Report
EUR 60.60 For Business Accounts Only

Growth in 2016/17F despite headwinds

​Reiterate BUY and raise TP to NT$98: We expect 2017F sales/earnings to grow by double-digits YoY to new highs, thanks to the addition of new products and clients in the IoT segment and the expansion of US telecom projects. Wistron NeWeb’s shipments for V2V, anti-collision radar and smart grid applications have already begun, combined sales of which we estimate will account for 17%/19% of 2016/17F sales. Although sales/GM will likely miss in 2Q16F, we expect sales/earnings to regain strength in 3Q/4Q16F. Our TP of NT$98 is based on 15x the average of 2016/17F EPS of NT$6.5, with our target P/E multiples for the auto segment/other segments unchanged at 17x/14x.

Underlying
Wistron NeWeb Corp.

Wistron NeWeb and its subsidiaries are engaged in the research, development, production, and sale of wired communication equipment, wireless communication networking equipment, electronic components, regulated telecommunication radio frequency equipment, satellite communication systems, and mobile and portable communication equipment.

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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