PDF 原檔：報告_BofA_智原3035_3Q26_20261027_original.pdf
圖片清單（已驗證 2026-10-28）
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56KB | 真資料圖 | FDYTF 股價與 PO 階梯圖，2024-01 至 2026-10，標示歷次評等與 PO 變更（如 2025-08-14 U／PO NT$120、2025-10-28 PO NT$135、2026-03-13 PO NT$120），股價約 NT$150–450（財務／股價圖，不嵌 lib） |
原始內容
Faraday
Valuation remains stretched; timely revenue delivery to be key watchpoint
Reiterate Rating: UNDERPERFORM | PO: 120.00 TWD | Price: 191.50 TWD
3Q26 sales beat on record MCU mass production revenue
Faraday's 3Q26 sales was +11% QoQ, above BofAe/street of -7%/-3% QoQ and its guidance of -single-digit% QoQ, mainly driven by strong MP growth (+19.6% QoQ) on record-high MCU sales and accelerating ASIC shipments, coupled with continued IP revenue strength more than offsetting deferred NRE revenue recognition. 3Q26 GM dropped by 270 bps to 42.5% due to product mix, while increased Opex from salary adjustments brought 3Q26 EPS to NT$1.07 (BofAe/Street NT$1.27/0.66).
IP and NRE strength support 4Q26 margin improvement
4Q26 sales is guided to remain flat QoQ, as growth in IP and NRE revenue offset decline in MP revenue on lower MCU shipments following a high base in 3Q26. With sustained strength in IP segment underpinned by higher wafer pricing and utilization, along with NRE milestone delivery, 4Q26 GM should edge up to 43.7% on better mix, in our view.
High-end MCU and advanced projects drive 2027 growth
We now forecast Faraday's 2026/2027 sales to -27%/+36% YoY, supported by healthy demand for high-end MCU and gradual ramp in advanced projects. While the design change from 4nm to 2nm for a US customer's ASIC project should bring greater contract value, Faraday's capability to deliver on schedule and achieve timely revenue recognition remains key watchpoint. On higher advanced packaging/nodes projects contribution through 2027, GM should decline slightly from 44.5% in 2026 to 42.9% in 2027.
Reiterate Underperform with unchanged NT$120 PO
We lower our 2026 EPS from NT$4.05 to NT$3.19 on higher Opex and trim 2027-28 EPS by 3-10% as we remain cautious on the timing of NRE/MP recognition for advanced projects given the increased design complexity and constrained OSAT capacity. We reiterate Underperform rating with unchanged PO of NT$120 on 17x 2027E P/E. Current valuation appears stretched with shares trading at 28x '27 P/E (vs. historical 13-42x).
| Estimates (Dec) (NT$) | 2024A | 2025A | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|
| Net Income (Adjusted - mn) | 1,041 | 731 | 832 | 1,790 | 2,060 |
| EPS | 4.18 | 2.81 | 3.19 | 6.87 | 7.91 |
| EPS Change (YoY) | -34.6% | -32.9% | 13.7% | 115.2% | 15.1% |
| Dividend / Share | 3.00 | 1.80 | 2.23 | 4.81 | 5.53 |
| Free Cash Flow / Share | 11.06 | 2.95 | 8.84 | 10.25 | 11.47 |
| Valuation (Dec) | |||||
| P/E | 45.78x | 68.23x | 60.00x | 27.88x | 24.22x |
| Dividend Yield | 1.57% | 0.940% | 1.17% | 2.51% | 2.89% |
| EV / EBITDA* | 22.65x | 28.76x | 23.54x | 13.94x | 12.52x |
| Free Cash Flow Yield* | 5.52% | 1.54% | 4.62% | 5.35% | 5.99% |
| * For full definitions of iQmethod 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
27 October 2026
Equity
| Key Changes (NT$) | Previous | Current |
|---|---|---|
| 2026E EPS | 4.05 | 3.19 |
