PDF 原檔：報告_BofA_力成6239_3Q26_20261027_original.pdf
原始內容
Powertech Technology
Up-cycle level of earnings to continue; reiterate Buy
Reiterate Rating: BUY | PO: 500.00 TWD | Price: 254.50 TWD
Reiterate Buy on above-trend growth and margins
We believe Powertech Technology Inc. (PTI) can continue to benefit from the AI boom and an upturn in the memory chip industry. 3Q results clearly confirm record-high revenue (NT$25bn; up 27% YoY) and an above-trend gross margin (24%; normal high teen% or 20% range). 4Q guidance (for packaging/testing businesses) also remained bullish: DRAM - tight supply vs strong demand; NAND - order increase for more valueadded NAND and enterprise SSD; and logic - mix improvement with FC-BGA and price hike (following cost increase). Key customers are Micron, Kioxia, Solidigm (owned by SK Hynix) and various Greater China logic chip makers that require outsourced packaging and testing services. As we have already assumed up-cycle earnings level for 2027-28, our EPS estimates remain largely unchanged. We maintain our PO of NT$500 (27x 202728E P/E applied). Reiterate Buy.
Key takeaways from 3Q results
Five takeaways from 3Q results: (1) strong execution in newly growing packaging orders for high-end memory (low-power / high-speed DRAM, enterprise SSD, 200+ layers NAND), (2) increasing exposure to more advanced logic (through FC-BGA, etc), (3) a wellbalanced sales mix (DRAM: 20% of total sales; NAND: 28%; SiP/modules 9%; logic 43%), (4) notably improved gross margins (limited increase in manufacturing costs vs strong top-line growth seen), and (5) solid FCF generation (EBITDA: c.NT$8bn vs capex: NT$5bn; expected annual dividend yield: 3-4% range).
| Estimates (Dec) (NT$) | 2024A | 2025A | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|
| Net Income (Adjusted - mn) | 6,789 | 5,536 | 9,744 | 12,607 | 15,683 |
| EPS | 9.05 | 7.44 | 13.13 | 17.00 | 21.15 |
| EPS Change (YoY) | -15.2% | -17.8% | 76.4% | 29.5% | 24.4% |
| Consensus EPS (Visible Alpha) | 12.75 | 16.87 | 19.97 | ||
| Dividend / Share | 7.00 | 4.50 | 8.00 | 10.00 | 12.50 |
| Free Cash Flow / Share | 17.00 | (10.02) | (0.392) | 4.92 | 7.15 |
| Valuation (Dec) | |||||
| P/E | 28.1x | 34.2x | 19.4x | 15.0x | 12.0x |
| Dividend Yield | 2.8% | 1.8% | 3.1% | 3.9% | 4.9% |
| EV / EBITDA* | 10.1x | 11.0x | 7.7x | 6.6x | 5.8x |
| Free Cash Flow Yield* | 6.6% | -3.8% | -0.2% | 1.9% | 2.7% |
| * For full definitions of iQmethod SM measures, see page 15. |
This research report provides general information only. No part of this report may be used or reproduced or quoted in any manner whatsoever in Taiwan by the press or other persons without the express written consent of BofA Securities.
>> Employed by a non-US affiliate of BofAS and is not registered/qualified as a research analyst under the FINRA rules.
Refer to "Other Important Disclosures" for information on certain BofA Securities entities that take responsibility for the information herein in particular jurisdictions.
BofA Securities does and seeks to do business with issuers covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.
Refer to important disclosures on page 16 to 18. Analyst Certification on page 13. Price
27 October 2026
Equity
| Key Changes (NT$) | Previous | Current |
|---|---|---|
| 2027E EPS | 16.99 | 17.00 |
| 2028E EPS | 21.14 | 21.15 |
| 2026E EBITDA (m) | 28,220 | 28,897 |
| 2027E EBITDA (m) | 32,890 | 33,600 |
| 2028E EBITDA (m) | 37,730 | 38,447 |
Simon Woo, CFA >> Research Analyst Merrill Lynch (Seoul) +82 2 3707 0554 simon.woo@bofa.com
Dai Shen >> Research Analyst Merrill Lynch (Hong Kong) +852 3508 7310
Matt Shin >>
Research Analyst Merrill Lynch (Seoul) +82 2 3707 0534
| Stock Data | |
|---|---|
| Price | 254.50 TWD |
| Price Objective | 500.00 TWD |
| Date Established | 27-May-2026 |
| Investment Opinion | C-1-7 |
| 52-Week Range | 148.00 TWD-387.00 |
| TWD | |
| Mrkt Val / Shares Out (mn) | 5,924 USD / 759.1 |
| Market Value (mn) | 193,203 TWD |
| Average Daily Value (mn) | 110.72 USD |
| Free Float | 90.0% |
| BofA Ticker / Exchange | PWOGF / TAI |
| Bloomberg / Reuters | 6239 TT / 6239.TW |
| ROE (2026E) | 16.1% |
| Net Dbt to Eqty (Dec-2025A) | 12.7% |
AI: Artificial intelligence
DRAM: Dynamic random-access memory
FC-BGA: Flip chip ball-grid array
NAND: Not-AND memory
SiP: System-in-package
SSD: Solid-state drive
iQprofile SM Powertech Technology
| Key Income Statement Data (Dec) | 2024A | 2025A | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|
| (NT$ Millions) | |||||
| Sales | 73,315 | 74,929 | 96,256 | 113,684 | 131,728 |
| Gross Profit | 13,991 | 12,729 | 21,380 | 25,978 | 30,562 |
| Sell General & Admin Expense | (2,809) | (2,807) | (3,459) | (3,616) | (3,797) |
| Operating Profit | 9,382 | 8,132 | 15,433 | 19,749 | 24,033 |
| Net Interest & Other Income | 1,295 | 660 | 582 | (120) | (120) |
| Associates | NA | NA | NA | NA | NA |
| Pretax Income | 10,677 | 8,792 | 16,015 | 19,629 | 23,913 |
| Tax (expense) / Benefit | (2,178) | (1,572) | (3,594) | (4,318) | (5,500) |
| Net Income (Adjusted) | 6,789 | 5,536 | 9,744 | 12,607 | 15,683 |
| Average Fully Diluted Shares Outstanding | 750 | 744 | 742 | 741 | 741 |
| Key Cash Flow Statement Data | |||||
| Net Income | 6,789 | 5,536 | 9,744 | 12,607 | 15,683 |
| Depreciation & Amortization | 12,656 | 12,257 | 13,464 | 13,851 | 14,414 |
| Change in Working Capital | 2,764 | 2,011 | (2,938) | (821) | (812) |
| Deferred Taxation Charge | NA | NA | NA | NA | NA |
| Other Adjustments, Net | 1,874 | (1,295) | (560) | 0 | 0 |
| Cash Flow from Operations | 24,082 | 18,509 | 19,710 | 25,637 | 29,284 |
| Capital Expenditure | (11,379) | (25,941) | (20,000) | (22,000) | (24,000) |
| (Acquisition) / Disposal of Investments | NA | NA | NA | NA | NA |
| Other Cash Inflow / (Outflow) | 1,514 | (82) | 1,712 | 0 | 0 |
| Cash Flow from Investing | (9,865) | (26,023) | (18,288) | (22,000) | (24,000) |
| Shares Issue / (Repurchase) | (65) | (390) | 0 | 0 | 0 |
| Cost of Dividends Paid | (5,231) | (5,172) | (3,325) | (5,910) | (7,388) |
| Cash Flow from Financing | (11,351) | 4,197 | 7,207 | (3,078) | (5,465) |
| Free Cash Flow | 12,703 | (7,432) | (290) | 3,637 | 5,284 |
| Net Debt | (3,506) | 9,051 | 5,876 | 2,912 | (186) |
| Change in Net Debt | (7,933) | 9,978 | (2,862) | (2,964) | (3,098) |
| Key Balance Sheet Data | |||||
| Property, Plant & Equipment | 56,588 | 70,412 | 72,386 | 78,453 | 86,040 |
| Other Non-Current Assets | 5,616 | 6,387 | 13,053 | 13,583 | 14,134 |
| Trade Receivables | 15,885 | 18,537 | 21,873 | 23,301 | 24,468 |
| Cash & Equivalents | 22,271 | 16,375 | 25,318 | 25,877 | 25,696 |
| Other Current Assets | 8,830 | 11,453 | 12,748 | 13,091 | 13,722 |
| Total Assets | 109,191 | 123,163 | 145,378 | 154,305 | 164,060 |
| Long-Term Debt | 16,887 | 25,413 | 30,983 | 28,578 | 25,300 |
| Other Non-Current Liabilities | 2,255 | 2,699 | 8,470 | 8,813 | 9,171 |
| Short-Term Debt | 1,878 | 13 | 210 | 210 | 210 |
| Other Current Liabilities | 16,478 | 23,764 | 25,457 | 26,407 | 27,392 |
| Total Liabilities | 37,498 | 51,889 | 65,120 | 64,008 | 62,074 |
| Total Equity | 71,693 | 71,275 | 80,258 | 90,297 | 101,987 |
| Total Equity & Liabilities | 109,191 | 123,163 | 145,378 | 154,305 | 164,060 |
| iQmethod SM - Bus Performance* | |||||
| Return On Capital Employed | 7.9% | 7.0% | 10.9% | 12.4% | 14.0% |
| Return On Equity | 12.2% | 9.8% | 16.1% | 18.2% | 19.7% |
| Operating Margin | 12.8% | 10.9% | 16.0% | 17.4% | 18.2% |
| EBITDA Margin | 30.1% | 27.2% | 30.0% | 29.6% | 29.2% |
| iQmethod SM - Quality of Earnings* | |||||
| Cash Realization Ratio | 3.5x | 3.3x | 2.0x | 2.0x | 1.9x |
| Asset Replacement Ratio | 0.9x | 2.1x | 1.5x | 1.6x | 1.7x |
| Tax Rate (Reported) | 20.4% | 17.9% | 22.4% | 22.0% | 23.0% |
| Net Debt-to-Equity Ratio | -4.9% | 12.7% | 7.3% | 3.2% | -0.2% |
| Interest Cover | NA | NA | NA | NA | NA |
Key Metrics
- For full definitions of iQmethod SM measures, see page 15.
