Analyst Research Report Snapshot

Title:

WT Microelectronics (3036 TT, NT$34.75, OP): Maintain Outperform

Price:

$58.00

Provider:

KGI Greater China

Date:

04 Nov 2013

Pages:

6

Type:

AcrobatPDF

Companies referenced:

3036.TW

Available for Immediate Download
Summary:

3Q13 results and 4Q13 outlook in line Driven by better product mix & inventory restocking, 3Q13 sales increased 11% QoQ & 7% YoY to NT$23.3bn; earnings grew 12% QoQ & 6% YoY to NT$360mn, for EPS of NT$1.07, in line with consensus of NT$1.08 but below our expectation of NT$1.13; gross margin was 5.83% & operating margin was 2.10%, as expected 4Q13F revenue down 2-7% QoQ and GM/OPM forecast of 5.7-5.9%/1.85-2.05% were inline with street and KGI estimates We are positive on longer-term earnings growth in light of improving better product mix & decent opex control; maintain Outperform and 12M TP of NT$42, on 10x 4Q13-3Q14F PE We trim 2013-14F EPS by 6.3% and 2.6%, respectively, from NT$4.05 and NT$4.75 to NT$3.80 and NT$4.63, factoring 3Q13 results and 4Q13F outlook with more conservative margin estimates. We maintain our 12-month target price at NT$42 on 10x 4Q13-3Q14F PE, trading at 2007-12 average PE. We continue to prefer WT Micro over WPG (3702 TT, NT$33.85, N) in the Taiwan distributor space due to former’s more attractive risk-reward profile (trading at 8x 12-month forward ESP vs 10x for the latter) given the two firms’ similar growth profile. Downside risks include slow M&A execution; product and customer concentration; and weak demand.

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.