| 2027E EPS | 7.07 | 6.87 |
| 2028E EPS | 8.77 | 7.91 |
| 2026E EBITDA (m) | 2,153.4 | 1,809.6 |
| 2027E EBITDA (m) | 3,101.9 | 3,056.1 |
| 2028E EBITDA (m) | 3,683.9 | 3,400.4 |
Haas Liu >> Research Analyst Merrill Lynch (Taiwan) +886 2 2376 3727
Mike Yang >> Research Analyst Merrill Lynch (Taiwan) mike.c.yang@bofa.com
Cathy Hsu >> Research Analyst Merrill Lynch (Taiwan) cathy.hsu3@bofa.com
Stock Data
| Price | 191.50 TWD |
| Price Objective | 120.00 TWD |
| Date Established | 13-Mar-2026 |
| Investment Opinion | C-3-7 |
| 52-Week Range | 139.00 TWD-245.00 |
| TWD | |
| Mrkt Val / Shares Out (mn) | 1,530 USD / 260.6 |
| Market Value (mn) | 49,895 TWD |
| Average Daily Value (mn) | 27.97 USD |
| Free Float | 81.7% |
| BofA Ticker / Exchange | FDYTF / TAI |
| Bloomberg / Reuters | 3035 TT / 3035.TW |
| ROE (2026E) | 5.2% |
| Net Dbt to Eqty (Dec-2025A) | -49.5% |
IP: Intellectual property
MP: Mass Production
NRE: Non-Recurring Engineering
MCU: Microcontroller Unit
OSAT: Outsourced Semiconductor
iQprofile SM Faraday
| Key Income Statement Data (Dec) | 2024A | 2025A | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|
| (NT$ Millions) | |||||
| Sales | 11,065 | 17,993 | 13,212 | 17,946 | 20,050 |
| Gross Profit | 5,051 | 4,857 | 5,874 | 7,702 | 8,496 |
| Sell General & Admin Expense | (1,024) | (1,094) | (1,549) | (1,653) | (1,804) |
| Operating Profit | 1,071 | 552 | 862 | 2,136 | 2,481 |
| Net Interest & Other Income | 272 | 449 | 627 | 696 | 707 |
| Associates | NA | NA | NA | NA | NA |
| Pretax Income | 1,343 | 1,002 | 1,489 | 2,832 | 3,188 |
| Tax (expense) / Benefit | (271) | (229) | (359) | (683) | (768) |
| Net Income (Adjusted) | 1,041 | 731 | 832 | 1,790 | 2,060 |
| Average Fully Diluted Shares Outstanding | 258 | 261 | 261 | 261 | 261 |
| Key Cash Flow Statement Data | |||||
| Net Income | 1,041 | 731 | 832 | 1,790 | 2,060 |
| Depreciation & Amortization | 810 | 929 | 948 | 920 | 920 |
| Change in Working Capital | 1,295 | (580) | (339) | (220) | (151) |
| Deferred Taxation Charge | NA | NA | NA | NA | NA |
| Other Adjustments, Net | (246) | (151) | 1,079 | 360 | 360 |
| Cash Flow from Operations | 2,901 | 930 | 2,519 | 2,849 | 3,189 |
| Capital Expenditure | (148) | (162) | (215) | (179) | (200) |
| (Acquisition) / Disposal of Investments | (911) | (755) | (4,988) | 0 | 0 |
| Other Cash Inflow / (Outflow) | (1,503) | (183) | 5,018 | (800) | (800) |
| Cash Flow from Investing | (2,562) | (1,100) | (185) | (979) | (1,000) |
| Shares Issue / (Repurchase) | 3,720 | 0 | 0 | 0 | 0 |
| Cost of Dividends Paid | (1,118) | (782) | 0 | (582) | (1,253) |
| Cash Flow from Financing | 2,178 | (832) | (134) | (582) | (1,253) |
| Free Cash Flow | 2,752 | 768 | 2,304 | 2,670 | 2,989 |
| Net Debt | (7,886) | (6,697) | (9,132) | (10,420) | (11,356) |
| Change in Net Debt | (2,418) | 1,171 | (2,420) | (1,288) | (936) |
| Key Balance Sheet Data | |||||
| Property, Plant & Equipment | 582 | 617 | 708 | 708 | 708 |
| Other Non-Current Assets | 6,724 | 7,115 | 11,724 | 12,234 | 12,854 |
| Trade Receivables | 1,054 | 1,726 | 1,767 | 2,508 | 2,527 |
| Cash & Equivalents | 8,334 | 7,286 | 9,611 | 10,898 | 11,834 |
| Other Current Assets | 1,636 | 2,188 | 3,483 | 4,503 | 5,001 |