Company Sector
Semiconductors
Company Description
Headquartered in Taiwan, PTI is one of the largest OSAT firms, which packages and tests memory and logic chips. It has around 18,000 employees. The logic chip-related business operates under Greatek Electronics (fully consolidated into earnings). Management's new focus areas in packaging/testing are PLP, TSV, 3D NAND, low-power DRAM, SSD, etc.
Investment Rationale
Our Buy rating is based on strong earnings growth, driven by more value-added memory and even logic packaging solutions. 1Q-3Q26 earnings have already hit upcycle levels, posting a strong YoY growth (largely driven by NAND/SSD). We believe the memory super-cycle and customers' ongoing outsourcing trend (Micron, Solidigm/Hynix, Kioxia and Greater China's logic chipmakers) using Powertech's proven backend solutions should be the key contributors to strong earnings growth by 2028.
Stock Data
Price to Book Value
3.0x
lül
Key charts/tables after 3Q26 results
Exhibit 1: Powertech is accelerating its advanced FOPLP packaging strategy through significant capacity expansion, strategic partnerships (including Broadcom), and customer wins such as AMD, positioning itself as a key beneficiary of growing AI semiconductor packaging demand from 2027 onward
Powertech's recent news summary during Jul-Aug 2026
| Date | Key news | Summary |
|---|---|---|
| Aug-2026 | FOPLP production | -Powertech plans to start production at the world's first panel-level chip packaging facility for AI chips as soon as early 2027 to make server CPUs, AI computing chips and advanced optics -Powertech said its advanced FOPLP production line has secured a 100% UTR through 2030 ahead of its scheduled volume production in 2027 -Powertech plans to invest NT$70bn (US$2.2bn) in its FOPLP facility, with installed capacity set to increase from 1,000 panels per months in 2026 to 5,000 in 2028 |
| Jul-2026 | JV with Broadcom | -Powertech reported plans to invest US$400mn to create a new JV with Broadcom in Singapore to cater to customer demand for advanced panel- based packaging services -The JV will concentrate on offering additive finer-geometry redistribution layer (RDL) tech for advanced package substrates |
| AMD business | -Powertech reaffirmed that it is on track to start shipping AI chips utilizing its advanced PLP tech for AMD in 2H27, dismissing concerns over delays -AMD will be one of Powertech's first customers adopting the FOPLP tech, which is considered to be more cost-effective than the mainstream CoWoS tech | |
| Capex/capacity | -Powertech plans to acquire the entire Philippine unit of ON Semiconductor for US$45mn as part of its efforts to navigate global supply chain realignment amid escalating geopolitical risks -The transaction will be conducted by its subsidiary, Greatek Electronics in which Powertech holds 43% stake |
Source: Company, media reports, BofA Global Research
Exhibit 2: Upbeat 3Q results with record-high revenue (NT$25bn; up 27% YoY) and above trend of gross margin (24%; normal high teen% or 20% range), which exceeded consensus and our estimates
Powertech - 3Q26 results vs consensus and our estimate
| NT$mn | Actual | QoQ | YoY | Cons | Act vs Cons | Our est | Act vs our est |
|---|---|---|---|---|---|---|---|
| Sales | 25,334 | 10% | 27% | 24,597 | 3% | 24,350 | 4% |
| Gross profit | 6,085 | 21% | 89% | 5,526 | 10% | 5,352 | 14% |
| Operating profit | 4,472 | 27% | 118% | 3,998 | 12% | 4,124 | 8% |
| Pretax income | 4,557 | 24% | 92% | 4,113 | 11% | 4,094 | 11% |
| Net income | 2,612 | 18% | 70% | 2,645 | -1% | 2,734 | -4% |
| FD EPS (NT$) | 3.52 | 18% | 70% | 3.51 | 0% | 3.68 | -4% |
| Implied # of shares (mn) | 741.4 | 0% | 0% | 754.5 | -2% | 743.2 | 0% |
| Margins | |||||||
| Gross margin | 24.0% | 2.3%pt | 7.9%pt | 22.5% | 1.6%pt | 22.0% | 2.0%pt |
| OP margin | 17.7% | 2.4%pt | 7.4%pt | 16.3% | 1.4%pt | 16.9% | 0.7%pt |
| Pretax margin | 18.0% | 2.1%pt | 6.1%pt | 16.7% | 1.3%pt | 16.8% | 1.2%pt |
| Net margin | 10.3% | 0.7%pt | 2.6%pt | 10.8% | -0.4%pt | 11.2% | -0.9%pt |
Source: Company, Bloomberg, BofA Global Research estimates
Exhibit 3: Our 2027-28 estimates are broadly in line with consensus as but both clearly expect upturn level
Powertech - 2026-28 annual earnings; our estimate vs consensus
| NT$mn | 2025 - Actual | 2026E - Our est | 2026E - Cons | 2026E - Diff | 2027E - Our est | 2027E - Cons | 2027E - Diff | 2028E - Our est | 2028E - Cons | 2028E - Diff |
|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 74,929 | 96,256 | 94,476 | 2% | 113,684 | 114,784 | -1% | 131,728 | 128,151 | 3% |
| Gross profit | 12,729 | 21,380 | 20,528 | 4% | 25,978 | 26,918 | -3% | 30,562 | 29,104 | 5% |
| Operating profit | 8,132 | 15,433 | 14,547 | 6% | 19,749 | 20,036 | -1% | 24,033 | 23,367 | 3% |
| Pretax income | 8,792 | 16,015 | 15,293 | 5% | 19,629 | 20,534 | -4% | 23,913 | 23,824 | 0% |
| Net income | 5,536 | 9,744 | 9,510 | 2% | 12,607 | 13,479 | -6% | 15,683 | 15,452 | 1% |
| FD EPS (NT$) | 7.44 | 13.13 | 12.70 | 3% | 17.00 | 17.98 | -5% | 21.15 | 20.75 | 2% |
| Implied # of shares (mn) | 743.9 | 742.1 | 749.0 | -1% | 741.4 | 749.5 | -1% | 741.4 | 744.7 | 0% |
| Margins | ||||||||||
| Gross margin | 17.0% | 22.2% | 21.7% | 0.5%pt | 22.9% | 23.5% | -0.6%pt | 23.2% | 22.7% | 0.5%pt |
| OP margin | 10.9% | 16.0% | 15.4% | 0.6%pt | 17.4% | 17.5% | -0.1%pt | 18.2% | 18.2% | 0.0%pt |
| Pretax margin | 11.7% | 16.6% | 16.2% | 0.5%pt | 17.3% | 17.9% | -0.6%pt | 18.2% | 18.6% | -0.4%pt |
| Net margin | 7.4% | 10.1% | 10.1% | 0.1%pt | 11.1% | 11.7% | -0.7%pt | 11.9% | 12.1% | -0.2%pt |
Source: Company, Bloomberg, BofA Global Research estimates
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BofA GLOBAL RESEARCH
