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| 檔名 | size | 分類 | 親眼所見內容 |
|---|---|---|---|
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94KB | 真資料圖 | 「Key Changes」表格＋Price Objective/EPS/EBITDA 新舊值對照（2026-28E） |
原始內容
Unimicron
Benign outlook remains given technology migration & expansion; 2Q ahead on GM
Reiterate Rating: BUY | PO: 1,200 TWD | Price: 688.00 TWD
2Q26 beat on gross margin and non-op
The company reported 2Q26 results after market close on 28 July, with net income reaching NT$13.1bn (EPS of NT$8.5), outperforming consensus by 138%. The upside was mainly attributable to a 290bp gross margin beat and gains from non-operating investments. AI related products contribute 60+% of total revenue, and the mix is expected to reach ~70% in 2H26.
Continued expansion in KuangFu/Yangmei for ABF
On capacity expansion and capex plan, Unimicron increased its long lead-time equipment capex to NT$31.6bn from NT$14.1bn previously. Management indicated that the equipment will be deployed at the KF2 and YM2 plants. Management also noted that construction of the YM2 plant has already commenced in 2Q26, while construction of the KF2 plant is expected to begin in late 2026 or early 2027.
Reasons to be more positive on EMIB-T adoption
On EMIB-T, the firm stated a higher % of BoM costs by substrate, given the removal of interposer vs CoWoS. We further believe the risk associated with the investment will be manageable, given that 1) the profitability will be guaranteed when the yield rate is lower than 50%; and 2) 80+% of the equipment invested for EMIB-T will be fungible to other technologies. Given the heavy R&D/investment for advanced technologies, we expect GM for ABF substrate to reach ~50% (or higher) in longer-term (from 2028).
Reiterate Buy with PO NT$1,200
We reiterate our Buy on Unimicron in view of widening S/D (supply/demand) gap in ABF substrate. We raise our 2026E EPS forecast by 28%, reflecting the substantial nonoperating earnings uplift in 2Q26. For 2027-28E, we adjust our EPS estimates by 1-2% to incorporate the updated business outlook and the share base increase following the issuance of GDRs (Global Depositary Receipts). We lower our PO to NT$1,200 from NT$1,400 based on an unchanged 33x P/E, incorporating higher opex and lower nonoperating income assumptions for the 2H27 -1H28E valuation period.
| Estimates (Dec) (NT$) | 2024A | 2025A | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|
| Net Income (Adjusted - mn) | 5,082 | 6,673 | 31,481 | 51,287 | 76,712 |
| EPS | 3.34 | 4.38 | 19.81 | 32.28 | 48.28 |
| EPS Change (YoY) | -57.6% | 31.1% | 352.3% | 62.9% | 49.6% |
| Consensus EPS (Visible Alpha) | 15.75 | 34.18 | 55.02 | ||
| Dividend / Share | 1.50 | 2.00 | 9.90 | 16.10 | 24.10 |
| Free Cash Flow / Share | (10.15) | (6.13) | (0.490) | 19.79 | 43.94 |
| Valuation (Dec) | |||||
| P/E | 205.94x | 157.05x | 34.73x | 21.32x | 14.25x |
| Dividend Yield | 0.218% | 0.291% | 1.44% | 2.34% | 3.50% |
| EV / EBITDA* | 48.20x | 95.65x | 20.75x | 11.35x | 8.14x |
| Free Cash Flow Yield* | -1.41% | -0.854% | -0.071% | 2.88% | 6.39% |
| * For full definitions of iQ method SM measures, see page 7. |
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 8 to 10. Analyst Certification on page 5. Price
29 July 2026
Equity
| Key Changes (NT$) | Previous | Current |
|---|---|---|
| Price Obj. | 1,400.00 | 1,200.00 |
| 2026E EPS | 15.52 | 19.81 |
| 2027E EPS | 31.52 | 32.28 |
| 2028E EPS | 48.57 | 48.28 |
| 2026E EBITDA (m) | 48,033.0 | 51,909.0 |
| 2027E EBITDA (m) | 87,216.3 | 94,869.5 |
| 2028E EBITDA (m) | 123,825.3 | 132,253.0 |
Mike Yang >> Research Analyst Merrill Lynch (Taiwan) +886 2 2376 3729
mike.c.yang@bofa.com
Stock Data
| Price | 688.00 TWD |
|---|---|
| Price Objective | 1,200 TWD |
