Taiwan Research

October 7, 2010 - Taiwan Market Daily

Asia: Taiwan
Taiwan Market Daily

Taiwan Market Daily

What’s Inside:
Taiwan Indices Close % ch
1) HTC (2498 TT, NT$719, Handset): Raise TP to NT$890;
TAIEX 8284.0 1.0
Maintain BUY…p.2
Gretai 141.6 0.4
TAIEX Daily High/Low 8301.4 8267.6
Turnover (NT$/US$B) 149.2 4.8
Mkt Cap (NT$/US$B) 21,644 695.2 A glance at today's other headlines, October 7, 2010
Short position (mn) shrs) 683 -- Joseph Stiglitz: Fed’s flood of liquidity could cause asset bubbles.
Long Margin (NT$/US$B) 295.6 9.5
(Commercial Times)
Long Margin Maintenance % 164.5
NT$/US$ 31.13 -0.38 -- Panel prices stabilized in 1H of OCT due to strong demand during
Institutional Trading NT$bn China’s National Holiday Golden Week. (Economic Daily)
FINI Net 6.37
Local Funds Net 0.31
-- CBC governor Perng remains vigilant against possible TWD
Local Dealers Net 1.32 speculation. (Apple Daily)
-- IMF lifts its Taiwan 2010/2011 GDP forecasts to 9.3%/4.4%. (China
Recent L-T Recommendation Changes
Code TT, Firm Rating TP NT$ Times)
2498 HTC BUY 890↑
2536 Hung Poo NEUTRAL 50.0↑
5388 Sercomm BUY 33.6↑
4126 PAHSCO BUY 142.0↑
3481 CMI BUY↑ 51.0↑
1319 Tong Yang BUY↑ 60.0↑

Top S-T BUY/SELL Recommendations

Code TT, Firm ST NT$
2384 Wintek BUY 49.0-56.0
2448 Epistar BUY 94.0-120.0
2908 Test Rite BUY 25.7-27.3
2911 Les Enphant BUY 47.4-54.3
1722 Taiwan Fer. BUY 106-127
1319 Tong Yang BUY 51.0-60.0
2892 First FHC BUY 20.6-24.5
Commodities
Close %Ch
Flash (16Gb CC) 4.39 -1.13
Flash (32Gb CC) 5.47 0.00
DDR2 1Gb 1.79 0.56
DDR3 1Gb 2.02 -0.49 1-Day FINI Top Net Buy and Sell Stocks by Value
BDI (Baltic Dry Index) 2639.00 2.72 Code Stock (NT$mn) Code Stock (NT$m
CRB Index (CCI) 289.15 0.25 2317 HON HAI 1331 2454 MTK (1,716)
NYMEX Crude Oil 83.23 0.50 2330 TSMC 835 2324 Compal (456)
GOLDS (Gold spot) 1349.05 0.63 3481 CMI 758 1722 TFC (368)
Nickel (LME) 24778.00 0.29 2325 SPIL 332 1402 FENC (303)
Copper (LME) 8241.00 1.00 2618 EVAAIR 280 3037 UNIMICRON (220)
Source: TSE
ADR Close (US$) % Change TAIEX Gretai (OTC)
TSM 10.30 -1.06 Turnover (NT$B) TAIEX Turnover (NT$B) Gretai
8500 250 160 60
UMC 2.80 0.36 8000 200
140 50
120
40
AUO 10.42 -0.38 7500 150
100
80 30
7000 100 60
SPIL
20
5.36 -1.11 6500 50
40
20
10

CHT 22.70 0.71

6000
Oct Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
0 0
Oct Oct Nov Dec Jan Feb Mar Apr May May Jun Jul Aug Sep
0

09 09 09 09 10 10 10 10 10 10 10 10 10 09 09 09 09 10 10 10 10 10 10 10 10 10 10
ASX 4.18 -0.48

PLEASE SEE THE BACK OF THIS REPORT FOR IMPORTANT DISCLOSURES 1

 Taiwan Research
October 7, 2010 - Taiwan Market Daily

Handset HTC (2498 TT) BUY

Share price Target price
NT$719 NT$890
BUY on improved 3Q10 margin and market share gain

Reason for note Raise TP

Company profile: HTC designs, manufactures and markets innovative, feature rich
Core Coverage BUY touch phones, PDA phones, smartphones, and mobile computer devices. HTC is a
leading manufacturer of Microsoft Windows Mobile-based portable devices and more
Trading Data recently has introduced Google Android-based devices.
Beta 0.99 Event: Raise TP to NT$890 (15X 2011F EPS); Maintain BUY: Our previous TP was
% Upside to TP 23.78
NT$675 (15X previous 2010F EPS). We revised up our 2010F/2011F EPS forecasts
52-week range (NT$) 252.71-755.00
to NT$46.34/NT$59.43 from NT$45.15/NT$51.11 to reflect our more positive view
Market cap. (NT$mn) 587,850
and the company’s better OPEX control. The share price surged in the first two weeks
Market cap. (US$mn) 18,883
of SEP but then pulled back in the past two weeks to fully factor in the slowdown in
Shares outstanding (mn) 818
Avg. daily volume (mn) 7.16
SEP sales. We expect the better-than-expected 3Q10 margin, together with stronger
Avg. daily value (NT$mn) 3,204.91 sequential growth in 4Q10, will catalyze the share price performance again.
Major shareholders (%) 10.91
FINI (%) 59.63 Analyst Comment:
Dom. Inv. Trust (%) 2.88
• 3Q10 margin and profit beat expectation: HTC announced SEP sales at
Long Margin (%) 8.47
NT$27.1bn, lower than the market’s expectation of NT$28-NT$33bn and our
forecast of NT$32bn due to model transition. 3Q10 sales therefore arrived at
Key Ratios
2009
NT$75.8bn, up 24% QoQ and up 124% YoY, lower than consensus’s
Shareholder’s Equity (NT$M) 65,674 NT$77bn-NT$82bn and our forecast of NT$80.6bn. However, 3Q10 OM arrived
ROA (%) 19.01 at 16.4%, beating market consensus’s 14.5%-16.0% and our forecast of 15%,
ROE (%) 35.88 leading to EPS of NT$13.61, ahead of our forecast of NT$13.33 and market
Net gearing (%) 44.79 consensus of NT$11-NT$13.

• Momentum from WM7 to boost 4Q10 sales to grow by 25% QoQ: Besides its A
Performance %
of iOS and Android, Microsoft has put tremendous effort in WM 7 including
1-mth 3-mth 12-mth
Company 15.2 59.8 122.8
devising links to Zune and XBOX Live to create a smartphone-PC-game console
TAIEX 5 9.7 9.9 platform to compete with iOS and Android. We forecast HTC’s 4Q10 sales to
Current TAIEX: 8284.03
grow by 25% QoQ; OM to retreat to 15.5%; and EPS to grow to NT$16.09.

• Market share gain in smartphone with Android success: HTC’s market share
Revenue Breakdown % in smartphone had significantly increased from 6.2% in 1Q10 to 9.6% in 2Q10,
Android 75% and we forecast it will increase to 10.5% in 3Q10 and 11% in 4Q10. The
Windows Mobile 25% significant market share increase was mainly driven by the market share
expansion of Android. According to Gartner’s forecast, Android’s market share in
Major Customers % overall handset will increase from 17.7% in 2010 to 22.2% in 2011. Gartner also
Vodafone forecasts 2011 overall smartphone shipment will grow by 53%.
Verizon
Sprint

Major Competitors FYE 31st Dec (NT$mn) 2007 2008 2009 2010F 2011F
Revenue 118,218 152,353 144,493 269,228 412,605
RIMM
% chg 12.21 28.88 (5.16) 86.33 53.25
APPLE
Gross profit 44,824 50,991 46,163 80,554 118,169
PALM
Gross margin (%) 37.92 33.47 31.95 29.92 28.64
Op. profit 31,319 30,345 24,623 41,990 55,660
EBITDA 32,138 31,153 26,011 43,366 56,759
% chg 18.26 (3.06) (16.51) 66.72 30.88
Net profit 28,939 28,635 22,609 37,891 48,592
% chg 14.62 (1.05) (21.05) 67.59 28.24
EPS* (NT$) 35.39 35.02 27.65 46.34 59.43
Consensus EPS* (NT$) -- -- -- 45.17 56.38
PER (x) 13.24 13.38 16.95 15.51 12.10
PBR (x) 6.83 6.32 5.84 6.94 5.71
Bamboo Lin BVPS* (NT$) 97.84 81.38 83.20 103.54 125.90
(886 2) 2316-5194 DPS (NT$) 27.00 34.00 27.00 26.00 37.08
Yield (%) 4.77 4.96 6.03 3.62 5.16
bamboo.lin@sinopac.com
*Adj. for current shares out;
Source: CMoney, SinoPac Forecasts; consolidated

PLEASE SEE THE BACK OF THIS REPORT FOR IMPORTANT DISCLOSURES 2

Taiwan Research
October 7, 2010 - Taiwan Market Daily

HTC (2498 TT)

Revised HTC 2010/2011 shipment forecast of 24.5mn/40.4mn units: With Android

market share gain and newly launched WM 7, we forecast HTC’s market share in
smartphone will further extend to 11.5% in 2011. Our updated shipment forecasts for
HTC in 2010 and 2011 are 24.5mn units (+110% YoY) and 40.4mn (+65% YoY). One
main advantage of Android over iOS is the variety of handset models, and we think HTC’s
strategy of launching multiple models for different targeted customers is what makes it
successful in the Android market, especially after its launch of Nexus One which helps
enhance its brand image.

