Title M31 (6643 TT) Buy, raise TP to NT$472
  Kinsus (3189 TT) Buy, TP: NT$78
  Shin Zu Shing (3376 TT) Buy, raise TP to NT$180
  Top Bright (8499 TT) Buy, raise TP to NT$158
  ESG Note: Delta (2308 TT) U/G Buy: TP: NT$216
  Poya (5904 TT) Buy, raise TP to NT$659
  Lotes (3533 TT) Buy, TP: NT$500
  TSMC (2330 TT) Buy, Raise TP to NT$454
  Zhen Ding (4958 TT) Buy, TP: NT$156 (14x 2021F P/E)
  ESG Equity Note: Nanya Tech (2408 TT) Buy, TP: NT$77
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Title:M31 (6643 TT) Buy, raise TP to NT$472
Download File:6643 TT M31 note 200724--sinopac.pdf 
Summary:Raise TP by 17% to NT$472 (35x 2021F P/E); Maintain Buy: 1) M31 has a solid clientele already and will leverage its robust IP library for high speed transmission applications to gain new clients as demand for high frequency, high speed data transmission rides on the AI, big data, and 5G trends; 2) M31 will piggyback on the growth of foundry clients TSMC, Shanghai Huali Microelectronics (HLMC), etc., and will see more evident contribution from its large US giant; 3) M31¡¯s long-term growth looks secure given increased contribution from 7nm IPs starting in 2H21 and the company¡¯s plan to tap into the 5nm IP market and below following clients¡¯ process migration; 4) Valuation: M31 is trading at ~25x 2021F P/E. We raised our TP from NT$403 (34x 2020F P/E) to NT$472, implying an upside of 38.4%.
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