Title Topkey (4536 TT) Buy, TP: NT$170
  Largan (3008 TT) Downgrade to Neutral
  TCI (8436 TT) Buy, TP: NT$335
  U-Ming Marine Transport (2606 TT) Buy: TP: NT$38.0
  Marketech (6196 TT) Buy, TP: NT$103.00
  Equity Note: Taiwan Hon Chuan (9939 TT) Buy, TP: NT$66
  Nanya Tech (2408 TT) Buy, TP: NT$77
  Merida (9914 TT) Buy, TP: NT$223
  ESG Equity Note: TXC (3042 TT) Buy, TP: NT$74
  TCI (8436 TT) Buy, TP: NT$335
 
More Titles
Title:Topkey (4536 TT) Buy, TP: NT$170
Download File:4536 TT Topkey note 200713--sinopac.pdf 
 
Summary:Raise TP from NT$130 to NT$170 (15x 2021F P/E); Maintain Buy: 1) Topkey expects 3Q20 sales to remain stable (flattish to down slightly), underpinned by the reopening across multiple industries, and projects 4Q20 sales to increase with the shipment of delayed orders; 2) Topkey sees a broadly positive outlook for 2021; it anticipates growth in its two major product categories, bicycles and helmets, thanks to economic reopening and, in the case of helmets, new safety regulations in China, and the company is also sanguine about its medical and other product lines; 3) GM will benefit from low material prices in 2H20; 4) Sustainable long-term trends include rising E-bike penetration and rising adoption of bike rims made from composite materials instead of aluminum. 5) Valuation: Topkey is trading at 8-9x P/E vs. an average P/E of 13-15x over the past three years.
  
Date:2020/07/13
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.