Investor Targeting

Investor Perception Correction

Despite years of growing revenue, a semiconductor company that could not shake its label as “the proxy of the industry cycle”, sought QIC’s advice to counter the market’s misperceptions. We implemented a strategy to reshape the company’s equity story, using refreshed marketing targeted at its industry peers’ shareholders.

Client Challenge

Short-term investors outweigh long-term shareholders

Despite a continuous R&D investment, 5-year revenue CAGR of 10%, and improving ROE, few long-term investors were familiar with this semiconductor company. To make matters worse, the majority of investors are hedge funds who trade the stock as the proxy of the industry cycle based on the management comment of supply chain dynamics, influencing sell-side analysts to issue short-sighted reports, resulting in its lack of long-term shareholders.

The QIC Way

Reshape Equity Story and Communicate With Target Investors

With the company’s technology breakthroughs, QIC rebuilt its equity story from consumer-oriented to technology-and-application-oriented, addressing the company’s technology leadership, expanding addressable market, as well as 5-year financial targets and vision to become the industry's top supplier. 

To effectively communicate the company’s transformation to long-term investors, QIC precisely selected 20 long-term shareholders of industry peers as target investors and implemented extensive capital market campaigns, including QIC Taiwan CEO Week, CEO conversations, and sell-side events. Investors who responded to the campaigns were introduced to management through one-on-one and group meetings.

Results

Increasing Long-Term Shareholders Ownership And Sell-Side Coverage, Leading to Market Cap Leadership

During the first two years of the QIC investor targeting program, more than 100 portfolio managers and analysts met with company executives. According to investors’ feedback surveys, the new campaign helped them reposition the company in both the semiconductor industry and the capital market. As a result, the company’s existing shareholders increased their holdings, new long-only institutional investor became their top shareholder, and more sell-side coverages with re-rating and decreasing holdings from industry peers’ top 10 shareholders. Within 15 months, The company’s market cap increased 3.6 times and the market cap gap between the company and its major peer increased 12 times.