3Q16 results a surprising beat
​Reiterate BUY and lift TP to NT$215: 3Q16 sales of NT$852 mn were capped by unfavorable NTD fluctuations and less working days given the typhoon in Sept. 3Q16 EPS of NT$2.3, up 151% YoY, was significantly higher vs our/consensus estimates on account of 1) a change in product mix leading to 3Q16 GM of 42.9%, 3.6 ppt higher than 39.3% in 1H16; and 2) improving operating leverage. Overall, we still like TCI given its 1) GM and operating leverage expansion and our expectation of higher CUR at its S8 plant, with increasing application of its IBD material in its products; 2) China’s still hot trend of direct selling trend and WeChat shopping business; and 3) 2Q17 launch of the S11 plant to drive sales of facial mask products. We raise 2016/17F EPS by 8.6/2.3% to NT$6.8/8.6 given GM expansion and op leverage, and revise up our TP of NT$215 based on a 25x (unchanged) 2017F EPS.
TCI CO.,Ltd is a Taiwan-based company principally engaged in the research, development, manufacture and sales of health food and skin care products. Its health food includes various types of food, such as hard capsules, soft capsules, pastilles, powder, liquid packs, jelly and oil-based hard gelatine. Its beauty care products include facial and body care products, such as facial masks, eye masks, facial cleansers, anti-acne gel, whitening cream, slimming cream, breast enhancement cream and serum. The Company distributes its products in domestic market and to overseas 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.