Macro Research Taiwan: Upgrade to 4.0 Stars “Very Attractive” | FSMOne SG - Research Highlights

Macro Research

Taiwan: Upgrade to 4.0 Stars “Very Attractive” on the back of undemanding valuations

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• Taiwan was the top performing equity market among the four Asian Tigers, with the TWSE Index rising by more than 50% over 2020-2021, surpassing its pre-pandemic level by a significant margin.

• Strong exports were among the key growth drivers of Taiwan’s economy. Exports have risen by 30% compared to the year before to USD 446 billion as the trade surplus continues to widen.

• Export growth will moderate this year due to the high base effect and greater inflationary pressures across the globe, but may be offset by the strong demand from China.

• The outlook for TSMC (the largest constituent of the TWSE Index) remains bright as more companies go fabless.

• The estimated upside potential for Taiwan is 42%. We have upgraded our rating for Taiwan by a notch to 4 Stars “Very Attractive”, from the previous rating of 3.5 Stars “Attractive”.

: Read the full article here
: iShares MSCI Taiwan ETF (NYSE:EWT)