Fig.1: Market Share of Leading Handset OS

Symbian Android RIM iOS Windows Mobile Others

4.7% 5.2%
8.7% 4.7% 4.3% 3.9%
12.0% 11.8% 15.4%
17.1% 16.0% 15.4% 14.9%
14.4%
2.7% 8.2%
9.6% 17.5%
15.0% 13.6% 12.5% 11.7%
0.0%
16.6% 19.9%

0.5%
3.9% 17.7%
22.2% 25.4% 27.5% 29.6%

63.5%
52.4%
46.9%
40.1%
34.2% 32.9% 31.4% 30.2%

2007 2008 2009 2010F 2011F 2012F 2013F 2014F

Source: Gartner (AUG 2010), SinoPac

Fig.2: HTC Model Revision Table (NT$mn, unless noted)

Year to Dec 31 2010F old 2010F new % Diff 2011F old 2011F new % Diff
Net Sales 268,941 269,228 0.11 388,386 412,605 6.24
Gross Profits 80,494 80,554 0.07 111,279 118,169 6.19
Operating Profits 38,599 41,990 8.79 45,275 55,660 22.94
Net Profits 34,940 37,891 8.45 39,557 48,592 22.84
Shares Outstanding 774 818 774 818
Adj EPS (NT$) 45.15 46.34 51.11 59.43
Gross Margin 29.93 29.92 28.65 28.64
Operating Margin 14.35 15.60 11.66 13.49
Net Profit Margin 12.99 14.07 10.18 11.78
Source: SinoPac

PLEASE SEE THE BACK OF THIS REPORT FOR IMPORTANT DISCLOSURES 3

Taiwan Research
October 7, 2010 - Taiwan Market Daily

Fig.3: Forward PER

TWD HTC PER Band (One year forward)
HTC
1200

18x PE
1000

15x PE
800
12xPE

600
9x PE

400
6x PE

200

0
Au De Ap Au De Ap Au De Ap Au De Ap Au De Ap Au De Ap Au De Ap Au
g- c- r- g- c- r- g- c- r- g- c- r- g- c- r- g- c- r- g- c- r- g-
03 03 04 04 04 05 05 05 06 06 06 07 07 07 08 08 08 09 09 09 10 10

Source: CMoney, SinoPac

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Taiwan Research
October 7, 2010 - Taiwan Market Daily

Core Coverage Model Revisions:

Code Name Rating* TP Basis Adj. EPS Adj. EPS BVPS BVPS
TT NT$ 2010F 2011F 2010F 2011F
(NT$) (NT$) (NT$) (NT$)
2498 HTC BUY 890.0↑ 15X 2011F EPS 46.34↑ 59.43↑ 103.54↑ 125.90↑
Previous BUY 675.0 15X previous 2010F EPS 45.03 50.69 102.23 116.90
Note: Empty boxes on “Previous” row indicate no change

PLEASE SEE THE BACK OF THIS REPORT FOR IMPORTANT DISCLOSURES 5

 Taiwan Research
October 7, 2010 - Taiwan Market Daily

Taiwan: Sector Performance Taiwan: Investors’ Buying and Selling Amount

% Auto Chemical Electronics Financials Plastics Rubbers Steel Textiles NT$bn FINI Local Mutual fund Proprietary Trader
8
10

4 5

0 0

-2

-4 -5
Sep 30 Oct 01 Oct 04 Oct 05 Oct 06 Sep 30 Oct 01 Oct 04 Oct 05 Oct 06

Taiwan: Retail Long/Short Margin Balance Taiwan: Bond Rate

%
NT$bn Long margin Short margin mn shares
2.2
300 1200

2
1000

1.8
200 800

1.6
600

100 400 1.4

10-Year bond yield

200 1.2

0 0 1
Oct Nov Dec Feb Mar Apr May Jun Jul Sep Oct Nov Dec Jan Mar Apr May Jun Jul Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
08 08 08 09 09 09 09 09 09 09 09 09 09 10 10 10 10 10 10 10 08 08 08 09 09 09 09 09 09 09 09 09 09 09 09 10 10 10 10 10 10 10 10 10

TWD & JPY Taiwan: Stocks & Bonds Turnover

NTD/USD JPY/USD NT$bn TAIEX turnover Bond turnover
TWD/USD JPY/USD
36 105 300

35
100

34
200

95
33

32
90
100
31

85
30

0
29 80
Oct Nov Dec Feb Mar Apr May Jun Jul Sep Oct Nov Dec Jan Mar Apr May Jun Jul Sep
Nov Dec Jan Feb Mar May Jun Jul Aug Sep Oct Nov Dec Feb Mar Apr May Jun Jul Sep
08 08 08 09 09 09 09 09 09 09 09 09 09 10 10 10 10 10 10 10
08 08 09 09 09 09 09 09 09 09 09 09 09 10 10 10 10 10 10 10

PLEASE SEE THE BACK OF THIS REPORT FOR IMPORTANT DISCLOSURES 6

 Taiwan Research
October 7, 2010 - Taiwan Market Daily

Retail Long Margin's Top Increase and Decrease (October 4 ~October 6 2010)
Top increase Top decrease
Code Stock NT$m Code Stock NT$m
1718 CMFC 18.28 2457 PHIHONG (27.87)
2609 YMTC 13.02 2888 SKFH (17.13)
3474 Inotera 10.63 3049 SINTEK (12.81)
2542 Highwealth 10.50 2892 FFHC (7.78)
2534 HSC 7.64 1304 USI (5.87)
2515 BES 7.26 2887 TSFHC (5.87)
2504 GDC 6.51 2488 HANPIN (4.70)
1909 LCP 5.30 2345 ACCTON (4.64)
9904 PCC 5.29 2311 ASE (4.53)
2022 TYCOONS 4.85 2891 CFHC (4.46)

Financial Calendar
Monday Tuesday Wednesday Thursday Friday
10/4 10/5 10/6 10/7 10/8
● WPI, CPI ● Export ● US Unemployment
● ISM index

