Title Health Products: Recovery in China after the clampdown is uninspiring so far
  Networking: China grants 5G licenses, network buildout will accelerate
  5G Industry: Carriers spending; device makers to reach operational tipping point
  Health Foods: Buy TCI (8436 TT) and Grape King (1707 TT)
  Auto Component OEM: Weak Golden September in China; waiting for policy stimulus
  High-frequency/high-speed data transfer PCB: ABF and CCL enjoy lucrative outlook
  Passive Component: Yageo is our only passive component Buy call
  Footwear: Nike¡¦s 4Q18 beat, FY2019 sales guidance raised¡XBuy Feng Tay
  Apple Supply Chain: Apple’s FY3Q18 guidance sparks supply chain optimism
  Auto Components (AM): AM business dented by FX
 
More Titles
Title:Passive Component: Yageo is our only passive component Buy call
Download File:Passive component industry note 180821--sinopac.pdf 
 
Summary:Buy Yageo (2327 TT), TP at NT$850 (7.2x 2019 P/E): Yageo¡¦s repeated share price declines recently mainly stemmed from unfavorable fund flows and concerns that upward product price momentum might wane in the future. However, given 3Q18 is shaping up to be Yageo¡¦s peak quarter for 2018 and its annual EPS could still reach NT$116.8 and NT$117.08 in 2018 and 2019, we think the stock is attractively valued now at below NT$700. We have Neutral ratings on the other passive component stocks in our coverage. For Walsin, we expect its cash capital increase will extend the pressure from unfavorable fund flow. We are also Neutral on Chilisin (2456 TT), ACX (3152 TT), and TXC (3042 TT) due to their fair valuations.
  
Date:2018/08/21
Author:TaiwanResearch.com
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.