Title Richwave Technology (4968 TT) Buy, TP: NT$200
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Title:Richwave Technology (4968 TT) Buy, TP: NT$200
Download File:4968 TT Richwave note 190731--sinopac.pdf 
 
Summary:Raise TP to NT$200 (30x 2020 P/E); Maintain Buy: Aided by new FEM product shipment, Richwave will likely turn profitable for 2Q19. Shipment of FEMs for networking equipment has been ramping up in 2H19 as Chinese vendors continue to transfer orders away from US companies to Richwave, lacking any comparable options in China. We project EPS will rise to NT$6.58 in 2020 (vs. NT$3.72 in 2019F and our old 2020 estimate of NT$3.93) driven by order transfers, full-year contribution from newly gained clients, and the potential penetration of Chinese handset titansíŽ WiFi FEM supply chains. We think the stock deserves a re-rating for its clear order visibility in its networking business and for prospective contribution from the long-anticipated handset-related business starting in 2020F. We raise our TP from NT$100 (25x old 2020F P/E).
  
Date:2019/07/31
Author:TaiwanResearch.com
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