Stock Research Report
─ ASUS (2357)
班級：碩研財金一甲
指導教授：張上財
學號：MA180101
姓名：劉芷綾
Financial Statements - Balance sheet
188,214,249
32,147,229
10,435,767
2,166,277
2,485,191
235,448,713
111,019,505
518,212
0
3,342,223
114,879,940
7,527,603
4,756,518
104,105,435
Second
quarter
202,433,454
32,113,844
10,931,082
2,214,000
2,775,439
250,467,819
129,356,966
539,105
0
3,883,525
133,779,596
7,527,603
4,797,575
98,007,032
2,912,153
4,750,182
1,724,536
0
0
0
1,267,064
120,568,773
1,605,831
116,688,223
1,634,188
120,414,852
0
0
0
0
0
158.49
152.88
The first quarter
Current assets
Funds and investment
Fixed assets
Intangible assets
Other assets
Total Assets
Current liabilities
Long-term liabilities
Various preparations
Other liabilities
Total liabilities
Share capital
Capital reserve
Retained Earnings
Total shareholders' equity adjustments
Treasury stock (incorporated since the 4th quarter of 1998, the
expression "other projects")
Minority stake
Total equity
Received in advance monies (under shareholders' equity) of
approximately when the number of shares outstanding (Unit: Share)
The parent company of treasury shares held by the parent and
subsidiary number (Unit: Shares)
Book value per share
Third quarter
209,280,105
32,747,439
10,977,250
2,166,057
2,838,317
258,009,168
133,082,384
525,094
0
3,986,838
137,594,316
7,527,603
4,807,007
104,721,518
2
0
157.79
Financial Statements - Income Statement
The first quarter
Net Sales
Cost Of Goods Sold
Gross profit (loss)
Operating expenses
Second quarter
98,550,601
84,908,163
13,642,438
8,898,169
Third quarter
202,323,393 323,597,868
173,831,553 279,366,606
28,491,840
44,231,262
18,204,860
28,241,787
Operating Income (Loss)
4,744,269
10,286,980
15,989,475
Operating income and gains
Nonoperating expenses and losses
2,030,706
933,614
3,080,947
1,185,954
6,710,080
2,912,759
Income from continuing operations before tax Income (Loss)
5,841,361
12,181,973
19,786,796
802,970
2,280,165
3,147,694
5,038,391
9,901,808
16,639,102
Gains or losses from discontinued operations
0
0
0
Extraordinary income
0
0
0
Accounting principle Cumulative effect of changes
0
0
0
5,038,391
5,005,155
9,901,808
9,821,776
16,639,102
16,536,262
33,236
80,032
102,840
6.65
13.05
21.97
Income tax expense (benefit)
Income from continuing operations Income (Loss)
Consolidated net income (total)
Consolidated net income
Minority interest income
Basic earnings per share
3
K-chart analysis - Monthly data
7/12
8/1
8/16
8/29
12/10
9/14
8/30
10/11
10/31
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K-chart analysis - Monthly data
 July 12
– at the low of 259.5
– Financing from ascending tops reduce slowly
– KD upward from low-end
– The trading volume is a large number of 8456
– The closing price is slow up to 283 in August 1
5
K-chart analysis - Monthly data
Aug 16
– The ascending tops is 259
– The trading volume is decreasing to 4838
– departure from volume and price
– Correction has been to August 29
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K-chart analysis - Monthly data
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

The trading volume shrink in August 29
The closing price from 275.5(August 30) rose to 294.5(August 29)
Asus hits limit-up in trade
Asus has a large number of trading volume in August 30
The price slowly rose to 324 and the closing price is 315 in
September 14
 The trading volume is decreasing to 4852
 But the closing price is rising and the financing is decreasing
 Then the price has fallen to October 11
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K-chart analysis - Monthly data
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





The lowest price is 286.5 in October 11
The price is low and a large number of trading volume
The index, KD and financing are rising
The price has risen to 327 in October 31
The closing price is 313 in October 31
Securities Lending is slow down from ascending tops
The price has been correction to December
The closing price is 313 in December 10
The trading volume is decreasing to 2393 in December 10
Therefore, I forecast that the price will rise slightly.
