2019) [S6, S9, S12]. Analyst-derived lines are marked "(calc)".
Income statement
Notes
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Operating income (calc) = gross profit + other income − selling and distribution − administrative − other operating expenses. It includes the FY2016 listing expense of US$1,437k and the FY2018 impairments of US$1,005k.
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EBITDA (calc) = PBT + finance costs + depreciation of PPE and right-of-use assets + impairment of goodwill/PPE.
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FY2017 EPS is calculated from net profit over about 1,603m weighted shares.
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Diluted EPS equals basic EPS in all years, because options were anti-dilutive or out of the money. [S12]
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For reference, 9M2017 gross profit was 4,514 and 9M2017 gross margin was 22.8%. [S5]
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After the 20:1 consolidation in May 2021, the equivalent FY2020 EPS is about 0.80 US cents per consolidated share (calc).
Revenue CAGR (calc). FY2016–FY2020: −2.0% per year. FY2015–FY2020: +3.1% per year (FY2015 revenue 18,095). FY2014–FY2017 (pre-IPO momentum): +19.4% per year (FY2014 revenue 16,221). [S6, S9]
Nine-month 2021 (last public data) [S1]
LTM to 30 Sep 2021 (calc): revenue about 24,409; net profit about 991.
Trend commentary.
FY2016–17 was the post-IPO high. Schottky volume growth into TV, PC and notebook adapters in the PRC and Taiwan lifted revenue 26% in FY2016 and 21% in FY2017. FY2016 profit was depressed only by the one-off US$1.4m listing expense; underlying profit would have been about US$1.3m. [S6]
FY2018–19 marks the inflection downward, and three things drove it:
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the late-2018 global discrete oversupply;
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US–China trade friction;
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weaker smartphone and PC demand.
Together these cut volumes, utilisation and ASPs. Gross margin fell from 28.6% to 14.4%. FY2018 also took a US$1.0m impairment of goodwill and Shunde plant assets after the value-in-use test failed, with the pre-tax discount rate at 17.4% and gross-margin assumptions of 16–18%. [S9]
FY2020–21 was a V-shaped recovery: stay-at-home electronics demand plus a structural wafer shortage. Revenue was then capped by foundry capacity rather than demand. In 2021, margin pressure returned from three sources:
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wafer and raw-material price increases;
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generator rental during Guangdong power rationing;
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RMB appreciation, as sales are in US$ but costs are mostly in RMB. [S7, S1]
Balance sheet
Notes
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FY2017 cash and borrowings are taken from the opening balances in the FY2018 cash flow statement and the FY2018 debt reconciliation. [S9]
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The FY2016 five-year bank loan was due March 2018 at about 1.99%.
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FY2017 goodwill is assumed unchanged until the FY2018 impairment; this is consistent with AR2019 note 18, which shows a 1 Jan 2018 balance of 563.
Interim reference, 30 Jun 2021 (pre-rights issue): total assets 33,163; cash 9,086; non-current assets 12,300 (up from 6,844, reflecting fab prepayments and deposits); current liabilities 9,220; net assets 23,943. Net rights proceeds of about US$4.0m were received on 2 Jul 2021. [S1]
Cash flow
Notes
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FY2020 capex is the MD&A figure of about US$0.6m (PPE capex).
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FY2016 equity raised is IPO proceeds of 10,312 less issue costs of 1,106. FY2018 equity raised is option exercise proceeds. [S6, S9, S7]
Commentary. The business generated modest operating cash flow of about US$1.4–3.8m per year. That cash covered maintenance capex of about US$0.3–2.8m, but nowhere near a US$32m fab. FY2019 cash generation was flattered by a US$2.4m inventory release.
Before the 2021 fab programme, the group's war chest was about US$9.6m of cash and no debt. By 30 Sep 2021, US$16.8m of fab capex had been contracted. Management told the IFA it expected to need shareholder loans from Shell by early 2022. [S1]
Ratios (analyst calculations)
Notes
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FY2016 ROE is distorted by the IPO and capitalisation doubling equity mid-year.