10/11 10/12 10/13 10/14 10/15

● U.S Export ● U.S. CPI

Note: IM: investor Meeting

PLEASE SEE THE BACK OF THIS REPORT FOR IMPORTANT DISCLOSURES 7

SinoPac 2010 Stock Coverage Universe-October 7, 2010 (changes highlighted in yellow)
12-m P/E PB Adj. EPS BVPS Cash divDiv yield EPS 2009BVPS 2009
Rating Recent p/c*
Code Company Core Recom . Target Mkt price Mkt price Upside Mkt cap Capital 2010f 2011f 2010f 2011f 2010f 2011f 2010f 2011f 2011f 2011f Sub-industry Analyst
Date Research
Coverag (NT$) Prv. (US$)*
yy/mm/dd yy/mm/dd (NT$) (%) (US$m) (m shrs) (x) (x) (x) (x) (NT$) (NT$) (NT$) (NT$) (NT$) (%) (NT$) (NT$)
e close Prv.
Tech
Semiconductor
2303 UMC z NEUTRAL 10/09/14 10/09/14 14.65 13.90 0.45 5.40 5798.86 12987.90 9.03 8.42 0.76 0.70 1.54 1.65 18.30 19.90 0.80 5.76 Foundry Sherman Shang 0.30 16.45 p
2330 TSMC z NEUTRAL 10/07/30 10/09/27 65.00 61.80 1.99 5.18 51423.94 25905.00 10.56 10.03 2.48 1.99 5.85 6.16 24.94 31.10 4.40 7.12 Foundry Sherman Shang 3.44 19.11 c
5347 Vanguard z NEUTRAL 10/09/07 10/09/07 14.50 13.40 0.43 8.21 715.34 1662.30 11.96 9.57 1.03 0.93 1.12 1.40 13.04 14.45 0.40 2.99 Foundry Sherman Shang 0.05 11.92 c
1560 Kinik BUY 10/07/14 10/07/14 48.50 45.25 1.45 7.18 204.93 141.00 22.40 10.19 1.87 1.67 2.02 4.44 24.19 27.06 1.35 2.98 IC Material Sherman Shang (0.40) 23.15 p
2325 Spil z NEUTRAL 10/09/23 10/09/23 33.90 32.60 1.05 3.99 3263.20 3116.40 17.91 14.62 1.48 1.35 1.82 2.23 21.97 24.20 1.50 4.60 IC Packaging Sherman Shang 2.82 20.24 c
6239 Powertech z BUY 10/07/30 10/07/30 125.00 100.50 3.23 24.38 2273.22 704.20 8.82 7.23 2.20 1.86 11.40 13.90 45.73 53.93 5.70 5.67 IC Packaging Sherman Shang 7.40 37.83 c
2311 ASE z BUY 10/08/02 10/09/23 30.50 25.55 0.82 19.37 4964.99 6049.70 8.60 7.60 1.51 1.24 2.97 3.36 16.90 20.60 1.20 4.70 IC Packaging Sherman Shang 1.23 13.07 c
6147 Chipbond z BUY 10/09/06 10/09/06 62.00 47.95 1.54 29.30 902.93 586.20 10.63 7.71 2.02 1.60 4.51 6.22 23.72 29.95 2.50 5.21 IC Packaging Sherman Shang 1.10 19.21 p
1437 GTM z BUY 10/06/11 10/08/05 33.80 22.80 0.73 48.25 149.36 204.00 44.71 36.19 1.28 1.25 0.51 0.63 17.88 18.23 0.00 0.00 IC Testing Jerry Lu 0.22 16.80 p
8131 FATC BUY 10/05/31 10/05/31 58.00 36.00 1.16 61.11 511.37 442.20 9.28 5.61 1.59 1.24 3.88 6.42 22.64 29.05 0.00 0.00 IC Packaging Sherman Shang 0.17 18.76 p
3264 Ardentec BUY 10/06/29 10/06/29 29.00 25.40 0.82 14.17 362.65 444.50 8.01 -- 1.66 -- 3.17 NA 15.32 NA 0.00 0.00 IC Testing Chia Yang 0.90 15.39 c
6257 Sigurd BUY 10/06/14 10/06/14 30.00 25.80 0.83 16.28 266.61 321.70 7.50 -- 1.47 -- 3.44 NA 17.58 NA 0.00 0.00 IC Packaging/Testing Chia Yang 1.61 17.59 c
2481 Pan Jit BUY 10/09/10 10/09/10 40.00 38.95 1.25 2.70 463.51 370.60 3.67 3.67 1.87 1.64 10.60 10.60 20.81 23.82 0.00 0.00 IC Packaging/Testing Chia Yang 0.22 17.21 p
2379 Realtek z NEUTRAL 10/08/02 10/08/02 70.00 71.10 2.28 (1.55) 1108.51 485.40 14.33 12.50 1.74 1.55 4.96 5.69 40.81 45.81 4.20 5.91 IC Design Sherman Shang 4.39 35.85 p
2454 Mediatek z NEUTRAL 10/08/27 10/08/27 390.00 412.50 13.25 (5.45) 14572.47 1099.80 12.73 10.89 3.17 2.53 32.40 37.89 130.14 162.83 19.02 4.61 IC Design Sherman Shang 33.67 99.87 c
3034 Novatek z NEUTRAL 10/07/29 10/07/29 95.00 88.00 2.83 7.95 1684.12 595.80 10.14 8.95 2.41 2.10 8.68 9.83 36.58 41.91 7.00 7.95 IC Design Sherman Shang 6.75 34.64 p
3443 GUC z BUY 10/06/28 10/06/28 163.00 108.00 3.47 50.93 458.69 132.20 23.18 19.74 4.80 4.41 4.66 5.47 22.50 24.50 3.50 3.24 IC Design Sherman Shang 3.13 21.05 p
3527 MBI z SELL 09/09/03 09/09/03 103.00 146.50 4.71 (29.69) 155.79 33.10 28.45 29.84 3.76 3.59 5.15 4.91 38.94 40.82 0.00 0.00 IC Design Sherman Shang 5.78 43.62 p
3534 Ralink z BUY 10/08/31 10/08/31 148.00 121.00 3.89 22.31 499.49 128.50 14.72 13.07 2.58 2.16 8.22 9.26 46.87 56.13 4.00 3.31 IC Design Sherman Shang 3.97 39.54 c
3545 Orise NEUTRAL 10/09/13 10/09/13 63.00 67.30 2.16 (6.39) 293.91 136.00 15.99 12.65 2.99 2.45 4.21 5.32 22.54 27.50 3.00 4.46 IC Design Sherman Shang 2.22 18.46 p
5305 Lite-On Semi BUY 10/09/10 10/09/10 23.00 18.30 0.59 25.68 263.07 447.40 12.04 11.16 1.06 0.97 1.52 1.64 17.29 18.92 0.00 0.00 IC Design Sherman Shang (0.84) 15.68 c
5425 TSC BUY 10/09/10 10/09/10 31.00 24.55 0.79 26.27 192.41 244.00 11.64 10.23 1.24 1.11 2.11 2.40 19.76 22.17 0.00 0.00 IC Design Sherman Shang 0.52 17.62 p
5351 Etron BUY 10/06/24 10/06/24 33.50 22.60 0.73 48.23 318.32 438.50 10.81 7.34 1.38 1.20 2.09 3.08 16.33 18.78 0.63 2.79 IC Design Sherman Shang 0.19 14.13 p
6202 Holtek BUY 10/04/29 10/04/29 60.00 46.75 1.50 28.34 334.38 222.60 11.51 -- 2.95 -- 4.06 NA 15.87 NA 0.00 0.00 IC Design Raymond Kuo 2.78 15.87 p
6271 Tong Hsing BUY 10/08/17 10/08/17 170.00 144.50 4.64 17.65 654.95 141.10 22.58 -- 4.04 -- 6.40 9.40 35.73 45.13 0.00 0.00 IC Design Raymond Kuo 3.63 29.29 c
6286 Richtek z BUY 10/08/13 10/08/13 330.00 222.00 7.13 48.65 1066.11 149.50 13.40 11.16 6.27 5.46 16.57 19.90 35.42 40.63 7.09 3.19 IC Design Sherman Shang 10.85 35.29 p
8299 Phison z NEUTRAL 10/05/10 10/05/10 210.00 143.00 4.59 46.85 812.99 177.00 10.27 9.66 2.32 2.06 13.93 14.81 61.62 69.46 6.97 4.87 IC Design Sherman Shang 14.06 54.70 p