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Basic Information
Symbol
2357
Industrial Sector
Computer and peripheral equipment industry
Company Name
ASUSTeK Computer Inc. Switchboard
Address
Rucker Road No. 15, Beitou District, Taipei
Chairman of the board
Shih
(02) 28943447
General manager
Jerry Shen
Spokesman
Zhang Weiming
A spokesman for titles
The chairman of the board
room implementation of the
special assistant to
Spokesperson Tel
(02) 28943447
Deputy Spokesperson
Wu Changrong
Main operations
Computer motherboard, 3D graphics card, network card SCSI
peripheral cards, notebooks, CD-ROM drive, server, and so on.
Product research and development, manufacturing and sales.
Founded Date
79/04/02
Uniform number of profit-seeking
enterprise
23638777
Paid-in capital
7,527,602,800 yuan
Listing Date
85/11/14
Cash Dividends
14.50 yuan
Share Capital
752,760,280 shares
Special Unit
0 shares
Stock transfer agency
Grand Cathay Securities
(shares) Stock
Phone
Administration
(02) 23892999
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Basic Information
Profitability (101 the third quarter)
Gross Margin
7.18%
Operating Income
3.55%
Pre-Tax Income
7.90%
Net Income
6.14%
Return on Equity
5.74%
Return on assets
3.39%
Book value per share
157.79
10
Basic Information
Last seasons earnings per share
Earnings per share in the
last four years
101 the third quarter
8.92
100 years
21.99
101 the second quarter
6.40
99 years
7.72
101 the first quarter
6.65
98 years
2.94
100 the fourth quarter
6.48
97 years
3.88
11
Basic Information
December 10
Ratio
Stock returns (%)
-0.4769
PE ratio
11
Price-book ratio (%)
1.98
Yield (%)
4.63
12
Basic Information
Revenue Est
Sales Growth
(year/est)
Current Qtr.
Dec 11
N/A
Next Qtr.
Mar 12
3.50%
Current
Year
Dec 11
14.50%
Next Year
Dec 12
12.60%
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notebookIn dustry Analysis
 Taiwanese manufacturers have experience in miniaturization.
 Taiwan can obtain the notebook industry advantage by the miniaturization
technology.
 Taiwan has a complete industrial network, so Taiwan will have an advantage in the
development of new products.
 Due to the miniaturization extension and the advantage to develop new products
can make Taiwanese manufacturers to undertake orders from brand
manufacturers.
 Economies of scale in production product R & D, design and production can make
manufacturers further to obtain the advantages of low cost.
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notebookIn dustry Analysis
 Ultrabook is a opportunities for NB industry.
– Intel declare that Ultrabook sales is 40% of the consumer notebook before the
end of 2012.
– Intel promoted vigorously Ultrabook.
– Because of the erosion of the Tablet PC, Apple's ultra-thin netbook prices has
gone down.
– Lower prices led to substantial growth in sales.
– Intel hopes that more brands join the production of ultra-thin laptop in order
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to reduce the oppression of the Tablet PC.
notebookIn dustry Analysis - SWOT
 Strength
– Good technology and design of ability
– Low cost and the global strategizing ability
– Fast and flexible production, manufacturing ability is
strong, and having a large number of production ability
– Industrial structure of integrity
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notebookIn dustry Analysis - SWOT
 Weakness
– The key components can not be self-produced, the price is
controlled by international companies
– Product sales dominance in international brands
– Market growth tends to be slow, manufacturers sell cheap,
so affect profitability
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notebookIn dustry Analysis - SWOT
 Opportunity
– Computer increased demand, create new business opportunities.
– Internet smoothly
– High-tech industries
– OEM orders released by the Japanese manufacturer.
– ASP low-cost trend, increased international manufacturers orders to
release
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notebookIn dustry Analysis - SWOT
 Threat
– The threat of foreign well-known manufacturers
– The threat of emerging industrial countries
– The alternative of desktop
– The impact of low-cost computers
– Hon Hai Group enter the netbook OEM
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notebookIn dustry Analysis
- Michael Porter's Five Forces Model
 The competition in companies
 (a) Slowdown in industrial growth
– Notebook computer manufacturer to take low-cost competition for OEM orders, so
that the decline in gross margin.
– Domestic firms only increase the number of shipments in order to maintain a
certain profit level.
 (b) high concentration of competitors
– The top ten brand manufacturers have more than 80% of the global market share
– It can obtain an absolute advantage in the foundry of choice.
 (c) Low difference in the product
– The domestic manufacturers have a good design and manufacturing capabilities.
– International manufacturers have a high probability of conversion orders.
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notebookIn dustry Analysis
- Michael Porter's Five Forces Model
 Threat of new entrants
 (a) Korea
– Actively enter the low-end manufacturing.
