Title Grape King (1707 TT) Buy, TP: NT$234
  Chilisin (2456 TT) Buy, TP: NT$120
  M31 Technology (6643 TT) -- Underwriting
  Bioteque (4107 TT) Buy, TP: NT$142
  Mediatek (2454 TT) Buy, TP: NT$400
  Mediatek (2454 TT) Buy, TP: NT$400
  Oriental Union Chemical Corp (1710 TT) Buy, Raise TP to NT$40
  Sunny Friend (8341 TT) Buy, TP: NT$270
  China Steel Chemical (1723 TT) Buy, TP: NT$190
  Sunny Friend (8341 TT) Buy, TP: NT$270
More Titles
Title:China Steel Chemical (1723 TT) Buy, TP: NT$190
Download File:1723 TT China Steel Chemical long report 180510--sinopac.pdf 
Summary:Maintain Buy, TP at NT$190 (24x 2019 P/E): 1) Steady feedstock supply from the two blast furnaces of Formosa Ha Tinh Steel Corporation (FHS, 50% owned by China Steel 2002 TT) will allow CSCC to expand its operational scale; 2) Demand for electric vehicles (EVs) will energize demand for cathode materials; 3) Rising oil prices in 2018F (our projection) should elevate benzene and creosote oil prices and thus drive up CSCC¡¦s 2018 earnings; 4) Valuation: We forecast 2019 EPS at NT$7.85 (+21% YoY), buoyed by stable raw material supply from FHS¡¦s two blast furnaces, rising product prices, and expanding demand for cathode materials from China. CSCC is currently trading at ~20x 2019 P/E (vs. historical P/E of 14x-28x). Our target P/E of 24x assumes CSCC can sustain its momentum over the long term.
Register online at Become Member to receive Taiwan research services. For more information, contact TaiwanResearch.com. Tel (8862) 2316-5181
©2001, 2000, 1999 SinoPac All rights reserved. Additional copyright information applies.