SSD controller to be the next bright spot
​New product lines, including WLAN AC (migration from 11n to 11ac), HDR-integrated 4KTV SoC, Broadcom order gains, or SSD controllers (to be ramped-up at end-2016F), will be the major growth drivers in 2016/17F. Despite lowering our 2Q16F sales forecast to up 8% QoQ given client inventory adjustments in the past two months, we raise our 2Q16F EPS forecast to NT$2.07 on NTD depreciation and a better product mix. With largely the same 2016/17 sales estimates, we slightly raise our earnings assumptions on improved product mix. We now forecast 19%/6% sales growth for 2016/17F, and raise our EPS estimates by 11%/17% to NT$6.56/7.15. We reiterate BUY and raise TP to NT$115.
Realteck Semiconductor is a fabless designer and supplier of integrated circuits for network interface cards, or NIC ICs, and switches used in local area networks, or LANs. Co.'s principal products are the 10Mbps Ethernet and 100Mbps Fast Ethernet NIC ICs. Co. also designs and supplies integrated circuits for PC peripherals and multimedia products. Co.'s product lines comprised of data, voice, and image ICs. Co. organized its operation into five divisions: Communications Network Business Unit, Communications Network Marketing & Sales Division, Computer Peripheral Business Unit, Multi-Media Business Unit, UWB (Ultra-Wide Band) Business Unit.
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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