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

Capital Securities

External broker reports(aggregated public sources)

Capital Securities Corp

Capital Securities provides clients with investment services covering diversified financial products. We have outstanding business performance amid intense competition in the domestic securities market. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<p>Earnings have grown significantly in FY21 on lean strategy; reiterate BUY. Catalyzed by the growth in core businesses, Lite-On’s overall operations have improved. Even though FY21 revenue is forecasted to remain steady, the company has significantly improved its profitability. Catalyzed by core earnings, FY22 earnings may also remain steady even without the contribution of valuation gains. We recommend BUY with TP of NTD74 (12x FY22 EPS).</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>

Earnings have grown significantly in FY21 on lean strategy; reiterate BUY. Catalyzed by the growth in core businesses, Lite-On’s overall operations have improved. Even though FY21 revenue is forecasted to remain steady, the company has significantly improved its profitability. Catalyzed by core earnings, FY22 earnings may also remain steady even without the contribution of valuation gains. We recommend BUY with TP of NTD74 (12x FY22 EPS).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.

Lite-On Technology (2301 TT, BUY, NTD60.10)

<p>Earnings fall in 3Q21 but may grow notably in FY21; maintain BUY. We expect its probability to rise notably in FY21. We also expect its overall earnings to be catalyzed by its core earnings and remain steady in FY22.. Reiterate BUY with TP of NTD74. </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>

Earnings fall in 3Q21 but may grow notably in FY21; maintain BUY. We expect its probability to rise notably in FY21. We also expect its overall earnings to be catalyzed by its core earnings and remain steady in FY22.. Reiterate BUY with TP of NTD74. 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.

Lite-On Technology (2301 TT, BUY, NTD60.40) 

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<p>After shares were <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1210/2020121000121.pdf" target="_blank" rel="noopener">suspended</a> before trading yesterday pursuant to the Hong Kong Code on Takeovers and Mergers, camera modules for mobile devices player <a href="https://www.smartkarma.com/entities/cowell-e-holdings-inc" target="_blank" data-smartkarma-citation="entities:336:1" rel="noopener">Cowell E Holdings (1415 HK)</a> has now <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1210/2020121000859.pdf" target="_blank" rel="noopener">announced</a> Kwak Joung Hwan,  founder and current Executive Chairman of the company, has entered into a SPA with Luxvision Innovation to sell his 44.87% stake.</p>
<p>Should the SPA complete  - and the SPA has limited conditions - a mandatory general offer (MGO) would be triggered at the same price under the SPA, or HK$5.87/share, a 2.98% premium to last close, but a 52.2% premium to the average close over the past three months.</p>
<p>The key condition to the MGO is Luxvision holding 50% of the voting rights of Cowell at the close of the Offer. No irrevocables have been given.</p>
<p>It is not Luxvision's intention to delist the company. This is a change of control as Kwak exits.  Expect shares to trade around the Offer price. The price has not been declared final.</p>
<p>More below the fold.</p>

After shares were suspended before trading yesterday pursuant to the Hong Kong Code on Takeovers and Mergers, camera modules for mobile devices player Cowell E Holdings (1415 HK) has now announced Kwak Joung Hwan,  founder and current Executive Chairman of the company, has entered into a SPA with Luxvision Innovation to sell his 44.87% stake.
Should the SPA complete  - and the SPA has limited conditions - a mandatory general offer (MGO) would be triggered at the same price under the SPA, or HK$5.87/share, a 2.98% premium to last close, but a 52.2% premium to the average close over the past three months.
The key condition to the MGO is Luxvision holding 50% of the voting rights of Cowell at the close of the Offer. No irrevocables have been given.
It is not Luxvision's intention to delist the company. This is a change of control as Kwak exits.  Expect shares to trade around the Offer price. The price has not been declared final.
More below the fold.

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<p><a href="https://www.smartkarma.com/entities/cowell-e-holdings-inc" target="_blank" data-smartkarma-citation="entities:336:1" rel="noopener">Cowell E Holdings (1415 HK)</a> is a major supplier of camera modules for mobile devices to leading mobile device manufacturers such as <a href="https://www.smartkarma.com/entities/apple-inc" target="_blank" data-smartkarma-citation="entities:666:1" rel="noopener">Apple Inc (AAPL US)</a>. On Thursday after market close, Cowell announced a sale and purchase agreement (SPA) and a possible mandatory conditional cash offer. As the offeror will acquire more than 30% of the voting rights because of the SPA, the Takeovers Code requires the offeror to make a mandatory conditional cash offer for all the issued shares. The offer price of HK$5.87 per share, which is in line to SPA price, is a 2.98% premium to the last trading price of HK$5.70 per share (9 December prior to the trading halt). </p><div class="content-highlight"><p>The offer is conditional on the offeror and concert parties holding more than 50% of the voting rights. Post the SPA completion, the offeror will hold 44.87% of the outstanding shares and voting rights. In combination with a reasonable price, we think that offer will fulfil the completion condition and become unconditional. </p></div>

Cowell E Holdings (1415 HK) is a major supplier of camera modules for mobile devices to leading mobile device manufacturers such as Apple Inc (AAPL US). On Thursday after market close, Cowell announced a sale and purchase agreement (SPA) and a possible mandatory conditional cash offer. As the offeror will acquire more than 30% of the voting rights because of the SPA, the Takeovers Code requires the offeror to make a mandatory conditional cash offer for all the issued shares. The offer price of HK$5.87 per share, which is in line to SPA price, is a 2.98% premium to the last trading price of HK$5.70 per share (9 December prior to the trading halt). The offer is conditional on the offeror and concert parties holding more than 50% of the voting rights. Post the SPA completion, the offeror will hold 44.87% of the outstanding shares and voting rights. In combination with a reasonable price, we think that offer will fulfil the completion condition and become unconditional. 

Cowell E Holdings’ Possible Mandatory Conditional Cash Offer

Taiwan

Lite-On Technology Corp. manufactures and markets a wide range of computer components and Peripheral equipment. The Company's products include computers, digital home products, consumer electronics, communications products, key components and sub-systems, and optoelectronic components. Power Supplies, Enclosures, and LEDs business are the core of Lite-On Technology's business.

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Lite On Technology (2301 TT)