Advantech Earnings: Solid Execution in Energy, Healthcare, and Retail; Bookings May Have Bottomed

We retain our fair value estimate for Advantech at TWD 416 per share after the company reported upbeat first-quarter results as bookings data is consistent with our prior view that China should see a recovery in the second half. Advantech is undervalued in our view, as weak bookings should improve after the first quarter amid improving sentiment by industrial PC and Internet of Things customers. We believe the market is underestimating Advantech’s focus on retail, energy, industrial, and healthcare sectors.