Taiwan storybook 5
From ‘sell into strength’ to
‘buy on weakness’ 8
Increasing optimism…but 8
From ‘sell into strength’ to ‘buy on weakness’ 9
Changes to our top picks 10
Earnings 11
EPS on an upward trend 11
2009 earnings decline has moderated to 5.7% 11
Downward earnings revision finally ends 11
Valuations 13
PB premium to historical range and MSCI Asia Pacific 13
PE is 1 standard deviation above average 13
Valuation 14
Funds flow 15
Foreign investors 15
Institutional Trust Companies 15
Local dealers 15
Funds flow 16
Taiwan datapack 17
MSCI Taiwan price level 18
MSCI Taiwan price-to-book multiples 20
MSCI Taiwan dividend yields 22
PB vs ROE 24
Disclosure appendix 32
Disclaimer 35
Contents