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The company's own interest-coverage definition gave 5x for FY2016, 41x for FY2019 and nil for FY2020. [S6, S7]
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ROIC uses an effective tax rate of about 3.4% for FY2020, and gross invested capital for the loss years.
Commentary. Ratios show an over-capitalised, low-return, net-cash business. Equity of about US$21–25m produced average ROE below 1% across FY2016–FY2020. This explains the persistent sub-book valuation: the cancellation price was a 5.8% discount to December 2020 NAV per share.
The cash conversion cycle lengthened sharply in FY2018, to 175 days, as inventory built into the downturn. The FY2019 destocking (DIO down to 93 days) released cash.
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Group Entities
| Entity | Place of incorporation / operation | Holding | Principal activity | Source |
|---|---|---|---|---|
PFC Device Inc. | Cayman Islands / Hong Kong | Holdco (100% held by Lotus Atlantic since 23 Mar 2022) | Investment holding | S9, S3 |
PFC Device Holdings Ltd (節能元件控股) | BVI / Hong Kong | 100% direct | Investment holding; trademark holding | S9 |
PFC Device Corporation (with Taiwan branch) | BVI / Taiwan | 100% indirect | R&D and sales of power discrete semiconductors | S9 |
PFC Device (HK) Limited | Hong Kong | 100% indirect | Sales of power discrete semiconductors; purchaser of fab equipment in 2021 | S9, S14 |
Guangdong PFC Device Ltd (廣東普福斯節能元件有限公司), registered capital US$13m | PRC (WFOE, Shunde) | 100% indirect | Manufacture and sales; PRC sales branch; fab construction | S9 |
Revenue by Segment and Segment Margins & Growth (%)
| Segment metric | FY2015 | FY2016 | FY2018 | FY2019 | FY2020 |
|---|---|---|---|---|---|
Power discrete revenue (USD K) | 16,694 | 20,220 | 21,442 | 17,463 | 21,098 |
Raw materials trading revenue (USD K) | 1,401 | 2,620 | 1,912 | 534 | 0 |
Power discrete segment profit (USD K) | 4,606 | 5,478 | 2,533 | 2,419 | — |
Raw materials segment profit (USD K) | 558 | 1,052 | 766 | 180 | — |
Power discrete segment margin (%) | 27.6 | 27.1 | 11.8 | 13.9 | 23.2 |
Raw materials segment margin (%) | 39.8 | 40.2 | 40.1 | 33.7 | — |
Power discrete share of revenue (%) | 92.3 | 88.5 | 91.8 | 97.0 | 100.0 |
Power discrete revenue YoY growth (%) | — | 21.1 | — | -18.6 | 20.8 |
Income Statement and Per-Share Data
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|---|---|---|---|---|
Revenue (USD K) | 22,840 | 27,617 | 23,354 | 17,997 | 21,098 |
Cost of sales (USD K) | 16,310 | — | 19,098 | 15,398 | 16,194 |
Gross profit (USD K) | 6,530 | — | 4,256 | 2,599 | 4,904 |
Operating income incl. impairments and listing costs (USD K) (calc) | 653 | — | -1,177 | -1,265 | 1,052 |
EBITDA (USD K) (calc) | 1,913 | — | 1,633 | 721 | 2,519 |
Profit before tax (USD K) | 390 | 866 | -1,067 | -1,315 | 669 |
Income tax (USD K) | -472 | -306 | -23 | -110 | -23 |
Net profit attributable (USD K) | -82 | 560 | -1,090 | -1,425 | 646 |
EPS basic (US cents, pre-consolidation shares) | -0.006 | 0.035 | -0.068 | -0.088 | 0.040 |
