External broker reports(aggregated public sources), Capital Securities Corp

Capital Securities

External broker reports(aggregated public sources)

Capital Securities Corp

Capital Securities provides clients with investment services covering diversified financial products. We have outstanding business performance amid intense competition in the domestic securities market. 

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Equity Bottom-Up

Delta Electronics Inc. manufactures power supplies and video display products. The Company's products include switching power supplies, telecom power systems, uninterrupted power supply (UPS), variable speed alternating current (AC) monitor drives, high resolution color monitors, and projectors.  Delta also manufactures magnetic and networking components.

<p>FY22 revenue/earnings may rise; we recommend TRADING BUY given its flat momentum in the short run. Affected by seasonality, Delta Electronics’ 1Q22 revenue/earnings momentum may weaken. Nevertheless, this quarterly decline is milder than that in previous years due to strong market demand and postponed shipment of some orders. Catalyzed by EV, passive components and long-term trends of datacenter, 5G and automation, Delta’s revenue/earnings momentum may strengthen during FY21~22. We recommend TRADING BUY with TP of NTD300 (24x FY22 EPS estimate). </p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

FY22 revenue/earnings may rise; we recommend TRADING BUY given its flat momentum in the short run. Affected by seasonality, Delta Electronics’ 1Q22 revenue/earnings momentum may weaken. Nevertheless, this quarterly decline is milder than that in previous years due to strong market demand and postponed shipment of some orders. Catalyzed by EV, passive components and long-term trends of datacenter, 5G and automation, Delta’s revenue/earnings momentum may strengthen during FY21~22. We recommend TRADING BUY with TP of NTD300 (24x FY22 EPS estimate). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Delta Electronics (2308 TT, TRADING BUY, NTD272.50)

Lite-On Technology Corp. manufactures and markets a wide range of computer components and Peripheral equipment. The Company's products include computers, digital home products, consumer electronics, communications products, key components and sub-systems, and optoelectronic components. Power Supplies, Enclosures, and LEDs business are the core of Lite-On Technology's business.

<p>Revenue/earnings momentum may decelerate in the short run; adjust from BUY to TRADING BUY. Catalyzed by growth in core businesses, Lite-On’s overall operations have improved. The company has significantly improved its profitability despite flat revenue in FY21. However, considering the lack of revenue/earnings momentum, we adjust Lite-On from BUY to TRADING BUY with TP of NT70 (11x FY22 EPS estimate).</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Revenue/earnings momentum may decelerate in the short run; adjust from BUY to TRADING BUY. Catalyzed by growth in core businesses, Lite-On’s overall operations have improved. The company has significantly improved its profitability despite flat revenue in FY21. However, considering the lack of revenue/earnings momentum, we adjust Lite-On from BUY to TRADING BUY with TP of NT70 (11x FY22 EPS estimate).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Lite-On Technology (2301 TT, TRADING BUY, NTD63.90)

Merida Industry Co., Ltd. manufactures and markets bicycles, related parts, and magnesium alloy castings.

<p>Full orders with high demand for e-bikes; upgrade to BUY. Merida posted FY21 revenue of NTD29.404bn (+8.61% YoY). FY21 EPS is estimated at NTD13.87.. Merida’s FY22 revenue/earnings may grow by double digits, we upgrade Merida to BUY with TP of NTD350 (21x FY22 PER).</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Full orders with high demand for e-bikes; upgrade to BUY. Merida posted FY21 revenue of NTD29.404bn (+8.61% YoY). FY21 EPS is estimated at NTD13.87.. Merida’s FY22 revenue/earnings may grow by double digits, we upgrade Merida to BUY with TP of NTD350 (21x FY22 PER).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

United Microelectronics Corp / Equity Bottom-Up

United Microelectronics Corporation designs, manufactures, and markets integrated circuits (ICs) and related electronic products.  The Company's main products are consumer electronic ICs, memory ICs, personal computer peripheral ICs, and communication ICs.

<p>100% capacity utilization rate; reiterate BUY with TP of NTD74. UMC’s growth momentum may come from 5G, IoT and EV in FY22. In particular, higher shipments of PMIC, transceiver/switch and OLED driver IC and demand for more sensors and controllers in multi-lens handset may boost UMC’s sales. UMC revised up FY22 foundry growth to +20% YoY. FY22 EPS is estimated at NTD6.03. Due to UMC’s 100% capacity utilization rate and higher ASP/earnings, we reiterate BUY with TP of NTD74.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

100% capacity utilization rate; reiterate BUY with TP of NTD74. UMC’s growth momentum may come from 5G, IoT and EV in FY22. In particular, higher shipments of PMIC, transceiver/switch and OLED driver IC and demand for more sensors and controllers in multi-lens handset may boost UMC’s sales. UMC revised up FY22 foundry growth to +20% YoY. FY22 EPS is estimated at NTD6.03. Due to UMC’s 100% capacity utilization rate and higher ASP/earnings, we reiterate BUY with TP of NTD74.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Fubon Financial Holding Co / Equity Bottom-Up

Fubon Financial Holding Co., Ltd. is a financial holding company, formed through the merger of Fubon Insurance, Fubon Securities, Fubon Commercial Bank, and Fubon Life Assurance.

<p>Investment outlook appears promising in FY22; recommend TRADING BUY. Fubon FHC posted 1Q~3Q21 net profit of NTD130.2bn. FY21 earnings may outperform. Fubon FHC positively views market outlook in FY22. Due to a low comparison base in FY21, Taipei Fubon Bank may resume growth in FY22. We recommend TRADING BUY with TP of NTD80 (1.0x FY22 PBR).</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Investment outlook appears promising in FY22; recommend TRADING BUY. Fubon FHC posted 1Q~3Q21 net profit of NTD130.2bn. FY21 earnings may outperform. Fubon FHC positively views market outlook in FY22. Due to a low comparison base in FY21, Taipei Fubon Bank may resume growth in FY22. We recommend TRADING BUY with TP of NTD80 (1.0x FY22 PBR).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Fubon FHC (2881 TT, TRADING BUY, NTD73.10)