BofA GLOBAL RESEARCH
Exhibit 4: Since we have already assumed up-cycle level of earnings for 2027-28, our EPS estimates are mostly unchanged
Powertech - Earnings revisions (2026-28E)
| NT$mn, NT$ | 1Q26 | 2Q26 | 3Q26 | 4Q26E | 1Q27E | 2Q27E | 3Q27E | 4Q27E | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E | 2028E |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EPS - fully diluted New | 2.48 | 2.99 | 3.52 | 4.14 | 3.79 | 4.02 | 4.17 | 5.03 | 11.52 | 10.67 | 9.05 | 7.44 | 13.13 | 17.00 | 21.15 | 21.15 |
| Old | 2.48 | 2.99 | 3.68 | 3.98 | 3.48 | 3.69 | 4.88 | 4.94 | 11.52 | 10.67 | 9.05 | 7.44 | 13.13 | 16.99 | 21.14 | 21.14 |
| Difference | na | na | -4% | 4% | 9% | 9% | -15% | 2% | na | na | na | na | 0% | 0% | 0% | 0% |
| Dividend/share | ||||||||||||||||
| New | 0.0 | 4.5 | 0.0 | 0.0 | 0.0 | 8.0 | 0.0 | 0.0 | 7.0 | 7.0 | 7.0 | 4.5 | 8.0 | 10.0 | 12.5 | 12.5 |
| Old | 0.0 | 4.5 | 0.0 | 0.0 | 0.0 | 8.0 | 0.0 | 0.0 | 7.0 | 7.0 | 7.0 | 4.5 | 8.0 | 10.0 | 12.5 | 12.5 |
| Difference | na | na | na | na | na | 0% | na | na | na | na | na | na | 0% | 0% | 0% | 0% |
| Shares for FD EPS | ||||||||||||||||
| New | 743 | 742 | 741 | 741 | 741 | 741 | 741 | 741 | 754 | 751 | 750 | 744 | 742 | 741 | 741 | 741 |
| Old | 743 | 743 | 743 | 743 | 743 | 743 | 743 | 743 | 754 | 751 | 750 | 744 | 743 | 743 | 743 | 743 |
| Difference | na | na | 0% | 0% | 0% | 0% | 0% | 0% | na | na | na | na | 0% | 0% | 0% | 0% |
| Sales | ||||||||||||||||
| New | 21,314 | 23,116 | 25,334 | 26,492 | 25,989 | 27,497 | 29,960 | 30,239 | 83,927 | 70,441 | 73,315 | 74,929 | 96,256 | 113,684 | 131,728 | 131,728 |
| Old | 21,314 | 23,116 | 24,350 | 25,496 | 24,924 | 26,392 | 28,781 | 29,088 | 83,927 | 70,441 | 73,315 | 74,929 | 94,276 | 109,185 | 126,907 | 126,907 |
| Difference | na | na | 4% | 4% | 4% | 4% | 4% | 4% | na | na | na | na | 2% | 4% | 4% | 4% |
| Gross margin | ||||||||||||||||
| New | 19.4% | 21.8% | 24.0% | 23.1% | 22.2% | 22.7% | 23.1% | 23.3% | 20.7% | 17.9% | 19.1% | 17.0% | 22.2% | 22.9% | 23.2% | 23.2% |
| Old | 19.4% | 21.8% | 22.0% | 22.5% | 22.0% | 22.5% | 23.0% | 23.3% | 20.7% | 17.9% | 19.1% | 17.0% | 21.5% | 22.7% | 23.2% | 23.2% |
| Difference | na | na | 2.0% | 0.6% | 0.2% | 0.2% | 0.1% | 0.0% | na | na | na | na | 0.7% | 0.1% | 0.0% | 0.0% |
| OP | ||||||||||||||||
| New | 2,761 | 3,531 | 4,472 | 4,670 | 4,332 | 4,666 | 5,227 | 5,523 | 12,448 | 8,154 | 9,382 | 8,132 | 15,433 | 19,749 | 24,033 | 24,033 |
| Old | 2,761 | 3,531 | 4,124 | 4,377 | 4,046 | 4,363 | 5,330 | 5,350 | 12,448 | 8,154 | 9,382 | 8,132 | 14,793 | 19,089 | 23,369 | 23,369 |
| Difference | na | na | 8% | 7% | 7% | 7% | -2% | 3% | na | na | na | na | 4% | 3% | 3% | 3% |
| OP margin | ||||||||||||||||
| New | 13.0% | 15.3% | 17.7% | 17.6% | 16.7% | 17.0% | 17.4% | 18.3% | 14.8% | 11.6% | 12.8% | 10.9% | 16.0% | 17.4% | 18.2% | 18.2% |
| Old | 13.0% | 15.3% | 16.9% | 17.2% | 16.2% | 16.5% | 18.5% | 18.4% | 14.8% | 11.6% | 12.8% | 10.9% | 15.7% | 17.5% | 18.4% | 18.4% |
| Difference | na | na | 0.7% | 0.5% | 0.4% | 0.4% | -1.1% | -0.1% | na | na | na | na | 0.3% | -0.1% | -0.2% | -0.2% |
| Net non-op income | ||||||||||||||||
| New | 396 | 131 | 85 | -30 | -30 | -30 | -30 | -30 | 1,192 | 3,890 | 1,295 | 660 | 582 | -120 | -120 | -120 |
| Old | 396 | 130 | -30 | -30 | -30 | -30 | -30 | -30 | 1,192 | 3,890 | 1,295 | 660 | 466 | -120 | -120 | -120 |
| Difference | na | na | na | 0% | 0% | 0% | 0% | 0% | na | na | na | na | 25% | 0% | 0% | 0% |
| Tax rate - effective | ||||||||||||||||
| New | 24.4% | 22.2% | 21.8% | 22.0% | 22.0% | 22.0% | 22.0% | 22.0% | 21.2% | 21.0% | 20.4% | 17.9% | 22.4% | 22.0% | 23.0% | 23.0% |
| Old | 24.4% | 22.2% | 21.0% | 21.0% | 22.0% | 22.0% | 22.0% | 22.0% | 21.2% | 21.0% | 20.4% | 17.9% | 22.0% | 22.0% | 23.0% | 23.0% |
| Difference | na | na | 0.8% | 1.0% | 0.0% | 0.0% | 0.0% | 0.0% | na | na | na | na | 0.5% | 0.0% | 0.0% | 0.0% |
| NP ex minority int | ||||||||||||||||
| New | 1,844 | 2,219 | 2,612 | 3,069 | 2,807 | 2,979 | 3,091 | 3,729 | 8,687 | 8,009 | 6,789 | 5,536 | 9,744 | 12,607 | 15,683 | 15,683 |
| Old | 1,844 | 2,219 | 2,734 | 2,961 | 2,584 | 2,743 | 3,629 | 3,672 | 8,687 | 8,009 | 6,789 | 5,536 | 9,758 | 12,628 | 15,712 | 15,712 |
| Difference | na | na | -4% | 4% | 9% | 9% | -15% | 2% | na | na | na | na | 0% | 0% | 0% | 0% |
| EBITDA | ||||||||||||||||
| New | 6,092 | 6,891 | 7,849 | 8,064 | 7,743 | 8,112 | 8,707 | 9,038 | 27,303 | 22,038 | 22,038 | 20,388 | 28,897 | 33,600 | 38,447 | 38,447 |
| Old | 6,092 | 6,879 | 7,489 | 7,759 | 7,445 | 7,796 | 8,797 | 8,852 | 27,303 | 22,038 | 22,038 | 20,388 | 28,220 | 32,890 | 37,730 | 37,730 |
| Difference | na | na | 5% | 4% | 4% | 4% | -1% | 2% | na | na | na | na | 2% | 2% 2% | 2% 2% | |
| Capex spend | ||||||||||||||||
| New | 6,548 | 4,644 | 4,500 | 4,308 | 5,000 | 6,000 | 5,500 | 5,500 | 18,582 | 8,727 | 11,379 | 25,941 | 20,000 | 22,000 | 24,000 | 24,000 |
| Old | 6,548 | 5,000 | 4,500 | 3,952 | 5,000 | 6,000 | 5,500 | 5,500 | 18,582 | 8,727 | 11,379 | 25,941 | 20,000 | 22,000 | 24,000 | |
| Difference | na | na | 0% | 9% | 0% | 0% | 0% | 0% | na | na | na | na | 0% | 0% 0% | 0% 0% | |
| Net debt | ||||||||||||||||
| New | 10,254 | 8,464 | 6,620 | 5,876 | 4,131 | 8,440 | 3,436 | 2,912 | 10,079 | 2,512 | -3,506 | 9,051 | 5,876 | 2,912 | -186 | -186 |
| Old | 10,254 | 8,598 | 9,450 | 6,030 | 4,531 | 9,184 | 4,141 | 3,649 | 10,079 | 2,512 | -3,506 | 9,051 | 6,030 | 3,649 | 1,138 | 1,138 |
| Difference | na | na | -30% | -3% | -9% | -8% | -17% | -20% | na | na | na | na | -3% | -20% na | -20% na | |
| BVPS - O/S shr based | ||||||||||||||||
| New | 78.8 | 77.3 | 77.1 | 87.3 | 91.9 | 88.8 | 94.3 | 100.1 | 68.9 | 73.4 | 76.0 | 76.0 | 87.3 | 100.1 | 115.0 | 115.0 |