Dividend per share (US cents) | 0 | 0 | 0 | 0 | 0 |
Margin / growth metric
| Margin / growth metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|---|---|---|---|---|
Gross margin (%) | 28.6 | — | 18.2 | 14.4 | 23.2 |
Operating margin (%) (calc) | 2.9 | — | -5.0 | -7.0 | 5.0 |
EBITDA margin (%) (calc) | 8.4 | — | 7.0 | 4.0 | 11.9 |
Net margin (%) | -0.4 | 2.0 | -4.7 | -7.9 | 3.1 |
Revenue YoY growth (%) | 26.2 | 20.9 | -15.4 | -22.9 | 17.2 |
Income Statement and Margin Analysis (%)
| Metric | 9M2020 | 9M2021 |
|---|---|---|
Revenue (USD K) | 15,289 | 18,600 |
Gross profit (USD K) | 3,751 | 4,093 |
Gross margin (%) | 24.5 | 22.0 |
Net profit attributable (USD K) | 855 | 1,200 |
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View Subscription PlansBalance Sheet
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|---|---|---|---|---|
Total assets (USD K) | 31,514 | 29,074 | 25,851 | 24,195 | 26,988 |
Cash and bank balances (USD K) | 11,170 | 5,573 | 4,305 | 6,803 | 9,594 |
Bank borrowings, short-term (USD K) | 0 | 858 | 600 | 0 | 0 |
Bank borrowings, long-term (USD K) | 5,000 | 0 | 0 | 0 | 0 |
Lease liabilities (USD K) | 0 | 0 | 0 | 142 | 244 |
Net debt incl. leases (USD K) (calc) | -6,170 | -4,715 | -3,705 | -6,661 | -9,350 |
Total equity (USD K) | 22,220 | 24,680 | 22,922 | 21,349 | 23,191 |
Goodwill and intangibles (USD K) | 563 | 563 | 0 | 0 | 0 |
Inventories (USD K) | 4,249 | — | 6,881 | 3,936 | 5,252 |
Trade receivables, net (USD K) | 5,015 | — | 4,050 | 4,161 | 4,304 |
Trade payables (USD K) | 2,760 | — | 1,051 | 1,401 | 1,938 |
Working capital (USD K) | 17,490 | — | 12,513 | 14,077 | 16,347 |
Total liabilities (USD K) | 9,294 | 4,394 | 2,929 | 2,846 | 3,797 |
Cash Flow
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|---|---|---|---|---|
Operating cash flow (USD K) | 1,440 | — | 1,683 | 3,815 | — |
Capex, purchase of PPE (USD K) | 1,661 | — | 2,845 | 329 | 600 |
Free cash flow (USD K) (calc) | -221 | — | -1,162 | 3,486 | — |
Dividends paid (USD K) | 0 | 0 | 0 | 0 | 0 |
Share buybacks (USD K) | 0 | 0 | 0 | 0 | 0 |
Equity raised (USD K) | 9,206 | — | 202 | 0 | 0 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|---|---|---|---|---|
ROE on average equity (%) | -0.6 | 2.4 | -4.6 | -6.4 | 2.9 |
ROA on average assets (%) | -0.3 | 1.8 | -4.0 | -5.7 | 2.5 |
ROIC, NOPAT over (equity + debt − cash) (%) | — | — | -6.6 | -8.4 | 7.3 |
Current ratio (x) | 5.07 | — | 5.27 | 5.98 | 5.31 |
Debt-to-equity incl. leases (x) | 0.23 | 0.03 | 0.03 | 0.01 | 0.01 |
Net debt to EBITDA (x) | -3.2 | — | -2.3 | -9.2 | -3.7 |
Interest coverage, EBIT over finance costs (x) | 7.0 | — | -392.3 | -33.3 | 131.5 |
Asset turnover (x) | 0.86 | 0.91 | 0.85 | 0.72 | 0.82 |
Days inventory outstanding (days) | 95 | — | 132 | 93 | 118 |
Days sales outstanding (days) | 80 | — | 63 | 84 | 74 |
Days payables outstanding (days) | 62 | — | 20 | 33 | 44 |
Cash conversion cycle (days) | 113 | — | 175 | 144 | 148 |
Region revenue
| Region revenue | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|---|---|---|---|---|
