March 1, 2023 04:14 PM GMT
MORGAN STANLEY TAIWAN LIMITED+
Advantech | Asia Pacific
Derrick Yang
EQUITY ANALYST
Derrick.Yang@morganstanley.com
Secular IoT Trend Intact
Stock Rating
Industry View
Overweight
In-Line
+886 2 2730-2862
Sharon Shih
EQUITY ANALYST
Sharon.Shih@morganstanley.com
Price Target
NT$391.00
+886 2 2730-2865
Kevin Chiueh
RESEARCH ASSOCIATE
Kevin.Chiueh@morganstanley.com
+886 2 2730-2860
Advantech ( 2395.TW, 2395 TT )
Despite slower growth in 2023, the secular IoT trend appears
intact, and Advantech seems well-positioned to be a key
beneficiary. OW.
WHAT'S
CHANGED
Advantech (2395.TW)
From
Price Target
NT$380.00
To
NT$391.00
4Q22 lower than expectations on smaller revenue scale, but well expected by
the market: Although gross margin of 38.8% was largely in line with both
guidance and market expectations, opex was higher than expected off a smaller
revenue scale, leading to operating margins of 17.6%, below guidance of 18.019.5% and consensus at 18.5-19.0%. Following non-op gains of NT$137mn, net
profit came in 6-7% below expectations (see: Results Summary).
2023 outlook: Looking to 1Q23, management guided for revenue of US$550570mn (midpoint +3% QoQ/-3% YoY; based on USD/TWD FX rate at 30.15), gross
margin of 37.0-39.0%, and operating margin of 16.5-18.5%. The revenue guidance
is above seasonal, owing to shipment push-out from 4Q22. The B/B ratio
recovered to 0.92 in 4Q22, from 0.87 in 3Q22, with North America (0.98) and
Europe (1.02) trending toward the normal level of 1.08, though China (0.67)
remained weak on Covid disruptions. By region, Advantech expects growth to be
relatively strong in North America (alleviating inflationary pressure), Europe
(strong order intake in 2022), North Asia, and India in 1Q23, while the Greater
China market should be relatively weak on distributor inventory digestion. By
sector, EV-related applications, smart medical, smart retail, and cyber security
should be the major drivers in 1Q23. The component shortage issue has been
easing, so it should shorten delivery lead times to normal levels and reduce
inventories on hand in 2023.
New North America headquarters in 2025: To support longer-term growth,
Advantech will spend US$72mn building new headquarters in the US to
accommodate new capacity that it expect to support North America revenue
growth to US$1.5bn (vs. US$700mn in 2022) when fully ramped.
Stay OW: Despite the slower growth seen for 2023, we think the secular trend of
IoT implementation will remain intact in the medium to long term (management
foresees a long-term revenue CAGR of 10%). We remain OW and lift our PT by
3% to NT$391 (26x 2023 P/E).
Greater China Technology Hardware / Taiwan
Stock Rating
Overweight
Industry View
In-Line
Price target
NT$391.00
Up/downside to price target (%)
10
Shr price, close (Mar 1, 2023)
NT$356.50
52-Week Range
NT$385.00-269.00
Sh out, dil, curr (mn)
774
Mkt cap, curr (mn)
US$9,004
EV, curr (mn)
US$8,498
Avg daily trading value (mn)
US$10
Fiscal Year Ending
12/21 12/22e 12/23e 12/24e
ModelWare EPS (NT$)
Prior ModelWare EPS
(NT$)
EPS (NT$)§
Revenue, net (NT$ mn)
EBITDA (NT$ mn)
ModelWare net inc
(NT$ mn)
P/E
P/BV
RNOA (%)
ROE (%)
EV/EBITDA
Div yld (%)
FCF yld ratio (%)
Leverage (EOP) (%)
10.65
-
13.89
14.15
14.77
14.67
16.17
16.07
10.50 14.03 14.20 16.11
58,622 68,745 75,285 82,877
10,897 13,520 14,900 16,292
8,250 10,757 11,437 12,526
37.2
8.0
35.4
23.5
26.8
1.8
2.5
(40.4)
23.8
6.1
43.8
28.0
17.6
2.3
3.2
(43.4)
24.1
6.2
46.8
27.2
17.2
2.8
3.4
(45.0)
22.0
5.7
49.7
28.0
15.6
3.0
3.7
(46.6)
Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare
framework
§ = Consensus data is provided by Refinitiv Estimates
e = Morgan Stanley Research estimates
Morgan Stanley does and seeks to do business with
companies covered in Morgan Stanley Research. As a
result, investors should be aware that the firm may have a
conflict of interest that could affect the objectivity of
Morgan Stanley Research. Investors should consider
Morgan Stanley Research as only a single factor in making
their investment decision.
