Halister News

(Bloomberg) -- Truly International Holdings Ltd. will see steady revenue growth from 2018 as its non-smartphone business -- mainly auto display panels -- increase share of operating revenue, according to CICC, which raises stock to buy.

• EPS to rise 222.8% to HK$0.23 next year as bad debt of HK$550m related to Leshi Mobile was recognized in 1H, and production line in Huizhou may turn profitable in 2018, enhancing investment gains, analysts including Ding Ning write in Nov. 7 note
• “Truly International’s share price has fully priced in negative factors. We are more confident about its entry into the automotive display market”
• Auto supply chain characterized by high entry barriers, low probability of supplier replacement and high unit prices; drivers for automotive panel market include upgrading to color screens, more panels per vehicle, larger screens and product customization
  • Truly vehicle panel shipments to record 37.8% CAGR over 2016-2019 and market share to grow from 6.4% to 12.6%
• CICC forecasts 2017 net income at HK$190m, 2018 at HK$720m
• Raises TP by 12% to HK$4.14
• NOTE: Truly has eight buy recommendations, one hold and one sell among analyst views tracked by Bloomberg; stock is up 5% this year

To contact the reporter on this story: Will Davies in Hong Kong at wdavies13@bloomberg.net To contact the editors responsible for this story: Richard Frost at rfrost4@bloomberg.net Will Davies