Catcher Technology forecast to see Q1 EPS surge
The earnings per share of casing maker Catcher Technology Co. (
) surged in the first quarter from a year earlier, Daiwa Securities has forecast, based on the manufacturers’ better- than- expected sales in the quarter.
In a research note, the Japanese brokerage said that Catcher is expected to report NT$6.7 (US$0.22) in EPS for the January-March period when it announces its detailed first quarter results on April 28.
That would be sharply higher than NT$3.97 in EPS recorded in the same period of 2014.
In the three- month period, Catcher posted NT$17.4 billion in consolidated sales, up 67.1 percent from a year earlier largely due to strong sales of Apple Inc.’s latest iPhone models, the iPhone 6 and iPhone 6 Plus, which hit store shelves in September 2014.
Catcher is one of Apple’s most important suppliers in Taiwan. The U.S. firm accounts for about 40 percent of the Taiwanese company’s total sales.
In addition, Catcher benefited from shipments of HTC Corp.’s flagship HTC One M9, analysts said.
As a result, first quarter consolidated sales beat a previous market estimate of NT$15 billion, supporting the high EPS estimate made Daiwa Securities.
Daiwa Securities also raised its target price for Catcher shares from NT$376 to NT$437, the highest level among foreign brokerages. The Japanese brokerage left its “overweight” recommendation on the stock unchanged.
On Friday, shares of Catcher gained 0.40 percent to close at NT$376.50. The stock rose almost 7 percent during the week as foreign institutional investors rushed to pick up fundamentally healthy high-tech stocks in Taiwan.
Daiwa Securities said Catcher is expected to post an 8 percent sequential increase in sales for the second quarter, and it raised its forecast for the metal casing supplier’s EPS by 11-12 percent to NT$ 30.04, NT$ 34.37 and NT$ 39.42 in 2015, 2016 and 2017, respectively.
Catcher’s EPS NT$23.52.
To meet increasing demand, Catcher has committed almost NT$6 billion to capital expenditure since the beginning of this year to expand capacity. Analysts expect Catcher to continue to pour funds into added capacity the rest of this year.
In 2014, Catcher’s capex stood at NT$22.3 billion, the highest annual level in the company’s history.
in 2014 was