6138 Anpec z BUY 09/07/15 09/07/15 40.80 37.90 1.22 7.65 158.36 130.20 13.93 12.55 2.07 1.87 2.72 3.02 18.27 20.28 0.72 1.90 IC Design-Analog IC Sherman Shang 1.16 16.26 p
8081 GMT z NEUTRAL 10/03/03 10/03/03 148.00 134.00 4.30 10.45 370.04 86.00 13.60 12.65 2.87 2.52 9.85 10.59 46.71 53.15 4.00 2.99 IC Design-Analog IC Sherman Shang 7.87 44.31 p
2337 MXIC z NEUTRAL 10/04/29 10/07/28 24.00 19.30 0.62 24.35 2076.96 3350.40 7.51 7.91 1.42 1.38 2.57 2.44 13.62 14.00 2.05 10.62 Memory IDM Sherman Shang 1.72 12.53 p
2344 Winbond z BUY 10/08/09 10/08/09 11.70 8.03 0.26 45.70 943.08 3656.50 5.78 4.70 0.75 0.65 1.39 1.71 10.67 12.38 0.00 0.00 Memory IDM Sherman Shang (2.36) 9.26 p
2408 Nanya Tech z NEUTRAL 10/07/26 10/07/26 24.00 19.30 0.62 24.35 2129.96 3436.00 30.16 6.59 1.66 1.33 0.64 2.93 11.62 14.56 0.00 0.00 DRAM Sherman Shang (6.10) 10.98 p
5346 Powerchip z NEUTRAL 10/07/09 10/07/09 4.60 7.89 0.25 (41.70) 1421.37 5608.90 3.29 131.50 1.38 1.20 2.40 0.06 5.71 6.58 0.00 0.00 DRAM Sherman Shang (2.36) 3.26 p
LED/Solar
6168 Harvatek BUY 10/07/13 10/07/13 50.00 38.50 1.24 29.87 245.09 198.30 13.10 11.85 2.58 1.78 2.94 3.25 14.93 21.57 1.50 3.90 LED Packaging Raymond Kuo 0.81 15.17 p
2393 Everlight z BUY 09/05/25 09/10/14 120.00 84.60 2.72 41.84 1139.02 419.20 16.27 -- 2.85 -- 5.20 NA 29.73 NA 2.50 2.96 LED Calvin Shao 4.39 35.43 p
2448 Epistar z BUY 10/08/24 10/08/24 101.50 94.30 3.03 7.64 2566.81 847.40 14.51 13.81 1.86 1.67 6.50 6.83 50.77 56.38 2.80 2.97 LED Calvin Shao 2.25 46.43 p
2486 I-Chiun z BUY 10/06/30 10/06/30 56.20 38.85 1.25 44.66 258.58 207.20 8.97 6.91 1.65 1.43 4.33 5.62 23.60 27.26 2.60 6.69 LED Calvin Shao 3.15 21.21 c
3061 Forepi z NEUTRAL 10/08/06 10/08/06 41.50 40.55 1.30 2.34 506.23 388.70 13.17 11.69 1.67 1.51 3.08 3.47 24.21 26.86 2.30 5.67 LED Calvin Shao 0.68 18.23 p
3452 E-ton Solar z SELL 10/02/09 10/02/09 51.00 40.50 1.30 25.93 324.43 249.50 11.91 -- 1.04 -- 3.40 NA 39.04 NA 0.50 1.23 Solar Calvin Shao (10.67) 40.53 p
5483 Sino-American Silicon z BUY 10/08/31 10/08/31 127.00 88.20 2.83 43.99 909.35 321.00 11.57 10.40 2.56 2.10 7.62 8.48 34.42 41.98 3.60 4.08 Solar Calvin Shao 1.59 33.01 p
6244 Motech z BUY 10/07/15 10/07/15 143.00 107.00 3.44 33.64 1307.34 380.40 26.55 18.45 2.51 2.25 4.03 5.80 42.65 47.65 3.00 2.80 Solar Calvin Shao 0.44 42.45 p
Electonic Equipment/Instruments/EMS
2384 Wintek z BUY 10/09/14 10/09/14 56.00 50.20 1.61 11.55 2067.33 1282.00 69.72 16.09 1.72 2.25 0.72 3.12 29.24 22.30 0.50 1.00 TFT LCD Calvin Shao (2.32) 20.43 c
2409 AUO z NEUTRAL 10/07/26 10/07/29 27.60 32.15 1.03 (14.15) 9115.70 8827.00 11.16 12.71 0.97 0.92 2.88 2.53 33.08 35.09 0.50 1.56 TFT LCD Calvin Shao (3.03) 29.69 c
3481 Chi Mei-Innolux z BUY 10/09/30 10/09/30 51.00 43.80 1.41 16.44 10320.57 7335.70 17.45 12.70 1.10 1.03 2.51 3.45 39.64 42.55 2.00 4.57 TFT LCD Calvin Shao (0.74) 29.18 p
3622 Youngfast NEUTRAL 10/09/15 10/09/15 420.00 354.00 11.37 18.64 1612.49 141.80 14.09 12.29 5.45 4.58 25.13 28.81 64.94 77.21 13.00 3.67 TFT LCD Calvin Shao 22.55 52.18 p
8105 Giantplus z NEUTRAL 10/09/27 10/09/27 26.50 22.10 0.71 19.91 290.06 408.80 88.40 7.81 1.09 0.99 0.25 2.83 20.20 22.25 0.70 3.17 TFT LCD Calvin Shao (0.95) 20.97 c
3049 Sintek z BUY 10/09/20 10/09/20 30.00 24.05 0.77 24.74 678.72 878.50 (109.32) 20.04 2.41 2.13 (0.22) 1.20 9.96 11.27 2.80 11.64 TFT LCD Component Calvin Shao (1.79) 10.02 p
3573 Entire BUY 10/04/22 10/04/22 256.00 122.50 3.93 108.98 482.14 122.50 8.62 -- 2.21 -- 14.21 NA 55.52 NA 0.00 0.00 TFT LCD Component Gary Wang 8.47 41.36 c
5371 Coretronics z BUY 10/08/09 10/08/09 54.00 48.00 1.54 12.50 1116.21 724.00 8.59 7.93 1.58 1.36 5.59 6.05 30.42 35.36 3.80 7.92 TFT LCD Component Calvin Shao 3.70 27.12 c
1815 Fulltech z BUY 10/07/23 10/07/23 38.00 30.75 0.99 23.58 254.40 257.40 8.40 -- 2.16 -- 3.66 NA 14.23 NA 0.00 0.00 PCB Darstin Chen (1.12) 11.30 c
2317 Hon Hai z BUY 10/08/27 10/08/27 144.50 118.00 3.79 22.46 36618.91 9661.20 12.65 10.62 2.08 1.80 9.33 11.11 56.67 65.45 2.80 2.37 EMS Bamboo Lin 8.82 51.27 c
2368 Gold Circuit z NEUTRAL 10/06/03 10/06/03 10.70 11.05 0.35 (3.17) 202.04 569.20 12.42 10.33 0.63 0.60 0.89 1.07 17.50 18.40 0.21 1.90 PCB Bamboo Lin (0.28) 16.09 c
3037 Unimicron z BUY 10/07/29 10/07/29 69.70 51.50 1.65 35.34 2559.75 1547.40 10.34 9.35 1.90 1.67 4.98 5.51 27.05 30.82 1.93 3.75 PCB Bamboo Lin 2.35 25.83 c
3044 Tripod z BUY 10/09/08 10/09/08 141.00 119.50 3.84 17.99 1817.42 473.50 11.13 10.18 2.62 2.25 10.74 11.74 45.67 53.11 4.69 3.92 PCB Bamboo Lin 6.72 37.41 c
6274 Taiwan Union BUY 10/06/03 10/06/03 19.70 16.10 0.52 22.36 120.78 233.30 6.82 -- 0.82 -- 2.36 NA 19.70 NA 0.20 1.24 PCB Darstin Chen 0.06 17.51 c
6278 Taiwan Surface BUY 10/03/24 10/03/24 80.00 68.50 2.20 16.79 480.53 218.40 8.48 -- 1.84 -- 8.08 NA 37.26 NA 0.00 0.00 PCB Darstin Chen 6.16 30.43 c
8039 Taiflex BUY 10/07/23 10/07/23 70.00 64.60 2.08 8.36 376.78 181.60 7.11 -- 1.69 -- 9.08 NA 38.26 NA 0.00 0.00 PCB Darstin Chen 2.23 22.40 c
8046 Nanya PCB BUY 10/06/23 10/07/23 168.00 123.50 3.97 36.03 2476.55 624.30 20.41 -- 2.01 -- 6.05 NA 61.31 NA 0.00 0.00 PCB Darstin Chen 3.34 55.58 p
6127 Leatec BUY 10/10/06 10/10/06 32.00 25.00 0.80 28.00 68.74 85.50 12.63 7.76 1.83 1.39 1.98 3.22 13.67 17.93 0.00 0.00 PCB Jazz Lin (0.75) 11.59 c