| Old | 87.4 | 88.2 | 99.4 | 99.4 | 113.5 | |||||||||||
| Difference | 78.8 na | 77.1 na | 82.8 -7% | 0% | 91.6 0% | 1% | 93.8 1% | 1% | 68.9 na | 73.4 na | 76.0 na | 76.0 na | 87.4 | 0% | 1% 1% | 1% 1% |
Source: Company, BofA Global Research estimates
BofA GLOBAL RESEARCH
il Powertech - Quarterly sales and YoY growth Powertech - Quarterly sales and YoY growth
Exhibit 5: We assume robust topline growth in 2026-27 (up 28%/18% YoY); 3-yr sales CAGR (2025-28E) shows 21%
Exhibit 6: We expect 2026-28E margins (GM 22-23%, OPM 1618%) to closely approach previous highs in 2020-22 (GM 20-23%, OPM 14-17%)
Source: Company, BofA Global Research estimates
Source: Company, BofA Global Research estimates
BofA GLOBAL RESEARCH
Exhibit 7: Solid QoQ growth seen for all segments in 3Q26 except SiP/Module
Powertech - QoQ sales growth by segment
*SiP/Module refers to mostly Solidigm's SSD products
Source: Company, BofA Global Research
BofA GLOBAL RESEARCH
Exhibit 9: Management remains committed to high payout ratio (60%+)
Powertech - EPS and DPS
BofA GLOBAL RESEARCH
Exhibit 8: Robust 2026-28E FCF generation well-expected on the back of strong EBITDA rebound and disciplined capex spend
Powertech - QoQ sales growth by segment
BofA GLOBAL RESEARCH
Exhibit 10: Currently trading at mid-2x vs our implied target 2027-28E P/B of 5x
Powertech - 12-month forward P/B
Source: Company, BofA Global Research estimates
il
Source: Company, BofA Global Research estimates
BofA GLOBAL RESEARCH
BofA GLOBAL RESEARCH
Exhibit 11: Powertech's monthly sales showed steady recovery recently, slightly surpassing previous high level in 2022
Powertech - Monthly sales Powertech - Monthly sales YoY
Exhibit 12: Robust YoY growth continued throughout 2H25-3Q26
Source: Company, BofA Global Research
Source: Company, BofA Global Research
BofA GLOBAL RESEARCH
Exhibit 13: YoY turnaround continued throughout 2H25-3Q26 Powertech - monthly sales and YoY ex-Greatek
BofA GLOBAL RESEARCH
Exhibit 14: Nanya's exceptionally robust growth mostly driven by DRAM super-cycle
Nanya Tech and Phison monthly sales YoY
Source: Companies, BofA Global Research
Source: Companies, BofA Global Research
BofA GLOBAL RESEARCH
Exhibit 15: Solid recovery seen in 3Q26 (NT$244bn; +28% QoQ, +45% YoY)
ASE - Monthly sales trend
BofA GLOBAL RESEARCH
Exhibit 16: Accelerating YoY rebound well-observed in 3Q26
ASE - YoY monthly sales trend
Source: Company, BofA Global Research
BofA GLOBAL RESEARCH
Source: Company, BofA Global Research
BofA GLOBAL RESEARCH
Valuation
Exhibit 17: Our PO NT$500 is derived from 27x 2027-28E P/E
Powertech - Valuation multiples at current price and PO
| (x) | 2024 | 2025 | 2026E | 2027E | 2028E | 2027-28E avg |
|---|---|---|---|---|---|---|
| Current shr price based | ||||||
| P/E | 28.1 | 34.2 | 19.4 | 15.0 | 12.0 | 13.5 |
| P/B | 3.4 | 3.3 | 2.9 | 2.5 | 2.2 | 2.4 |
| EV/EBITDA | 9.0 | 9.7 | 6.8 | 5.9 | 5.1 | 5.5 |
| EV/Sales | 2.7 | 2.6 | 2.1 | 1.7 | 1.5 | 1.6 |
| PO based multiples | ||||||
| P/E | 55.2 | 67.1 | 38.1 | 29.4 | 23.6 | 26.5 |
| P/B | 6.6 | 6.6 | 5.7 | 5.0 | 4.3 | 4.7 |
| EV/EBITDA | 17.2 | 18.6 | 13.1 | 11.3 | 9.9 | 10.6 |
| EV/Sales | 5.2 | 5.1 | 3.9 | 3.3 | 2.9 | 3.1 |
Source: Company. BofA Global Research estimates
Exhibit 18: Long-term historical average P/E shows 12x
Powertech - Historical multiples based on year-average/high/low share prices
| (x) | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2015-25 Avg |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Year-average | |||||||||||||
| P/E | 11.6 | 12.3 | 12.2 | 10.6 | 10.7 | 11.3 | 9.0 | 7.7 | 9.5 | 17.1 | 18.0 | 20.1 | 11.8 |
| P/B | 1.4 | 1.7 | 1.9 | 1.6 | 1.5 | 1.6 | 1.6 | 1.3 | 1.4 | 2.0 | 1.8 | 3.0 | 1.6 |
| EV/EBITDA | 3.0 | 3.9 | 4.3 | 3.5 | 3.3 | 3.5 | 2.9 | 2.8 | 3.5 | 5.0 | 5.3 | 7.0 | 3.7 |
| EV/Sales | 1.0 | 1.3 | 1.4 | 1.2 | 1.1 | 1.1 | 1.0 | 0.9 | 1.1 | 1.5 | 1.4 | 2.1 | 1.2 |
| Year-high | |||||||||||||
| P/E | 14.3 | 14.8 | 14.1 | 12.2 | 14.0 | 13.6 | 10.1 | 8.7 | 14.3 | 22.2 | 24.4 | 28.9 | 14.8 |
| P/B | 1.7 | 2.0 | 2.1 | 1.8 | 1.9 | 2.0 | 1.8 | 1.5 | 2.1 | 2.6 | 2.4 | 4.3 | 2.0 |
| EV/EBITDA | 3.8 | 4.6 | 4.8 | 3.9 | 4.2 | 4.1 | 3.3 | 3.1 | 5.2 | 6.6 | 7.1 | 9.9 | 4.6 |
| EV/Sales | 1.3 | 1.6 | 1.6 | 1.3 | 1.4 | 1.3 | 1.1 | 1.0 | 1.6 | 2.0 | 1.9 | 3.0 | 1.5 |
| Year-low | |||||||||||||
| P/E | 10.0 | 10.2 | 9.4 | 8.0 | 8.6 | 8.0 | 8.2 | 6.1 | 7.5 | 12.7 | 13.3 | 14.0 | 9.3 |
| P/B | 1.2 | 1.4 | 1.4 | 1.2 | 1.2 | 1.2 | 1.5 | 1.0 | 1.1 | 1.5 | 1.3 | 2.1 | 1.3 |
| EV/EBITDA | 2.6 | 3.3 | 3.4 | 2.8 | 2.7 | 2.6 | 2.7 | 2.3 | 2.8 | 3.7 | 4.0 | 4.9 | 3.0 |
| EV/Sales | 0.9 | 1.1 | 1.1 | 0.9 | 0.9 | 0.8 | 0.9 | 0.7 | 0.9 | 1.1 | 1.1 | 1.5 | 1.0 |
Source: Company, BofA Global Research estimates
BofA GLOBAL RESEARCH
BofA GLOBAL RESEARCH
Exhibit 19: Powertech's multiples are lower than its memory and semis back-end peers despite solid ROE (high-teen% in FY27-28E)
Valuations comparison
| Ticker | Rating | Price - (Local) | Mcap - ($bn) | P/E - FY26 | P/E - FY27E | P/E - FY28E | P/Book - FY26 | P/Book - FY27E | P/Book - FY28E | EV/EBITDA - FY26 | EV/EBITDA - FY27E | EV/EBITDA - FY28E | ROE - FY26 | ROE - FY27E | ROE - FY28E | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Powertech | PWOGF | C-1-7 | 254.50 | 5.9 | 19.4 | 15.0 | 12.0 | 3.0 | 2.6 | 2.3 | 7.7 | 6.6 | 5.8 | 16.1% | 18.2% | 19.7% |
| ASE | XSRIF | C-1-7 | 651.00 | 89.2 | 33.1 | 19.0 | 13.1 | 6.0 | 4.4 | 3.2 | 17.4 | 10.0 | 7.1 | 21.8% | 27.2% | 28.6% |
| JCET | XJIEF | C-1-7 | 53.29 | 14.3 | 41.1 | 26.4 | 21.5 | 3.1 | 2.8 | 2.5 | 14.7 | 11.5 | 10.1 | 7.9% | 11.3% | 12.5% |
| SIMO | SIMO | C-1-7 | 189.18 | 6.4 | 16.2 | 17.8 | 14.3 | 5.2 | 4.3 | 3.5 | 14.2 | 12.4 | 10.1 | 39.1% | 27.2% | 27.4% |
