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Credit Suisse Presents the 12th Asian Technology Conference in Taipei
Credit Suisse is also pleased to welcome the Taiwan Stock Exchange as co-host for the conference for the third consecutive year. The Taiwan Stock Exchange will once again use the ATC to highlight the strength and depth of Taiwan’s equity markets to global institutional investors.
Dr. Schive Chi, Taiwan Stock Exchange’s Chairman said: “Taiwan Stock Exchange has held 20 investment forums since 2008, and the accumulative net inflow during this period has risen from USD 124.77 billion to USD 171.30 billion in the second quarter of this year, hitting a record high for the recent years.”
At this year’s ATC, companies from Taiwan accounted for more than 80 percent of the presenting corporates.
Mr Richard Liu, Managing Director of Credit Suisse’s Equities business in Taiwan, said: “The ATC offers high level corporate access while ensuring maximum one-on-one face time for companies and investors. From up-and-coming small caps to leading industry players, companies recognize the ATC as a top-rated investor relations opportunity.”
Credit Suisse analysts suggest an overweight position in the Asian tech sector. They argue that Asian tech has been leading the region in terms of earnings per share cuts and that stock prices have already discounted the scenario of sluggish global growth continuing.
Manish Nigam, Head of non-Japan Asia Technology Research for Credit Suisse, said: “The focus is on stocks that get you quality, valuation support and product cycle leverage.”
In terms of product cycle, Nigam believes three key thin and light products – ultrabooks, Android tablets and Windows tablets – hold the potential to drive shipment growth in total consumer mobile computing units back towards the 40 percent year-on-year rate in 2012 and 2013 from below 20 percent estimated for 2011.
“Developments in data connectivity solutions on the one hand and hardware and software progress on the other have reached a point where we believe the era of thin and light devices is upon us and is set to accelerate dramatically over the coming two years, with significant consequences for industry participants,” he explained.
While weak economies, wallet share substitution and iPad cannibalization explain part of the disappointing sales of traditional consumer PCs, Credit Suisse analysts believe a large part is attributable to a prolonged consumer laptop replacement cycle, which is triggered by confusion around the new form factors and devices. This postponement has led to a significant latent demand in the consumer space and may lead to positive surprises around the key upcoming products.
Credit Suisse estimates that the successful launch of new mobile consumer products could drive annual shipment growth rates back to approximately 40% in 2012. This would mean an extra demand of 30 million mobile units or 16% more units than its current estimates.
Nigam said: “The key implication is that the PC supply chain is not dead. To succeed, however, PC supply chain companies will have to be nimble and innovative to correctly position for one or more of the three product cycles in question.”
Credit Suisse currently ranks #1 among foreign brokers in Taiwan, with a 15% share of transaction volume on the Taiwan Stock Exchange year-to-date from foreign institutional investors.