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

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External broker reports(aggregated public sources)

Equity Bottom-Up

I-Chiun Precision Industry / Equity Bottom-Up

<p>FY22 operations will enjoy multiple growth drivers, including IC lead frame, heat spreader, photo coupler lead frame, and ceramic substrate. That said, the positive information released during I-Chiun’s investor conference has already been partially factored in the company’s short-term share prices. I-Chiun will face challenges from China’s power restrictions in the short term, as three out of four of its factories are located in China. Therefore, the company will be affected by the power cuts once the restrictions are tightened, which is the biggest risk. If the risk of power cuts is excluded, I-Chiun’s operations should gradually improve in 2022. We forecast I-Chiun’s FY21 and FY22 EPS at NT$2.78 and NT$4.95, respectively. For the company’s industry peers such as Jentech (3653 TT) and Kenly (5383 TT), their valuations may rise, and I-Chiun is currently trading at 12x FY22 EPS, which is not high. We believe a better timing to accumulate shares is when prices are close to 10x FY22 EPS, and we assign a TP of NT$80 for I-Chiun (16x FY22 EPS). </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 operations will enjoy multiple growth drivers, including IC lead frame, heat spreader, photo coupler lead frame, and ceramic substrate. That said, the positive information released during I-Chiun’s investor conference has already been partially factored in the company’s short-term share prices. I-Chiun will face challenges from China’s power restrictions in the short term, as three out of four of its factories are located in China. Therefore, the company will be affected by the power cuts once the restrictions are tightened, which is the biggest risk. If the risk of power cuts is excluded, I-Chiun’s operations should gradually improve in 2022. We forecast I-Chiun’s FY21 and FY22 EPS at NT$2.78 and NT$4.95, respectively. For the company’s industry peers such as Jentech (3653 TT) and Kenly (5383 TT), their valuations may rise, and I-Chiun is currently trading at 12x FY22 EPS, which is not high. We believe a better timing to accumulate shares is when prices are close to 10x FY22 EPS, and we assign a TP of NT$80 for I-Chiun (16x FY22 EPS). 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.

I-Chiun Precision (2486 TT) IC Lead Frame & Heat Spreader as Dual Engines 

Taiwan

I-Chiun Precision Industry Co., Ltd. manufactures light emitting diode (LED) lead frames, center cores for floppy disks, and other computer components.

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I-Chiun Precision Industry (2486 TT)

I-Chiun Precision (2486 TT) IC Lead Frame & Heat Spreader as Dual Engines

FY22 operations will enjoy multiple growth drivers, including IC lead frame, heat spreader, photo coupler lead frame, and ceramic substrate. That...

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