Table of contents
Executive summary ............................................................................................... 3
Cyclical recovery ................................................................................................. 12
Earnings upside from China ................................................................................ 29
M&A activity update ............................................................................................ 39
Valuation & stock recommendations.................................................................... 43
Chinatrust FHC (2891 TT).................................................................................... 48
Investment thesis................................................................................................ 49
Valuation ............................................................................................................ 51
Earnings outlook................................................................................................. 55
Investment considerations................................................................................... 57
Fubon FHC (2881 TT) .......................................................................................... 70
Investment thesis................................................................................................ 71
Valuation ............................................................................................................ 74
Earnings outlook................................................................................................. 77
Investment considerations................................................................................... 79
First FHC (2892 TT.............................................................................................. 93
Investment thesis................................................................................................ 94
Valuation ............................................................................................................ 96
Earnings outlook............................................................................................... 100
Investment considerations................................................................................. 101
Mega FHC (2886 TT) ......................................................................................... 112
Investment thesis.............................................................................................. 113
Valuation .......................................................................................................... 115
Earnings outlook............................................................................................... 119
Investment considerations................................................................................. 121
SinoPac FHC (2890 TT) ...................................................................................... 132
Investment thesis.............................................................................................. 133
Valuation .......................................................................................................... 134
Earnings outlook............................................................................................... 137
Investment considerations................................................................................. 139
Taishin FHC (2887 TT)....................................................................................... 150
Investment thesis.............................................................................................. 151
Valuation .......................................................................................................... 153
Earnings outlook............................................................................................... 158
Investment considerations................................................................................. 160