| Phison | PISNF | C-1-8 | 1,910.00 | 13.0 | 5.3 | 9.0 | 14.1 | 3.2 | 2.6 | 2.4 | 3.9 | 5.6 | 8.8 | 92.3% | 37.0% | 20.7% |
| Samsung | SSNLF | C-1-7 | 213,000 | 980.9 | 4.9 | 3.7 | 3.8 | 2.1 | 1.5 | 1.1 | 2.9 | 2.2 | 2.3 | 52.4% | 46.1% | 32.9% |
| SK Hynix | HXSCF | C-1-7 | 1,275,000 | 740.3 | 3.6 | 3.5 | 3.5 | 2.4 | 1.6 | 1.2 | 2.9 | 2.1 | 2.0 | 98.2% | 52.9% | 38.1% |
| Micron | MU | C-1-7 | 903.70 | 1,022.5 | 12.0 | 5.3 | 4.6 | 7.4 | 3.7 | 2.5 | 9.0 | 4.0 | 3.6 | 89.7% | 95.8% | 68.8% |
| Nanya Tech | NNYAF | B-1-7 | 441.00 | 46.7 | 5.9 | 4.3 | 5.2 | 3.1 | 1.9 | 1.6 | 3.7 | 2.5 | 3.0 | 75.3% | 56.3% | 34.2% |
| Intel | INTC | C-1-9 | 90.47 | 478.1 | 61.5 | 45.0 | 31.0 | 3.6 | 3.4 | 3.0 | 20.3 | 15.7 | 12.3 | 5.9% | 7.9% | 10.6% |
Source: Companies, BofA Global Research estimates. Mcap = market capitalization. ROE = return on equity
BofA GLOBAL RESEARCH
Exhibit 20: NT$20bn+ annual FCF generation suggests a fair value of NT$500
Powertech -Cross-checked discounted cash flow (DCF) valuation
| 2024 | 2025 | 2026E | 2027E | 2028E | 2029E | 2030E | 2031E | |
|---|---|---|---|---|---|---|---|---|
| Sales | 73,315 | 74,929 | 96,256 | 113,684 | 131,728 | 155,440 | 175,958 | 193,553 |
| Sales growth | 4% | 2% | 28% | 18% | 16% | 18% | 13% | 10% |
| OP | 9,382 | 8,132 | 15,433 | 19,749 | 24,033 | 18,653 | 30,265 | 36,775 |
| OPM | 13% | 11% | 16% | 17% | 18% | 12% | 17% | 19% |
| Dep & Amor | 12,656 | 12,257 | 13,464 | 13,851 | 14,414 | 15,000 | 17,000 | 20,000 |
| EBITDA | 22,038 | 20,388 | 28,897 | 33,600 | 38,447 | 33,653 | 47,265 | 56,775 |
| Capex | 11,379 | 25,941 | 20,000 | 22,000 | 24,000 | 25,000 | 25,000 | 25,000 |
| Increase in NWC | 1,113 | -2,764 | -2,011 | 2,938 | 821 | 200 | 200 | 200 |
| Net working capital | 38,930 | 30,598 | 25,147 | 43,228 | 47,616 | 47,816 | 48,016 | 48,216 |
| Taxes | 2,178 | 1,572 | 3,594 | 4,318 | 5,500 | 4,104 | 6,658 | 8,091 |
| Free cash flow | 7,368 | -4,361 | 7,313 | 4,343 | 8,126 | 4,349 | 15,406 | 23,485 |
| Discount factor at 12% WACC | 1.00 | 0.89 | 0.79 | 0.71 | 0.63 | 0.56 | 0.50 | |
| Present value of FCF | 6,517 | 3,449 | 5,750 | 2,742 | 8,656 | 11,758 | ||
| Sum of PV FCF (a) | 38,872 | |||||||
| Terminal value | ||||||||
| PV of TV (b) | 356,468 | |||||||
| 12x EV/EBITDA | 356,468 | 711,960 | ||||||
| Perpetual growth | 4.50% | |||||||
| Biz value total (A = a+b) | 395,340 | |||||||
| Net debt & minority int (B) | 24,034 | |||||||
| Shareholder value total (A-B) | 371,306 | |||||||
| Fully diluted shares (mn) | 742 | |||||||
| Per share value (NT$) | 500.2 | |||||||
| PO vs FV | 0% | |||||||
| BofA PO | 500.0 | |||||||
| Current share price | 254.5 | |||||||
| PO over share price | 96% |
Source: Company, BofA Global Research estimates BofA GLOBAL RESEARCH
lül
Earnings outlook in 2026-28E
Exhibit 21: Memory (DRAM+NAND combined) accounts for sub-50% of total sales, followed by logic (~40%), SiP/Module (low-teen%); we expect strong 2026-28E topline growth (3-yr CAGR of 21% during 2025-28E)
Powertech - Sales breakdown
| (NT$mn) | 1Q26 | 2Q26 | 3Q26 | 4Q26E | 1Q27E | 2Q27E | 3Q27E | 4Q27E | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| By chip application | ||||||||||||||||
| DRAM | 4,263 | 4,392 | 5,067 | 5,422 | 5,205 | 5,465 | 6,011 | 6,252 | 17,000 | 17,987 | 17,815 | 15,826 | 16,876 | 19,143 | 22,933 | 27,225 |
| NAND | 5,542 | 6,704 | 7,094 | 7,519 | 7,143 | 7,643 | 8,484 | 8,908 | 30,148 | 28,602 | 20,219 | 20,881 | 18,464 | 26,858 | 32,179 | 38,914 |
| SiP/Module | 2,345 | 2,543 | 2,280 | 2,440 | 2,196 | 2,371 | 2,606 | 2,606 | 7,709 | 8,631 | 6,061 | 7,490 | 8,025 | 9,607 | 9,779 | 11,987 |
| Logic | 9,165 | 9,477 | 10,894 | 11,112 | 11,445 | 12,017 | 12,858 | 12,473 | 28,937 | 28,707 | 26,345 | 29,118 | 31,565 | 40,648 | 48,793 | 53,603 |
| Total Sales | 21,314 | 23,116 | 25,334 | 26,492 | 25,989 | 27,497 | 29,960 | 30,239 | 83,794 | 83,927 | 70,441 | 73,315 | 74,929 | 96,256 | 113,684 | 131,728 |
| Mix | ||||||||||||||||
| DRAM | 20% | 19% | 20% | 20% | 20% | 20% | 20% | 21% | 20% | 21% | 25% | 22% | 23% | 20% | 20% | 21% |
| NAND | 26% | 29% | 28% | 28% | 27% | 28% | 28% | 29% | 36% | 34% | 29% | 28% | 25% | 28% | 28% | 30% |
| SiP/Module | 11% | 11% | 9% | 9% | 8% | 9% | 9% | 9% | 9% | 10% | 9% | 10% | 11% | 10% | 9% | 9% |
| Logic | 43% | 41% | 43% | 42% | 44% | 44% | 43% | 41% | 35% | 34% | 37% | 40% | 42% | 42% | 43% | 41% |
| Total Sales | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| QoQ | ||||||||||||||||
| DRAM | -5% | 3% | 15% | 7% | -4% | 5% | 10% | 4% | ||||||||
| NAND | -4% | 21% | 6% | 6% | -5% | 7% | 11% | 5% | ||||||||
| SiP/Module | -16% | 8% | -10% | 7% | -10% | 8% | 10% | 0% | ||||||||
| Logic | 10% | 3% | 15% | 2% | 3% | 5% | 7% | -3% | ||||||||
| Total Sales | 0% | 8% | 10% | 5% | -2% | 6% | 9% | 1% | ||||||||
| YoY | ||||||||||||||||
| DRAM | 31% | 1% | 6% | 21% | 22% | 24% | 19% | 15% | -2% | 6% | -1% | -11% | 7% | 13% | 20% | 19% |
| NAND | 49% | 69% | 42% | 30% | 29% | 14% | 20% | 18% | 1% | -5% | -29% | 3% | -12% | 45% | 20% | 21% |
| SiP/Module | 89% | 41% | 4% | -12% | -6% | -7% | 14% | 7% | -7% | 12% | -30% | 24% | 7% | 20% | 2% | 23% |
| Logic | 26% | 19% | 36% | 33% | 25% | 27% | 18% | 12% | 40% | -1% | -8% | 11% | 8% | 29% | 20% | 10% |
| Total Sales | 38% | 28% | 27% | 24% | 22% | 19% | 18% | 14% | 10% | 0% | -16% | 4% | 2% | 28% | 18% | 16% |
| By backend process | ||||||||||||||||
| Testing | 4,689 | 5,317 | 6,080 | 5,802 | 5,653 | 5,939 | 6,426 | 6,441 | 18,435 | 18,630 | 15,788 | 16,300 | 16,639 | 21,888 | 24,459 | 27,556 |
| SiP/module | 2,345 | 2,543 | 2,280 | 2,440 | 2,196 | 2,371 | 2,606 | 2,606 | 7,709 | 8,631 | 6,061 | 7,319 | 8,025 | 9,607 | 9,779 | 11,987 |