For analyst certification and other important disclosures,
refer to the Disclosure Section, located at the end of this
report.
+= Analysts employed by non-U.S. affiliates are not
registered with FINRA, may not be associated persons of
the member and may not be subject to FINRA restrictions
on communications with a subject company, public
appearances and trading securities held by a research
analyst account.​
1
Results Summary
4Q22 sales of NT$17,187mn (-8% QoQ/+9% YoY) were largely known to the market
through the company's monthly sales announcements. In 2022, the Applied Computing
Group (ACG), Industrial Could & Video Group (ICVG, formerly known as Cloud IoT), and
Service IoT (SIoT) segments outperformed, growing 45%, 19%, and 19% YoY, respectively,
while Industrial IoT (IIoT) underperformed with a slight YoY decline.
GM of 38.8% (+2.4ppts QoQ) was roughly in line with guidance of 37.5-39.5%, MSe at
38.5%, and consensus at 38.3%.
Opex of NT$3,645mn (opex ratio of 21.2%) was moderately higher than MSe and
consensus, partially due to the smaller revenue scale. Operating profit of NT$3,031mn
(OPM 17.6%) was below guidance of 18.0-19.5%, MSe at NT$3,362mn (OPM 18.8%) and
consensus at NT$3,335mn (OPM 18.5%).
Net profit came in at NT$2,543mn (EPS NT$3.29), 7% below MSe and 6% below
consensus.
Exhibit 1: Advantech: Results Summary Table
NT$mn
Net sales
COGS
Gross profit
Operating expenses
Operating Profits
Non-operating income
Pretax Profits
Net Profits
EPS (NT$)
Margins (%)
Gross margin
Operating margin
Pre-tax margin
Net margin
4Q22E Results
Actual
QoQ
17,187
-8%
-10,510
-11%
6,677
-2%
-3,645
7%
3,031
-10%
137
-77%
3,169
-20%
2,543
-20%
3.29
-20%
38.8%
17.6%
18.4%
14.8%
ppt
2.4
-0.5
-2.9
-2.3
MS estimates
Diff (%) Consensus
Diff (%)
YoY
9%
8%
11%
11%
12%
NM
18%
12%
12%
17,923
-11,031
6,892
-3,531
3,362
100
3,462
2,743
3.55
-4%
-5%
-3%
3%
-10%
37%
-8%
-7%
-7%
18,011
-11,113
6,898
-3,563
3,335
18
3,353
2,706
3.51
-5%
-5%
-3%
2%
-9%
663%
-5%
-6%
-6%
ppt
0.7
0.4
1.4
0.4
38.5%
18.8%
19.3%
15.3%
ppt
0.4
-1.1
-0.9
-0.5
38.3%
18.5%
18.6%
15.0%
ppt
0.5
-0.9
-0.2
-0.2
Source: Company data, Refinitiv, Morgan Stanley Research estimates
2
Advantech: Quarterly Financial Summary
Exhibit 2: Advantech: Quarterly Financial Summary
Advantech (2395.TW)
1Q22
16,120
2Q22
16,824
3Q22
4Q22E
1Q23E
2Q23E
3Q23E
4Q23E
18,614
17,187
16,887
18,539
20,897
18,962
COGS
-9,962
-10,325
-11,834
-10,510
-10,466
-11,452
-12,781
Gross profit
6,157
6,499
6,780
6,677
6,421
7,087
8,117
7,410
Operating expenses
SG&A, R&D exp.
