Halister News

(Bloomberg) -- Airtac International Group slides as much as 5.1% Monday, biggest intraday decline since April 10, after co.’s 3Q net income fell from the previous quarter.

• Stock down 4.5% at NT$451 as of 11:45am in Taipei
  • Hit record high of NT$477 Friday
• Airtac 3Q net income NT$895.7m vs NT$978.5m in 2Q; revenue NT$3.85b vs NT$3.60b
• Credit Suisse raises PT to NT$490 from NT$485, but cuts rating to neutral from outperform due to limited upside from new PT, analyst Jerry Su writes in Oct. 23 note
  • Co.’s sales may fall 9% q/q in 4Q due to seasonality, given 8-day October holiday
• Airtac’s gross margin declined in 3Q due to higher cost of raw materials like aluminum and wage hikes, though offset by greater scale and efficiency: Su
• Expects Tainan site top break even in 2017, while co. management forecasts small loss; site will turn profitable in 2018
• “There is limited positive catalyst in the near term and would suggest investors to look for a better entry point in 1Q18,” Su says
• NOTE: Airtac shares have risen 80% this year

To contact the reporters on this story: Will Davies in Hong Kong at wdavies13@bloomberg.net; Amanda Wang in Shanghai at twang234@bloomberg.net To contact the editors responsible for this story: Richard Frost at rfrost4@bloomberg.net Will Davies, Ryan Lovdahl