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Title:Asustek (2357 TT) Buy, TP: NT$275
Download File:2357 TT Asustek note 201119--sinopac.pdf 
Summary:Maintain Buy with TP unchanged at NT$275 (12x 2021F P/E): 1) The companyˇ¦s 3Q20 results outperformed the guidance it gave in the previous investor conference thanks to WFH/EFH demand. 2) We expect ~10% drop QoQ in PC and board/card sales in 4Q20 as partial shipment and sales will be deferred to 1H21 due to component shortage, although order visibility is clear through 2Q21. 3) Assuming 2020 EPS of NT$29.4 and based on payout ratio of 60% or higher guided by the management, the company could distribute cash dividend of NT$17-18 in 2021, suggesting dividend yield of ~7%. 4) Its unassuming valuation of ~1x 3Q20 BVPS of NT$247.4 should offer share price downside protection.
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