-3,143
-3,143
-3,392
-3,392
-3,401
-3,401
-3,645
-3,645
-3,462
-3,462
-3,708
-3,708
-4,033
-4,033
-3,832 (12,331) (13,581) (15,035)
-3,832 (12,331) (13,581) (15,035)
Operating income
Non-operating income
3,015
155
3,108
30
3,378
588
3,031
137
2,960
90
3,379
90
4,084
90
3,578
90
9,800
455
12,532
911
14,000
360
0
0
0
155
-1
1
0
0
-45
74
1
0
0
159
429
25
8
-1
-46
152
0
0
0
0
90
0
0
0
0
90
0
0
0
0
90
0
0
0
0
90
13
1
58
(82)
465
28
8
(1)
223
653
0
0
0
0
360
Pre-tax income
3,170
3,138
3,967
3,169
3,050
3,469
4,174
3,668
10,255
13,443
14,360
Income tax
Minority interest
-602
4
-674
-6
-791
8
-634
8
-625
5
-729
5
-856
5
-734
5
(1,948)
(57)
(2,700)
15
(2,943)
20
2,572
2,458
3,184
2,543
2,429
2,746
3,323
2,939
8,250
10,757
11,437
772
772
772
772
772
772
772
772
774
774
774
10.65
13.89
14.77
NT$ mn
Net sales
Interest income
Investment income
Disposal of investment
Exchange gain
Others
Net income
Adj.wtd.avg.shrs (mn)
EPS (NT$)
Fully diluted shares (mn)
Diluted EPS (NT$)
3.33
774
3.18
774
4.12
774
3.29
774
3.15
774
3.56
774
4.30
774
2021
58,622
2022E
68,745
2023E
75,285
-11,552 (36,490) (42,632) (46,251)
3.81
774
22,132
26,113
29,035
774
774
774
3.32
3.17
4.11
3.28
3.14
3.55
4.29
3.80
10.65
13.89
14.77
38.2
18.7
19.7
16.0
38.6
18.5
18.6
14.6
36.4
18.1
21.3
17.1
38.8
17.6
18.4
14.8
38.0
17.5
18.1
14.4
38.2
18.2
18.7
14.8
38.8
19.5
20.0
15.9
39.1
18.9
19.3
15.5
37.8
16.7
17.5
14.1
38.0
18.2
19.6
15.6
38.6
18.6
19.1
15.2
2
3
11
18
13
4
6
3
-1
-4
11
4
9
26
30
-8
-2
-10
-20
-20
-2
-4
-2
-4
-4
10
10
14
14
13
13
15
21
20
21
-9
-9
-12
-12
-12
22
18
32
31
34
18
25
41
38
37
20
19
30
38
40
9
11
12
18
12
5
4
-2
-4
-6
10
9
9
11
12
12
20
21
5
4
10
11
18
16
16
15
9
8
12
14
17
18
28
31
30
10
11
12
7
6
Margins (%)
Gross Margin
Operating Margin
Pretax Margin
Net Margin
QoQ Growth (%)
Sales
Gross Profit
Operating Profit
Pretax Profit
Net Profit
YoY Growth (%)
Sales
Gross Profit
Operating Profit
Pretax Profit
Net Profit
Source: Company data, Morgan Stanley Research (E) estimates
3
Advantech: Financial Summary
Exhibit 3: Advantech: Financial Summary
Consolidated Income Statement
NT$ mn (Year End Dec 31)
Net sales
2021
58,622
2022E
68,745
2023E
75,285
2024E
82,877
COGS
-36,490
-42,632
-46,251
-50,911
Gross profit
22,132
26,113
29,035
31,966
Operating expenses
-12,331
-13,581
-15,035
-16,574
9,800
455
12,532
911
14,000
360
15,392
340
13
1
58
-82
465
28
8
-1
223
653
0
0
0
0
360
Pre-tax income
10,255
13,443
Income tax
Minority interests
-1,948
-57
-2,700
15
Net income
8,250
774
Operating income
Non-operating income
Interest income
Investment income
Disposal of investment
Exchange gain
Others
Adj. wtd. Avg. shrs (m)
Reported EPS (NT$)
Diluted shrs (m)
Diluted EPS (NT$)
10.65
774
Consolidated Cash Flow Statement
2021
NT$ mn (Year End Dec 31)
Operating Cashflow
9,132
10,757
988
-8
-1,149
-152
11,437
900
0
-778
-99
12,526
900
0
-856
-115
0
0
0
0
340
Investing Cashflow
-1,276
-1,144
-1,181
-1,380
Capex
Change of L/T investment
Change of S/T investment
Other adjustments
-1,036
-390
18
-3
-1,237
0
0
0
-1,355
0
0
0
-1,492
0
0
0
14,360
15,732
Financing Cashflow
-5,564
-6,291
-8,367
-8,807
-2,943
20
-3,226
20
10,757
11,437
12,526
774
774
Increase in L/T debt
Increase in S/T debt
Issuance of stock
Cash dividends
Other adjustments
FX adjustment
0
91
0
-5,506
-148
-488
0
72
6
-5,981
-388
-223
0
0
0
-7,799
-569
0
0
0
0
-8,292
-515
0
Net change in cash
1,804
2,777
1,911
2,268
13.89
14.77
774
774
774
16.17
774
14.77
16.17
Cash
2021
9,301
2022E
12,078
2023E
13,989
2024E
16,257
Mkt securities
AR/NR
Inventory
Others
3,690
10,292
12,517
886
3,690
12,069
14,624
1,039
3,690
13,217
15,865
1,138
3,690
14,550
17,464
1,253
Gross margin
Operating margin
Pretax margin
Net margin
Current Assets
36,686
43,500
47,899
53,214
YoY growth (%)
Long-term investments
Fixed assets
Other assets
6,468
10,247
4,428
6,468
10,403
4,428
6,468
10,685
4,428
6,468
11,165
4,428
Total Assets
57,828
64,799
69,480
75,274
Sales
Operating profits
Pretax profits
Net profits
256
7,487
8,761
327
8,747
10,235
327
9,490
11,104
327
10,446
12,223
Consolidated Balance Sheet
Total Current Liabilities
2024E
12,455
8,250
1,097
-265
-3,055
3,105
13.89
S/T borrowings
AP/NP
Other ST liabilities
2023E
11,460
Net Profits
Depreciation & Amort.
