Shifting gears with Tesla and strong sales growth for US pickup trucks
​We like Hota as 1) major clients’ strong growth will likely support its 2016/17F earnings growth YoY of 26%/19%; 2) with rising Tesla exposure, we expect Tesla’s revenue weighting to be 31% in 2020F to vs. 2016’s 15%; and 3) higher US auto market exposure should bring less potential downside into 2017F. Our TP of NT$181 (26x 2017F EPS) uses a 2017F valuation basis, as we believe its share price reflects Tesla Model 3 shipments’ contribution from 2017F.
Hota Industrial Manufacturing and its subsidiaries are engaged in the manufacture and sale of gears, shafts and auto transmission components to be used in automobiles, motorcycles, agricultural machineries, machine tools and others. Co.'s products are transmission gears and shafts for automotive and motorcycles; transmission parts and assemblies, shafts, differentials and torque transfer systems for trucks; parts and assemblies for gear reducers; planetary gear sets for automotive; gear sets of industrial machinery oil pumps; all terrain vehicles, electric motorcycles and bikes; and gear-hobbing machines, gear-shaving machines, chamfering machines and optical profile measuring instruments.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.