| Package | 14,280 | 15,256 | 16,974 | 18,251 | 18,140 | 19,186 | 20,927 | 21,192 | 57,650 | 56,666 | 48,592 | 49,696 | 50,265 | 64,761 | 79,446 | 92,186 |
| Total Sales | 21,314 | 23,116 | 25,334 | 26,492 | 25,989 | 27,497 | 29,960 | 30,239 | 83,794 | 83,927 | 70,441 | 73,315 | 74,929 | 96,256 | 113,684 | 131,728 |
| Mix | ||||||||||||||||
| Testing | 22% | 23% | 24% | 21.9% | 21.8% | 21.6% | 21.5% | 21.3% | 22% | 22% | 22% | 22% | 22% | 23% | 22% | 21% |
| SiP/module | 11% | 11% | 9% | 9.2% | 8.4% | 8.6% | 8.7% | 8.6% | 9% | 10% | 9% | 10% | 11% | 10% | 9% | 9% |
| Package | 67% | 66% | 67% | 68.9% | 69.8% | 69.8% | 69.9% | 70.1% | 69% | 68% | 69% | 68% | 67% | 67% | 70% | 70% |
| Total Sales | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| QoQ | ||||||||||||||||
| Testing | 0% | 13% | 14% | -5% | -3% | 5% | 8% | 0% | ||||||||
| SiP/module | -16% | 8% | -10% | 7% | -10% | 8% | 10% | 0% | ||||||||
| Package | 3% | 7% | 11% | 8% | -1% | 6% | 9% | 1% | ||||||||
| Total Sales | 0% | 8% | 10% | 5% | -2% | 6% | 9% | 1% | ||||||||
| YoY | ||||||||||||||||
| Testing | 32% | 34% | 38% | 23% | 21% | 12% | 6% | 11% | 8% | 1% | -15% | 3% | 2% | 32% | 12% | 13% |
| SiP/module | 89% | 41% | 4% | -12% | -6% | -7% | 14% | 7% | -7% | 12% | -30% | 21% | 10% | 20% | 2% | 23% |
| Package | 34% | 24% | 27% | 31% | 27% | 26% | 23% | 16% | 13% | -2% | -14% | 2% | 1% | 29% | 23% | 16% |
| Total Sales | 38% | 28% | 27% | 24% | 22% | 19% | 18% | 14% | 10% | 0% | -16% | 4% | 2% | 28% | 18% | 16% |
Source: Company, BofA Global Research estimates
BofA GLOBAL RESEARCH
Exhibit 22: We expect solid topline growth in 2026-28E coupled with steady margin improvement (GM 22-23%, OPM 16-18%), closely approaching 2021-22 upturn level
Powertech - Income statement
| (NT$mn) | 1Q26 | 2Q26 | 3Q26 | 4Q26E | 1Q27E | 2Q27E | 3Q27E | 4Q27E | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 21,314 | 23,116 | 25,334 | 26,492 | 25,989 | 27,497 | 29,960 | 30,239 | 83,794 | 83,927 | 70,441 | 73,315 | 74,929 | 96,256 | 113,684 | 131,728 |
| COGS | 17,170 | 18,085 | 19,249 | 20,372 | 20,219 | 21,255 | 23,039 | 23,193 | 64,499 | 66,551 | 57,832 | 59,324 | 62,200 | 74,877 | 87,706 | 101,167 |
| Gross profit | 4,144 | 5,031 | 6,085 | 6,120 | 5,769 | 6,242 | 6,921 | 7,046 | 19,295 | 17,376 | 12,609 | 13,991 | 12,729 | 21,380 | 25,978 | 30,562 |
| SG&A | 1,383 | 1,500 | 1,613 | 1,450 | 1,437 | 1,576 | 1,694 | 1,523 | 4,770 | 4,928 | 4,455 | 4,609 | 4,597 | 5,947 | 6,229 | 6,528 |
| R&D | 843 | 919 | 846 | 850 | 870 | 965 | 889 | 893 | 2,443 | 2,462 | 2,458 | 2,809 | 2,807 | 3,459 | 3,616 | 3,797 |
| Marketing & Admin | 540 | 581 | 767 | 600 | 567 | 610 | 805 | 630 | 2,326 | 2,465 | 1,998 | 1,800 | 1,790 | 2,488 | 2,613 | 2,731 |
| OP | 2,761 | 3,531 | 4,472 | 4,670 | 4,332 | 4,666 | 5,227 | 5,523 | 14,525 | 12,448 | 8,154 | 9,382 | 8,132 | 15,433 | 19,749 | 24,033 |
| EBITDA | 6,092 | 6,891 | 7,849 | 8,064 | 7,743 | 8,112 | 8,707 | 9,038 | 28,577 | 27,303 | 22,038 | 22,038 | 20,388 | 28,897 | 33,600 | 38,447 |
| Dep & amortization | 3,332 | 3,361 | 3,377 | 3,394 | 3,411 | 3,445 | 3,480 | 3,515 | 14,052 | 14,855 | 13,884 | 12,656 | 12,257 | 13,464 | 13,851 | 14,414 |
| Net Non-OP income | 396 | 131 | 85 | -30 | -30 | -30 | -30 | -30 | 181 | 1,192 | 3,890 | 1,295 | 660 | 582 | -120 | -120 |
| Pre-tax income | 3,157 | 3,661 | 4,557 | 4,640 | 4,302 | 4,636 | 5,197 | 5,493 | 14,705 | 13,640 | 12,043 | 10,677 | 8,792 | 16,015 | 19,629 | 23,913 |
| Tax | 770 | 811 | 992 | 1,021 | 946 | 1,020 | 1,143 | 1,208 | 2,980 | 2,888 | 2,534 | 2,178 | 1,572 | 3,594 | 4,318 | 5,500 |
| Effective tax rate | 24% | 22% | 22% | 22% | 22% | 22% | 22% | 22% | 20% | 21% | 21% | 20% | 18% | 22% | 22% | 23% |
| Net profit | 2,387 | 2,850 | 3,565 | 3,619 | 3,356 | 3,616 | 4,054 | 4,285 | 11,726 | 10,752 | 9,509 | 8,499 | 7,221 | 12,420 | 15,310 | 18,413 |
| Minority income | 543 | 631 | 953 | 550 | 548 | 637 | 963 | 556 | 2,828 | 2,065 | 1,501 | 1,711 | 1,685 | 2,676 | 2,703 | 2,730 |
| Net profit after min. | 1,844 | 2,219 | 2,612 | 3,069 | 2,807 | 2,979 | 3,091 | 3,729 | 8,898 | 8,687 | 8,009 | 6,789 | 5,536 | 9,744 | 12,607 | 15,683 |
| EPS (FD) | 2.48 | 2.99 | 3.52 | 4.14 | 3.79 | 4.02 | 4.17 | 5.03 | 11.50 | 11.52 | 10.66 | 9.05 | 7.45 | 13.13 | 17.00 | 21.15 |
| Margins (%) | ||||||||||||||||
| GP margin | 19% | 22% | 24% | 23% | 22% | 23% | 23% | 23% | 23% | 21% | 18% | 19% | 17% | 22% | 23% | 23% |
| OP margin | 13% | 15% | 18% | 18% | 17% | 17% | 17% | 18% | 17% | 15% | 12% | 13% | 11% | 16% | 17% | 18% |
| RP margin | 15% | 16% | 18% | 18% | 17% | 17% | 17% | 18% | 18% | 16% | 17% | 15% | 12% | 17% | 17% | 18% |
| NP margin | 11% | 12% | 14% | 14% | 13% | 13% | 14% | 14% | 14% | 13% | 13% | 12% | 10% | 13% | 13% | 14% |
Source: Company, BofA Global Research estimates
BofA GLOBAL RESEARCH
Exhibit 22: Net debt shows NT$6.6bn as of 2Q26
Powertech - Balance sheet
| (NT$mn) | 1Q26 | 2Q26 | 3Q26 | 4Q26E | 1Q27E | 2Q27E | 3Q27E | 4Q27E | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Assets total Current assets total | 126,980 47,281 | 130,960 50,534 | 144,094 59,165 | 145,378 59,939 | 147,687 61,058 | 145,281 56,488 | 152,058 61,629 | 154,305 62,269 | 118,587 51,959 | 118,969 49,777 | 111,155 48,194 | 109,191 46,986 | 123,163 46,365 | 145,378 59,939 | 154,305 62,269 | 164,060 63,886 |
| Cash & cash equivalent | 16,023 | 17,625 | 24,886 | 25,318 | 26,443 | 21,527 | 25,935 | 25,877 | 23,175 | 20,534 | 21,319 | 22,271 | 16,375 | 25,318 | 25,877 | 25,696 |
| A/R | 19,457 | 20,626 | 21,657 | 21,873 | 21,436 | 21,650 | 22,733 | 23,301 | 17,975 | 14,347 | 16,679 | 15,885 | 18,537 | 21,873 | 23,301 | 24,468 |
| Inventories | 6,857 | 7,424 | 7,498 | 7,573 | 7,952 | 8,031 | 7,630 | 7,706 | 6,768 | 10,753 | 6,681 | 5,446 | 6,566 | 7,573 | 7,706 | 8,118 |
