CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

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Equity Bottom-Up

<ul><li>Good price momentum and slow asset growth relative to its sector</li><li>Taiwan Mobile’s eCommerce platform momo.com (8454 TT), which is<br>one of the top three players in Taiwan should further enjoy revenue<br>growth supported by the increasing popularity of online shopping</li><li>Room for continued growth in higher average revenue per user (ARPU)<br>4G postpaid subscriptions, up by 50% YoY reaching 64% of subscriber base</li><li>Trades above Asian Telecoms at 17CE* 5.3x PB but offers more than<br>double the sector ROE and a solid 5% dividend yield</li><li>Risks: Slower than anticipated growth in smartphone sales</li></ul><p><em>* Consensus Estimates</em></p>

Good price momentum and slow asset growth relative to its sectorTaiwan Mobile’s eCommerce platform momo.com (8454 TT), which is one of the top three players in Taiwan should further enjoy revenue growth supported by the increasing popularity of online shoppingRoom for continued growth in higher average revenue per user (ARPU) 4G postpaid subscriptions, up by 50% YoY reaching 64% of subscriber baseTrades above Asian Telecoms at 17CE* 5.3x PB but offers more than double the sector ROE and a solid 5% dividend yieldRisks: Slower than anticipated growth in smartphone sales* Consensus Estimates

Taiwan Mobile: One to Watch Among Isle's Telcoms

Macro & Asian equity Technical Strategies, BBSP Asia

Federico D'Inca

Macro & Asian equity Technical Strategies

BBSP Asia

Technical Analysis

China Construction Bank H / Technical Analysis

<p>Mid-Term Country Allocation (Tactical view) in terms of RV vs MXAP</p><p>This week:<br>• Signals for a new tactical opportunity: Upgrade on Kospi to “Increase Exposure” from “Hold”, within a long term Kospi outperformance.<br>• No change for the other countries: Still Overweight Nikkei, Nifty, HSI and HSCEI.<br>• ASX under the radar for a potential outperformance (watching reintegration of channel on the ASX/MXAP at 38.60/38.85 ) but maintain hold for now until the signal is triggered. Also, keep “hold” for TWSE.</p>

Mid-Term Country Allocation (Tactical view) in terms of RV vs MXAPThis week: • Signals for a new tactical opportunity: Upgrade on Kospi to “Increase Exposure” from “Hold”, within a long term Kospi outperformance. • No change for the other countries: Still Overweight Nikkei, Nifty, HSI and HSCEI. • ASX under the radar for a potential outperformance (watching reintegration of channel on the ASX/MXAP at 38.60/38.85 ) but maintain hold for now until the signal is triggered. Also, keep “hold” for TWSE.

BBSP Equity Asia Weekly Research 31 May 2017

Differentiated global TMT & Internet Research

New Street Research Insights

New Street Research

Research is provided by our team of experienced analysts. Our work is idea driven, based on independence of thought, sector expertise, and firmly focused on fundamentals and valuation of telecoms and internet names globally. New Street is headquartered in London with offices in New York, Singapore and Australia. 

New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:

Pan European Telecom Services and Cable
US Telecoms, Cable, Satellite and Towers
Global Emerging Market Telecoms
Japan Telecoms
Asian Internet
Pan European Healthcare
US Healthcare
Japanese Healthcare

We also provide debt research on:
Pan European Telecom Services and Cable

<p> <a href="https://www.smartkarma.com/entities/9181" target="_blank" data-smartkarma-citation="entities:9181:1">Chunghwa Telecom (2412 TT)</a> continues to be our main source of concern in the Taiwanese telecom market. The market remains expensive and hopes for a revenue pick up as the country moved from 3G to 4G have largely been unmet. In fact, they have declined and that has put pressure on margins. Investors had hoped for a move away from unlimited to tiered plans but the ongoing market share losses at Chunghwa suggest the risks are now on the downside. </p><p>While new entrants have failed to have much impact…</p>

 Chunghwa Telecom (2412 TT) continues to be our main source of concern in the Taiwanese telecom market. The market remains expensive and hopes for a revenue pick up as the country moved from 3G to 4G have largely been unmet. In fact, they have declined and that has put pressure on margins. Investors had hoped for a move away from unlimited to tiered plans but the ongoing market share losses at Chunghwa suggest the risks are now on the downside. While new entrants have failed to have much impact…

Taiwan Telcos Remain Under Pressure. How Will Chunghwa Respond to Market Share Losses?