Investment losses/(income)
Working capital change
Other adjustments
10.65
NT$ mn (Year End Dec 31)
2022E
10,435
Consolidated Financial Ratios
16,504
19,310
20,921
22,996
L/T debt
Other LT libilities
2,962
3,473
3,804
4,187
Total Liabilities
19,465
22,783
24,725
27,183
Common shares
Retained Earnings
Other SH' Equity
7,738
13,982
16,643
7,744
18,527
15,744
7,744
22,166
14,845
7,744
26,400
13,946
Total Shareholders' Equity
Total Liab./SH's Equity
38,363
57,828
42,016
64,799
44,755
69,480
48,090
75,274
2021
2022E
2023E
2024E
Margins (%)
37.8
16.7
17.5
14.1
38.0
18.2
19.6
15.6
38.6
18.6
19.1
15.2
38.6
18.6
19.0
15.1
14.7
8.5
12.3
13.8
17.3
27.9
31.1
30.4
9.5
11.7
6.8
6.3
10.1
9.9
9.6
9.5
76
7.1
3
-33
51
34
22
15
59
102
59
102
75
8.0
2
-37
54
35
27
18
59
116
69
106
73
10.1
3
-39
55
36
26
17
61
120
72
110
73
10.7
3
-41
57
36
27
17
61
119
71
109
Others
Cash dividend payout (%)
Cash div (NT$)
Yield (%)
Net Debt/Equity (%)
Liabilities/Equity (%)
Liabilities/Assets (%)
ROAE (%)
ROAA (%)
AR/NR Turnover (days)
Inventory Turnover (days)
AP/NP Turnover (days)
Cash conversion cycle
Source: Company data, Morgan Stanley Research. E=Morgan Stanley Research estimates.
4
Advantech: Estimate Revisions
We factor in 4Q22 results and 1Q23 guidance, and fine-tune our 2022-24e earnings
estimates.
Exhibit 4: Advantech: Estimate Revisions
Year to Dec. 31
NT$ mn
P&L Summary
Net sales
COGS
2022E
New
2023E
Old
% diff
68,745
69,481
-42,632
-43,153
Gross profit
26,113
26,329
Operating expenses
-13,581
-13,466
Operating income
12,532
12,862
911
873
Pre-tax income
13,443
13,736
Income tax
Minority interest
-2,700
15
-2,793
14
Net income
EPS (NT$)
Margins
10,757
13.89
10,957
14.15
Gross margin
Operating margin
Pretax margin
Net margin
38.0%
18.2%
19.6%
15.6%
37.9%
18.5%
19.8%
15.8%
Non-operating income
-1%
-1%
-3%
-2%
-2%
-2%
New
2024E
Old
% diff
75,285
75,001
-46,251
-46,094
29,035
28,907
-15,035
-14,978
14,000
13,929
360
360
14,360
14,289
-2,943
20
-2,947
20
11,437
14.77
11,362
14.67
38.6%
18.6%
19.1%
15.2%
38.5%
18.6%
19.1%
15.1%
0%
0%
1%
0%
1%
1%
New
Old
% diff
82,877
83,341
-50,911
-51,319
31,966
32,022
-16,574
-16,697
15,392
15,325
340
340
15,732
15,665
-3,226
20
-3,238
20
12,526
16.17
12,447
16.07
38.6%
18.6%
19.0%
15.1%
38.4%
18.4%
18.8%
14.9%
-1%
0%
0%
0%
1%
1%
Source: Morgan Stanley Research (E) estimates.
