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Nick Griffin, Munro Partners - Stock pick: Onsemi

Cliona O'Dowd and Glenda Korporaal
The Australian
Dec 3, 2021

Munro Partners’ Nick Griffin has pitched Nasdaq-listed Onsemi as his stock pick at this year’s Sohn Hearts & Minds conference, labelling it the ‘hidden hero’ of the path to decarbonisation.

“This is a company intent on moving into intelligent power and intelligent sensing. We see them going from being a cyclical grower to a structural grower as they prosecute this opportunity,” Mr Griffin said.

“We see the revenue growth of this company accelerating more than 10 per cent per annum over the next five years. But what’s more exciting is the margin opportunity: margin should go up as they pivot their products to higher-margin solutions.”

US-based Onsemi, formerly ON Semiconductor, has a market cap of $US26bn and is a leading semiconductor manufacturer specialising in intelligent power sensing solutions.

Its growth opportunity will come from the push to decarbonise the planet, Mr Griffin said.

Alongside the car market, power markets, the circular economy and even the switch from petrol pumps to electric will all be driven by semi-conductors, he said.

The reason Onsemi is the pick of the lot is because of the CEO, Hassane El-Khoury, and CFO, Thad Trent, Mr Griffin said.

This article was originally posted by The Australian here.

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