Chunghwa Telecom Co., Ltd (Adr) / Technical Analysis

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/025/901/original/BBSP%20Chunghwa%20Telecom%20.JPG?1494557345" class="editor-image img-responsive" data-smartkarma-image-id="25901"></figure><table class="table table-striped"><tbody><tr><td><div id="dtd_titreConseil">Bullish above <strong>100.00</strong>
</div></td></tr></tbody></table><div id="dtd_analyse">*** Strong view conviction</div><table class="table table-striped"><tbody><tr><td>
<div id="dtd_titreCas1_pre"><strong>Preferred case:</strong></div>
<div id="dtd_titreCas1_suf"><strong>Bullish</strong></div>
<ul><li>
<strong>100.00</strong> support, rise expected to <strong>116.00</strong>.</li></ul>
</td></tr></tbody></table><div id="dtd_kelTitre">Key elements on a weekly basis:</div><ul>
<li>Back to graphical support and 144 week MA</li>
<li>weekly Rsi at level where the stock reversed in the past.</li>
</ul><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/025/903/original/BBSP%20Chunghwa%20rv%20vs%20TWSE%20outperf.JPG?1494557499" class="editor-image img-responsive" data-smartkarma-image-id="25903"></figure><p>Also, relative value 2412 TT vs TWSE outperformance expected</p><div class="content-remarks"><p>Access to this document is restricted to the use of the intended recipient designated by BBSP and may not be<br>shared with others. Any unauthorized use, dissemination, distribution or copying of this…</p></div>

Bullish above 100.00
*** Strong view conviction
Preferred case:
Bullish

100.00 support, rise expected to 116.00.
Key elements on a weekly basis:
Back to graphical support and 144 week MA
weekly Rsi at level where the stock reversed in the past.
Also, relative value 2412 TT vs TWSE outperformance expectedAccess to this document is restricted to the use of the intended recipient designated by BBSP and may not be shared with others. Any unauthorized use, dissemination, distribution or copying of this…

Chunghwa Telecom 2412 TT - About to Explode Upside - Target 116 (+10%)

Asia and Global Semiconductor and Tech Research

Andrew Lu

Thematic (Sector/Industry)

<h2>Why does foreign exchange matter?</h2><p>After <a href="https://www.smartkarma.com/entities/18126" target="_blank" data-smartkarma-citation="entities:18126:1">Phison Electronics Corp (8299 TT)</a> chairman/CEO said NT$ appreciation to have a negative earnings impacts to 1Q17 EPS up to NT$1.5 per share (please see earlier report "<a href="https://www.smartkarma.com/insights/phison-chairman-expects-nand-price-correction-in-2q17-and-not-ruling-out-to-invest-toshiba-memory" target="_blank" data-smartkarma-citation="insights:9867">Phison Chairman Expects NAND Price Correction in 2Q17 and Not Ruling Out to Invest Toshiba Memory</a>" dated 8 April 2017 and <a href="https://www.smartkarma.com/entities/11230" target="_blank" data-smartkarma-citation="entities:11230:1">Taiwan Semiconductor Mfg. Co. Ltd. (2330 TT)</a> missed its 1Q17 sales guidance by 2% (please see "<a href="https://www.smartkarma.com/insights/tsmc-misses-1q-sales-guidance-and-will-likely-miss-margin-guidance-and-2q-consensus-as-well" target="_blank" data-smartkarma-citation="insights:9895">TSMC Misses 1Q Sales Guidance and Will Likely Miss Margin Guidance and 2Q</a>…</p>

Why does foreign exchange matter?After Phison Electronics Corp (8299 TT) chairman/CEO said NT$ appreciation to have a negative earnings impacts to 1Q17 EPS up to NT$1.5 per share (please see earlier report "Phison Chairman Expects NAND Price Correction in 2Q17 and Not Ruling Out to Invest Toshiba Memory" dated 8 April 2017 and Taiwan Semiconductor Mfg. Co. Ltd. (2330 TT) missed its 1Q17 sales guidance by 2% (please see "TSMC Misses 1Q Sales Guidance and Will Likely Miss Margin Guidance and 2Q…

Quick Analysis of US$ Depreciation Impacts to Top 20 Market Cap Taiwan Tech Vendors

Taiwan

Chunghwa Telecom Co., Ltd. provides local, domestic, and international long distance services. The Company also offers wireless telecommunication, paging, and Internet services.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Chunghwa Telecom (2412 TT)

Taiwan Mobile: One to Watch Among Isle's Telcoms

Good price momentum and slow asset growth relative to its sector Taiwan Mobile’s eCommerce platform momo.com (8454 TT), which isone of the top...

A. Stotz Investment Research

BBSP Equity Asia Weekly Research 31 May 2017

Mid-Term Country Allocation (Tactical view) in terms of RV vs MXAPThis week:• Signals for a new tactical opportunity: Upgrade on Kospi to “Increase...

BBSP Asia