5
Advantech: Valuation Methodology
Our 12-month price target of NT$391 (previously NT$380) is based on a target P/E
multiple of 26x applied to our 2023 EPS estimate (unchanged). We view our target
multiple as justified by our 8% earnings CAGR forecast for 2023-24; it is in line with the
stock's average one-year forward P/E of 26x since 2015.
Bull case scenario value – NT$496 (+3%): We apply a 34x P/E multiple to our earnings
estimate for 2023 (unchanged). This scenario mainly reflects more top-line and bottomline growth from the platform and applications by leveraging the solid base in IoT edge
layer devices.
Bear case scenario value – NT$216 (+2%): We apply a 15x P/E multiple to our earnings
estimate for 2023 (unchanged). This scenario factors in slower progress in the WISEPaaS and solution ready packages, which could lead to weaker revenue and earnings
growth. The macro environment could also cast some uncertainty on the stock's
outlook.
6
H
Risk Reward – Advantech (2395.TW)
Stay OW for IoT growth in various verticals
OVERWEIGHT THESIS
PRICE TARGET NT$391.00
Base case, 26x 2023E P/E. We view our target multiple as justified by our 8% earnings CAGR
forecast for 2023-24; it is in line with the stock's average one-year forward P/E of 26x since
2015.
NT$332.30
Consensus Price Target Distribution
NT$270.00
MS PT
Source: Refinitiv, Morgan Stanley Research
Mean
NT$400.00
Morgan Stanley Estimates
RISK REWARD CHART
▪ We like Advantech for its well-planned
business strategy to capture upcoming
growth in the industrial IoT era.
It is a leading IPC maker that surpasses
peers by a wide margin and has multiple
growth engines.
We expect Advantech to benefit from the
secular trend of IoT implementation for
various verticals, as it is gradually
transitioning from a hardware
manufacturer to a hardware + software
solutions provider.
▪
▪
TWD
NT$496.00(+39.13%)
NT$496.00(+39.13%)
Consensus Rating Distribution
480
33% Overweight
40% Equal-weight
27% Underweight
NT$391.00(+9.68%)
NT$391.00(+9.68%)
NT$356.50
360
MS Rating
Source: Refinitiv, Morgan Stanley Research
240
NT$216.00(-39.41%)
NT$216.00(-39.41%)
Risk Reward Themes
120
Secular Growth:
Positive
View descriptions of Risk Rewards Themes here
0
MAR '22
Key:
SEP '22
Historical Stock Performance
MAR '23
Current Stock Price
MAR '24
Price Target
Source: Refinitiv, Morgan Stanley Research
BULL CASE
NT$496.00
BASE CASE
NT$391.00
BEAR CASE
NT$216.00
34x 2023e base case EPS
26x 2023e base case EPS
15x 2023e base case EPS
Faster-than-expected software business
growth: Leveraging the solid base in IoT
edge layer devices, it could drive more topand bottom-line growth from the platform
and applications.
Riding on the industrial IoT proliferation:
Advantech benefits from IoT
implementation, with its core competence in
IPCs and growing business in IoT platform
and solution-ready packages.
Slower growth beyond hardware and macro
uncertainties: Slower progress in the WISEPaaS and solution-ready packages could lead
to weaker revenue and earnings growth. The
macro environment could also cast some
uncertainty on its outlook.