PRC excl. HK (USD K) | 9,662 | 13,323 | — | 13,596 | 9,320 |
Taiwan (USD K) | 7,649 | 8,282 | — | 8,296 | 7,150 |
Asia excl. PRC/Taiwan (USD K) | 784 | 1,235 | — | 1,462 | 1,527 |
Hong Kong (USD K) | 0 | 0 | — | 0 | 0 |
Total (USD K) | 18,095 | 22,840 | 27,617 | 23,354 | 17,997 |
Region share and growth (%)
| Region share and growth (%) | FY2015 | FY2016 | FY2018 | FY2019 |
|---|---|---|---|---|
PRC share of revenue (%) | 53.4 | 58.3 | 58.2 | 51.8 |
Taiwan share of revenue (%) | 42.3 | 36.3 | 35.5 | 39.7 |
Other Asia share of revenue (%) | 4.3 | 5.4 | 6.3 | 8.5 |
PRC YoY growth (%) | — | 37.9 | — | -31.4 |
Taiwan YoY growth (%) | — | 8.3 | — | -13.8 |
Other Asia YoY growth (%) | — | 57.5 | — | 4.4 |
Locations
| Location | FY2015 | FY2016 | FY2018 | FY2019 |
|---|---|---|---|---|
PRC | 9,043 | 8,347 | 9,640 | 6,549 |
Taiwan | 946 | 1,356 | 556 | 557 |
Share Price & Returns
| Reference point | Price (HKD) | Basis | Source |
|---|---|---|---|
IPO placing price, 7 Oct 2016 | 0.20 | Pre-consolidation (equivalent to HK$4.00 post-consolidation) | S13 |
Option exercise price, Mar 2017 | 0.165 | Pre-consolidation (HK$3.30 post-consolidation; HK$3.179 post-rights) | S5, S16 |
Rights issue subscription price, Jun 2021 (calc) | about 0.80 | Post-consolidation (HK$32.4m ÷ 40.45m shares) | S16 |
Review-period high, 17 Dec 2020 | 1.743 | Post-consolidation adjusted | S1 |
Review-period low, 3 Dec 2020 | 0.625 | Post-consolidation adjusted | S1 |
Last close before offer, 5 Nov 2021 | 1.08 | — | S1 |
30-day average to 5 Nov 2021 | 0.752 | — | S1 |
Close, 18 Jan 2022 | 1.21 | — | S1 |
Cancellation price | 1.40 | — | S1 |
Valuation Snapshot
| Multiple | Value | Basis | Source |
|---|---|---|---|
Implied equity value | HK$169.9m (about US$21.8m) | HK$1.40 × 121.35m shares | S1 |
P/E | 33.8x | IFA basis (FY2020 earnings) | S1 |
P/E on LTM Sep-2021 earnings (calc) | about 22x | Net profit about US$0.99m | S1 |
P/B | 0.9x | Jun-2021 NAV HK$1.533 per share | S1 |
EV (calc) | about US$12.7m | Equity value less Jun-2021 cash (excludes rights proceeds and fab spend) | S1 |
EV/Sales LTM (calc) | about 0.5x | LTM revenue about US$24.4m | S1 |
Premium to last close | 29.6% | — | S1 |
Premium to 30-day average | 86.2% | — | S1 |
Peer Comparison
| Company | Code | P/E | P/B |
|---|---|---|---|
Genes Tech | 8,257 | 4.4 | 0.8 |
Megain | 6,939 | 18.2 | 1.7 |
Niche-Tech | 8,490 | — | 0.9 |
QPL International | 243 | — | 0.2 |
Ruixin | 724 | — | — |
Peer average | — | 11.3 | 0.9 |
Share count
| Share count | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|---|---|---|---|---|
Shares in issue at year end (millions, pre-consolidation) | 1,600.0 | 1,608.4 | 1,618.0 | 1,618.0 | 1,618.0 |
Analyst Conclusions
Management guidance: No quantitative guidance was ever issued, and none exists after privatisation. The last stated outlook (2021) expected strong semiconductor demand, with wafer supply as the main constraint, and set out the fab as the path to self-sufficiency. [S7, S1]
Consensus: Not applicable (no coverage; private).
