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• | Kaori Heat Treatment (8996 TT) Buy, TP: NT$91.0 |  |
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• | Parade Technologies (4966 TT) Buy, TP: NT$942.0 | |
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• | Equity Note: Hiwin (2049 TT) Buy, TP: NT$320 | |
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• | Equity Note: Yageo (2327 TT) Buy, TP: NT$470 | |
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• | Novatek (3034 TT) Buy, TP: NT$250 | |
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• | ESG Equity Note: Momo (8454 TT) Buy, TP: NT$500 | |
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• | Equity Note: Chroma ATE (2360 TT) Buy: TP: NT$155 | |
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• | Equity Note: Win Semi (3105 TT) Neutral | |
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• | Macronix (2337 TT) Buy, TP: NT$43 | |
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• | Flexium Interconnect (6269 TT) Neutral | |
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| Title: | Kaori Heat Treatment (8996 TT) Buy, TP: NT$91.0 |
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| Download File: | 8996 TT Kaori Heat Treatment note 200518-sinopac.pdf  |
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| Summary: | Maintain Buy, TP of NT$91 (15x 2021 EPS of NT$6.02): 1) Kaori will limp out of 2Q20 but will have the wind at its back in 3Q20 as deferred orders from fuel cell giant Bloom Energy (BE) begin to ship; Kaori will also benefit from transferred orders from BE that the original recipient, an Indian company, could not fill due to COVID-19 lockdowns. Added with gradually rekindled demand for traditional plate heat exchanger, we expect powerful sales momentum for 3Q20; 2) We estimate EPS from sales of cooling distribution units (CDUs) for a key datacenter clientĄ¯s liquid cooling systems will climb to NT$0.9/NT$3.3 in 2020/2021. Other companies are also developing liquid cooling products in cooperation with Kaori, ensuring that Kaori will be a major winner in the liquid cooling industry; 3) BE has been gaining market share in fuel cells, consistently delivering double-digit % sales growth in recent years. Although the client temporarily suspended production during the pandemic, the pent-up demand shall set the stage for stronger momentum in 2H20-2021 as Kaori is the primary supplier for the client. |
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| Date: | 2020/05/18 |
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| Author: | TaiwanResearch.com |
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Market Commentary