7
H
Risk Reward – Advantech (2395.TW)
KEY EARNINGS INPUTS
CATALYST CALENDAR
Drivers
2021
2022e
2023e
2024e
Date
Event
27 Apr 2023 01 May 2023
Q1 2023 Advantech Co Ltd Earnings Release
Industrial-IoT YoY (%)
22.1
(3.4)
3.6
14.0
Embedded-IoT + Allied DMS (Designin) YoY (%)
17.8
23.3
10.7
10.2
Service-IoT YoY (%)
26.7
20.0
5.0
4.4
AGS & APS YoY (%)
25.8
(5.2)
9.4
9.3
INVESTMENT DRIVERS
Margin improvement
Monthly sales growth
Improvement in China's PMI
0-10%
0-10%
0-10%
0-10%
10-20%
10-20%
20-30%
20-30%
FY Dec 2022e
Weaker macro environment
Slower progress in the WISE-PaaS and solution
ready packages
OWNERSHIP POSITIONING
Inst. Owners, % Active
Sales /
Revenue
(NT$, mn)
68,745
EBIT
(NT$, mn)
12,322
Net income
(NT$, mn)
10,213
69,935
69,486
76.5%
12,532
13,094
12,774
10,757
11,266
10,888
Source: Refinitiv, Morgan Stanley Research
MS ALPHA MODELS
MOST
MS ESTIMATES VS. CONSENSUS
RISKS TO UPSIDE
RISKS TO DOWNSIDE
India
Japan
MEA
UK
APAC, ex Japan, Mainland
China and India
Europe ex UK
Mainland China
North America
Source: Morgan Stanley Research Estimate
View explanation of regional hierarchies here
2/5
RISKS TO PT/RATING
Stronger-than-expected macroeconomic
conditions
More top-line and bottom-line growth from the
platform and applications
GLOBAL REVENUE EXPOSURE
Source: Refinitiv, Morgan Stanley
3 Month
Horizon
Source: Refinitiv, FactSet, Morgan Stanley Research; 1 is
the highest favored Quintile and 5 is the least favored
Quintile
13.89
EPS
(NT$)
13.00
ROE
(%)
25.3
14.53
14.03
28.0
29.6
26.9
Mean
Morgan Stanley Estimates
Source: Refinitiv, Morgan Stanley Research
SUSTAINABILITY & ESG
Indicator of Change
Disclosure Rate
-0.22
+1.0
-1.0
41%
8
H
Risk Reward – Advantech (2395.TW)
SUSTAINABILITY AND ESG
SUMMARY
INDICATOR OF CHANGE OVER TIME
All
Env
Soc
In 2020, Advantech had an ESG Indicator of
Change of -0.22, which signals some YoY
deterioration in its ESG data points in our
database.
Gov
1.0
0.41
0.32
SUSTAINABLE SOLUTIONS
0.29
Theme
-0.22
-0.40
Exposure
Treating Illness
9% (EBITA)
Infra Internet Telecom
3% (EBITA)
Education
2% (EBITA)
Exposure is presented for top four Sustainability themes
View explanation of Theme/Exposure methodology here
-1.0
2016
Environment
2017
2018
2019
2020
Unit
Dec '18
Dec '19
Dec '20
CO2 emissions (Scope 1 and 2)
tonnes CO2 equivalent
28,425
30,325
30,569
Energy consumption
KWh
47,723,933
46,512,167
-
Total waste
tonnes
Water consumption
tons
696
1,014
1,551
77,926
72,543
-
40.77
92.22
-
-
-
-
8.20
9.20
7.66
-
0.00%
0.00%
Social
Avg training hrs per employee
Hours
Employee turnover
Percentage
Governance
Avg tenure of the board
Years
Female board members
Percentage
Females in management
Percentage
2.80%
20.30%
-
Independent board members
Percentage
42.86%
42.86%
42.86%
Shares owned by board members
Percentage
3.90%
3.89%
4.02%
Indicator of change chart is plotted using the fiscal aligned methodology. View explanation of 'Indicator of Change' methodology here
Source: Company Data, Morgan Stanley Research
9
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10
The Stock Ratings described below apply to Morgan Stanley's Fundamental Equity Research and do not apply to Debt Research produced by the Firm.
