Risk factor
Poor trading liquidity
Profitability factor
Weak growth
About
Formosa Advanced Technologies Co., Ltd., established in 1990 and headquartered in Douliou City, Taiwan, specializes in a wide array of semiconductor and optoelectronic services. The company's primary offerings encompass comprehensive wafer probing, integrated circuit (IC) assembly and testing, and complete module turnkey solutions within Taiwan. For IC packaging, they develop solutions tailored for numerous portable electronic devices, including mobile phones, various memory modules, PC cards, personal digital assistants (PDAs), disc drives, and telephone handsets. Their product range in this category also features DIMM products specifically for laptops and diverse flash cards. In the LED sector, Formosa Advanced Technologies produces components such as PLCC, EMC, and UV LED products. Additionally, they provide essential back-end services for LED chips, which include grinding, dicing, probing, sorting, and PI services. Beyond manufacturing, their robust testing capabilities cover wafer probe, burn-in, and final testing for memory, logical, and mixed-signal semiconductors. This is supported by additional services like testing program validation, tester/fixture correlation, engineering lot support, production lot verification, and periodic reporting. Furthermore, the company delivers extensive module services, offering everything from customized product development to OEM and ODM solutions. This includes the supply of blank DRAM modules, specifically U-DIMM, SO-DIMM, R-DIMM, and FB-DIMM types.
Company Valuation
From both historical and forecast perspectives, the stock is underpriced compared to similar stocks. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBITDA,
Target Price
The average target price of 8131.TW is 62 and suggests 13.9% downside potential. Usually, this means a SELL recommendation among investment firms, or a recommendation to