Analyst Research Report Snapshot

Title:

Simplo Technology (6121 TT): Increasing Competition Pressure

Price:

$46.00

Provider:

MasterLink Securities Corporation

Date:

07 May 2014

Pages:

5

Type:

AcrobatPDF

Companies referenced:

6121.TWO

Available for Immediate Download
Summary:

Overall, Apple growth has slowed down while new competitors have also entered the industry, which lead to weaker demands but increasing pricing pressure. Simplo’s coping strategy at the moment is to focus on developing highly automated production. We believe that this strategy can maintain Simplo’s profit but hard to drive exponential growth. In addition, development in power battery is quite slow. Therefore, there is uncertainty in growth in the long term. Current PER of 13-14x indicates that share price has already reflected the sales momentum in 2H14 peak season in advance. We thus retain our HOLD rating on Simplo with target price of NT$155.

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