​Reiterate BUY with a TP of NT$174: CCI posted weak 3Q16 earnings due to Samsung Note 7 termination. However, we believe the worst is over, and 4Q16F earnings should return to normal. We reiterate BUY on CCI given the handset heat-pipe trend and our expectation of its server shipments’ stable growth in 2017F. We also forecast strong 2016/17F EPS of NT$10.29/12.42, up 32%/21% YoY. Our TP of NT$174 is derived from 14x (unchanged) 2017F EPS of NT$12.42, implying 19.1% upside.
Yuanta is a Taiwan-headquartered brokerage with a growing presence in Asia, especially across Greater China. Our team of 140+ provides cutting-edge analysis on key sectors, spread across offices in Taiwan, Hong Kong, Shanghai (A-Share), Seoul and Jakarta. With an ever-expanding coverage universe of 400+ companies, we provide in depth analysis with unique local color to investors. Consistently being voted the Best Investment Consulting Firm in Taiwan in the AsiaMoney broker poll is evidence of our strength. We target providing an extensive range of research, from small, to mid-sized, to large cap. We bring you the big, well-covered names, as well as going off the beaten track to research the less-familiar companies.
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