PDF 原檔：報告_BofA_智原3035_20260728_original.pdf
圖片清單（已驗證 2026-07-29）
| 檔名 | size | 分類 | 親眼所見內容 |
|---|---|---|---|
報告_BofA_智原3035_20260728_001.png |
72KB | 真資料圖 | FDYTF（智原美股代碼）股價與目標價（PO）歷史沿革圖，標示歷次 PO 調整（如 11-Jan PO:NT$487 至 13-Mar PO:NT$120），並標示灰色「No Coverage」區間，橫軸約 2023年至2026年 |
原始內容
Faraday
Sales and margin outlook largely unchanged; valuation remains stretched
Reiterate Rating: UNDERPERFORM | PO: 120.00 TWD | Price: 185.50 TWD
2Q26 sales beat on strong mass production revenue
Faraday ' s 2Q26 sales was +28% QoQ, far above BofAe/street estimates of +6%/+10% QoQ and its guidance of +high-single digit % QoQ, mainly driven by significant growth in MP revenue (+48% QoQ) from both ASIC/MCU product ramps and solid IP revenue contribution offsetting slowdown in NRE revenue recognition. 2Q26 GM dropped by 210 bps to 45.2% due to product mix. Stronger sales and improving operating leverage bring 2Q26 EPS to NT$0.76. (BofAe/street of NT$0.49/0.44)
Better sales mix support resilient margin in 2H26
Following customer pull-ins ahead of anticipated supply chain price increase in 2Q26, 3Q26 sales is guided to decline by single digit % QoQ, as sustained strength in IP revenue more than offset by NRE/MP revenue softness. With revenue mix shift toward higher margin IP segment, GM in 2H26 should remain resilient at 44-45% levels.
MCU support '26 growth; advanced projects ramp in '27
We now forecast Faraday ' s 2026/2027 sales to -32%/+48% YoY. Health demand across robotic, drone, and energy applications for high-end MCU, coupled with higher manufacturing costs pass through, will serve as the key growth catalyst for Faraday ' s MP segment, while part of advanced packaging/advanced nodes related revenue should see push-out from 2026 into 2027 due to verification and supply uncertainties. With advanced packaging/nodes projects ramping through 2027, GM should decline slightly from 45.4% in 2026 to 41.5% in 2027.
Reiterate Underperform with unchanged NT$120 PO
We lift our 2026 EPS slightly from NT$3.31 to NT$4.05 on better GM assumption, and only fine tune 2027/28 EPS from NT$7.25/8.53 to NT$7.07/8.77. We reiterate Underperform rating with unchanged PO of NT$120 on 17x 2027E P/E, as current valuation appears stretched with shares trading at 26x/21x '27/'28E P/E (vs. historical range of 13-42x). We believe a discount to historical average P/E should be more reasonable given declining margin trend and potential further delay in advanced packaging/nodes revenue contribution.
| Estimates (Dec) (NT$) | 2024A | 2025A | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|
| Net Income (Adjusted - mn) | 1,041 | 731 | 1,056 | 1,842 | 2,286 |
| EPS | 4.18 | 2.81 | 4.05 | 7.07 | 8.77 |
| EPS Change (YoY) | -34.6% | -32.9% | 44.4% | 74.4% | 24.1% |
| Dividend / Share | 3.00 | 1.80 | 2.84 | 4.95 | 6.14 |
| Free Cash Flow / Share | 11.06 | 2.95 | 8.45 | 8.74 | 12.02 |
| Valuation (Dec) | |||||
| P/E | 44.34x | 66.09x | 45.78x | 26.24x | 21.14x |
| Dividend Yield | 1.62% | 0.970% | 1.53% | 2.67% | 3.31% |
| EV / EBITDA* | 21.60x | 27.42x | 18.86x | 13.09x | 11.02x |
| Free Cash Flow Yield* | 5.69% | 1.59% | 4.56% | 4.71% | 6.48% |
| * For full definitions of iQ method SM measures, see page 6. |
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 7 to 9. Analyst Certification on page 4. Price
28 July 2026
Equity
| Key Changes (NT$) | Previous | Current |
|---|---|---|
| 2026E EPS | 3.31 | 4.05 |
| 2027E EPS | 7.25 | 7.07 |
| 2028E EPS | 8.53 | 8.77 |
| 2026E EBITDA (m) | 1,814.1 | 2,153.4 |
| 2027E EBITDA (m) | 3,156.2 | 3,101.9 |
| 2028E EBITDA (m) | 3,596.6 | 3,683.9 |
Haas Liu >> Research Analyst Merrill Lynch (Taiwan) +886 2 2376 3727 haas.liu@bofa.com
Mike Yang >> Research Analyst Merrill Lynch (Taiwan) mike.c.yang@bofa.com
Cathy Hsu >> Research Analyst Merrill Lynch (Taiwan) cathy.hsu3@bofa.com
Stock Data
| Price | 185.50 TWD |
|---|---|
| Price Objective | 120.00 TWD |