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COVERAGE UNIVERSE
STOCK RATING
CATEGORY
Overweight/Buy
Equal-weight/Hold
Not-Rated/Hold
Underweight/Sell
TOTAL
INVESTMENT BANKING CLIENTS (IBC)
OTHER MATERIAL
INVESTMENT SERVICES
CLIENTS (MISC)
COUNT
% OF
TOTAL
COUNT
% OF
TOTAL IBC
% OF
RATING
CATEGORY
COUNT
% OF
TOTAL
OTHER
MISC
1353
1664
4
660
37%
45%
0%
18%
284
294
0
80
43%
45%
0%
12%
21%
18%
0%
12%
593
732
0
232
38%
47%
0%
15%
3,681
658
1557
Data include common stock and ADRs currently assigned ratings. Investment Banking Clients are companies from whom Morgan Stanley received investment
banking compensation in the last 12 months. Due to rounding off of decimals, the percentages provided in the "% of total" column may not add up to exactly
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Stock Price, Price Target and Rating History (See Rating Definitions)
11
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13
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INDUSTRY COVERAGE: Greater China Technology Hardware
COMPANY (TICKER)
RATING (AS OF)
PRICE* (03/01/2023)
E (11/15/2022)
U (05/24/2021)
E (12/06/2022)
E (01/09/2023)
U (11/07/2022)
O (11/02/2015)
U (01/09/2023)
O (07/25/2022)
E (11/04/2021)
O (01/09/2023)
O (11/07/2022)
O (08/12/2021)
E (01/09/2023)
O (05/18/2022)
O (04/14/2021)
U (10/13/2021)
O (12/17/2021)
E (11/15/2022)
E (04/05/2022)
O (11/15/2022)
O (06/20/2019)
U (07/02/2021)
HK$24.50
Rmb11.67
Rmb15.87
NT$394.50
Rmb3.69
Rmb39.81
NT$2,165.00
Rmb13.18
Rmb5.21
HK$5.06
Rmb121.58
Rmb82.00
HK$96.95
Rmb54.36
HK$12.60
Rmb37.73
HK$15.94
Rmb97.14
Rmb17.63
Rmb13.20
HK$23.85
Rmb32.91
O (01/20/2021)
E (08/04/2022)
E (10/04/2022)
O (09/06/2019)
O (10/05/2021)
E (11/15/2022)
O (01/20/2021)
U (09/23/2022)
O (12/01/2020)
O (02/21/2023)
O (10/04/2022)
E (07/22/2020)
E (11/03/2020)
O (12/01/2020)
E (09/23/2022)
E (06/11/2019)
U (01/24/2018)
E (02/18/2020)
E (11/26/2021)
E (12/01/2020)
NT$356.50
NT$1,115.00
NT$18.65
Rmb4.23
NT$178.50
NT$193.00
NT$235.00
NT$47.15
NT$84.50
NT$248.00
NT$14.65
Rmb12.91
Rmb6.52
NT$105.00
Rmb19.26
Rmb4.48
Rmb9.71
Rmb6.72
Rmb63.23
Rmb6.77
U (05/12/2022)
E (12/01/2022)
O (12/01/2022)
E (12/01/2022)
Rmb22.79
Rmb33.16
Rmb41.39
Rmb35.91
Andy Meng, CFA
BYD Electronics (0285.HK)
China TransInfo Technology Co Ltd (002373.SZ)
Dahua Technology Co. Ltd. (002236.SZ)
Genius Electronic Optical Co. Ltd. (3406.TW)
Gosuncn Technology Group Co Ltd (300098.SZ)
HIKVision Digital Technology (002415.SZ)
Largan Precision (3008.TW)
LianChuang Electronic Technology Co Ltd (002036.SZ)
OFILM Group Co Ltd (002456.SZ)
Q Technology (Group) Company Ltd (1478.HK)
Quectel Wireless Solutions Co Ltd (603236.SS)
Shenzhen Transsion Holdings Co Ltd (688036.SS)
Sunny Optical (2382.HK)
Wingtech Technology Co Ltd (600745.SS)
Xiaomi Corp (1810.HK)
Yangtze Optical Fibre and Cable JSC Ltd (601869.SS)
Yangtze Optical Fibre and Cable JSC Ltd (6869.HK)
Yongxin Optics Co Ltd (603297.SS)
YuTong Optical Technology Co Ltd (300790.SZ)
Zhejiang Crystal-Optech Co Ltd (002273.SZ)
ZTE Corporation (0763.HK)
ZTE Corporation (000063.SZ)
Derrick Yang
Advantech (2395.TW)
AirTAC International (1590.TW)
AU Optronics (2409.TW)
BOE Technology (000725.SZ)
Chroma Ate Inc. (2360.TW)
E Ink Holdings Inc. (8069.TWO)
Ennoconn Corporation (6414.TW)
