Report
EUR 15.76 For Business Accounts Only

Multiple growth drivers ahead

​Asides from the multiple growth drivers ahead, we also like Win Semi’s various valuation re-rating opportunities including its 1) expansion into the more secular optical communication (OC) market to grow its TAM by 76%; and 2) a 30% cash capital reduction to lift its ROE by ~1 ppt. The stock is currently trading at an undemanding 2016 P/E of 12x vs. its GaAs peer VPEC at 18x and OC peer LandMark at 26x. As such, we reiterate BUY and leave our quarterly & annual earnings forecasts unchanged with a TP of NT$78, based on a 2016 P/E of 15x

Underlying
Win Semiconductors Corp.

WIN Semiconductors is principally engaged in the research, development, manufacture and sale of gallium arsenide waters. Through its subsidiaries, Co. is also engaged in the market research; receive retail and customer orders from European, North America and Australia regions; and other investment activities. Co.'s major products include power amplifier and radio frequency switch chips used in mobile communication devices such as smartphones. Co. distributes its products primarily in domestic and overseas market, including Asia, Europe and the Americas.

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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