External broker reports(aggregated public sources), Masterlink Securities Corp

Masterlink Securities

External broker reports(aggregated public sources)

Masterlink Securities Corp

MasterLink Securities provide brokerage, securities underwriting, and proprietary trading services in Taiwan. It offers brokerage services, including Taiwan stock exchange and OTC brokerage services, futures trading assistance, foreign securities trading, investment Banking services, and derivative products.

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Equity Bottom-Up

China Airlines Limited provides scheduled international air transportation for passengers and cargo freight throughout cities in Europe, America, Asia, and Australia.

<p>Assign STRONG BUY given dual engines for sales growth in 2022 on the back of stable cargo business and recovery of the passenger business. CAL will likely reach breakeven given robust demand in 2021, while it will be a main beneficiary as borders reopen in 2022. Given robust cargo demand and tight passenger capacity after recovery in the passenger business, the company’s cargo/passenger yield could stay at a high level, and propel CAL’s sales to reach a peak in recent years. In terms of valuation, CAL’s PBR was ranging between 1.0x-2.2x in the past. Considering that the company’s post-pandemic sales will likely recover to a peak level as that in 2010, we assign BUY on the firm with a TP of NT$30 (2.2x FY22 PBR).</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Assign STRONG BUY given dual engines for sales growth in 2022 on the back of stable cargo business and recovery of the passenger business. CAL will likely reach breakeven given robust demand in 2021, while it will be a main beneficiary as borders reopen in 2022. Given robust cargo demand and tight passenger capacity after recovery in the passenger business, the company’s cargo/passenger yield could stay at a high level, and propel CAL’s sales to reach a peak in recent years. In terms of valuation, CAL’s PBR was ranging between 1.0x-2.2x in the past. Considering that the company’s post-pandemic sales will likely recover to a peak level as that in 2010, we assign BUY on the firm with a TP of NT$30 (2.2x FY22 PBR).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CAL (2610 TT) Sales Recovery after Borders Reopen

Arcadyan Technology Corporation provides wireless solutions. The Company specializes in broadband access, multimedia, and wireless technology solutions. Arcadyan's products include wireless routers and 802.11g minicards.

<p>Upgrade to BUY. We forecast FY21 and FY22 EPS at NT$8.36 and NT$10.01, respectively. Considering that Arcadyan’s 3Q21 results were impressive, and that the new capacity will boost sales to break the ceiling, we upgrade our rating for the company to BUY with a TP of NT$140.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Upgrade to BUY. We forecast FY21 and FY22 EPS at NT$8.36 and NT$10.01, respectively. Considering that Arcadyan’s 3Q21 results were impressive, and that the new capacity will boost sales to break the ceiling, we upgrade our rating for the company to BUY with a TP of NT$140.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Arcadyan (3596 TT) Sales to Break the Ceiling on New Capacity

Catcher Technology Co., Ltd. manufactures aluminum and magnesium die casting products which are used in notebook computers, cellular phones, and hard disk drive bases.

<p> Upgrade to BUY, with a TP of NT$200. Although Catcher had sold its iPhone related business, it has been affected by material supply shortages in 2021. We project that Catcher’s FY22 EPS could top NT$10 after the problem of material shortages is improved. A significant booster for Catcher’s sales has not emerged yet, but the sign of reaching the bottom has appeared. In addition, Catcher is expected to pay out a cash dividend of NT$10 per share in the coming three years, which should support its share price. Considering limited downside risk and high dividend yield, we upgrade our rating on Catcher to BUY, with a TP of NT$200.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

 Upgrade to BUY, with a TP of NT$200. Although Catcher had sold its iPhone related business, it has been affected by material supply shortages in 2021. We project that Catcher’s FY22 EPS could top NT$10 after the problem of material shortages is improved. A significant booster for Catcher’s sales has not emerged yet, but the sign of reaching the bottom has appeared. In addition, Catcher is expected to pay out a cash dividend of NT$10 per share in the coming three years, which should support its share price. Considering limited downside risk and high dividend yield, we upgrade our rating on Catcher to BUY, with a TP of NT$200.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Catcher (2474 TT) Impressive GM & High Dividend Yield

BenQ Materials Corp. manufactures and markets CD-R, CD-RW, DVD-R, and DVD-RW. The Company also produces batteries for cellular phones.

<p>Downgrade to HOLD from BUY with a TP of NT$40. We believe that BenQ Materials’ business transformation plan is clear, with FY22 EPS estimated at NT$3.4. However, share prices are likely to experience fluctuations in the near term as short-term sales may be influenced by downside risks in the panel market and delayed progress in the EV business. Therefore, we downgrade BenQ Materials’ rating to HOLD from BUY, with a target price of NT$40.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Downgrade to HOLD from BUY with a TP of NT$40. We believe that BenQ Materials’ business transformation plan is clear, with FY22 EPS estimated at NT$3.4. However, share prices are likely to experience fluctuations in the near term as short-term sales may be influenced by downside risks in the panel market and delayed progress in the EV business. Therefore, we downgrade BenQ Materials’ rating to HOLD from BUY, with a target price of NT$40.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

BenQ Materials (8215 TT) Delayed Launch Schedule by the Automotive Client

ChipMOS TECHNOLOGIES INC. offers semiconductor testing and packaging solutions to companies, integrated device manufacturers, and foundries. The Company provides a broad range of back-end testing services for high density memory, mixed-signal and liquid crystal display.

<p> We expect ChipMOS’ sales and profits to decline in 4Q21, with FY21 and FY22 EPS revised down to NT$6.62 and NT$6.75, respectively. However, given undemanding valuation amid high yield story, we reiterate BUY on the company, with target price trimmed to NT$66. ChipMOS’ 3Q21 GM missed expectations due to the increase in costs. Nonetheless, non-operating income propelled profits to achieve 108% of guidance. 4Q21 sales will slightly drop, which may also affect GM, with FY21 and FY22 EPS revised down to NT$6.62 and NT$6.75, respectively. ChipMOS is trading at 7x FY22 PER based on a recent share price of NT$46.9, which is still relatively cheap. However, given uncertainties in short-term demands for DDIC and memory products, sales and profits may decline from its peak. ChipMOS plans to distribute a dividend of NT$3.3-3.9 per share, with dividend payout ratio of 50-60%, and dividend yield of 7-8%. With that, we expect limited downside risks unless there is a significant drop in short-term profits. Therefore, we reiterate BUY on the company, with target price trimmed from NT$70 to NT$66.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

 We expect ChipMOS’ sales and profits to decline in 4Q21, with FY21 and FY22 EPS revised down to NT$6.62 and NT$6.75, respectively. However, given undemanding valuation amid high yield story, we reiterate BUY on the company, with target price trimmed to NT$66. ChipMOS’ 3Q21 GM missed expectations due to the increase in costs. Nonetheless, non-operating income propelled profits to achieve 108% of guidance. 4Q21 sales will slightly drop, which may also affect GM, with FY21 and FY22 EPS revised down to NT$6.62 and NT$6.75, respectively. ChipMOS is trading at 7x FY22 PER based on a recent share price of NT$46.9, which is still relatively cheap. However, given uncertainties in short-term demands for DDIC and memory products, sales and profits may decline from its peak. ChipMOS plans to distribute a dividend of NT$3.3-3.9 per share, with dividend payout ratio of 50-60%, and dividend yield of 7-8%. With that, we expect limited downside risks unless there is a significant drop in short-term profits. Therefore, we reiterate BUY on the company, with target price trimmed from NT$70 to NT$66.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.