1. Stock Research Report ─ ASUS (2357) 班級：碩研財金一甲 指導教授：張上財 學號： MA180101 姓名：劉芷綾

2. Financial Statements - Balance sheet The first quarter Second quarter Third quarter Current assets188,214,249202,433,454209,280,105 Funds and investment32,147,22932,113,84432,747,439 Fixed assets10,435,76710,931,08210,977,250 Intangible assets2,166,2772,214,0002,166,057 Other assets2,485,1912,775,4392,838,317 Total Assets235,448,713250,467,819258,009,168 Current liabilities111,019,505129,356,966133,082,384 Long-term liabilities518,212539,105525,094 Various preparations000 Other liabilities3,342,2233,883,5253,986,838 Total liabilities114,879,940133,779,596137,594,316 Share capital7,527,603 Capital reserve4,756,5184,797,5754,807,007 Retained Earnings104,105,43598,007,032104,721,518 Total shareholders' equity adjustments2,912,1534,750,1821,724,536 Treasury stock (incorporated since the 4th quarter of 1998, the expression "other projects") 000 Minority stake1,267,0641,605,8311,634,188 Total equity120,568,773116,688,223120,414,852 Received in advance monies (under shareholders' equity) of approximately when the number of shares outstanding (Unit: Share) 000 The parent company of treasury shares held by the parent and subsidiary number (Unit: Shares) 000 Book value per share158.49152.88157.79 2

3. Financial Statements - Income Statement The first quarterSecond quarterThird quarter Net Sales 98,550,601202,323,393323,597,868 Cost Of Goods Sold 84,908,163173,831,553279,366,606 Gross profit (loss)13,642,43828,491,84044,231,262 Operating expenses8,898,16918,204,86028,241,787 Operating Income (Loss)4,744,26910,286,98015,989,475 Operating income and gains2,030,7063,080,9476,710,080 Nonoperating expenses and losses933,6141,185,9542,912,759 Income from continuing operations before tax Income (Loss)5,841,36112,181,97319,786,796 Income tax expense (benefit)802,9702,280,1653,147,694 Income from continuing operations Income (Loss)5,038,3919,901,80816,639,102 Gains or losses from discontinued operations000 Extraordinary income000 Accounting principle Cumulative effect of changes000 Consolidated net income (total)5,038,3919,901,80816,639,102 Consolidated net income5,005,1559,821,77616,536,262 Minority interest income33,23680,032102,840 Basic earnings per share6.6513.0521.97 3

4. K-chart analysis - Monthly data 4 8/1 8/16 8/29 8/30 10/11 10/31 12/10 9/14 7/12

5. K-chart analysis - Monthly data July 12 – at the low of 259.5 – Financing from ascending tops reduce slowly – KD upward from low-end – The trading volume is a large number of 8456 – The closing price is slow up to 283 in August 1 5

6. K-chart analysis - Monthly data Aug 16 – The ascending tops is 259 – The trading volume is decreasing to 4838 – departure from volume and price – Correction has been to August 29 6

7. K-chart analysis - Monthly data The trading volume shrink in August 29 The closing price from 275.5(August 30) rose to 294.5(August 29) Asus hits limit-up in trade Asus has a large number of trading volume in August 30 The price slowly rose to 324 and the closing price is 315 in September 14 The trading volume is decreasing to 4852 But the closing price is rising and the financing is decreasing Then the price has fallen to October 11 7

8. K-chart analysis - Monthly data The lowest price is 286.5 in October 11 The price is low and a large number of trading volume The index, KD and financing are rising The price has risen to 327 in October 31 The closing price is 313 in October 31 Securities Lending is slow down from ascending tops The price has been correction to December The closing price is 313 in December 10 The trading volume is decreasing to 2393 in December 10 Therefore, I forecast that the price will rise slightly. 8

