Increasing content value and market share

Research evidence excerpt

Increasing content value and market share

Macquarie Equity Research King Slide Works

Alpha Model Decomposition Key Quant Findings

The quant model currently holds a reasonably positive The Macquarie Alpha is decomposed into its sector and

view on King Slide Works. The strongest style exposure is market relative factor & styles exposures (a higher/better

Profitability, indicating this stock is efficiently converting percentile is coded in green, whilst lower in red).

investments to earnings; proxied by ratios like ROE or ROA.

The weakest style exposure is Valuations, indicating this relativePercentileto

stock is over-priced in the market relative to its peers.

sectors market

Factors / Styles (/1236) (/978) Core factors in definition

ALPHA 60% 76% Built from the styles below

Macquarie Alpha Model: Key rankings VALUE 42% 5% Book, CF, Yield, Earnings Multiples

The Macquarie Quant’s flagship Alpha model is a dynamic ANALYST 69% 83% Revisions (Earnings, Recommendations)

multi-factor model based on a staple of quant factors such MOMENTUM 78% 93% Price Momentum

as value, momentum, revisions, quality, and risk.

GROWTH 92% 94% EPS, Sales (Forecast, Historic)

Global Market (Country) Sector

Technology PROFITABILITY 100% 99% ROE, Margin, Asset Turnover

Whole Universe Taiwan Hardware & QUALITY 95% 99% Accruals, Earn Stability, Cash Conversion

Equipment

CAPITAL 64% 28% Investment/Capex, Net share issuance

Macquarie Alpha 4250/17990 237/978 494/1236

Model LIQUIDITY 36% 31% Size, Turnover, Analyst Coverage

Fundamental 2511/17990 58/978 146/1236 LOW RISK 31% 33% Beta, Volatility, Earn.Cert, Leverage (Consensus) *

TECHNICAL 14% 30% MACD, RSI, Bollinger, Williams R, etc

* based on Total Shareholder Return = Consensus Price target / Current Price

Factors driving the Alpha Model vs peers