Ennostar Inc (3714.TW)
GIS Holding Limited (6456.TW)
Hiwin Technologies Corp. (2049.TW)
Innolux (3481.TW)
Lens Technology (300433.SZ)
Leyard Optoelectronic Co Ltd (300296.SZ)
Radiant Opto-Electronics Corporation (6176.TW)
Sanan Optoelectronics (600703.SS)
TCL Corp. (000100.SZ)
Tianma Microelectronics (000050.SZ)
Visionox Technology Inc (002387.SZ)
Wuhan Jingce Electronic Group Co Ltd (300567.SZ)
Wuhu Token Science Co. Ltd. (300088.SZ)
Green Cai
Accelink Technologies Co. Ltd. (002281.SZ)
Eoptolink Technology Inc Ltd (300502.SZ)
Suzhou TFC Optical Communication Co Ltd. (300394.SZ)
Zhongji Innolight Co Ltd (300308.SZ)
Howard Kao
14
Accton Technology Corporation (2345.TW)
Acer Inc. (2353.TW)
Asustek Computer Inc. (2357.TW)
Compal Electronics (2324.TW)
Flexium (6269.TW)
Giga-Byte Technology Co. Ltd. (2376.TW)
Gold Circuit Electronics Ltd. (2368.TW)
Guangdong Fenghua Adv. Tech. (Hldg) Co (000636.SZ)
Inspur Electronic Information (000977.SZ)
Kinsus Interconnect Tech. (3189.TW)
Lenovo (0992.HK)
Lotes Co. Ltd. (3533.TW)
Nan Ya PCB (8046.TW)
Pegatron Corporation (4938.TW)
Quanta Computer Inc. (2382.TW)
Shengyi Technology Co Ltd. (600183.SS)
Shennan Circuits Co Ltd (002916.SZ)
Unimicron (3037.TW)
Wistron Corporation (3231.TW)
Wiwynn Corp (6669.TW)
Yageo Corp. (2327.TW)
Zhen Ding (4958.TW)
E (11/12/2021)
U (02/01/2018)
U (07/23/2021)
U (12/18/2019)
E (04/27/2018)
O (12/15/2022)
O (10/06/2022)
E (05/12/2021)
O (02/16/2023)
U (12/21/2022)
E (07/26/2018)
O (10/06/2022)
U (12/21/2022)
E (03/07/2022)
E (07/28/2021)
E (05/26/2022)
O (07/22/2020)
U (02/22/2023)
E (07/26/2018)
E (01/09/2023)
O (01/04/2022)
E (08/02/2022)
NT$287.50
NT$25.50
NT$276.00
NT$24.25
NT$97.00
NT$120.50
NT$90.80
Rmb17.40
Rmb42.88
NT$111.50
HK$7.32
NT$857.00
NT$240.50
NT$68.00
NT$79.80
Rmb18.38
Rmb81.80
NT$131.50
NT$32.55
NT$940.00
NT$538.00
NT$114.00
E (10/07/2022)
U (03/21/2022)
O (02/20/2023)
E (08/18/2022)
O (08/18/2022)
E (10/07/2022)
NT$119.00
NT$162.00
NT$279.50
Rmb109.94
NT$124.50
NT$43.80
U (04/23/2021)
O (07/13/2017)
O (07/10/2019)
E (08/16/2016)
E (12/05/2022)
E (10/28/2021)
E (01/09/2023)
E (10/27/2022)
U (05/23/2022)
E (07/31/2020)
O (10/24/2016)
E (03/18/2019)
E (07/06/2022)
HK$18.38
NT$186.00
NT$289.50
Rmb9.96
NT$55.30
Rmb21.78
Rmb68.13
NT$102.00
NT$131.00
Rmb5.82
NT$69.20
Rmb30.90
NT$219.50
NT$82.70
Lily Chou
Asia Vital Components Co. Ltd. (3017.TW)
Auras Technology Co Ltd (3324.TWO)
BizLink Holding Inc (3665.TW)
Cubic Sensor and Instrument Co Ltd (688665.SS)
SDI Corporation (2351.TW)
Sunonwealth Electric Machine Industry Co (2421.TW)
Sharon Shih
AAC Technologies Holdings (2018.HK)
Catcher Technology (2474.TW)
Delta Electronics Inc. (2308.TW)
Foxconn Industrial Internet Co. Ltd. (601138.SS)
Foxconn Technology (2354.TW)
GoerTek Inc (002241.SZ)
Guangzhou Shiyuan Electronic Tech Co Ltd (002841.SZ)
Hon Hai Precision (2317.TW)
LandMark Optoelectronics Corporation (3081.TWO)
Lingyi Itech Guangdong Co (002600.SZ)
Lite-On Technology (2301.TW)
Luxshare Precision Industry Co., Ltd. (002475.SZ)
Tong Hsing (6271.TW)
Visual Photonics Epitaxy Co Ltd (2455.TW)
Stock Ratings are subject to change. Please see latest research for each company.
* Historical prices are not split adjusted.
© 2023 Morgan Stanley
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