Bull-case arguments (for the business under Shell ownership)
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Fab-enabled supply security. Owning MOSFET wafer capacity in Shunde removes the binding constraint of 2020–21, when revenue was foundry-capped. It could also lift gross margin back toward the 28% seen in FY2015–16.
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Structural efficiency demand. Server and AI power supplies, EV and solar push demand for low-loss rectifiers and SiC PFC diodes. The industry SiC CAGR is about 20% to 2031, and PFC already lists SiC rectifiers.
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Patient capital. Free of GEM disclosure, cash calls and minority constraints, the Yung family can fund a multi-year build-out; the offeror's stated rationale anticipated exactly this.
Bear-case arguments
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Scale mismatch. A US$32m fab against US$21–24m of revenue and US$1–4m of operating cash flow is a bet-the-company project in a market where PRC IDMs are adding capacity aggressively.
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Commodity exposure. Adapter Schottky and low-voltage MOSFETs are highly price-competitive. FY2018–19 showed margins can halve within two years.
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Execution and technology risk. The group had no prior wafer-fab operating experience. R&D spend was about 1% of revenue, and key Taiwan executives present in 2016 were no longer listed by 2019.
Catalysts and monitorables (next 12 months)
Because the company is private, these can be tracked only indirectly:
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any Shell Electric Holdings or SMC Electric disclosures referencing PFC;
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website product or news updates;
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PRC business-registry changes for Guangdong PFC Device Ltd (capital increases signalling fab funding);
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US patent assignments to PFC Device Corp.;
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trade-press reports of PFC-branded SiC or MOSFET launches;
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any re-IPO or strategic sale. The offeror stated no intention to re-list, but that statement related only to the time of the offer.
Analyst verdict
PFC Device Inc. is best understood as a case study in why sub-scale discrete-semiconductor companies struggle on Hong Kong's GEM board, rather than as a live investment.
Over five and a half years as a listed company it:
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delivered cumulative net losses (FY2016–FY2020 net profit about −US$1.4m);
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never paid a dividend;
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traded persistently below book value;
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returned roughly −52% to −65% to IPO investors, depending on rights participation.
The operating business was real but small: a credible Taiwan design team with patented trench Schottky IP, an IATF-certified packaging plant in Shunde, and Tier-1 PRC and Taiwan adapter customers. It was also squeezed between global IDMs with scale and PRC rivals with cost advantages.
The 2020–21 wafer shortage forced the central strategic question: stay fab-lite and capacity-constrained, or integrate backward into wafer fabrication. Management chose integration, with an approximately US$32m MOSFET fab. That was a rational response to supply risk but financially out of proportion for a company of this size. Minority shareholders showed by their about 7% rights take-up that they would not fund it. The controlling Shell Electric group therefore took the company private at HK$1.40, a 30% premium to market but a 6–9% discount to NAV. The IFA judged this fair given illiquidity and future dilution risk.
Since March 2022 the company has disclosed nothing. Whether the Shunde fab was completed, whether margins recovered, and what the business earns today are all not publicly disclosed.
