Taiwan High Speed Rail (2633) Earnings: May Sales Surge by 7.93% to NT$4.31B with 2 Hold Ratings

Taiwan High Speed Rail on Smartkarma

Analyst coverage on Taiwan High Speed Rail on Smartkarma highlights the research report by Mohshin Aziz. In his report titled “Taiwan High-Speed Rail (2633 TT): Better than a Government Bond,” Aziz expresses a bullish sentiment towards Taiwan High Speed Rail (THSR). The report emphasizes THSR’s strong profits and cashflows generated from solid traffic growth, making it an appealing low-risk investment option suitable for fixed-income investors. Aziz sees THSR as a government-backed perpetual bond disguised as equity, with a minimum profit guarantee, a firm dividend mandate, and a commitment to distributing excess cash to shareholders. The current yield margin against the 10-year bond is notably wide, indicating the potential for further growth with strong profit performance, making it an attractive choice for alternative fixed-income investors.

A look at Taiwan High Speed Rail Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Analysts have assessed Taiwan High Speed Rail‘s overall outlook using Smartkarma Smart Scores, which rate the company on various factors. The company received a score of 3 for Value, indicating a moderate assessment of its current valuation. A matching score of 3 for Dividend suggests an average dividend performance. However, the company scored a solid 4 for Growth, pointing towards positive prospects for expansion. With a Resilience score of 2, there may be some concerns regarding the company’s ability to withstand economic challenges. Despite this, Taiwan High Speed Rail received a Momentum score of 3, indicating a stable trend in its performance.

Taiwan High Speed Rail Corporation, which manages the high-speed railway system spanning 345 kilometers from Taipei to Kaohsiung, seems to have a mixed long-term outlook based on the Smartkarma Smart Scores. While the company shows potential for growth, its resilience is a point of caution. The overall assessment suggests a balanced stance on the company’s valuation, dividend performance, growth potential, and momentum. Investors may want to keep an eye on how Taiwan High Speed Rail navigates these factors to make informed decisions about its long-term prospects.

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