Advantech Co Ltd

2395: XTAI (TWN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	TWD 589.00	Jyfscd	Zhvmlgkgf

Advantech Earnings: Disappointing Bookings but We Like Steps To Enhance Energy and EV Offerings

Phelix Lee

Aug 3, 2023

We trim our fair value estimate on narrow-moat Advantech to TWD 361 per share from TWD 378.22 (adjusting 1-for-10 scrip dividend) after the firm posted disappointing second-quarter bookings and third-quarter outlook, citing sluggish demand in several areas. Advantech’s upside is limited as long-term potential on retail, energy, industrial, and healthcare sectors are priced in and factory investments remain sluggish in China.

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