Report
EUR 55.14 For Business Accounts Only

New record highs to drive valuation re-rating

​We lift our conviction BUY TP to NT$40 (35% upside) as we raise our 2017F EPS by 4% to NT$2.9 and shift our valuation basis to 2017F: We expect new record high sales & EPS in both 2016/17F. We see its sales growth driven by share gains into new products and IDM outsourcing. On the margin front, industry consolidation could drive better ASP/margin trends. Given its solid market positioning and fine mgmt execution, we believe using 2017F is a better basis to reflect KYEC’s stock value. Our new TP of NT$40 is based on the average of 1.7x 2017F (previously 2016F) BVPS (14% ROE) and 15x 2017F (previously 2016F) EPS (2015-2017F EPS CAGR of 22%).

Underlying
Provider
Yuanta
Yuanta

​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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