Stock Research Report ─ ASUS (2357)

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

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Financial Statements - Balance sheet The first quarter Second

quarter Third quarter

Current assets 188,214,249 202,433,454 209,280,105Funds and investment 32,147,229 32,113,844 32,747,439Fixed assets 10,435,767 10,931,082 10,977,250Intangible assets 2,166,277 2,214,000 2,166,057Other assets 2,485,191 2,775,439 2,838,317Total Assets 235,448,713 250,467,819 258,009,168Current liabilities 111,019,505 129,356,966 133,082,384Long-term liabilities 518,212 539,105 525,094Various preparations 0 0 0Other liabilities 3,342,223 3,883,525 3,986,838Total liabilities 114,879,940 133,779,596 137,594,316Share capital 7,527,603 7,527,603 7,527,603Capital reserve 4,756,518 4,797,575 4,807,007Retained Earnings 104,105,435 98,007,032 104,721,518

Total shareholders' equity adjustments 2,912,153 4,750,182 1,724,536

Treasury stock (incorporated since the 4th quarter of 1998, the expression "other projects") 0 0 0

Minority stake 1,267,064 1,605,831 1,634,188Total equity 120,568,773 116,688,223 120,414,852Received in advance monies (under shareholders' equity) of approximately when the number of shares outstanding (Unit: Share) 0 0 0

The parent company of treasury shares held by the parent and subsidiary number (Unit: Shares) 0 0 0

Book value per share 158.49 152.88 157.79

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Financial Statements - Income Statement

The first quarter Second quarter Third quarter

Net Sales 98,550,601 202,323,393 323,597,868Cost Of Goods Sold 84,908,163 173,831,553 279,366,606Gross profit (loss) 13,642,438 28,491,840 44,231,262Operating expenses 8,898,169 18,204,860 28,241,787

Operating Income (Loss) 4,744,269 10,286,980 15,989,475

Operating income and gains 2,030,706 3,080,947 6,710,080Nonoperating expenses and losses 933,614 1,185,954 2,912,759Income from continuing operations before tax Income (Loss) 5,841,361 12,181,973 19,786,796

Income tax expense (benefit) 802,970 2,280,165 3,147,694

Income from continuing operations Income (Loss) 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

Consolidated net income (total) 5,038,391 9,901,808 16,639,102Consolidated net income 5,005,155 9,821,776 16,536,262Minority interest income 33,236 80,032 102,840

Basic earnings per share 6.65 13.05 21.97

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K-chart analysis - Monthly data8/1 8/16

8/29

8/3010/11

10/31

12/109/14

7/12

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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

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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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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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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 (02) 28943447

Address Rucker Road No. 15, Beitou District, Taipei

Chairman of the board Shih General manager Jerry Shen

Spokesman Zhang Weiming A spokesman for titlesThe chairman of the board room implementation of the special assistant to

Spokesperson Tel (02) 28943447 Deputy Spokesperson Wu Changrong

Main operationsComputer 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 85/11/14Cash Dividends 14.50 yuan

Share Capital 752,760,280 shares Special Unit 0 shares

Stock transfer agencyGrand Cathay Securities (shares) Stock Administration

Phone (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

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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

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Basic Information

December 10 Ratio

Stock returns (%) -0.4769

PE ratio 11

Price-book ratio (%) 1.98

Yield (%) 4.63

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Basic Information

Revenue Est Current Qtr.Dec 11

Next Qtr.Mar 12

Current Year

Dec 11Next Year

Dec 12

Sales Growth (year/est) N/A 3.50% 14.50% 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 to reduce the oppression of the Tablet PC.

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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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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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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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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 Asia-

Pacific markets. (e) the Hon Hai Group

– Understanding of the global electronic information OEM.

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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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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.

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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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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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(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.

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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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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 previous year.

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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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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.


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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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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 !

Stock Research Report ─ ASUS (2357)

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