| Date Established | 13-Mar-2026 |
| Investment Opinion | C-3-7 |
| 52-Week Range | 139.00 TWD-245.00 |
| TWD | |
| Mrkt Val / Shares Out (mn) | 1,497 USD / 260.6 |
| Market Value (mn) | 48,332 TWD |
| Average Daily Value (mn) | 50.95 USD |
| Free Float | 81.7% |
| BofA Ticker / Exchange | FDYTF / TAI |
| Bloomberg / Reuters | 3035 TT / 3035.TW |
| ROE (2026E) | 6.6% |
| Net Dbt to Eqty (Dec-2025A) | -49.5% |
IP: Intellectual property
MP: Mass Production
NRE: Non-Recurring Engineering
MCU: Microcontroller Unit
iQ profile SM Faraday
| Key Income Statement Data (Dec) | 2024A | 2025A | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|
| (NT$ Millions) | |||||
| Sales | 11,065 | 17,993 | 12,275 | 18,155 | 21,959 |
| Gross Profit | 5,051 | 4,857 | 5,567 | 7,532 | 9,159 |
| Sell General &Admin Expense | (1,024) | (1,094) | (1,349) | (1,361) | (1,620) |
| Operating Profit | 1,071 | 552 | 1,176 | 2,125 | 2,707 |
| Net Interest &Other Income | 272 | 449 | 475 | 507 | 513 |
| Associates | NA | NA | NA | NA | NA |
| Pretax Income | 1,343 | 1,002 | 1,651 | 2,632 | 3,220 |
| Tax (expense) / Benefit | (271) | (229) | (405) | (645) | (789) |
| Net Income (Adjusted) | 1,041 | 731 | 1,056 | 1,842 | 2,286 |
| Average Fully Diluted Shares Outstanding | 258 | 261 | 261 | 261 | 261 |
| Key Cash Flow Statement Data | |||||
| Net Income | 1,041 | 731 | 1,056 | 1,842 | 2,286 |
| Depreciation &Amortization | 810 | 929 | 977 | 977 | 977 |
| Change in Working Capital | 1,295 | (580) | (209) | (506) | (56) |
| Deferred Taxation Charge | NA | NA | NA | NA | NA |
| Other Adjustments, Net | (246) | (151) | 543 | 145 | 145 |
| Cash Flow from Operations | 2,901 | 930 | 2,367 | 2,458 | 3,352 |
| Capital Expenditure | (148) | (162) | (165) | (182) | (220) |
| (Acquisition) / Disposal of Investments | (911) | (755) | (276) | 0 | 0 |
| Other Cash Inflow / (Outflow) | (1,503) | (183) | 360 | (800) | (800) |
| Cash Flow from Investing | (2,562) | (1,100) | (81) | (982) | (1,020) |
| Shares Issue / (Repurchase) | 3,720 | 0 | 0 | 0 | 0 |
| Cost of Dividends Paid | (1,118) | (782) | (469) | (739) | (1,289) |
| Cash Flow from Financing | 2,178 | (832) | 251 | (739) | (1,289) |
| Free Cash Flow | 2,752 | 768 | 2,202 | 2,276 | 3,133 |
| Net Debt | (7,886) | (6,697) | (9,388) | (10,125) | (11,168) |
| Change in Net Debt | (2,418) | 1,171 | (2,677) | (737) | (1,043) |
| Key Balance Sheet Data | |||||
| Property, Plant &Equipment | 582 | 617 | 651 | 651 | 651 |
| Other Non-Current Assets | 6,724 | 7,115 | 11,294 | 12,727 | 14,468 |
| Trade Receivables | 1,054 | 1,726 | 1,596 | 2,829 | 2,614 |
| Cash &Equivalents | 8,334 | 7,286 | 9,894 | 10,631 | 11,675 |
| Other Current Assets | 1,636 | 2,188 | 3,206 | 4,723 | 4,886 |
| Total Assets | 18,330 | 18,932 | 26,641 | 31,560 | 34,294 |
| Long-Term Debt | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 984 | 719 | 751 | 751 | 751 |
| Short-Term Debt | 448 | 589 | 506 | 506 | 506 |
| Other Current Liabilities | 3,425 | 4,096 | 5,412 | 8,231 | 8,869 |
| Total Liabilities | 4,857 | 5,403 | 6,670 | 9,488 | 10,127 |
| Total Equity | 13,473 | 13,529 | 19,971 | 22,072 | 24,168 |
| Total Equity &Liabilities | 18,330 | 18,932 | 26,641 | 31,560 | 34,294 |
| iQ method SM - Bus Performance* | |||||
| Return On Capital Employed | 7.4% | 3.3% | 5.3% | 7.5% | 8.7% |
| Return On Equity | 9.2% | 5.6% | 6.6% | 9.2% | 10.4% |
| Operating Margin | 9.7% | 3.1% | 9.6% | 11.7% | 12.3% |
| EBITDA Margin | 17.0% | 8.2% | 17.5% | 17.1% | 16.8% |
| iQ method SM - Quality of Earnings* | |||||
| Cash Realization Ratio | 2.8x | 1.3x | 2.2x | 1.3x | 1.5x |
| Asset Replacement Ratio | 1.0x | 0.8x | 0.8x | 0.9x | 1.0x |
| Tax Rate (Reported) | 20.2% | 22.8% | 24.5% | 24.5% | 24.5% |
| Net Debt-to-Equity Ratio | -58.5% | -49.5% | -47.0% | -45.9% | -46.2% |
| Interest Cover | NM | NM | NM | NM | NM |
Key Metrics
- For full definitions of iQ method SM measures, see page 6.
