Taiwan Cement Corp.

Taiwan Cement is engaged in the production and sale of cements, premixing concrete, lime, clay and cement products such as cement block, concrete pipe, asbestos board, asbestos tube and asbestos tiles; earth and stone excavation industry; operation of cement related industries, steel and iron smelting industries and nonmetallic mining industries; thermal power generation; power and natural gas supply; provision of railway, marine and mechanical transportation services; reprocessing, manufacture, and sales of building, and interior decoration materials.
  • Ticker1101
  • ISINTW0001101004
  • ExchangeTaiwan Stock Exchange
  • SectorConstruction & Materials
  • CountryChinese Taipei

TAIWAN CEMENT CORP. increases its risk exposure and slightly lowers to Neutral

TAIWAN CEMENT CORP. (TW), a company active in the Building Materials & Fixtures industry, now shows a lower overall rating. The independent financial analyst theScreener confirms the fundamental rating of 2 out of 4 stars. However, the market behaviour deterioration triggered a risk requalification, which can be thus described as moderately risky. theScreener believes that increased risk justifies the general evaluation downgrade to Neutral. As of the analysis date May 15, 2020, the closing price was TWD 42.30 and its expected value was estimated at TWD 41.83.

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

2Q16F earnings to be better than expected

​ We held a neutral view previously as we expected the cement sector to transition with lackluster demand. However, the recent trend turns us positive on TCC given 1) better than expected 2Q16F earnings and; 2) 2H16F earnings YoY to turn positive. TCC is trading at 1.0-1.1x 2016F P/B with ROE of 4-5%, lower than the historical avg. of 1.4x in 2009-15 (vs. historical avg. ROE of 4%). We expect its share price to rebound and set target multiple at 1.2x 2016F P/B (vs. 1x previously).

2016F outlook remains lackluster - 1101 TT; HOLD-OPF

​We remain conservative on TCC due to 1) a negative sector outlook; 2) downside risk from Hoping Power’s 2016F profitability; and 3) its unattractive valuation. We believe the cement sector is undergoing a transition with lackluster demand and less supply, which may affect TCC’s profitability in 2016F.

2Q16F earnings to be better than expected

​ We held a neutral view previously as we expected the cement sector to transition with lackluster demand. However, the recent trend turns us positive on TCC given 1) better than expected 2Q16F earnings and; 2) 2H16F earnings YoY to turn positive. TCC is trading at 1.0-1.1x 2016F P/B with ROE of 4-5%, lower than the historical avg. of 1.4x in 2009-15 (vs. historical avg. ROE of 4%). We expect its share price to rebound and set target multiple at 1.2x 2016F P/B (vs. 1x previously).

TAIWAN CEMENT CORP. increases its risk exposure and slightly lowers to Neutral

TAIWAN CEMENT CORP. (TW), a company active in the Building Materials & Fixtures industry, now shows a lower overall rating. The independent financial analyst theScreener confirms the fundamental rating of 2 out of 4 stars. However, the market behaviour deterioration triggered a risk requalification, which can be thus described as moderately risky. theScreener believes that increased risk justifies the general evaluation downgrade to Neutral. As of the analysis date May 15, 2020, the closing price was TWD 42.30 and its expected value was estimated at TWD 41.83.

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

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