Title Macronix (2337 TT) Neutral
  Win Semiconductor (3105 TT) Neutral
  Landmark (3081 TT) Buy, TP: NT$352
  Powertech Technology Inc. (6239 TT) Buy, raise TP to NT$115
  Parade Technologies (4966 TT) Buy, raise TP to NT$1,573
  Novatek (3034 TT, IC Design) Buy, Raise TP to NT$516
  Vanguard (5347 TT) Buy, TP: NT$132
  Realtek (2379 TT) Buy, raise TP to NT$535
  Airtac International (1590 TT) Buy, Raise TP to NT$1,382
  Hiwin (2049 TT) Buy, raise TP to NT$460
More Titles
Title:BenQ Materials (8215 TT) U/G Buy, TP: NT$33
Download File:8215 TT BenQ Materials note 210111--sinopac.pdf 
Summary:Upgrade to Buy, TP of NT$33 (15x 2021F P/E): 1) Polarizer: BMC¡¯s capacity is fully loaded with a rosy 2021 outlook buoyed by TV brands¡¯ and panel makers¡¯ restocking following stronger-than-expected TV unit sales in late 2020; with ~40% sales exposure each to TV and monitor, BCM¡¯s capacity should remain fully utilized through at least 3Q21. 2) Other high GM businesses: In the healthcare space, unit sales of contact lenses and acne patches, eroded in 1H20 by COVID-19, picked up in 2H20, especially during Double 11 Shopping Festival. We forecast sales growth of 20%+ for contact lens and acne patches in 2021. We assume the battery separator business contributed initial sales in 4Q20F (small volume at first) and will turn to profit in 2021F. 3) Valuation: We set our TP at NT$33 (15x 2021 P/E) with a 14x P/E assigned to polarizer business (80% of 2021F earnings) and 18x P/E to non-polarizer business (20%).
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