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

Capital Securities

External broker reports(aggregated public sources)

Equity Bottom-Up

Novatek Microelectronics Corp / Equity Bottom-Up

<p>Inventory adjustments by end-market panel makers may affect Novatek’s sales; downgrade to NEUTRAL. Despite limited capacity, Novatek continues to improve its revenue/earnings through product mix variation in addition to raising prices. Regarding Novatek’s capacity in FY22, wafer foundries are still unable to satisfy the company’s demand after initial negotiation. Even though supply is tight, end-market panel makers may adjust inventories in the short run and wafer foundries may continue to raise prices, which are both damaging to Novatek’s GM in the future. Thus, we downgrade Novatek to NEUTRAL.</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>

Inventory adjustments by end-market panel makers may affect Novatek’s sales; downgrade to NEUTRAL. Despite limited capacity, Novatek continues to improve its revenue/earnings through product mix variation in addition to raising prices. Regarding Novatek’s capacity in FY22, wafer foundries are still unable to satisfy the company’s demand after initial negotiation. Even though supply is tight, end-market panel makers may adjust inventories in the short run and wafer foundries may continue to raise prices, which are both damaging to Novatek’s GM in the future. Thus, we downgrade Novatek to NEUTRAL.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.

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

Masterlink Securities

<p>Tight capacity did not curb sales. Moreover, profit reached a peak. After quarters of lackluster performance, AMOLED driver IC sales would hit a new high in 3Q21, and grow significantly in 2022. The problem of tight capacity remains unresolved. Novatek’s capacity would increase mildly, and ASP is expected to stay high in 2021-2022. Based on the current conditions, we revise up FY21 and FY22 EPS forecasts to NT$61.89 and NT$69.94, respectively. </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>

Tight capacity did not curb sales. Moreover, profit reached a peak. After quarters of lackluster performance, AMOLED driver IC sales would hit a new high in 3Q21, and grow significantly in 2022. The problem of tight capacity remains unresolved. Novatek’s capacity would increase mildly, and ASP is expected to stay high in 2021-2022. Based on the current conditions, we revise up FY21 and FY22 EPS forecasts to NT$61.89 and NT$69.94, respectively. 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.

Novatek (3034 TT) Sales Growth despite Capacity Constraints

Taiwan

Novatek Microelectronics Corporation designs, manufactures, and markets integrated circuits (ICs).  The Company's products are used in telecommunication, computer peripherals, and LCD (liquid crystal display) drivers.

Novatek Microelectronics Corp (3034 TT)

Novatek (3034 TT, NEUTRAL, NTD389.00)

Inventory adjustments by end-market panel makers may affect Novatek’s sales; downgrade to NEUTRAL. Despite limited capacity, Novatek continues to...

Capital Securities

Novatek (3034 TT) Sales Growth despite Capacity Constraints

Tight capacity did not curb sales. Moreover, profit reached a peak. After quarters of lackluster performance, AMOLED driver IC sales would hit a...

Masterlink Securities