| Total Assets | 18,330 | 18,932 | 27,292 | 30,851 | 32,924 |
| Long-Term Debt | 0 | 0 | 1 | 1 | 1 |
| Other Non-Current Liabilities | 984 | 719 | 833 | 833 | 833 |
| Short-Term Debt | 448 | 589 | 478 | 478 | 478 |
| Other Current Liabilities | 3,425 | 4,096 | 5,785 | 7,921 | 9,059 |
| Total Liabilities | 4,857 | 5,403 | 7,096 | 9,232 | 10,370 |
| Total Equity | 13,473 | 13,529 | 20,196 | 21,619 | 22,554 |
| Total Equity & Liabilities | 18,330 | 18,932 | 27,292 | 30,851 | 32,924 |
| iQmethod SM - Bus Performance* | |||||
| Return On Capital Employed | 7.4% | 3.3% | 4.0% | 7.6% | 8.4% |
| Return On Equity | 9.2% | 5.6% | 5.2% | 9.1% | 10.0% |
| Operating Margin | 9.7% | 3.1% | 6.5% | 11.9% | 12.4% |
| EBITDA Margin | 17.0% | 8.2% | 13.7% | 17.0% | 17.0% |
| iQmethod SM - Quality of Earnings* | |||||
| Cash Realization Ratio | 2.8x | 1.3x | 3.0x | 1.6x | 1.5x |
| Asset Replacement Ratio | 1.0x | 0.8x | 1.0x | 0.8x | 0.9x |
| Tax Rate (Reported) | 20.2% | 22.8% | 24.1% | 24.1% | 24.1% |
| Net Debt-to-Equity Ratio | -58.5% | -49.5% | -45.2% | -48.2% | -50.4% |
| Interest Cover | NM | NM | NM | NM | NM |
Key Metrics
- For full definitions of iQmethod 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
2.6x
lül
Focus table
Exhibit 1: Faraday 3Q26-4Q26 and 2026-27 estimates BofAe vs. street
Our EPS estimates for '26/27 are now NT$3.19/6.87
| 3Q26E - Actual | 3Q26E - Old | 3Q26E - Street | 4Q26E - BofAe | 4Q26E - Old | 4Q26E - Street | 2026E - BofAe | 2026E - Old | 2026E - Street | 2027E - BofAe | 2027E - Old | 2027E - Street | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales (NT$mn) | $3,664 10.6% | $3,079 -7.1% | $3,235 -2.4% | $3,646 -0.5% | $3,293 6.9% | $3,648 12.8% | $13,212 -26.6% | $12,275 -31.8% | $12,810 -28.8% | $17,946 35.8% | $18,155 47.9% | $16,307 27.3% |
| Sales QoQ / YoY (%) Gross profit (NT$mn) | $1,557 | $1,387 | $1,448 | $1,594 | $1,457 | $1,618 | $5,874 | $5,567 | $5,810 | $7,702 | $7,532 | $7,121 |
| GMs (%) | 42.5% | 45.1% | 44.8% | 43.7% | 44.2% | 44.4% | 44.5% | 45.4% | 45.4% | 42.9% | 41.5% | 43.7% |
| Operating profit (NT$mn) | $214 | $340 | $238 | $281 | $469 | $409 | $862 | $1,176 | $1,011 | $2,136 | $2,125 | $2,019 |
| OpMs (%) | 5.8% | 11.1% | 7.3% | 7.7% | 14.2% | 11.2% | 6.5% | 9.6% | 7.9% | 11.9% | 11.7% | 12.4% |
| Pretax profit (NT$mn) | $480 | $485 | $392 | $449 | $606 | $559 | $1,489 | $1,651 | $1,373 | $2,832 | $2,632 | $2,324 |
| Pretax margins (%) | 13.1% | 15.7% | 12.1% | 12.3% | 18.4% | 15.3% | 11.3% | 13.5% | 10.7% | 15.8% | 14.5% | 14.3% |
| Tax expense (NT$mn) | -$201 | -$153 | -$78 | -$198 | -$184 | -$137 | -$658 | -$595 | -$510 | -$1,043 | -$790 | -$700 |
| Tax rate (%) | 41.9% | 31.5% | 19.8% | 44.2% | 30.4% | 24.6% | 44.2% | 36.1% | 37.1% | 36.8% | 30.0% | 30.1% |
| Net profit (NT$mn) | $279 | $332 | $315 | $250 | $422 | $421 | $832 | $1,056 | $864 | $1,790 | $1,842 | $1,625 |
| Net margins (%) | 7.6% | 10.8% | 9.7% | 6.9% | 12.8% | 11.5% | 6.3% | 8.6% | 6.7% | 10.0% | 10.1% | 10.0% |
| EPS (NT$) | $1.07 | $1.27 | $0.66 | $0.96 | $1.62 | $1.32 | $3.19 | $4.05 | $3.25 | $6.87 | $7.07 | $6.09 |
Source: BofA Global Research estimates, Bloomberg
il 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