Analyst Research Report Snapshot

Title:

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

Price:

$58.00

Provider:

KGI Greater China

Date:

24 Mar 2014

Pages:

6

Type:

AcrobatPDF

Companies referenced:

4532.TW

Available for Immediate Download
Summary:

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.

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