6153 Career BUY 10/07/23 10/07/23 35.00 40.30 1.29 (13.15) 417.26 322.30 12.55 -- 1.87 -- 3.21 NA 21.51 NA 0.00 0.00 PCB Darstin Chen 1.32 18.29 c
2360 Chroma ATE BUY 10/08/19 10/08/19 90.00 73.40 2.36 22.62 853.78 362.10 14.80 -- 3.50 -- 4.96 NA 20.96 NA 0.00 0.00 PCB Jack Hsu 2.47 18.43 c
6290 Longwell BUY 10/05/28 10/05/28 76.00 43.85 1.41 73.32 175.38 124.50 6.94 -- 1.83 -- 6.32 NA 23.94 NA 0.00 0.00 PCB Jack Hsu 4.22 22.69 p
2327 Yageo BUY 10/04/20 10/08/18 19.00 12.95 0.42 46.72 912.89 2194.90 6.26 5.56 0.83 0.95 2.07 2.33 15.56 13.65 0.00 0.00 Passive Component Jazz Lin 0.31 13.62 c
2428 Thinking BUY 10/10/06 10/10/06 69.50 47.60 1.53 46.01 194.98 127.60 7.71 6.85 1.93 1.51 6.17 6.95 24.60 31.50 0.00 0.00 Passive Component Jazz Lin 3.70 21.62 c
2456 Chilisin BUY 10/06/14 10/06/14 43.50 29.00 0.93 50.00 145.19 156.00 8.19 -- 1.65 -- 3.54 NA 17.60 NA 0.00 0.00 Passive Component Jazz Lin 0.74 14.40 c
2472 Lelon BUY 10/10/06 10/10/06 34.00 23.50 0.75 44.68 110.82 147.00 11.87 -- 1.43 -- 1.98 3.38 16.38 19.76 0.00 0.00 Passive Component Jazz Lin (0.22) 14.71 c
3026 Holy Stone BUY 10/06/14 10/06/14 60.00 38.30 1.23 56.66 393.81 320.20 9.08 -- 1.88 -- 4.22 NA 20.40 NA 0.00 0.00 Passive Component Jazz Lin 2.96 28.46 c
3068 Maglayers BUY 10/06/14 10/07/12 105.00 70.00 2.25 50.00 159.32 70.80 9.22 -- 3.52 -- 7.59 NA 19.89 NA 0.00 0.00 Passive Component Jazz Lin 4.31 20.32 c
8042 Chinsan BUY 10/10/06 10/10/06 69.00 49.70 1.60 38.83 140.05 87.80 7.98 4.99 2.07 1.60 6.23 9.96 24.00 31.00 0.00 0.00 Passive Component Jazz Lin 5.28 22.27 c
3043 PCM BUY 10/07/06 10/07/06 61.50 59.20 1.90 3.89 348.52 183.20 12.52 -- 3.65 -- 4.73 NA 16.24 NA 0.00 0.00 UPS Jack Hsu (0.82) 16.10 c
SinoPac 2010 Stock Coverage Universe-October 7, 2010 (changes highlighted in yellow)
12-m P/E PB Adj. EPS BVPS Cash divDiv yield EPS 2009BVPS 2009
Rating Recent p/c*
Code Company Core Recom . Target Mkt price Mkt price Upside Mkt cap Capital 2010f 2011f 2010f 2011f 2010f 2011f 2010f 2011f 2011f 2011f Sub-industry Analyst
Date Research
Coverag (NT$) Prv. (US$)*
yy/mm/dd yy/mm/dd (NT$) (%) (US$m) (m shrs) (x) (x) (x) (x) (NT$) (NT$) (NT$) (NT$) (NT$) (%) (NT$) (NT$)
e close Prv.
Computers/Peripherals/Software
3231 Wistron z BUY 10/08/23 10/08/23 71.40 55.80 1.79 27.96 3519.85 1963.80 8.38 7.82 2.03 1.80 6.66 7.14 27.47 30.95 3.93 7.04 NB ODM Bamboo Lin 4.90 28.47 c
2357 Asustek z BUY 10/08/16 10/08/16 287.00 221.00 7.10 29.86 4451.05 627.00 10.36 8.47 1.39 1.29 21.34 26.09 158.45 171.13 14.35 6.49 MB & NB Bamboo Lin 2.94 40.78 c
2324 Compal z BUY 10/09/02 10/09/02 47.00 36.15 1.16 30.01 5133.62 4421.00 6.27 7.69 1.20 1.11 5.77 4.70 30.22 32.47 2.10 5.81 NB ODM Bamboo Lin 4.83 24.57 c
2353 Acer z BUY 10/08/05 10/08/05 104.00 80.20 2.58 29.68 6941.41 2694.50 14.17 10.96 2.30 2.14 5.66 7.32 34.88 37.49 5.49 6.85 NB/PC OBM Bamboo Lin 4.22 34.37 c
2382 Quanta z NEUTRAL 10/09/01 10/09/01 52.80 49.85 1.60 5.92 6136.77 3832.50 10.09 9.44 1.62 1.53 4.94 5.28 30.69 32.66 3.43 6.88 NB ODM Bamboo Lin 5.90 28.19 c
2385 Chicony z BUY 10/09/15 10/09/15 78.40 64.90 2.08 20.80 1304.12 625.60 11.45 9.94 2.75 2.40 5.67 6.53 23.58 27.00 3.60 5.55 Computer Hardware Bamboo Lin 5.48 19.79 c
2059 King Slide Works BUY 10/04/19 10/04/19 250.00 151.50 4.87 65.02 448.09 92.10 11.48 -- 3.01 -- 13.20 NA 50.30 NA 0.00 0.00 PC Component Eddy Tseng 7.44 37.09 c
2308 Delta z BUY 10/08/27 10/08/27 138.00 128.50 4.13 7.39 9842.28 2384.50 18.62 17.09 3.51 3.32 6.90 7.52 36.64 38.66 6.00 4.67 PC Component Bamboo Lin 5.16 28.04 c
2474 Catcher z BUY 10/07/23 10/07/23 89.10 72.50 2.33 22.90 1548.57 664.90 12.21 10.01 1.36 1.22 5.94 7.24 53.46 59.28 1.80 2.48 PC Component Bamboo Lin 4.99 48.07 c
3376 Shin Zu Shing z NEUTRAL 10/09/14 10/09/14 89.10 84.20 2.70 5.82 428.50 158.40 12.62 10.29 1.81 1.07 6.67 8.18 46.49 78.78 4.10 4.87 PC Component Bamboo Lin 9.66 51.59 c
3540 Thermaltake z NEUTRAL 10/05/13 10/05/13 39.50 31.00 1.00 27.42 60.07 60.30 15.35 7.97 1.20 1.07 2.02 3.89 25.94 28.87 2.33 7.52 PC Component Bamboo Lin 1.23 23.55 c
2301 Lite-On Technology z BUY 10/09/14 10/09/14 45.00 39.60 1.27 13.64 2906.33 2284.80 10.23 9.38 1.11 1.11 3.87 4.22 35.78 35.78 0.00 0.00 PC Component Jack Hsu 3.12 28.40 c
2365 KYE System NEUTRAL 10/05/06 10/05/06 31.20 27.10 0.87 15.13 253.44 291.00 9.34 -- 1.38 -- 2.90 NA 19.70 NA 0.00 0.00 PC Peripheral Eddy Tseng 2.36 16.43 c
3017 Asia Vital BUY 10/05/12 10/09/16 50.00 34.55 1.11 44.72 302.26 272.30 6.99 5.54 1.71 1.71 4.94 6.24 20.26 20.26 0.00 0.00 PC Peripheral Eddy Tseng 2.88 20.32 c
3518 Paragon Technology BUY 10/04/22 10/04/22 104.00 75.60 2.43 37.57 201.08 82.80 8.73 -- 1.27 -- 8.66 NA 59.60 NA 0.00 0.00 PC Peripheral Eddy Tseng 7.74 50.84 c
6277 Aten BUY 10/05/20 10/05/20 70.00 52.10 1.67 34.36 200.12 119.50 10.42 -- 1.90 -- 5.00 NA 27.40 NA 0.00 0.00 PC Peripheral Eddy Tseng 3.29 22.43 p
3083 Chinese Gamer z NEUTRAL 10/08/31 10/08/31 298.00 229.00 7.36 30.13 646.60 87.90 18.63 13.82 7.68 6.27 12.29 16.57 29.81 36.55 13.30 5.81 Online Game Bamboo Lin 11.91 29.26 p
5478 Softworld z BUY 10/08/30 10/08/30 177.50 132.00 4.24 34.47 540.60 127.50 11.18 10.06 3.16 2.88 11.81 13.12 41.77 45.91 10.00 7.58 Online Game Bamboo Lin 7.93 38.37 p
