Better than expected operations
​2Q16 sales beat our estimate on strong handset/TV segment momentum. Though the handset fast-charging IC penetration rate is lower than we expected, we anticipate a breakthrough in late 3Q16F due to clients’ aggressive promotions. We are positive on On-Bright’s future share gains in the fast charging/small appliance sectors. We raise 2016/17F EPS by 13%/7% to reflect stronger than expected 1H16 operating momentum & a significantly lower tax rate due to China’s tax cuts. The stock is now trading at 15x/14x 2016/17F EPS, vs a historical range of 7-26x, and will pay an NT$8 dividend on 2015 earnings. We lift our TP to NT$300, based on a 2017F P/E of 17x.
On Bright Electronics Inc. On-Bright Electronics Incorporated. is principally engaged in the design, manufacturing and distribution of integrated circuits (ICs). The Company mainly provides alternating current (AC)/direct current (DC) power supply management ICs, cold cathode fluorescent lighting (CCFL) inverter controlling ICs, light-emitting diode (LED) power supply management ICs, among others. The Company's IC products are primarily applied in network communication equipment, liquid crystal display (LCD) televisions, LCD monitors, storage equipment, computer power supplies, LED backlights and lighting, home appliances, among others. The Company mainly distributes its products in China mainland and Hong Kong markets.
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.