Company Reports

There is no major surprise in narrow-moat AirTAC’s 2023 results, with net profit up 16% year on year to TWD 6.97 billion. We raise our fair value estimate to TWD 960 from TWD 900 after rolling forward our estimates and incorporating the guidance given by management. We think the shares are fairly valued currently, with stronger sales of linear guide products in 2024 largely priced in. Our valuation for AirTAC implies a 2024 P/E ratio of about 23 times, versus its five-year historical trading range of around 17 times to 40 times.

AirTAC is the second-largest pneumatic components maker in China, with more than 20% market share in 2022. We think the firm’s leadership position is underpinned by its reputable brand, record, comprehensive sales network, and strong operating efficiency.

Narrow-moat AirTAC’s cumulative nine-month net profit of TWD 5.27 billion was up 13% year on year and in line with our expectation. We slightly raise our fair value estimate to TWD 900 from TWD 870 after considering a better sales growth outlook in 2024-25. However, we think the shares remain overvalued currently, with a positive demand outlook largely priced in. In our view, the market could be disappointed with the slower-than-expected sales growth for its linear guide products. Our valuation for AirTAC implies a 2024 P/E ratio of about 21 times, versus its five-year historical trading range of around 14 times to 40 times.

AirTAC is the second-largest pneumatic components maker in China, with more than 20% market share in 2022. We think the firm’s leadership position is underpinned by its reputable brand, record, comprehensive sales network, and strong operating efficiency.

Narrow-moat Airtac’s first-half 2023 net profit was up 1% year on year to TWD 3.3 billion. Stripping out foreign exchange losses of TWD 236.9 million due to the depreciation of the Chinese yuan, we view the result as broadly in line with our expectation. Nonetheless, operating margin of 30% was below forecast due to lower utilization rate for its linear guide products. We cut our 2023 earnings by 6% to factor in the latest numbers, but our longer-term forecasts are largely unchanged. We maintain our fair value estimate at TWD 870, and we think the shares are fairly valued currently. Our valuation for Airtac implies a 2023 P/E ratio of about 25 times, versus its five-year historical trading range of around 14 times to 40 times.

AirTAC is the second-largest pneumatic components maker in China, with more than 20% market share in 2022. We think the firm’s leadership position is underpinned by its reputable brand, record, comprehensive sales network, and strong operating efficiency.

Narrow-moat AirTAC’s first-quarter net profit of TWD 1.6 billion, down 3% year on year, was mainly due to lower foreign exchange gain and a disposal loss. Meanwhile, operating profit rose 13% year on year and was in line with our expectation. We keep our fair value estimate at TWD 870, and we think the shares are expensive currently, with positive demand outlook largely priced in. Our valuation for AirTAC implies a 2023 P/E ratio of about 24 times, versus its five-year historical trading range of around 14 times to 40 times.

AirTAC is the second-largest pneumatic components maker in China, with more than 20% market share in 2022. We think the firm’s leadership position is underpinned by its reputable brand, record, comprehensive sales network, and strong operating efficiency.

AirTAC is the second-largest pneumatic components maker in China, with more than 20% market share in 2021. We think the firm’s leadership position is underpinned by its reputable brand, record, comprehensive sales network, and strong operating efficiency.

Narrow-moat AirTAC’s 2022 net profit of TWD 6 billion, down 7% year on year, was in line with our expectation. We raise our fair value estimate to TWD 870 from TWD 770 after rolling forward our estimates and considering the latest guidance given by management. However, we think the shares are not attractive currently following the recent run up in share prices, with positive demand outlook largely priced in. Our valuation for AirTAC implies a 2023 P/E ratio of about 24 times, versus its five-year historical trading range of around 14 times to 40 times.

AirTAC is the second-largest pneumatic components maker in China, with more than 20% market share in 2021. We think the firm’s leadership position is underpinned by its reputable brand, record, comprehensive sales network, and strong operating efficiency.

Narrow-moat AirTAC’s third-quarter 2022 net profit of TWD 1.39 billion was down 13% year on year and below our expectation. We lower our fair value estimate to TWD 770 from TWD 860 after considering lower sales and margin guidance from management. While we think the firm’s valuation is not expensive currently, we believe its share price performance will remain volatile in the near term given the murky demand outlook. Our valuation for AirTAC implies a 2023 P/E ratio of about 21 times, versus its five-year historical trading range of around 14 times to 40 times.

Narrow-moat AirTAC’s first-half 2022 net profit of TWD 3.28 billion, up 1% year on year, is below our expectation and we think the firm’s share price may face pressure in the near term. We lower our fair value estimate to TWD 860 from TWD 910 after taking into account lower guidance from the management. We think the firm is currently fairly valued and near-term sentiment will largely hinge on the pace of demand recovery. Our valuation for AirTAC implies a 2022 P/E ratio of about 26 times, roughly in the middle of its five-year historical trading range of around 14 times to 40 times. Our Uncertainty Rating is increased to High from Medium to reflect the murkier demand outlook.

AirTAC is the second-largest pneumatic components maker in China, with more than 20% market share in 2021. We think the firm’s leadership position is underpinned by its reputable brand, record, comprehensive sales network, and strong operating efficiency.

Narrow-moat AirTAC’s first-quarter 2022 net profit of TWD 1.68 billion, up 16% year on year, was aided by a foreign exchange gain of TWD 376 million and largely within our expectation. We keep our fair value estimate at TWD 910. While we think the firm is not expensive currently, we believe near-term sentiment could be affected by the resurgence of COVID-19 cases in China. Our valuation for AirTAC implies a 2022 P/E ratio of 23.5 times, roughly in the middle of its five-year historical trading range of around 14 times to 40 times.

AirTAC is the second-largest pneumatic components maker in China, with more than 20% market share in 2021. We think the firm’s leadership position is underpinned by its reputable brand, record, comprehensive sales network, and strong operating efficiency.

AirTAC is the second-largest pneumatic components maker in China, with more than 20% market share in 2020. We think the firm’s leadership position is underpinned by its reputable brand, record, comprehensive sales network, and strong operating efficiency.

We marginally cut narrow-moat AirTAC’s fair value estimate to TWD 910 from TWD 920 after taking into account the lower-than-expected revenue growth guidance given by management. We think the firm is not adequately attractive to buy currently with a positive demand outlook fairly priced in. Our valuation for AirTAC implies a 2022 P/E ratio of 23.7 times, roughly in the middle of its five-year historical trading range of around 14 times to 40 times.

AirTAC is the second-largest pneumatic components maker in China, with more than 20% market share in 2020. We think the firm’s leadership position is underpinned by its reputable brand, record, comprehensive sales network, and strong operating efficiency.

AirTAC’s third-quarter 2021 net profit of TWD 1.60 billion was up 4% year on year but down 10% quarter on quarter. The results were below our expectation mainly attributable to one-off rights issue expense and lower-than-expected sales due to logistic disruptions as a result of floods and resurgence of COVID-19 cases in China. We lower our fair value estimate to TWD 920 from TWD 940, after incorporating slightly lower sales and margin guidance from management. We think the shares are not expensive currently but we believe investors have built in high optimism on future earnings and the firm will need to deliver meaningful positive earnings surprise to drive share price outperformance. Our fair value estimate implies a 2022 P/E ratio of 22.1 times, in the middle of its five-year historical trading range of 13.6 times to 40.0 times.