Opex control is a plus
​Stock trading: Share price has not done much since the ex-div season, and it will likely continue to consolidate within a relatively narrow range, in our view. We reiterate that in general, we like the distributor sector as we believe it will outgrow the semi industry cycle after cycle, and WT Micro (3036 TT, BUY) remains as our sector top-pick. We forecast WPG will post 5% YoY top-line growth this year, which is lower than its peers, but at the same time, one has to give credit for its 13% YoY op. profit growth as a result of opex control. Mgmt talks about opportunities to go outside of Asia, which could be encouraging, but it may take time to see any material contribution given its large size. Net net, WPG is a defensive name, and we reiterate our HOLD rating.
WPG Holding and its subsidiaries are principally engaged in the distribution of semiconductors and passive components. Co.'s products are classified into seven major group: core components; analog and mixed signal components; discrete logic components; memory components; passive, electromagnetic and connector components; optical components; and other components. Co. has an Asia Pacific service network with more than 40 sales offices located in Greater China and the Asia Pacific region, including Hong Kong, the People's Republic of China, Singapore, Malaysia, Thailand, Philippines and India.
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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