Catcher Tech­nol­ogy fore­cast to see Q1 EPS surge

The China Post - - LOCAL -

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

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