5203 Cyberlink z BUY 10/03/01 10/05/21 166.00 128.00 4.11 29.69 484.07 117.70 12.36 10.63 2.67 2.46 10.36 12.04 47.91 52.11 9.27 7.24 Software Bamboo Lin 7.83 43.34 c
3211 Dynapack z BUY 10/08/06 10/08/06 132.00 91.60 2.94 44.10 379.99 129.20 8.35 7.70 2.41 2.16 10.97 11.90 37.94 42.46 8.09 8.83 Battery Pack Bamboo Lin 8.73 35.03 c
3323 Celxpert z BUY 10/08/06 10/08/09 64.10 51.00 1.64 25.69 175.70 107.20 9.55 8.31 1.76 1.43 5.34 6.14 28.96 35.60 2.60 5.10 Battery Pack Bamboo Lin 3.37 25.94 c
6121 Simplo z BUY 10/08/13 10/08/13 211.00 180.00 5.78 17.22 1473.08 254.80 13.66 11.95 3.33 2.85 13.18 15.06 54.04 63.17 6.78 3.77 Battery Pack Bamboo Lin 10.61 49.52 c
Handset/Handset Components
2498 HTC z BUY 10/10/07 10/10/07 890.00 719.00 23.10 23.78 18882.50 817.60 15.52 12.10 6.94 5.71 46.34 59.43 103.54 125.90 36.02 5.01 Handset Bamboo Lin 28.66 83.21 c
8078 Compal Comm z BUY 10/06/22 10/06/22 34.00 27.45 0.88 23.86 535.78 607.70 11.99 7.11 1.38 1.24 2.29 3.86 19.89 22.14 1.60 5.83 Handset Bamboo Lin 1.30 18.52 p
2402 Ichia z BUY 10/06/21 10/06/21 18.50 15.75 0.51 17.46 172.49 340.70 30.29 9.10 0.85 0.80 0.52 1.73 18.50 19.81 0.41 2.60 Handset ComponentsBamboo Lin 0.92 17.95 c
2439 Merry z BUY 10/05/27 10/05/27 63.00 54.60 1.75 15.38 279.13 159.10 8.71 8.54 1.72 1.62 6.27 6.39 31.66 33.67 4.39 8.04 Handset ComponentsBamboo Lin 3.32 28.04 c
3042 TXC z BUY 10/07/19 10/07/19 65.00 56.60 1.82 14.84 540.28 297.20 13.13 11.01 2.46 2.01 4.31 5.14 23.03 28.17 0.00 0.00 Handset ComponentsBamboo Lin 2.71 20.52 c
IC/IT Channel
2347 Synnex z BUY 10/09/09 10/09/09 86.40 71.50 2.30 20.84 3402.93 1481.70 20.03 16.55 2.85 2.60 3.57 4.32 25.11 27.51 2.59 3.62 IT Channel Bamboo Lin 3.64 24.04 c
3036 WTM z BUY 10/07/26 10/07/26 54.50 43.35 1.39 25.72 348.52 250.20 9.99 8.52 1.70 1.55 4.34 5.09 25.51 28.00 3.05 7.04 IC Distributor Sherman Shang 2.21 25.05 c
3702 WPG z NEUTRAL 10/08/26 10/08/26 67.50 61.40 1.97 9.93 2082.74 1056.00 10.00 9.02 2.12 1.71 6.14 6.81 29.03 35.86 3.60 5.86 IC Distributor Sherman Shang 3.88 22.52 c
Optical
3008 Largan z NEUTRAL 10/08/19 10/08/19 618.00 607.00 19.50 1.81 2614.67 134.10 21.09 16.69 5.02 4.25 28.78 36.36 120.96 142.93 14.39 2.37 Optical Bamboo Lin 18.54 102.21 c
3019 Asia Optical z NEUTRAL 10/06/28 10/06/28 48.00 48.65 1.56 (1.34) 423.36 271.00 31.80 15.25 0.85 0.82 1.53 3.19 56.95 59.53 0.61 1.25 Optical Bamboo Lin (1.71) 54.79 c
Networking
2314 Microelectronics z NEUTRA 10/08/18 10/08/18 20.30 20.30 0.65 0.00 269.18 413.00 72.50 44.13 1.74 1.70 0.28 0.46 11.68 11.96 0.20 0.99 Networking Bamboo Lin (0.15) 11.61 c
2332 D-Link z NEUTRAL 10/09/27 10/09/27 34.00 32.80 1.05 3.66 682.26 647.60 18.02 11.59 1.39 1.29 1.82 2.83 23.62 25.51 0.94 2.87 Networking Bamboo Lin 0.79 22.80 c
3704 Unizyx Holding Corp z BUY 10/07/02 10/07/02 23.50 20.50 0.66 14.63 340.49 517.00 34.17 9.86 1.14 1.02 0.60 2.08 18.05 20.02 0.00 0.00 Networking Bamboo Lin 0.00 0.00 c
2419 Hitron z BUY 10/03/29 10/07/05 26.00 21.70 0.70 19.82 115.32 165.40 10.64 6.74 1.24 1.24 2.04 3.22 17.51 17.51 1.25 5.76 Networking Bamboo Lin 1.04 13.48 p
3380 Alpha Networks z BUY 10/03/11 10/03/11 40.00 26.20 0.84 52.67 396.38 471.00 9.23 -- 1.31 -- 2.84 NA 20.07 NA 0.80 3.05 Networking Bamboo Lin 1.79 18.77 c
4906 Gemtek z BUY 09/11/27 09/11/27 73.10 51.60 1.66 41.67 469.93 283.60 10.60 -- 1.52 -- 4.87 NA 34.00 NA 3.70 7.17 Networking Bamboo Lin 2.37 28.27 c
5388 Sercomm z BUY 10/10/01 10/10/01 33.60 28.75 0.92 16.87 158.36 171.40 13.69 10.27 1.88 1.77 2.10 2.80 15.28 16.23 2.10 7.30 Networking Bamboo Lin 1.20 14.25 c
6152 Prime z NEUTRAL 10/07/01 10/07/01 34.00 30.05 0.97 13.14 147.44 152.60 10.54 9.72 1.59 1.45 2.85 3.09 18.94 20.75 1.28 4.26 Networking Bamboo Lin 2.33 17.29 c
6285 Wistron Neweb z BUY 10/08/26 10/08/26 67.50 66.30 2.13 1.81 567.26 266.30 11.47 9.44 2.15 1.87 5.78 7.02 30.80 35.51 2.31 3.48 Networking Bamboo Lin 3.26 26.28 c
2485 Zinwell z NEUTRAL 10/03/29 10/03/29 62.00 51.20 1.64 21.09 522.61 317.70 11.64 -- 2.36 -- 4.40 NA 21.74 NA 2.50 4.88 STB/ LNB Bamboo Lin 3.55 20.28 p
2412 CHT z BUY 09/08/31 09/08/31 65.33 69.90 2.25 (6.54) 21772.13 9696.80 15.06 -- 1.68 -- 4.64 NA 41.54 NA 3.83 5.48 Telecom Bamboo Lin 4.10 35.18 c
3045 Taiwan Mobile z BUY 09/09/17 09/09/17 62.00 64.10 2.06 (3.28) 7826.03 3800.90 11.35 -- 2.72 -- 5.65 NA 23.54 NA 4.70 7.33 Telecom Bamboo Lin 3.65 13.70 c
4904 Far EasTone z BUY 09/11/25 09/11/25 43.00 44.05 1.41 (2.38) 4610.69 3258.50 14.44 -- 1.97 -- 3.05 NA 22.38 NA 2.80 6.36 Telecom Bamboo Lin 2.83 21.96 c
Biotech
1733 Apex Bio BUY 10/06/08 10/06/08 76.00 75.20 2.42 1.06 230.63 95.50 13.85 -- 4.88 -- 5.43 NA 15.40 NA 3.10 4.12 Biotech Fion Chen 3.42 15.41 c
3164 Genmont BUY 10/04/29 10/04/29 102.00 86.00 2.76 18.60 149.36 54.10 22.99 -- 5.36 -- 3.74 NA 16.03 NA 0.00 0.00 Biotech Fion Chen 1.75 12.32 c
4104 Excelsior Medical BUY 10/09/15 10/09/15 116.00 101.50 3.26 14.29 310.29 95.20 31.62 29.34 2.29 2.29 3.21 3.46 44.30 44.30 0.00 0.00 Biotech Fion Chen 3.35 45.35 c
4126 Pahsco BUY 10/10/01 10/10/01 142.00 133.00 4.27 6.77 230.31 53.90 18.22 14.04 7.45 7.45 7.30 9.47 17.86 17.86 0.00 0.00 Biotech Fion Chen (0.21) 18.05 c

