Title Wiwynn (6669 TT) Buy, raise TP to NT$900
  Merida (9914 TT) Buy, TP: NT$350
  Advanced Ceramic X (3152 TT) Buy, TP: NT$510
  Asustek (2357 TT) Buy, TP: NT$275
  Yeong Guan Energy (1589 TT) Buy, TP: NT$108
  ChipMOS Technologies (8150 TT) Buy, TP: NT$37
  Accton (2345 TT) Buy, TP: NT$267
  Zhen Ding Technology (4958 TT) Buy, TP: NT$143
  eMemory (3529 TT) D/G Neutral
  TCI (8436 TT) D/G Neutral
 
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Title:Wiwynn (6669 TT) Buy, raise TP to NT$900
Download File:6669 TT Wiwynn note 201123--sinopac.pdf 
 
Summary:Raise TP to NT$900 (16x 2021F new EPS of NT$56.5); Maintain Buy: 1) Resilient GM: 3Q20 GM jumped to 8.6%, exceeding our estimate of 7.6%, as is likely to remain at a high level in 4Q20, supported by an estimated 5-10% decline of DRAM contract price. 2) Positive long-term growth: key customers Facebook and Microsoft will drive long-term growth in the datacenter industry, especially when 5G network coverage reaches its tipping point. We raise our 2021 earnings estimate by 6% for an expected YoY earnings growth of 13%. 3) Projected emergence of AWS as a 3rd sales driver will reduce client concentration risk . 4) Valuation: We raise our EPS forecasts by 8.8%/6.1% to NT$49.5/NT$56.3 for 2020/2021. By applying unchanged P/E multiple of 16x, we increase our TP to NT$900 from NT$850.
  
Date:2020/11/23
Author:TaiwanResearch.com
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