Analyst Research Report Snapshot

Title:

Radiant (6176 TT, NT$111.5, OP): Maintain Outperform

Price:

$69.00

Provider:

KGI Greater China

Date:

25 Oct 2013

Pages:

7

Type:

AcrobatPDF

Companies referenced:

6176.TW

Available for Immediate Download
Summary:

Returning to peak form in 4Q13 3Q13 EPS jumped 41% QoQ to NT$2.27, slightly below our estimate of NT$2.62 & consensus of NT$2.43, mainly due to lackluster NB & LCD TV shipments growth; but gross margin of 14.7% beat our forecast of 12.6% thanks to smooth shipments of backlight module orders for the more lucrative iPad Air & iPad mini 2 Margin up sharply on high-margin tablet & NB backlight module sales weighting increase; NB & tablet weighting to jump from 64% in 2012 to 84% in 2013 & 88% in 2014; we expect margin to rise from 11.8% in 2012 to 13.4% & 13.8% in 2013-14, respectively 2014F EPS is NT$12.1, up 24.7% YoY for a post-listing high; given sharp sales & earnings growth in 2014, we revise up our 12M target price from NT$135.6 to NT$145.2 (30.2% upside), on 12x 2014F EPS of NT$12.1; maintain Outperform rating We expect Radiant to derive sales and earnings steam in 4Q13 and 2014 from three developments. Firstly, the new iPad will likely boost Radiant’s tablet backlight module sales and earnings growth in 4Q13 and 2014. Second, non-Apple product (LCD TV, LCD monitor) shipments have bottomed out and will likely slowly pick up in the coming quarters. Third, improved product mix has boosted gross margin and thus profitability. We expect 4Q13 earnings to grow 36.3% QoQ and 2014 earnings to grow 24.7% YoY. Shares are trading at 9.2x KGI’s 2014F EPS, at the lower end of their historical band of 6-16x. Based on 12x 2014F EPS of NT$12.1, we revise up our 12-month target price to NT$145.2 from NT$135.6, implying 30.2% upside. Reiterate Outperform. Downside risks are new iPad sales missing; LCD TV and LCD monitor demand remaining weak; and market share loss due to cut-price competition.

Why buy analyst research?

  • Institutional quality research
  • Available for Immediate Download
  • Detailed company or industry insight
  • Print or save
  • 24 hour customer support
Return to previous page without adding this item to your cart.
Email Customer Support.

About Analyst Research

Analyst research reports are available for immediate download after purchase. You will have unlimited access to the report for 24 hours after purchase, to download, print or save it as many times as you wish. Analyst Research provided by Reuters does not constitute investment advice, and is not endorsed by Reuters Research. This information is protected by copyright and intellectual property laws. More information on Analyst Research.