Taiwan Specialist

Julia Chien

Equity Bottom-Up

Fusheng Precision Co Ltd / Equity Bottom-Up

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<li>In my previous report, "<a href="https://www.smartkarma.com/insights/it-s-the-year-of-the-mouse-bizlink-holding-inc-3665-tt-an-exclusive-harness-supplier-to-tesla" target="_blank" rel="noopener">It's The Year Of The "MOUSE", </a> our top investment themes for the Year of the Mouse are: Medical technology, Opportunity, Utilities, Semiconductor, Electrical Vehicle. Fusheng Precision (6670 TT) is the key stock exposed to our Opportunity theme.</li>
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Opportunity Theme: investing for growth
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<li>In mid-April 2019, following a 11-year drought, a 43-year-old golf superstar Tiger Woods won the PGA US Masters Championship, giving the entire global golf industry a potent shot in the arm. We believe Taiwan’s four largest golf gear OEM/ODM manufacturers are now welcoming the triumphant return of the king.</li>
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<a href="https://www.smartkarma.com/entities/fusheng-precision-co-ltd" target="_blank" data-smartkarma-citation="entities:28911:1" rel="noopener">Fusheng Precision Co Ltd (6670 TT)</a> , <a href="https://www.smartkarma.com/entities/advanced-international-multi" target="_blank" data-smartkarma-citation="entities:14386:1" rel="noopener">Advanced International Multi (8938 TT)</a> , <a href="https://www.smartkarma.com/entities/dynamic-precision-industry" target="_blank" data-smartkarma-citation="entities:9300:1" rel="noopener">Dynamic Precision Industry (8928 TT)</a> , and <a href="https://www.smartkarma.com/entities/o-ta-precision-industry-co" target="_blank" data-smartkarma-citation="entities:19542:1" rel="noopener">O Ta Precision Industry Co (8924 TT)</a> are the world's top fantastic four professional golf club manufacturers. With decades of experience in casting, forging, carbon fiber, forming, and continuous developing advanced materials, mechanism and engineering technologies,  the FANT account more than 80% of all golf equipment market share.  </li>
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2019 FANT Global Golf Equipment Market Share
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Source: Company
FANT Are Continuously to Diversify into Non-Golf Business
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Source: 2018 Company Annual Report
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<li>Fusheng Precision is the global No.1 golf club head manufacturer with over 40% of the global market share and with 20 more US &amp; JP golf brand customers. As the business model of “Design in Taiwan, Produce by Geographic Advantage” continues to prove its operational effectiveness. We are positive on Fusheng Precision’s earnings growth outlook, driven by 3 factors:
<ul class="">
<li>a solid position in global golf equipment market. </li>
<li>a sustainable performance of 20% gross margin and 10% operating profit margin.</li>
<li>expanding into non-golf segment. Aerospace industry is the top priority of its non-golf business.  Management aims 20% Y-Y revenue growth in 2020.</li>
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In my previous report, "It's The Year Of The "MOUSE",  our top investment themes for the Year of the Mouse are: Medical technology, Opportunity, Utilities, Semiconductor, Electrical Vehicle. Fusheng Precision (6670 TT) is the key stock exposed to our Opportunity theme.


Opportunity Theme: investing for growth

In mid-April 2019, following a 11-year drought, a 43-year-old golf superstar Tiger Woods won the PGA US Masters Championship, giving the entire global golf industry a potent shot in the arm. We believe Taiwan’s four largest golf gear OEM/ODM manufacturers are now welcoming the triumphant return of the king.

Fusheng Precision Co Ltd (6670 TT) , Advanced International Multi (8938 TT) , Dynamic Precision Industry (8928 TT) , and O Ta Precision Industry Co (8924 TT) are the world's top fantastic four professional golf club manufacturers. With decades of experience in casting, forging, carbon fiber, forming, and continuous developing advanced materials, mechanism and engineering technologies,  the FANT account more than 80% of all golf equipment market share.  

2019 FANT Global Golf Equipment Market Share

Source: Company
FANT Are Continuously to Diversify into Non-Golf Business

Source: 2018 Company Annual Report

Fusheng Precision is the global No.1 golf club head manufacturer with over 40% of the global market share and with 20 more US &amp; JP golf brand customers. As the business model of “Design in Taiwan, Produce by Geographic Advantage” continues to prove its operational effectiveness. We are positive on Fusheng Precision’s earnings growth outlook, driven by 3 factors:

a solid position in global golf equipment market. 
a sustainable performance of 20% gross margin and 10% operating profit margin.
expanding into non-golf segment. Aerospace industry is the top priority of its non-golf business.  Management aims 20% Y-Y revenue growth in 2020.




FANT4STIC - Fusheng Precision (6670 TT), Shines Bright Like A Diamond

Taiwan

Dynamic Precision Industry Corp. designs, manufactures, and markets putters, golf parts, and golf heads cast in different materials.  The Company sells its products worldwide, mostly to the United States.

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FANT4STIC - Fusheng Precision (6670 TT), Shines Bright Like A Diamond

In my previous report, "It's The Year Of The "MOUSE", our top investment themes for the Year of the Mouse are: Medical technology, Opportunity,...

Julia Chien