[ET Net News Agency, 6 February 2018] Credit Suisse trimmed its target price for Truly
International (00732) to HK$4.8 from HK$5.6, and maintained its "outperform" rating.
The research house said Truly reported lower January sales of HK$1.4bn (-16% MoM/-35%
YoY) due to continuous weak Chinese smartphones and high base YoY; non-smartphone business
is still in growing. February is likely to be weak on fewer working days, with orders
gradually picking up after CNY.
Credit Suisse's check suggests that Truly Opto has been requested to submit further
supplementary document to the CSRC. Given the back and forth process, the research house
expects Truly Opto to likely proceed to the final CSRC panel review in March/April.
Credit Suisse sees its turnaround thesis intact given mix improvement (non-smartphones),
narrowing loss from Huizhou JV and a low base YoY. It also believes Truly will benefit
from early-mover advantage for its 3D sensing shipment in 2H 2018. (KL)