Title Landmark (3081 TT) Buy, TP: NT$385
  Sinbon (3023 TT) U/G Buy, TP: NT$202
  Parade Technologies (4966 TT): Raise TP to NT$1,473; Maintain Buy
  ESG Note: TXC (3042 TT) Buy: TP: NT$100
  ESG Equity Note: Mediatek (2454 TT) Buy, raise TP to NT$950
  Chenbro Micom (8210 TT) Neutral
  Makalot (1477 TT) U/G Buy, TP: NT$200
  ESG Equity Note: Mediatek (2454 TT) Raise TP to NT$920; Maintain Buy
  Macauto (9951 TT) Buy, TP: NT$90
  ESG Note: Powertech (6239 TT): Downgrade to Neutral
 
More Titles
Title:ESG Equity Note: TXC (3042 TT) Buy, TP: NT$74
Download File:3042 TT TXC ESG note 200630--sinopac.pdf 
 
Summary: Maintain Buy with TP at NT$74.0 (18.0x 2020F P/E): 1) We anticipate stellar 2Q20 EPS of NT$1.03 despite low seasonality thanks to GM likely topping 30% and strong demand driven by increased working from home; 2) Operations could chart a new high in 2H20 helped by new capacity coming on line and the arrival of peak seasonality for the US handset client; 3) valuation: currently trading at ~15x 2020F P/E. With benefits from the 5G wave and our assumption OPM will exceed 12%, we expect TXC will return toward the upper part of its historical P/E band of 12x-19x.
  
Date:2020/06/30
Author:TaiwanResearch.com
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