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

Masterlink Securities

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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External broker reports(aggregated public sources)

Equity Bottom-Up

Tong Hsing Electronic Industries Ltd / Equity Bottom-Up

Tong Hsing Electronic Industries Ltd (6271 TT)

<p>Given that Tong Hsing (THEIL)’s 2Q21 GM substantially surpassed projection, we raise FY21 GM and profit forecasts in tandem. FY21 and FY22 EPS are estimated at NT$14.21 and NT$17, respectively. The company is trading at 16x FY21 EPS or 14x FY22 EPS based on a recent share price of NT$239. Automotive products carve up more than 40% of total sales. In addition to the quarterly expansion of automotive CIS capacity, THEIL would also raise capacity for ceramic substrate for the first time in six years. As for handheld ultrasound products and handset CIS wafer reconstruction (RW), both having a low base period, clients of the former have changed products to a new version, so wafer supply is likely to rebound; the latter is entering traditional peak season, and it has shown recovery in 3Q21. As THEIL would still enjoy strong operational momentum in 2H21, we reiterate BUY on the company and maintain its TP at NT$300.</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>

Given that Tong Hsing (THEIL)’s 2Q21 GM substantially surpassed projection, we raise FY21 GM and profit forecasts in tandem. FY21 and FY22 EPS are estimated at NT$14.21 and NT$17, respectively. The company is trading at 16x FY21 EPS or 14x FY22 EPS based on a recent share price of NT$239. Automotive products carve up more than 40% of total sales. In addition to the quarterly expansion of automotive CIS capacity, THEIL would also raise capacity for ceramic substrate for the first time in six years. As for handheld ultrasound products and handset CIS wafer reconstruction (RW), both having a low base period, clients of the former have changed products to a new version, so wafer supply is likely to rebound; the latter is entering traditional peak season, and it has shown recovery in 3Q21. As THEIL would still enjoy strong operational momentum in 2H21, we reiterate BUY on the company and maintain its TP at NT$300.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.

Tong Hsing (6271 TT) Strong Auto Demand Handset CIS RW to Rebound 