Advantech Co Ltd

2395: XTAI (TWN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	TWD 676.00	Phtrjmq	Vczbmqtx

Advantech Earnings: Bookings Seem to Have Bottomed; More Uncertainty From Increasing Investment

Phelix Lee

Nov 2, 2023

We maintain our TWD 361 fair value estimate for narrow-moat Advantech after the company’s third-quarter bookings rebounded slightly thanks to a recovery in industrial Internet of Things in China. Advantech’s upside is limited, as long-term potential in the retail, energy, industrial, and healthcare sectors is priced in and increased research and development spending may dent profitability in the next two to three years.

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