Title Win Semi (3105 TT): U/G Buy, TP: NT$324
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Title:Win Semi (3105 TT): U/G Buy, TP: NT$324
Download File:3105 TT Win Semi note 190802--sinopac.pdf 
 
Summary:SinoPac¡¯s view: Win Semiconductors Corp. (WIN)¡¯s 2Q19 results topped our expectations due to improved UTR, and we estimate its 3Q19 EPS will benefit from seasonality and approach the company¡¯s all-time high. Rising 5G handset demand, ToF applications in handset rear camera, and Huawei¡¯s push to increase its usage of insourced power amplifiers (PAs) should underpin long-term operational growth. Huawei¡¯s wholly-owned subsidiary Hisilicon designs the PA ICs and outsources production to WIN.

Upgrade to Buy, TP of NT$324 (30x 2020F P/E): WIN¡¯s 2Q19 UTR and 3Q19 guidance beat our expectations. Considering Huawei¡¯s increased inhouse sourcing of PAs and the positive impact increased adoption of high-margin ToF rear camera will have on Win Semi¡¯s product mix, we raise our 2019 and 2020 EPS estimates to NT$8.10 and NT$10.79 respectively and upgrade the stock to Buy with a NT$324 TP.
  
Date:2019/08/02
Author:TaiwanResearch.com
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