 (b) EMS manufacturers
– EMS mainly is a large number of manufacturing.
– Lack of design capabilities
 (c) the mainland
– Taiwan businessmen move the production of notebook to the mainland.
 (d) Japan
– Own brand manufacturing is positive to develop in the fast-growing emerging AsiaPacific markets.
 (e) the Hon Hai Group
– Understanding of the global electronic information OEM.
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notebookIn dustry Analysis
- Michael Porter's Five Forces Model
 the threat of substitutes
– Notebook stressed can carry, so some light, thin products have
alternative effects, such as Ipad.
– However, the functionality of these products are still not fully
satisfy the user,therefore is limited to be substituted.
– But notebook still has space to grow.
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notebookIn dustry Analysis
- Michael Porter's Five Forces Model
 The bargaining power of Customer
– The international brands mastered notebook customers, so Taiwan's
notebook manufacturers of bargaining power in the Weaknesses.
– Taiwanese manufacturers have a considerable level of manufacturing
quality.
– As long as the price is low and the quality is good, customers purchase
probability becomes higher.
– International companies can depress the purchase price, making the
notebook manufacturers is not greatly improved in Taiwan's gross margin. 23
notebookIn dustry Analysis
- Michael Porter's Five Forces Model
 The bargaining power of distributorship
– Notebook computer manufacturer with economies of
scale has the advantage of the prices of some key
components procurement, such as TFT-LCD panel.
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notebookIn dustry Analysis
- Michael Porter's Five Forces Model
 Conclusion
 (a) the high density competition
– Example: product homogeneity, intense competition, switching costs,
purchase components.
– Therefore, domestic manufacturers need economies of scale and a lot
of production.
– It can reduce procurement costs and increase competitiveness.
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notebookIn dustry Analysis
- Michael Porter's Five Forces Model
 (b) the relative bargaining power is weak
– Intel still dominates the CPU price, Taiwanese manufacturers of CPU
price bargaining power is weak.
 (c) the high cost of funds
– International manufacturers is only to focus on core competencies in
marketing.
– Taiwanese manufacturers must prepare large capital in inventory
allocations, procurement and global management.
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Stocks Future Prospects
 Asus will have the opportunity to become Ultrabook leader.
 Asus launched a laptop thinner than the Macbook Air in
September.
 The price is only 80% of the Macbook Air.
 The Ultrabook conform ASUS emphasis on design innovation.
 Asus performance will lead the industry in the future.
27
Stocks Future Prospects
ASUS released the highest quarterly profit in
four years.
Asus forecast that the shipments of notebook
and tablet PCs will increase in the fourth
quarter.
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Stocks Future Prospects
 The Asus internal has high expectations for 2013.
 Asus set a target for tablet and notebooks.
 It is world's second on next year .
 Asus has high expectations for tablet.
 Asus have adjusted shipments to 12 million units.
 The notebook reasonable estimated 24 million units by 9% over the
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previous year.
Stocks Future Prospects
 Asus opportunities in Japan
– Asus issue the Windows 8 product in Japan.
– It contains TAICHI, VivoBook, VivoTab, Tranformer
Book and ET ​2300.
– Asus announced that the Ultrabook "ZENBOOK" is
Japan's first Ultrabook.
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Stocks Future Prospects
 The Asus netbook enter the Japanese market
– The NB industry growth concentrated on Lenovo, Asus in this year.
– Asus and Google launch Nexus 7 to promote sales of notebook
computers.
– The Nexus 7 sales increased to make Asus Japanese flat-panel market
share rising to 37.1% in October.
– Asus find a lot of people to participate in product development,
hoping to produce innovative products such as TAICHI.
31
Stocks Future Prospects
 Asus launched the world's first Win 8 dual-screen NB
– Asus launched dual-screen notebook computer called TAICHI.
– TAICHI combine tablet and notebook.
– TAICHI is dual screen notebook of the world's first Windows8.
– TAICHI is a high-performance Ultrabook, closing automatically switch
to tablet.
– Its dual-screen can synchronous operation.
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Stocks Future Prospects
Sales in 2013
– Asus Financial Officer expected that Android Tablet PC
sales is 120,000 in 2013.
– Tablet PC sales will increase 9.5% in 2013.
– Asus expected that Windows notebook and Tablet PC sales
will increase 7.6% in 2013.
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Stocks high-low Target
Price Target SummaryMean
Target:
264.69
Median Target:
267.00
High Target:
330.00
Low Target:
197.00
No. of Brokers:
25
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Thank you for
your attention !
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