Title Largan (3008 TT) Neutral
  BenQ Materials (8215 TT) U/G Buy, TP: NT$33
  Kinsus (3189 TT) Buy, TP: NT$109
  Airtac International (1590 TT) Buy, TP: NT$1,080
  TaiDoc (4736 TT) Buy, TP: NT$222
  Sinbon (3023 TT) Buy, TP: NT$238
  Vanguard (5347 TT) Buy, TP raised to NT$130
  Microelectronics Technology (2314 TT): Neutral
  Marketech (6196 TT) U/G Buy, TP: NT$140
  Kaori Heat Treatment (8996 TT) Buy, TP: NT$65
More Titles
Title:Advanced Ceramic X (3152 TT) Buy, TP: NT$510
Download File:3152 TT ACX note 201119--sinopac.pdf 
Summary:Maintain Buy, TP of NT$510 (32x 2021F P/E): 1) WiFi product sales grew 39.1% YoY to account for 42% of 1Q-3Q20 sales of NT$1.56bn (+22.6% YoY), and that of handset expanded 26.9% YoY to represent 29% of the sales. Its operational momentum is gathering steam on increased demand from 5G handset. 2) The B/B ratio has risen from 3.0 in SEP to stand at 3.5-4.0 now. We project sales to grow sequentially in 4Q20 when Phase I of the new plant begins operation. 3) Considering increased IPD count and IPD ASP hike for 5G handset vs. that of 4G handset, along with higher ASP of WiFi 6 applications, we project the added capacity will run at a UTR of 80% or higher in mid-2021, bringing monthly sales to the level of NT$250mn. We estimate 2020/2021 sales at NT$2.16bn (+26.7% YoY)/NT$2.82bn (+30.2% YoY), and EPS of NT$11.83/NT$15.83. 4) Valuation: ACX¡¦s P/E range elevated to 20-25x from 10-20x during the 3G-to-4G shift. We expect the 4G-to-5G shift to set stage for re-rating.
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