Title Advanced Ceramic X (3152 TT) Buy, TP: NT$360
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Title:Advanced Ceramic X (3152 TT) Buy, TP: NT$360
Download File:3152 TT Advanced Ceramic X note 191210--sinopac.pdf 
Summary:Maintain Buy, TP of NT$360 (30x 2020F P/E): 1) 1Q19-3Q19 was the operational trough; ACX¡¦s earnings will return to YoY growth in 1Q20F amid pull-ins for 5G handsets and increasing networking tenders from China; 2) ACX¡¦s lead in supplying wireless networking solutions for 5GHz that can be further arranged to 5.2GHz and 5.6GHz should fuel sales momentum of its wireless business in 2H20; 3) Valuation of 28x 2020F P/E is attractive. ACX¡¦s P/E peaked at 36x in 2017 before settling into a range of 16-32x due to the operational slowdown in 2018-2019. We believe our 30x P/E will be attained when the company¡¦s growth resumes.
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