9. Basic Information Symbol2357Industrial SectorComputer and peripheral equipment industry Company NameASUSTeK Computer Inc.Switchboard (02) 28943447 AddressRucker Road No. 15, Beitou District, Taipei Chairman of the boardShihGeneral managerJerry Shen SpokesmanZhang WeimingA spokesman for titles The chairman of the board room implementation of the special assistant to Spokesperson Tel (02) 28943447Deputy SpokespersonWu Changrong Main operations Computer motherboard, 3D graphics card, network card SCSI peripheral cards, notebooks, CD-ROM drive, server, and so on. Product research and development, manufacturing and sales. Founded Date79/04/02 Uniform number of profit-seeking enterprise 23638777 Paid-in capital7,527,602,800 yuanListing Date85/11/14 Cash Dividends14.50 yuan Share Capital 752,760,280 sharesSpecial Unit0 shares Stock transfer agency Grand Cathay Securities (shares) Stock Administration Phone (02) 23892999 9

10. Basic Information Profitability (101 the third quarter) Gross Margin7.18% Operating Income3.55% Pre-Tax Income7.90% Net Income6.14% Return on Equity5.74% Return on assets3.39% Book value per share 157.79 10

11. Basic Information Last seasons earnings per share Earnings per share in the last four years 101 the third quarter8.92100 years21.99 101 the second quarter6.4099 years7.72 101 the first quarter6.6598 years2.94 100 the fourth quarter6.4897 years3.88 11

12. Basic Information December 10Ratio Stock returns (%) -0.4769 PE ratio 11 Price-book ratio (%) 1.98 Yield (%) 4.63 12

13. Basic Information Revenue Est Current Qtr. Dec 11 Next Qtr. Mar 12 Current Year Dec 11 Next Year Dec 12 Sales Growth (year/est) N/A3.50%14.50%12.60% 13

14. notebookIn dustry Analysis Taiwanese manufacturers have experience in miniaturization. Taiwan can obtain the notebook industry advantage by the miniaturization technology. Taiwan has a complete industrial network, so Taiwan will have an advantage in the development of new products. Due to the miniaturization extension and the advantage to develop new products can make Taiwanese manufacturers to undertake orders from brand manufacturers. Economies of scale in production product R & D, design and production can make manufacturers further to obtain the advantages of low cost. 14

15. notebook In dustry Analysis Ultrabook is a opportunities for NB industry. – Intel declare that Ultrabook sales is 40% of the consumer notebook before the end of 2012. – Intel promoted vigorously Ultrabook. – Because of the erosion of the Tablet PC, Apple's ultra-thin netbook prices has gone down. – Lower prices led to substantial growth in sales. – Intel hopes that more brands join the production of ultra-thin laptop in order to reduce the oppression of the Tablet PC. 15

16. notebook In dustry Analysis - SWOT Strength – Good technology and design of ability – Low cost and the global strategizing ability – Fast and flexible production, manufacturing ability is strong, and having a large number of production ability – Industrial structure of integrity 16

17. notebook In dustry Analysis - SWOT Weakness – The key components can not be self-produced, the price is controlled by international companies – Product sales dominance in international brands – Market growth tends to be slow, manufacturers sell cheap, so affect profitability 17

18. notebook In dustry Analysis - SWOT Opportunity – Computer increased demand, create new business opportunities. – Internet smoothly – High-tech industries – OEM orders released by the Japanese manufacturer. – ASP low-cost trend, increased international manufacturers orders to release 18

19. notebook In dustry Analysis - SWOT Threat – The threat of foreign well-known manufacturers – The threat of emerging industrial countries – The alternative of desktop – The impact of low-cost computers – Hon Hai Group enter the netbook OEM 19

20. notebook In dustry Analysis - Michael Porter's Five Forces Model The competition in companies (a) Slowdown in industrial growth – Notebook computer manufacturer to take low-cost competition for OEM orders, so that the decline in gross margin. – Domestic firms only increase the number of shipments in order to maintain a certain profit level. (b) high concentration of competitors – The top ten brand manufacturers have more than 80% of the global market share – It can obtain an absolute advantage in the foundry of choice. (c) Low difference in the product – The domestic manufacturers have a good design and manufacturing capabilities. – International manufacturers have a high probability of conversion orders. 20

21. notebook In dustry Analysis - Michael Porter's Five Forces Model Threat of new entrants (a) Korea – Actively enter the low-end manufacturing. (b) EMS manufacturers – EMS mainly is a large number of manufacturing. – Lack of design capabilities (c) the mainland – Taiwan businessmen move the production of notebook to the mainland. (d) Japan – Own brand manufacturing is positive to develop in the fast-growing emerging Asia- Pacific markets. (e) the Hon Hai Group – Understanding of the global electronic information OEM. 21