Non-Tech
Financials
2823 China Life z BUY 10/09/02 10/09/02 30.10 26.90 0.86 11.90 1476.29 1708.60 17.58 15.11 1.69 1.52 1.53 1.78 15.92 17.70 0.20 0.74 Financials Jeff Yu 1.81 16.38 p
2881 Fubon FHC z BUY 10/09/02 10/09/02 40.50 38.85 1.25 4.25 10674.87 8554.30 15.06 13.78 1.44 1.40 2.58 2.82 26.92 27.75 2.00 5.15 Financials Jeff Yu 2.45 26.21 c
2882 Cathay FHC z NEUTRAL 10/09/02 10/09/02 44.00 49.00 1.57 (10.20) 15982.59 10154.40 45.37 39.20 2.04 1.98 1.08 1.25 24.02 24.77 0.50 1.02 Financials Jeff Yu 1.14 22.28 c
2885 Yuanta FHC z NEUTRAL 10/09/02 10/09/02 17.00 19.10 0.61 (10.99) 4970.77 8102.10 24.81 22.74 1.36 1.33 0.77 0.84 14.09 14.34 0.60 3.14 Financials Jeff Yu 0.89 14.25 c
2886 Mega FHC NEUTRAL 10/09/02 10/09/02 18.20 21.70 0.70 (16.13) 7708.79 11059.40 15.07 13.91 1.19 1.17 1.44 1.56 18.19 18.50 1.10 5.07 Financials Jeff Yu 1.30 17.75 c
2891 Chinatrust FHC z NEUTRAL 10/09/02 10/09/02 17.10 19.95 0.64 (14.29) 6879.10 10735.00 15.11 12.09 1.52 1.40 1.32 1.65 13.10 14.25 0.50 2.51 Financials Jeff Yu 0.24 14.78 c
2892 First FHC z NEUTRAL 10/09/02 10/09/02 16.90 21.20 0.68 (20.28) 4410.57 6476.90 21.63 13.95 1.32 1.30 0.98 1.52 16.01 16.31 0.80 3.77 Financials Jeff Yu 0.44 16.12 c
Construction/Engineering/Property
2520 Kindom z NEUTRAL 10/06/28 10/06/28 25.00 29.60 0.95 (15.54) 465.44 489.40 8.48 11.04 1.49 1.43 3.49 2.68 19.83 20.70 2.30 7.77 Construction/DEV Jerry Lu 2.40 16.41 p
2536 Hung Poo NEUTRAL 10/10/06 10/10/06 50.00 48.55 1.56 2.99 451.95 289.90 8.47 8.56 1.34 1.23 5.73 5.67 36.30 39.40 2.50 5.15 Construction/DEV Jerry Lu 5.49 31.28 p
2542 Highwealth z NEUTRAL 10/08/11 10/08/11 46.50 55.70 1.79 (16.52) 1263.01 706.00 4.76 11.12 2.33 1.94 11.70 5.01 23.90 28.70 2.50 4.49 Construction/DEV Jerry Lu 6.55 18.02 p
9940 Sinyi z NEUTRAL 10/07/14 10/07/14 49.00 58.30 1.87 (15.95) 685.15 365.80 13.75 11.90 3.02 2.90 4.24 4.90 19.29 20.10 3.00 5.15 Realty Jerry Lu 4.87 17.65 p
2548 Huaku NEUTRAL 09/07/01 09/07/01 72.20 88.10 2.83 (18.05) 735.26 259.80 17.66 -- 2.68 -- 4.99 NA 32.83 NA 5.00 5.68 Construction/DEV Jerry Lu 10.61 35.82 p
5534 Chong Hong NEUTRAL 10/06/28 10/06/28 59.50 77.50 2.49 (23.23) 600.99 241.40 8.20 8.41 2.40 2.07 9.45 9.22 32.34 37.50 5.53 7.14 Construction/DEV Jerry Lu 5.25 27.88 p
SinoPac 2010 Stock Coverage Universe-October 7, 2010 (changes highlighted in yellow)
12-m P/E PB Adj. EPS BVPS Cash divDiv yield EPS 2009BVPS 2009
Rating Recent p/c*
Code Company Core Recom . Target Mkt price Mkt price Upside Mkt cap Capital 2010f 2011f 2010f 2011f 2010f 2011f 2010f 2011f 2011f 2011f Sub-industry Analyst
Date Research
Coverag (NT$) Prv. (US$)*
yy/mm/dd yy/mm/dd (NT$) (%) (US$m) (m shrs) (x) (x) (x) (x) (NT$) (NT$) (NT$) (NT$) (NT$) (%) (NT$) (NT$)
e close Prv.
Materials/Industrials/Textile
1507 Yungtay z BUY 10/08/27 10/08/27 49.50 40.60 1.30 21.92 535.78 410.80 11.70 10.20 1.37 1.50 3.47 3.98 29.67 27.05 2.00 4.93 Machinery/ Elec. Equ Jerry Lu 2.48 23.41 p
1531 Kaulin Mfg BUY 10/07/23 10/07/23 31.00 29.35 0.94 5.62 182.13 193.20 8.51 -- 1.45 -- 3.45 NA 20.19 NA 0.00 0.00 Machinery Fion Chen 0.52 20.19 c
2504 Goldsun Construction z BUY 10/04/21 10/04/21 22.50 16.25 0.52 38.46 785.04 1504.30 19.82 18.47 1.07 1.03 0.82 0.88 15.20 15.80 0.20 1.23 Ready Mix Cement/C Jeff Yu 0.42 15.60 p
2002 China Steel z NEUTRAL 10/08/27 10/08/27 30.00 32.40 1.04 (7.41) 14118.59 13566.20 13.79 15.80 1.63 1.60 2.35 2.05 19.90 20.30 1.60 4.94 Steel Jeff Yu 1.49 18.53 p
2006 Tung Ho Steel z BUY 09/05/21 09/05/21 40.00 29.90 0.96 33.78 937.62 976.20 12.01 -- 1.35 -- 2.49 NA 22.23 NA 1.50 5.02 Steel Jeff Yu 0.93 20.74 p
2015 Feng Hsin Steel z BUY 09/05/12 09/05/12 56.40 52.40 1.68 7.63 979.06 581.60 9.31 -- 2.14 -- 5.63 NA 24.50 NA 2.00 3.82 Steel Jeff Yu 2.63 24.77 p
2034 Yeun Chyang z BUY 10/05/13 10/05/13 31.50 23.80 0.76 32.35 282.67 369.70 8.21 9.30 1.36 1.31 2.90 2.56 17.50 18.16 2.00 8.40 Stainless Steel Jeff Yu 0.62 16.78 p
1717 Eternal Chemical BUY 10/07/26 10/07/26 37.00 32.90 1.06 12.46 998.65 945.10 12.56 -- 1.63 -- 2.62 NA 20.20 NA 1.80 5.47 Chemical Gary Wang 3.51 20.20 c
4716 Daily Polymer BUY 10/05/05 10/05/05 46.00 43.20 1.39 6.48 77.41 55.80 24.13 -- 3.01 -- 1.79 NA 14.33 NA 0.00 0.00 Chemical Gary Wang 0.65 12.54 c
4720 Tex Year BUY 10/09/03 10/09/03 33.00 22.55 0.72 46.34 50.43 69.70 23.74 -- 1.61 -- 0.95 1.50 14.03 15.52 0.50 2.22 Chemical Raymond Kuo 0.45 13.14 c
1434 Formosa Taffeta BUY 10/07/12 10/07/12 30.00 25.90 0.83 15.83 1401.45 1684.70 12.63 -- 0.85 -- 2.05 NA 30.51 NA 0.00 0.00 Textile Rae Sing 0.05 30.51 c
1473 Tainan Enterprises BUY 10/07/05 10/07/05 50.00 46.60 1.50 7.30 219.71 146.80 11.95 -- 1.73 -- 3.90 NA 26.99 NA 1.50 3.22 Textile Rae Sing 1.89 26.99 p
Auto/Rubber
2204 China Motor z BUY 10/09/14 10/09/14 25.20 27.85 0.89 (9.52) 1244.70 1391.30 21.76 -- 0.94 0.91 1.28 4.46 29.65 30.65 0.50 1.80 Auto Manufacturers Jeff Yu 0.62 28.62 p
