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  Sunny Friend (8341 TT) Buy, TP: NT$270
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  Sunny Friend (8341 TT) Buy, TP: NT$270
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Title:Sunny Friend (8341 TT) Buy, TP: NT$270
Download File:8341 TT Sunny Friend long report 180605--sinopac.pdf 
Summary:Buy, TP of NT$270 (39x 2018F P/E, 26x 2019F P/E) for the faster growth ahead

Despite its slower operational growth in 2018, we are positive on SFs mid- and long-term outlook as contribution from the Phase II Zhang Bin Plant and Phase II Ruentex Beijing and SFs entry into industrial waste treatment in China is likely to support YoY sales growth of ~35% in both 2019 and 2020 and YoY earnings growth of 43% and 36% YoY in 2019 and 2020 respectively.

SFs YoY and QoQ growth in 2Q18 will be weak relative to growth in the past few years. We think the negatives will be factored into the share price before the 2Q18 earnings are announced. Build positions before the 2Q18 results are announced given the attractive mid- and long-term growth outlooks.
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