Awaiting OLED adoption
​Results and guidance provide little excitement or surprise, as Apple weaknesses continue to outweigh. Key focus is on OLED, and while TPK stands to be one of the biggest OLED beneficiaries among Taiwan tech names, mgmt seem to imply that initial contribution could be smaller than it previously appeared to be. Meanwhile, any major spec upgrade for iPhone’s force touch may need to wait until next year. Last but not least, margins are not showing any improvement despite the earlier asset write-off (granted, it was also hit by lower CUR in 1H). As such, we will remain on the sidelines until there is better visibility on its cost structure improvement and/or new force touch & OLED for iPhones in 2017/18. Reiterate HOLD and lower TP slightly to NT$85.
TPK Holding is a transparent projected-capacitive (P-cap) touch solution provider based in Taiwan. Co. is engaged in offering a full suite of touch solutions tailored to different customer requirements. In addition to a wide variety of product applications and multifaceted solutions, Co. is also engaged in equipping with touch panel technology. Co.'s products include various types of structure, such as Glass-Glass (GG), Glass-Film-Film (GFF) and Single Glass Solution (SGS), which includes One Glass Solution (OGS), Touch-on-Lens (TOL), and Glass-Film (G1F) etc. Co.'s customers include global mobile, personal computers, or PCs, and consumer electronics device innovators.
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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