| Others | 4,945 | 4,859 | 5,124 | 5,175 | 5,227 | 5,279 | 5,332 | 5,385 | 4,041 | 4,143 | 3,516 | 3,384 | 4,887 | 5,175 | 5,385 | 5,604 |
| Non-current assets total | 79,699 | 80,426 | 84,929 | 85,439 | 86,630 | 88,793 | 90,429 | 92,036 | 66,628 | 69,192 | 62,960 | 62,205 | 76,798 | 85,439 | 92,036 | 100,174 |
| LT investments | 1,265 | 831 | 1,246 | 1,258 | 1,271 | 1,284 | 1,296 | 1,309 | 509 | 447 | 829 | 1,199 | 1,212 | 1,258 | 1,309 | 1,362 |
| Fixed assets | 73,313 | 74,345 | 72,006 | 72,386 | 73,446 | 75,478 | 76,980 | 78,453 | 63,237 | 64,818 | 56,924 | 56,588 | 70,412 | 72,386 | 78,453 | 86,040 |
| Others | 5,121 | 5,250 | 11,678 | 11,794 | 11,912 | 12,031 | 12,152 | 12,273 | 2,883 | 3,927 | 5,208 | 4,417 | 5,175 | 11,794 | 12,273 | 12,772 |
| Liabilities total | 53,171 | 58,761 | 71,590 | 65,120 | 63,916 | 63,645 | 66,208 | 64,008 | 55,281 | 52,646 | 42,048 | 37,498 | 51,889 | 65,120 | 64,008 | 62,074 |
| Current liabilities total | 24,511 | 29,895 | 31,908 | 25,667 | 24,998 | 25,249 | 28,321 | 26,617 | 23,319 | 19,615 | 16,508 | 18,356 | 23,776 | 25,667 | 26,617 | 27,602 |
| ST debts | 307 | 9 | 210 | 210 | 210 | 210 | 210 | 210 | 199 | 260 | 634 | 1,878 | 13 | 210 | 210 | 210 |
| A/P | 7,034 | 7,325 | 8,057 | 7,948 | 7,104 | 7,178 | 10,071 | 8,187 | 6,899 | 5,594 | 5,077 | 5,081 | 7,717 | 7,948 | 8,187 | 8,433 |
| Others | 17,170 | 22,561 | 23,641 | 17,509 | 17,684 | 17,861 | 18,040 | 18,220 | 16,221 | 13,762 | 10,798 | 11,397 | 16,047 | 17,509 | 18,220 | 18,960 |
| Non-current liabilities | 28,660 | 28,866 | 39,682 | 39,453 | 38,918 | 38,396 | 37,887 | 37,391 | 31,962 | 33,031 | 25,540 | 19,142 | 28,113 | 39,453 | 37,391 | 34,471 |
| LT debts | 25,970 | 26,080 | 31,296 | 30,983 | 30,364 | 29,756 | 29,161 | 28,578 | 30,013 | 30,354 | 23,198 | 16,887 | 25,413 | 30,983 | 28,578 | 25,300 |
| Others | 2,690 | 2,786 | 8,386 | 8,470 | 8,554 | 8,640 | 8,726 | 8,813 | 1,949 | 2,678 | 2,342 | 2,255 | 2,699 | 8,470 | 8,813 | 9,171 |
| Equity total | 58,366 | 57,128 | 56,925 | 64,523 | 67,879 | 65,584 | 69,638 | 73,923 | 49,507 | 52,289 | 54,870 | 56,762 | 56,291 | 64,523 | 73,923 | 84,948 |
| Paid in capital | 7,591 | 7,591 | 7,591 | 7,591 | 7,591 | 7,591 | 7,591 | 7,591 | 7,791 | 7,591 | 7,591 | 7,591 | 7,591 | 7,591 | 7,591 | 7,591 |
| Capital surplus | 462 | 462 | 462 | 462 | 462 | 462 | 462 | 462 | 271 | 150 | 237 | 320 | 462 | 462 | 462 | 462 |
| Retained earnings | 51,805 | 50,608 | 54,173 | 57,792 | 61,148 | 58,853 | 62,907 | 67,192 | 43,574 | 45,551 | 48,242 | 49,756 | 49,961 | 57,792 | 67,192 | 78,217 |
| Treasury stocks | -923 | -923 | -923 | -923 | -923 | -923 | -923 | -923 | -711 | -469 | -469 | -533 | -923 | -923 | -923 | -923 |
| Others | -570 | -611 | -4,379 | -400 | -400 | -400 | -400 | -400 | -1,418 | -534 | -732 | -372 | -801 | -400 | -400 | -400 |
| D/E Analysis | D/E Analysis | D/E Analysis | D/E Analysis | D/E Analysis | D/E Analysis | D/E Analysis | D/E Analysis | D/E Analysis | D/E Analysis | D/E Analysis | D/E Analysis | D/E Analysis | D/E Analysis | D/E Analysis | D/E Analysis | D/E Analysis |
| Cash | 16,023 | 17,625 | 24,886 | 25,318 | 26,443 | 21,527 | 25,935 | 25,877 | 23,175 | 20,534 | 21,319 | 22,271 | 16,375 | 25,318 | 25,877 | 25,696 |
| Debts total | 26,276 | 26,089 | 31,506 | 31,193 | 30,574 | 29,966 | 29,371 | 28,788 | 30,212 | 30,613 | 23,832 | 18,765 | 25,426 | 31,193 | 28,788 | 25,510 |
| Net debts | 10,254 | 8,464 | 6,620 | 5,876 | 4,131 | 8,440 | 3,436 | 2,912 | 7,037 | 10,079 | 2,512 | -3,506 | 9,051 | 5,876 | 2,912 | -186 |
| Net D/E ratio | 14% | 12% | 9% | 7% | 5% | 10% | 4% | 3% | 11% | 15% | 4% | -5% | 13% | 7% | 3% | 0% |
| Gross D/E ratio | 36% | 36% | 43% | 39% | 36% | 37% | 34% | 32% | 48% | 46% | 34% | 26% | 36% | 39% | 32% | 25% |
| BVPS | 79 | 77 | 77 | 87 | 92 | 89 | 94 | 100 | 64 | 69 | 73 | 76 | 76 | 87 | 100 | 115 |
Source: Company, BofA Global Research estimates
BofA GLOBAL RESEARCH
Exhibit 23: 2026-28E capex increase (NT$20-24bn pa) mostly for advanced packaging such as PLP and TSV/HBM; this should be fully covered by operating cash flow
Powertech - Cash flow statement
| (NT$mn) | 1Q26 | 2Q26 | 3Q26 | 4Q26E | 1Q27E | 2Q27E | 3Q27E | 4Q27E | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| I. Operating CF | 4,102 | 5,972 | 9,756 | -120 | 5,557 | 419 | 14,819 | 4,842 | 24,649 | 22,923 | 19,682 | 24,082 | 18,509 | 19,710 | 25,637 | 29,284 |
| Net income | 1,844 | 2,219 | 2,612 | 3,069 | 2,807 | 2,979 | 3,091 | 3,729 | 8,898 | 8,687 | 8,009 | 6,789 | 5,536 | 9,744 | 12,607 | 15,683 |
| D&A | 3,332 | 3,361 | 3,377 | 3,394 | 3,411 | 3,445 | 3,480 | 3,515 | 14,052 | 14,855 | 13,884 | 12,656 | 12,257 | 13,464 | 13,851 | 14,414 |
| Change in NWC | -829 | 708 | 3,766 | -6,583 | -662 | -6,006 | 8,248 | -2,402 | 611 | -4,223 | -1,113 | 2,764 | 2,011 | -2,938 | -821 | -812 |
| Others | -245 | -315 | 0 | 0 | 0 | 0 | 0 | 0 | 1,087 | 3,605 | -1,098 | 1,874 | -1,295 | -560 | 0 | 0 |
| II. Investing CF | -5,453 | -4,026 | -4,500 | -4,308 | -5,000 | -6,000 | -5,500 | -5,500 | -14,059 | -18,927 | -5,303 | -9,865 | -26,023 | -18,288 | -22,000 | -24,000 |
| Capital expenditures | -6,548 | -4,644 | -4,500 | -4,308 | -5,000 | -6,000 | -5,500 | -5,500 | -15,275 | -18,582 | -8,727 | -11,379 | -25,941 | -20,000 | -22,000 | -24,000 |
| Others | 1,094 | 618 | 0 | 0 | 0 | 0 | 0 | 0 | 1,216 | -346 | 3,424 | 1,514 | -82 | 1,712 | 0 | 0 |
| III. Financing CF | 226 | 215 | 2,005 | 4,760 | 568 | 665 | -4,911 | 600 | -8,716 | -6,761 | -13,530 | -11,351 | 4,197 | 7,207 | -3,078 | -5,465 |
| Change in debts | 851 | -188 | 5,417 | -313 | -620 | -607 | -595 | -583 | -1,342 | 401 | -6,782 | -5,066 | 6,660 | 5,768 | -2,405 | -3,278 |
