Title 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
  Vanguard International (5347 TT) Buy, TP: NT$73
  Tong Hsing (6271 TT) Buy, TP: NT$154
 
More Titles
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.
  
Date:2018/06/19
Author:TaiwanResearch.com
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