Verdict: no public investment case exists. For counterparties (customers, suppliers, creditors), PFC Device should be assessed as a privately held captive of the Shell Electric / Yung family group. Its creditworthiness depends on parental support rather than standalone cash flow. Diligence should seek private financial statements directly, and confirmation of fab status and the shareholder-loan structure.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Role | Appointed | Age | Education / prior roles | Source |
|---|---|---|---|---|---|
YUNG Kwok Kee, Billy (翁國基) | Chairman; Non-executive Director; chairs Nomination Committee; member of Audit and Remuneration Committees | Director 2 Mar 2016; Chairman 19 Sep 2016 | 67 | BSEE, University of Washington; MS Industrial Engineering, Stanford. Executive Director of Shell Electric Mfg. (Holdings) (now China Overseas Grand Oceans, 0081) 1973–2010, then NED and Vice Chairman. Chairman and CEO of Shell Electric Holdings since 2009; Chairman of SMC Electric (2381). Ultimate controller. | S7 |
HONG James Man-fai (洪文輝) | Executive Director and CEO | 21 Mar 2016 | 48 | BS EECS, UC Berkeley; MBA, USC. Formerly AMD, PRTM, APD Semiconductor, Diodes Inc., Skyworks. 20+ years in semiconductors. | S7 |
CHOW Kai Chiu, David (周啟超) | Executive Director; compliance officer; authorised representative | 21 Mar 2016 (joined group 2006) | 56 | CFA; BASc Computer Engineering, Waterloo; MBA, York University. Formerly First Marathon Securities, Asian Capital Partners, HSBC Private Equity (Asia). Deputy Chief Executive of Shell Electric Holdings; director of all subsidiaries; director of the Offeror. | S7, S1 |
TANG Che Yin (鄧自然) | Non-executive Director; oversees HR and PRC manufacturing; heads the environmental emergency team | 21 Mar 2016 | 65 | MSc Manchester; MBA CUHK; Chartered Engineer. Executive Director of SMC Electric (2381); director of the Offeror. | S7, S1 |
LAM, Peter (林晉光) | INED; Remuneration and Nomination Committees | 19 Sep 2016 | 68 | BS Civil Engineering, Lehigh; MS Construction Management, Stanford. President of Lam Construction Group. | S7 |
LEUNG Man Chiu, Lawrence (梁文釗) | INED; Audit Committee Chairman | 19 Sep 2016 | 72 | FCCA, FCPA; partner at Tang and Fok CPAs. INED of Safety Godown (237), Pak Fah Yeow (239), SMC Electric (2381). | S7 |
FAN Yan Hok, Philip (范仁鶴) | INED; Remuneration Committee Chairman; Audit and Nomination Committees | 19 Sep 2016 | 71 | INED of China Everbright Environment, Hysan Development, First Pacific, China Aircraft Leasing. | S7 |
LIU Hsin-Hsien (劉信賢) | Sales VP, PFC Device Corp. (Taiwan branch) | Joined 2 Nov 2014 | 51 | BS Materials Engineering, National Taipei University of Technology. Formerly Avnet, Arrow, Diodes Inc. and others. | S7 |
KUO Hung-Hsin (郭鴻鑫) | President, PFC Device Corp. (Taiwan) (as of AR2016) | Joined 2 Jul 2007 | 63 (2017) | Formerly Lite-On Semiconductor and other Taiwan discrete makers | S6 |
TSENG (曾昭禮) | COO, Taiwan (as of AR2016) | Joined 5 Aug 2014 | 52 (2017) | Formerly Diodes Inc. and others | S6 |
