reports
Stable contribution from new products
​Reiterate BUY and lift TP to NT$114: We expect Paiho to see only a limited impact from a revenue growth slowdown for sports brands in North America in 1H16, as its 1) client base is diversified; 2) new products continue to boost revenue and margins; and 3) its bargaining power on pricing is stronger than that of OEM shoemakers. Paiho has continued to take orders from Adidas, UA, and Clark for its four-way stretchable elastic tapes (four-way) and one-piece upper, which we estimate will boost i...
Strong growth creates room for further re-rating
​Paiho’s 1Q16 preliminary earnings outperformed our/consensus forecasts by 43%/27%./ We lift our 2016/17F earnings estimates by 8%/6% and raise our TP to NT$106. We like Paiho for its strong revenue growth of >20% YoY for elastic tapes, molded hooks, shoelaces, as well as margin improvement in these products. We expect 2016/17F earnings to grow by 33%/17% & believe there is room for a further re-rating. Paiho’s three new products, four-way stretchable elastic tapes/one-piece shoe uppers /H...
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