Analyst Research Report Snapshot


Rechi Precision (4532 TT, NT$31.6, OP): Maintain Outperform




KGI Greater China


24 Mar 2014





Companies referenced:


Available for Immediate Download

2013 results in line 2013 consolidated sales up 7.8% to NT$16.5bn, pretax profit down 1.2% to NT$1.56bn; net profit NT$916mn (ex minority interest), down 6.2%; EPS of NT$2.03 in line with our forecast; cash dividend NT$1.5 per share, stock dividend NT$0.3 per share, for cash yield of 4.7% We forecast 1Q14 shipments to rise 8% QoQ to 3.8mn units on strong export orders; gross margin 17.4% on higher utilization; operating expenses up 23% QoQ on increased production line worker hours; 1Q14F EPS up 82% to NT$0.72 1H14 order outlook supported by surging export orders, good domestic orders & global economic recovery in 2014; shares at 12.2x 2014F EPS of NT$2.58 and 10.9x 2015F EPS of NT$2.91; based on 2015F PE of 14x, we maintain our 12M target price of NT$41; maintain Outperform As the global economy recovers in 2014, Rechi’s export order growth has been impressive, while domestic shipments are steady, ensuring a solid 1H14 outlook. Shares are trading at 12.2x our 2014F EPS of NT$2.58 and 10.9x 2015F EPS of NT$2.91. We maintain our target price of NT$41, on 2015 PE of 14x. We maintain our Outperform rating.

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.