RESEARCH: The Great Leap Forward For Weebit Nano

This story features WEEBIT NANO LIMITED. For more info SHARE ANALYSIS: WBT

By Pitt Street Research

Weebit Nano ((WBT)) is rapidly moving closer to the commercialisation of its technology – potential delivery of SiOx-based ReRAM memory modules for a South Korean company before the end of 2020.

Recently, WBT also attained external verification from memory chip manufacturer XTX Technology in China, four months ahead of schedule. This has cleared the path for WBT to push forward its entry into the discrete memory market.

The company also just signed and LOI with SiEn Integrated Circuits in China to deploy SiOx ReRAM technology into SiEn’s semiconductor products.

Such industry acceptance for WBT’s technology should drive commercial traction in the near term, in our view. In turn, we expect this to drive up the share price from the current levels.

Moving into discrete memory earlier than planned

The verification of WBT’s technology by XTX led to an early entry into the stand-alone, or discrete, memory market. Previously, WBT had planned to enter this vertical at a later stage, but the market’s need for discrete memory solutions (as highlighted by XTX) led WBT to rework its timeline.

We believe this provides a huge potential growth opportunity to WBT, as it can start to build presence across both the discrete and embedded segments of the non-volatile memory (NVM) market.

Leti studies deliver further positive news

Following the latest results from tests conducted with Leti, WBT is progressing well on refining its technical specifications and production processes. Recent findings confirmed the previous hypothesis that WBT’s ReRAM technology can be produced using only two (or possibly one) additional masks.

Compared to other technologies, this translates into substantial cost advantages for chip manufacturers. In our view, this development could lay the groundwork for a major boost to WBT’s adoption rates.

Reiterating valuation of $1.65 per share

With external verification of its technology, alongside the expected delivery of its first memory module before the end of 2020, we believe WBT is on the fast-track towards commercialisation.

Moreover, the continuous refinement of its technical parameters, the potential to secure patents for its IP, and early entry into the discrete memory market lend strong fundamental value to the company, in our view.

As a result, we continue to see robust upside potential and reiterate our valuation of $1.65 per share

Download the full report

Earlier today the report above was released by Pitt Street Research for which FNArena is a partner in distribution. The full report can be accessed here:

https://www.fnarena.com/index.php/pitt-street-research/WBT/

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