| Change in capital stocks | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 40 | -321 | 88 | 83 | 143 | 0 | 0 | 0 |
| Net share repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -481 | 242 | 0 | -65 | -390 | 0 | 0 | 0 |
| Dividends | 0 | 0 | -3,325 | 0 | 0 | 0 | -5,910 | 0 | -3,896 | -5,086 | -5,231 | -5,231 | -5,172 | -3,325 | -5,910 | -7,388 |
| Others | -624 | 403 | -88 | 5,073 | 1,188 | 1,273 | 1,594 | 1,183 | -3,036 | -1,996 | -1,604 | -1,072 | 2,955 | 4,764 | 5,238 | 5,201 |
| IV. Cash flows (I+II+III) | -353 | 1,603 | 7,261 | 332 | 1,125 | -4,916 | 4,408 | -58 | 1,594 | -2,241 | 706 | 3,675 | -4,052 | 8,843 | 559 | -181 |
| Cash at beginning | 16,375 | 16,023 | 17,625 | 24,886 | 25,218 | 26,343 | 21,427 | 25,835 | 21,020 | 22,614 | 20,373 | 21,080 | 22,238 | 16,375 | 25,218 | 25,777 |
| Cash at end | 16,023 | 17,625 | 24,886 | 25,218 | 26,343 | 21,427 | 25,835 | 25,777 | 22,614 | 20,373 | 21,080 | 22,238 | 16,375 | 25,218 | 25,777 | 25,596 |
Source: Company, BofA Global Research estimates
BofA GLOBAL RESEARCH
Exhibit 25: We assume FCF turnaround in 2026 (NT$2.4bn) and more meaningful recovery in 2027/28E (NT$6.5/8.1bn) on the back of steady EBITDA rebound with disciplined capex spend
Powertech Technology - Free cash flow (FCF) analysis
| (NT$mn) | 1Q26 | 2Q26 | 3Q26 | 4Q26E | 1Q27E | 2Q27E | 3Q27E | 4Q27E | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 21,314 | 23,116 | 25,334 | 26,492 | 25,989 | 27,497 | 29,960 | 30,239 | 83,794 | 83,927 | 70,441 | 73,315 | 74,929 | 96,256 | 113,684 | 131,728 |
| Operating income | 2,761 | 3,531 | 4,472 | 4,670 | 4,332 | 4,666 | 5,227 | 5,523 | 14,525 | 12,448 | 8,154 | 9,382 | 8,132 | 15,433 | 19,749 | 24,033 |
| Dep & amortization | 3,332 | 3,361 | 3,377 | 3,394 | 3,411 | 3,445 | 3,480 | 3,515 | 14,052 | 14,855 | 13,884 | 12,656 | 12,257 | 13,464 | 13,851 | 14,414 |
| EBITDA | 6,092 | 6,891 | 7,849 | 8,064 | 7,743 | 8,112 | 8,707 | 9,038 | 28,577 | 27,303 | 22,038 | 22,038 | 20,388 | 28,897 | 33,600 | 38,447 |
| Capex | 6,548 | 4,644 | 4,500 | 4,308 | 5,000 | 6,000 | 5,500 | 5,500 | 15,275 | 18,582 | 8,727 | 11,379 | 25,941 | 20,000 | 22,000 | 24,000 |
| Increase of NWC | 829 | -708 | -3,766 | 6,583 | 662 | 6,006 | -8,248 | 2,402 | -611 | 4,223 | 1,113 | -2,764 | -2,011 | 2,938 | 821 | 812 |
| Net working capital (NWC) | 7,055 | 6,347 | 2,581 | 9,164 | 9,826 | 15,832 | 7,584 | 9,986 | 5,664 | 32,064 | 51,120 | 38,930 | 30,598 | 25,147 | 43,228 | 47,616 |
| Ex-cash current assets | 31,259 | 32,909 | 34,279 | 34,622 | 34,615 | 34,961 | 35,695 | 36,393 | 28,784 | 122,803 | 116,778 | 106,028 | 106,304 | 133,068 | 141,663 | 149,308 |
| Ex-debts current liabilities | 24,204 | 26,561 | 31,698 | 25,457 | 24,788 | 19,129 | 28,111 | 26,407 | 23,120 | 90,739 | 65,657 | 67,098 | 75,706 | 107,921 | 98,435 | 101,691 |
| Taxes | 770 | 811 | 992 | 1,021 | 946 | 1,020 | 1,143 | 1,208 | 2,980 | 2,888 | 2,534 | 2,178 | 1,572 | 3,594 | 4,318 | 5,500 |
| Free cash flow (FCF) | -2,054 | 2,143 | 6,124 | -3,848 | 1,135 | -4,914 | 10,312 | -73 | 10,934 | 1,610 | 9,664 | 11,245 | -5,114 | 2,364 | 6,460 | 8,135 |
| FCF without NWC changes | -1,225 | 1,436 | 2,357 | 2,735 | 1,797 | 1,092 | 2,064 | 2,329 | 10,323 | 5,833 | 10,777 | 8,481 | -7,124 | 5,303 | 7,281 | 8,947 |
| US$ equivalent (mn) | ||||||||||||||||
| Sales | 673 | 732 | 792 | 837 | 826 | 877 | 959 | 971 | 3,000 | 2,826 | 2,258 | 2,280 | 2,413 | 3,033 | 3,633 | 4,248 |
| OP | 87 | 112 | 140 | 147 | 138 | 149 | 167 | 177 | 520 | 421 | 261 | 292 | 262 | 486 | 631 | 775 |
| EBITDA | 192 | 218 | 245 | 255 | 246 | 259 | 279 | 290 | 1,023 | 920 | 707 | 685 | 656 | 910 | 1,074 | 1,240 |
| Capex | 207 | 147 | 141 | 136 | 159 | 191 | 176 | 177 | 547 | 630 | 281 | 353 | 836 | 630 | 703 | 774 |
| Free cash flow (FCF) | -65 | 68 | 191 | -122 | 36 | -157 | 330 | -2 | 392 | 52 | 305 | 351 | -170 | 73 | 207 | 262 |
| FCF without NWC changes | -39 | 45 | 74 | 86 | 57 | 35 | 66 | 75 | 369 | 193 | 345 | 264 | -231 | 167 | 233 | 288 |
Source: Company, BofA Global Research estimates
BofA GLOBAL RESEARCH
Price objective basis & risk
Powertech Technology (PWOGF)
Our PO of NT$500 is derived from 27x P/E based on 2027-28E EPS. This is 10-20% higher than 2024-25 peak levels (low- to mid-20x). Since we expect 50%+ higher EPS in 2026-28E vs 2024-25 on the back of record-high sales/margin, we believe fair multiples should be at least on par with the previous peak level. True, the long-term historical average P/E came in the range of 10-20x, but the memory super-cycle and AI boom should warrant above-trend earnings growth and consequently over 20x fair P/E. Taiwan's OSAT stocks also trade at 20-30x P/E.
Upside risk is mostly related to strong packaging orders from memory chipmakers and even logic chip suppliers.
Downside risk is mostly associated with an unexpected memory industry downturn or AI bubble (e.g., significant packaging order cut).
圖片清單（已驗證 2026-10-28）
逐張 Read 者（≥40KB）：
- 報告_BofA_力成6239_3Q26_20261027_009.png｜真資料圖（財務／營收類，不嵌 lib）｜親眼所見：Exhibit 13，力成月營收（不含超豐，左軸 NT$bn）與 YoY 成長（右軸）折線，期間 2018-09 至 2026-09；月營收約 6.5 億元級、YoY 約 20% 上下。
- 報告_BofA_力成6239_3Q26_20261027_010.png｜真資料圖（財務類，不嵌 lib）｜親眼所見：Exhibit 14，南亞科與群聯月營收 YoY 折線，2017-03 至 2026-09；南亞科 2025 下半年起飆至約 700% 以上、群聯約 350–380%。
- 報告_BofA_力成6239_3Q26_20261027_013.png｜真資料圖（評等歷史，不嵌 lib；md 內未嵌入此檔）｜親眼所見：PWOGF 股價與 BofA PO 歷史走勢，標註 2026-05-28 PO NT$500、2026-04-29 PO NT$325、2026-02-23 PO NT$340 等調整點。
<40KB 未逐張細驗（財務／營收圖表，標題依原報告 Exhibit 圖題，不嵌 lib）：
- _001（Exhibit 5 季營收與 YoY）、_002（Exhibit 6 毛利率／營益率）、_003（Exhibit 7 各產品 QoQ）、_004（Exhibit 9 EPS 與 DPS）、_005（Exhibit 8 FCF）、_006（Exhibit 10 12 個月預期 P/B）、_007／_008（Exhibit 11／12 月營收與 YoY）、_011／_012（Exhibit 15／16 日月光月營收與 YoY）。無裝飾圖。