Overweight financial and cement; both
stand to benefit from cross-strait detente
􀀗 Underweight materials, telecoms, and
airlines; they are most affected by
slowing global demand
􀀗 Underweight tech, but identify
selected market leaders for some
cyclical exposure
Picking winners in volatile times
In this report we take a close look at the Taiwan market by
examining the structure of different industries and the ability
of individual companies to generate profits.
We have constructed a framework that uses asset turnover
and margin to categorise companies and analyse business
models. We argue that investors should build Taiwan
exposure in the following ways:
􀀗 Select blue-chip companies with strong business models
at low valuations
􀀗 Select cyclical exposure (tech)
􀀗 Select some smaller names with great long-term potential

目录

Summary 4
Taiwan, bottom-up 4
Strategy view in a nutshell 4
Foundry 6
IC Designers 8
Handsets 10
PC makers 13
Display 16
Telecoms 19
PCB sector 22
Financials 25
Materials 28
Cement 31
Airlines 34
Between the cracks 36
Small can be beautiful 36
Appendix 1 39
Business models 39
Appendix 2 41
Disclosure appendix 44
Disclaimer 47
Contents