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  Shin Zu Shing (3376 TT) Buy, TP: NT$180
  TXC (3042 TT) Buy, TP: NT$100
  Kinsus (3189 TT) Buy, TP: NT$90
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  Advanced Ceramic X (3152 TT) Buy, TP: NT$510
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More Titles
Title:ESG Note: TXC (3042 TT) Buy: TP: NT$100
Download File:3042 TT TXC ESG note 200804--sinopac.pdf 
Summary:Maintain Buy with a TP of NT$100 (18x 2021F P/E): 1) Sales strength has likely carried over from 2Q20 into 3Q20 on the work-from-home (WFH) theme and a US client¡¯s new handsets. We thus project quarterly EPSs will climb from NT$0.83 in 1Q20 to NT$1.04/NT$1.21/NT$1.19 in 2Q/3Q/4Q20 and project 2020 EPS to roughly double YoY to NT$4.27. 2) For 2021, increased penetration of 5G handsets and WiFi 6 will provide a boost to the ASPs and shipment of the company¡¯s crystals for the two applications. Specifically, we expect 6-10% YoY growth of the company¡¯s WiFi 6 crystal ASPs. We project 2021F EPS at NT$5.55. 3) Valuation: TXC is trading at 14x 2021F P/E. We estimate it can trade back to the high end of its historical range of 12-19x as its earnings surge in the era of high bandwidth.
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