1319 Tong Yang Industry z BUY 10/09/29 10/09/29 60.00 52.70 1.69 13.85 898.43 530.70 16.42 12.20 2.62 2.30 3.21 4.32 20.08 22.90 1.50 2.85 Auto Parts Jeff Yu 3.36 21.94 p
6605 Depo BUY 10/07/23 10/09/08 110.00 85.10 2.73 29.26 453.23 165.80 9.63 8.17 1.71 1.57 8.84 10.41 49.83 54.24 5.30 6.23 Auto Parts Jeff Yu 6.35 48.48 p
9942 NAK BUY 10/05/11 10/05/11 55.00 45.80 1.47 20.09 122.38 83.20 9.89 -- 1.95 -- 4.63 NA 23.53 NA 0.00 0.00 Auto Parts Iris Lin 2.59 21.69 c
3552 Tung Thih BUY 10/09/20 10/09/20 150.00 137.00 4.40 9.49 254.72 57.90 17.77 13.24 4.60 3.41 7.71 10.35 29.81 40.16 0.50 0.36 Auto Components Jeff Yu 5.06 23.69 c
6279 Hu lane BUY 10/09/13 10/09/13 86.30 82.00 2.63 5.24 216.18 82.10 14.54 11.82 4.47 3.84 5.64 6.94 18.34 21.34 4.00 4.88 Auto Components Jeff Yu 4.17 19.31 c
2105 Cheng Shin z BUY 10/08/31 10/09/21 84.90 69.40 2.23 22.33 4593.02 2060.40 13.37 10.63 3.40 2.58 5.19 6.53 20.42 26.94 2.00 2.88 Rubber Jeff Yu 8.15 24.33 c
2106 Kenda z BUY 10/06/23 10/06/23 39.00 34.00 1.09 14.71 677.76 620.60 9.55 8.15 1.57 1.36 3.56 4.17 21.65 24.93 1.10 3.24 Rubber Jeff Yu 4.51 18.65 c
Transportation
2610 China Airline BUY 10/10/07 10/10/07 27.00 24.60 0.79 9.76 3659.90 4631.60 7.32 9.39 1.98 1.64 3.36 2.62 12.40 15.00 0.00 0.00 Airline Yili Chen (0.83) 9.03 p
2618 Eva Airways BUY 10/10/07 10/10/07 35.00 29.10 0.93 20.27 2769.18 2962.70 6.19 7.86 1.83 1.48 4.70 3.70 15.90 19.60 0.00 0.00 Airline Yili Chen (0.96) 10.81 p
2601 First Steamship z BUY 10/06/03 10/06/03 61.20 68.10 2.19 (10.13) 596.17 272.50 15.20 13.05 2.58 2.23 4.48 5.22 26.40 30.60 1.00 1.47 Marine Trans Jerry Lu 3.75 22.91 c
2603 Evergreen Marine BUY 10/10/07 10/10/07 27.60 23.35 0.75 18.20 2308.88 3078.40 6.08 7.23 1.12 0.97 3.84 3.23 20.90 24.14 0.00 0.00 Marine Trans Yili Chen (3.22) 17.78 c
2609 Yang Ming Marine BUY 10/10/07 10/10/07 22.60 22.00 0.71 2.73 1811.00 2562.50 -- 6.41 1.31 1.09 4.70 3.43 16.80 20.20 1.00 4.55 Marine Trans Yili Chen (6.18) 12.39 c
2651 Wan Hai BUY 10/10/07 10/10/07 23.40 22.50 0.72 4.00 1527.05 2112.70 -- 7.71 1.42 1.20 3.41 2.92 15.90 18.80 0.00 0.00 Marine Trans Yili Chen (0.77) 12.44 c
2605 Sincere Navigation BUY 10/10/07 10/10/07 45.00 37.50 1.20 20.00 684.50 568.30 6.86 -- 1.25 -- 5.47 5.42 29.90 35.30 2.50 6.67 Marine Trans Yili Chen 5.42 24.56 c
2606 U-Ming BUY 10/10/07 10/10/07 74.00 63.30 2.03 16.90 1744.51 858.00 8.83 -- 1.86 -- 7.17 6.15 34.00 40.60 6.00 9.48 Marine Trans Yili Chen 6.60 32.85 c
Consumer Goods/Services
1233 Ten Ren NEUTRAL 10/05/25 10/05/25 46.50 50.10 1.61 (7.19) 145.83 90.60 20.53 20.12 3.21 2.94 2.44 2.49 15.63 17.02 1.08 2.16 Tea Jerry Lu 1.93 14.55 p
1216 UPEC z NEUTRAL 10/09/23 10/09/23 44.10 40.60 1.30 8.62 5591.03 4287.10 14.60 -- 2.37 -- 2.78 2.64 17.10 19.00 1.60 3.94 Food & Beverage Jerry Lu 2.02 16.53 p
1232 TTET BUY 09/06/15 09/06/26 43.30 41.30 1.33 4.84 212.32 160.00 11.44 -- 2.29 -- 3.61 NA 18.04 NA 2.40 5.81 Food Jerry Lu 3.68 17.39 p
9905 Great China Metal BUY 10/04/21 10/04/21 32.00 31.95 1.03 0.16 312.86 305.00 13.31 -- 1.33 -- 2.40 NA 24.00 NA 0.00 0.00 Beverage Packaging Rae Sing 1.77 18.12 p
9939 Taiwan Hon Chuan BUY 10/05/13 10/05/13 72.90 62.60 2.01 16.45 482.14 239.80 12.04 9.74 1.81 1.53 5.20 6.43 34.57 41.00 3.00 4.79 Beverage Packaging Jerry Lu 4.09 29.10 c
2903 FEDS NEUTRAL 10/04/16 10/04/16 32.00 41.30 1.33 (22.52) 1648.46 1242.60 9.39 -- 1.59 -- 4.40 NA 26.00 NA 2.00 4.84 Department Stores Jerry Lu 1.59 20.03 p
2915 Ruentex NEUTRAL 10/01/13 10/01/13 83.00 93.90 3.02 (11.61) 2145.70 711.40 66.60 -- 7.43 -- 1.41 NA 12.63 NA 0.00 0.00 Department Stores Jerry Lu 0.63 12.54 p
2911 Les Enphants BUY 10/09/17 10/09/17 54.30 46.60 1.50 16.52 271.75 181.50 22.96 19.02 2.68 2.47 2.03 2.45 17.39 18.85 1.00 2.15 Apparel/Accessories Jerry Lu 1.64 16.09 p
2912 PCSC z BUY 10/06/14 10/06/14 102.80 133.50 4.29 (23.00) 4458.11 1039.60 29.41 27.47 5.75 4.82 4.54 4.86 23.21 27.70 4.20 3.15 Convenience stores Jerry Lu 3.90 18.20 p
2704 Ambassador Hotel z BUY 09/04/10 09/04/20 50.40 52.60 1.69 (4.18) 619.94 366.90 37.30 -- 2.41 -- 1.41 NA 21.85 NA 0.50 0.95 Tourism Jerry Lu 0.50 23.08 p
1614 Sanyo z BUY 10/06/11 10/08/05 56.00 33.50 1.08 67.16 340.81 316.60 26.80 24.63 1.93 1.92 1.25 1.36 17.32 17.43 1.10 3.28 Household Appliance Jerry Lu 0.74 17.07 p
2908 TestRite BUY 10/09/10 10/09/10 27.30 25.85 0.83 5.61 428.82 516.40 32.31 32.31 2.23 2.19 0.80 0.80 11.58 11.80 0.50 1.93 Home Improvement Jerry Lu 0.26 11.36 p
9904 Pou Chen z BUY 10/03/15 10/03/15 29.00 29.05 0.93 (0.17) 2705.26 2899.10 13.77 11.35 1.59 1.48 2.11 2.56 18.26 19.61 1.28 4.41 Footwear Jerry Lu 2.47 18.18 c
9921 Giant BUY 10/05/11 10/05/11 110.00 116.50 3.74 (5.58) 1403.70 375.10 14.94 -- 3.42 -- 7.80 NA 34.08 NA 0.00 0.00 Bicycle Iris Lin 6.71 30.78 c
31.13 : TWD/USD
 Taiwan Research
October 7, 2010 - Taiwan Market Daily

HONG KONG SHANGHAI

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