22. notebook In dustry Analysis - Michael Porter's Five Forces Model the threat of substitutes – Notebook stressed can carry, so some light, thin products have alternative effects, such as Ipad. – However, the functionality of these products are still not fully satisfy the user,therefore is limited to be substituted. – But notebook still has space to grow. 22

23. notebook In dustry Analysis - Michael Porter's Five Forces Model The bargaining power of Customer – The international brands mastered notebook customers, so Taiwan's notebook manufacturers of bargaining power in the Weaknesses. – Taiwanese manufacturers have a considerable level of manufacturing quality. – As long as the price is low and the quality is good, customers purchase probability becomes higher. – International companies can depress the purchase price, making the notebook manufacturers is not greatly improved in Taiwan's gross margin. 23

24. notebook In dustry Analysis - Michael Porter's Five Forces Model The bargaining power of distributorship – Notebook computer manufacturer with economies of scale has the advantage of the prices of some key components procurement, such as TFT-LCD panel. 24

25. notebook In dustry Analysis - Michael Porter's Five Forces Model Conclusion (a) the high density competition – Example: product homogeneity, intense competition, switching costs, purchase components. – Therefore, domestic manufacturers need economies of scale and a lot of production. – It can reduce procurement costs and increase competitiveness. 25

26. notebook In dustry Analysis - Michael Porter's Five Forces Model (b) the relative bargaining power is weak – Intel still dominates the CPU price, Taiwanese manufacturers of CPU price bargaining power is weak. (c) the high cost of funds – International manufacturers is only to focus on core competencies in marketing. – Taiwanese manufacturers must prepare large capital in inventory allocations, procurement and global management. 26

27. Stocks Future Prospects Asus will have the opportunity to become Ultrabook leader. Asus launched a laptop thinner than the Macbook Air in September. The price is only 80% of the Macbook Air. The Ultrabook conform ASUS emphasis on design innovation. Asus performance will lead the industry in the future. 27

28. Stocks Future Prospects ASUS released the highest quarterly profit in four years. Asus forecast that the shipments of notebook and tablet PCs will increase in the fourth quarter. 28

29. Stocks Future Prospects The Asus internal has high expectations for 2013. Asus set a target for tablet and notebooks. It is world's second on next year. Asus has high expectations for tablet. Asus have adjusted shipments to 12 million units. The notebook reasonable estimated 24 million units by 9% over the previous year. 29

30. Asus opportunities in Japan – Asus issue the Windows 8 product in Japan. – It contains TAICHI, VivoBook, VivoTab, Tranformer Book and ET ​​2300. – Asus announced that the Ultrabook "ZENBOOK" is Japan's first Ultrabook. Stocks Future Prospects 30

31. The Asus netbook enter the Japanese market – The NB industry growth concentrated on Lenovo, Asus in this year. – Asus and Google launch Nexus 7 to promote sales of notebook computers. – The Nexus 7 sales increased to make Asus Japanese flat-panel market share rising to 37.1% in October. – Asus find a lot of people to participate in product development, hoping to produce innovative products such as TAICHI. Stocks Future Prospects 31

32. Stocks Future Prospects Asus launched the world's first Win 8 dual-screen NB – Asus launched dual-screen notebook computer called TAICHI. – TAICHI combine tablet and notebook. – TAICHI is dual screen notebook of the world's first Windows8. – TAICHI is a high-performance Ultrabook, closing automatically switch to tablet. – Its dual-screen can synchronous operation. 32

33. Stocks Future Prospects Sales in 2013 – Asus Financial Officer expected that Android Tablet PC sales is 120,000 in 2013. – Tablet PC sales will increase 9.5% in 2013. – Asus expected that Windows notebook and Tablet PC sales will increase 7.6% in 2013. 33

34. Stocks high-low Target Price Target SummaryMean Target:264.69 Median Target:267.00 High Target:330.00 Low Target:197.00 No. of Brokers:25 34

35. Thank you for your attention ! 35