Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/4507" target="_blank" data-smartkarma-citation="entities:4507:1">Gigasolar Materials Corp</a> (GSM) sales in June recovered to NT$1.47 bn, up 8% versus May and close to April's NT$1.5 bn. The May dip and subsequent recovery in June are both related to a January 2016 industrial accident at metal powder supplier <a href="https://www.smartkarma.com/entities/14050" target="_blank" data-smartkarma-citation="entities:14050:1">Dowa Holdings Co Ltd</a> which interrupted raw materials supplies in Q2. With Dowa's production largely back to pre-accident levels, we don't expect raw materials supply to be a problem for GSM going forward, and we remain positive on the company's medium-term…

Gigasolar Materials Corp (GSM) sales in June recovered to NT$1.47 bn, up 8% versus May and close to April's NT$1.5 bn. The May dip and subsequent recovery in June are both related to a January 2016 industrial accident at metal powder supplier Dowa Holdings Co Ltd which interrupted raw materials supplies in Q2. With Dowa's production largely back to pre-accident levels, we don't expect raw materials supply to be a problem for GSM going forward, and we remain positive on the company's medium-term…

Giga Solar June Sales Recover, as Expected; Customers' June Sales Dip

Since its shares peaked just before Christmas 2015, Taiwanese conductive paste maker <a href="https://www.smartkarma.com/entities/4507" target="_blank" data-smartkarma-citation="entities:4507">Gigasolar Materials Corp</a> ('GSM', 3691:TT) has endured a difficult six months.First there were concerns about the scale of Chinese solar feed-in-tariff (FIT) reductions later this year, which could potentially hurt medium-term Chinese solar demand. Next, an industrial accident at a Japanese supplier of raw materials in early January led to fears of reduced sales of silver paste for GSM. We believe both of these issues have been adequately resolved, and that slower Sales and earnings momentum in 2016 has been priced in as GSM's shares fell from NT$750 on December 21st to as low as NT$449 earlier this month.We now view GSM as an inexpensive play on the rising adoption of solar energy. Investors should seek to accumulate shares below NT$480 per share on the expectation of a bottoming of Sales growth in H2 2016e and improved earnings growth in 2017e. Our price target is NT$660, based on 15x 2017e EPS.

Since its shares peaked just before Christmas 2015, Taiwanese conductive paste maker Gigasolar Materials Corp ('GSM', 3691:TT) has endured a difficult six months.First there were concerns about the scale of Chinese solar feed-in-tariff (FIT) reductions later this year, which could potentially hurt medium-term Chinese solar demand. Next, an industrial accident at a Japanese supplier of raw materials in early January led to fears of reduced sales of silver paste for GSM. We believe both of these issues have been adequately resolved, and that slower Sales and earnings momentum in 2016 has been priced in as GSM's shares fell from NT$750 on December 21st to as low as NT$449 earlier this month.We now view GSM as an inexpensive play on the rising adoption of solar energy. Investors should seek to accumulate shares below NT$480 per share on the expectation of a bottoming of Sales growth in H2 2016e and improved earnings growth in 2017e. Our price target is NT$660, based on 15x 2017e EPS. 

Accumulate Giga Solar Materials Below NT$480; Inexpensive Play on Solar Growth

Taiwan

Neo Solar Power Corp. researches, develops, and manufactures solar cells.

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Neo Solar Power (3576 TT)

Giga Solar June Sales Recover, as Expected; Customers' June Sales Dip

Gigasolar Materials Corp (GSM) sales in June recovered to NT$1.47 bn, up 8% versus May and close to April's NT$1.5 bn. The May dip and subsequent...

Daniel Hellberg

Accumulate Giga Solar Materials Below NT$480; Inexpensive Play on Solar Growth

Since its shares peaked just before Christmas 2015, Taiwanese conductive paste maker Gigasolar Materials Corp ('GSM', 3691:TT) has endured a...

Daniel Hellberg

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