CHEN Mei-Ling (陳美玲) | R&D VP, Taiwan (as of AR2016) | Joined 3 Feb 2009 | 46 (2017) | MS Chemistry, Tunghai. Formerly senior engineer at Vishay. | S6 |
LEE Ka Man (李嘉文) | Company Secretary (external) | 9 Nov 2016 | — | ACG, ACS | S7 |
Directors' Remuneration
| Director remuneration | FY2016 | FY2018 | FY2019 |
|---|---|---|---|
Hong James Man-fai, total (USD K) | 192 | 187 | 182 |
Chow Kai Chiu, total (USD K) | 1 | 3 | 3 |
Yung Kwok Kee, total (USD K) | 1 | 3 | 3 |
Tang Che Yin, total (USD K) | 1 | 10 | 6 |
Each INED, total (USD K) | 5 | 22 | 23 |
All directors, total (USD K) | 210 | 269 | 263 |
Major Shareholders
| Holder | Shares | % | Date | Source |
|---|---|---|---|---|
Lotus Atlantic Ltd (Shell Electric / Yung) | 85,105,625 | 70.1 | 18 Jan 2022 | S1 |
Hong James Man-fai (CEO) | 453,582 | 0.4 | 18 Jan 2022 | S1 |
Chow Kai Chiu | 135,191 | 0.1 | 18 Jan 2022 | S1 |
Li Pik Mui Cindy (Shell director) | 10,000 | 0.0 | 18 Jan 2022 | S1 |
Disinterested public | 35,648,021 | 29.4 | 18 Jan 2022 | S1 |
Post-scheme: Lotus Atlantic | 100% | 100 | from 23 Mar 2022 | S3 |
Competitive Landscape
Key Competitors
| Competitor | HQ / listing | Overlap with PFC | Positioning vs PFC |
|---|---|---|---|
Diodes Incorporated | US, Nasdaq: DIOD | Schottky, MOSFET, rectifiers for adapters and computing | Global scale leader; PFC's CEO and Taiwan sales VP are Diodes alumni |
Vishay Intertechnology | US, NYSE: VSH | Trench MOS barrier Schottky (TMBS), rectifiers, MOSFETs | Large IDM; technology benchmark in trench Schottky |
PANJIT International | Taiwan, 2481.TW | Rectifiers, Schottky, MOSFET, SiC, bridges | Taiwan IDM; ranked No. 3 globally in low-power rectifiers (>500mA) per Omdia 2024 data, as cited by PANJIT |
Taiwan Semiconductor Co. (台半) | Taiwan, 5425.TWO | Rectifiers, Schottky, MOSFET | Taiwan IDM, automotive-weighted (57% auto in 2025 per its investor briefing summary) |
onsemi | US, Nasdaq: ON | MOSFET, Schottky, SiC | Tier-1 IDM |
Nexperia | Netherlands / PRC-owned | Discretes, MOSFETs | High-volume discretes |
Infineon | Germany | SJ MOSFET (CoolMOS), SiC | Premium power |
STMicroelectronics | Switzerland/France | Schottky, MOSFET, SiC | Premium power |
Yangzhou Yangjie Electronic | PRC, 300373.SZ | Rectifiers, Schottky, MOSFET | PRC cost competitor |
China Resources Microelectronics | PRC, 688396.SS | MOSFET, discretes | PRC state-backed IDM |
Jilin Sino-Microelectronics | PRC, 600360.SS | Power discretes | PRC IDM |
Toshiba Electronic Devices | Japan | MOSFET, SiC | Premium |
Peer Comparison FY2025
| Metric | PFC Device (FY2020) | Diodes Inc. (FY2025) | Vishay (FY2025) | PANJIT (FY2025) |
|---|---|---|---|---|
Revenue | US$21.1m | about US$1.48bn | US$3,069.0m | NT$13.1bn |
Revenue growth YoY | +17.2% | +13% | n/d in sources | +4.5% |
Gross margin | 23.2% | 31.3% | 19.6% (Q4 only) | 32.7% (Q4 only) |
Net income | US$0.65m | US$66.1m | net loss (about US$9.0m attributable) | about NT$1.19bn |
R&D intensity | about 1.2% (non-staff only) | n/d in sources | n/d in sources | about 7% (Q4 2025: NT$237m of NT$3,353m) |
Recent Developments
As the closest substitute, below is the final 18 months of listed-company newsflow (Oct 2020 – Mar 2022).