Company Sector
Semiconductors
Company Description
Faraday Technology Corp. was established in 1993 and listed in 1999. The company is an affiliate of the second biggest semiconductor logic foundry (UMC) in Taiwan, and has been the main provider to UMC's IP library. Faraday is also known for its total solution in ASIC (customized chips) which includes chip-design and turnkey mass production, on top of its IP offering. The company has a diversified endmarket exposure, including internet of things, factory automation, solar, microcontrollers etc.
Investment Rationale
We have an Underperform rating on Faraday, as we are wary of the slower for longer business outlook in mature node projects, while its collaboration with non-TSMC foundries bears the uncertainty.
Stock Data
Price to Book Value
2.5x
Focus table
Exhibit 1: Faraday 2Q26-3Q26 and 2026-27 estimates BofAe vs. street
Our EPS estimates for '26/27 is now NT$4.05/7.07
| 2Q26E | 2Q26E | 2Q26E | 3Q26E | 3Q26E | 3Q26E | 2026E | 2026E | 2026E | 2027E | 2027E | 2027E | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Actual | Old | Street | BofAe | Old | Street | BofAe | Old | Street | BofAe | Old | Street | |
| Sales (NT$mn) Sales QoQ / YoY (%) | $3,314 28.0% | $2,748 6.2% | $2,836 9.6% | $3,079 -7.1% | $2,951 7.4% | $3,594 26.7% | $12,275 -31.8% | $12,162 -32.4% | $13,624 -24.3% | $18,155 47.9% | $18,180 49.5% | $16,863 23.8% |
| Gross profit (NT$mn) | $1,499 45.2% | $1,239 45.1% | $1,276 45.0% | $1,387 45.1% | $1,242 42.1% | $1,559 43.4% | $5,567 45.4% | $5,272 43.3% | $5,984 43.9% | $7,532 41.5% | $7,550 41.5% | $7,156 42.4% |
| GMs (%) | $271 8.2% | $98 3.6% | $129 4.6% | $340 | $239 8.1% | $306 8.5% | 9.6% | $849 7.0% | $1,099 8.1% | $2,125 11.7% | $2,191 12.1% | 12.1% |
| Operating profit (NT$mn) | 11.1% | $1,176 | $2,038 | |||||||||
| OpMs (%) Pretax margins (%) | $382 11.5% | 7.6% | $192 6.8% | 15.7% | 13.0% | 10.3% | $1,651 13.5% | $1,326 10.9% | 11.3% | $2,632 14.5% | $2,700 14.9% | $2,348 13.9% |
| Pretax profit (NT$mn) | $210 | $485 | $383 | $369 | $1,539 | |||||||
| Tax expense (NT$mn) Tax rate (%) | -$184 48.2% | -$82 38.9% | -$47 24.7% | -$153 31.5% | -$126 33.0% | -$88 23.8% | -$595 36.1% | -$464 35.0% | -$518 33.7% | -$790 30.0% | -$811 30.0% | -$619 26.4% |
| Net profit (NT$mn) | $145 | |||||||||||
| $128 | $332 | $282 | ||||||||||
| $198 | $257 | $1,056 | $862 | $1,021 | $1,842 | $1,889 | $1,729 | |||||
| Net margins (%) | 6.0% | 4.7% | 5.1% | 10.8% | 8.7% | 7.8% | 8.6% | 7.1% | 7.5% | 10.1% | 10.4% | 10.3% |
| EPS (NT$) | $0.76 | $0.49 | $0.44 | $1.27 | $0.99 | $1.16 | $4.05 | $3.31 | $4.09 | $7.07 | $7.25 | $6.48 |
Source: BofA Global Research estimates, Bloomberg
BofA GLOBAL RESEARCH
Price objective basis & risk
Faraday (FDYTF)
Our PO NT$120 is derived from 17x 2027E P/E, which is at low-to-mid-end of the company's historical valuation range. In our view, the multiple is backed by gross margin expansion from 27% in 2025 to over 40% in 2026/27 while revenue would slow down from a peak in 2025.
Upside risks: (1) faster-than-expected progress in new businesses including advanced nodes and advanced packaging, and (2) a better margin profile thanks to more stringent opex and enhanced value-add to customers
Downside risks: (1) downturn in foundry business cycle, given that the firm adopts a cost-plus model for turnkey (mass production) business, and (2) slower qualification and ramp-up of the yield rate for advanced packaging business