| Date Established | 29-Jul-2026 |
| Investment Opinion | C-1-7 |
| 52-Week Range | 128.50 TWD-1,130 |
| TWD | |
| Mrkt Val / Shares Out (mn) | 33,705 USD / 1,588.9 |
| Market Value (mn) | 1,093,145 TWD |
| Average Daily Value (mn) | 610.27 USD |
| Free Float | 83.1% |
| BofA Ticker / Exchange | UMCRF / TAI |
| Bloomberg / Reuters | 3037 TT / 3037.TW |
| ROE (2026E) | 26.0% |
| Net Dbt to Eqty (Dec-2025A) | -18.7% |
EMIB-T - embedded multi-die interconnect bridge through silicon via
CoWoS - chip on wafer on substrat
BoM - bill of materials
AI - artificial intelligence
ABF - Ajinomoto build-up film
YM -Yangmei
KF -KuangFu
iQ profile SM Unimicron
| Key Income Statement Data (Dec) | 2024A | 2025A | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|
| (NT$ Millions) | |||||
| Sales | 115,373 | 131,241 | 188,093 | 265,345 | 333,843 |
| Gross Profit | 16,315 | 18,292 | 47,902 | 88,486 | 127,150 |
| Sell General &Admin Expense | (6,156) | (6,619) | (9,031) | (9,868) | (10,975) |
| Operating Profit | 5,117 | 6,674 | 31,858 | 70,650 | 106,417 |
| Net Interest &Other Income | 2,204 | 2,153 | 8,794 | 1,453 | 1,553 |
| Associates | NA | NA | NA | NA | NA |
| Pretax Income | 7,321 | 8,827 | 40,652 | 72,103 | 107,970 |
| Tax (expense) / Benefit | (1,765) | (1,277) | (6,908) | (14,572) | (21,933) |
| Net Income (Adjusted) | 5,082 | 6,673 | 31,481 | 51,287 | 76,712 |
| Average Fully Diluted Shares Outstanding | 1,521 | 1,523 | 1,589 | 1,589 | 1,589 |
| Key Cash Flow Statement Data | |||||
| Net Income | 5,082 | 6,673 | 31,481 | 51,287 | 76,712 |
| Depreciation &Amortization | 17,231 | 4,587 | 20,051 | 24,220 | 25,836 |
| Change in Working Capital | (5,229) | (4,449) | (12,017) | (16,328) | (14,471) |
| Deferred Taxation Charge | NA | NA | NA | NA | NA |
| Other Adjustments, Net | (6,791) | 8,156 | 13,408 | 7,271 | 11,748 |
| Cash Flow from Operations | 10,294 | 14,967 | 52,922 | 66,451 | 99,825 |
| Capital Expenditure | (25,735) | (24,307) | (53,700) | (35,000) | (30,000) |
| (Acquisition) / Disposal of Investments | (3,050) | 1,730 | 0 | 0 | 0 |
| Other Cash Inflow / (Outflow) | (445) | (440) | 0 | 0 | 0 |
| Cash Flow from Investing | (29,230) | (23,018) | (53,700) | (35,000) | (30,000) |
| Shares Issue / (Repurchase) | 0 | 2,150 | 0 | 0 | 0 |
| Cost of Dividends Paid | (4,575) | (2,295) | (3,178) | (15,731) | (25,582) |
| Cash Flow from Financing | 8,336 | 19,073 | (3,178) | (15,731) | (25,582) |
| Free Cash Flow | (15,441) | (9,340) | (778) | 31,451 | 69,825 |
| Net Debt | (14,657) | (20,008) | (16,052) | (31,772) | (76,014) |
| Change in Net Debt | 22,021 | 3,162 | 3,956 | (15,720) | (44,243) |
| Key Balance Sheet Data | |||||
| Property, Plant &Equipment | 120,536 | 125,866 | 159,515 | 170,296 | 174,460 |
| Other Non-Current Assets | 23,442 | 24,628 | 29,169 | 29,169 | 29,169 |
| Trade Receivables | 23,617 | 27,570 | 39,513 | 55,741 | 70,131 |
| Cash &Equivalents | 43,753 | 54,872 | 50,916 | 66,636 | 110,878 |
| Other Current Assets | 19,499 | 22,856 | 27,150 | 32,929 | 37,631 |
| Total Assets | 230,847 | 255,792 | 306,262 | 354,770 | 422,268 |
| Long-Term Debt | 21,909 | 24,019 | 24,019 | 24,019 | 24,019 |
| Other Non-Current Liabilities | NA | NA | NA | NA | NA |
| Short-Term Debt | 7,188 | 10,845 | 10,845 | 10,845 | 10,845 |
| Other Current Liabilities | 102,163 | 113,921 | 136,088 | 149,039 | 165,408 |
| Total Liabilities | 131,260 | 148,785 | 170,952 | 183,903 | 200,272 |
| Total Equity | 99,587 | 107,007 | 135,310 | 170,867 | 221,996 |
| Total Equity &Liabilities | 230,847 | 255,792 | 306,262 | 354,770 | 422,268 |
| iQ method SM - Bus Performance* | |||||
| Return On Capital Employed | 3.2% | 4.2% | 16.9% | 30.0% | 36.7% |
| Return On Equity | 5.2% | 6.5% | 26.0% | 33.5% | 39.1% |
| Operating Margin | 4.4% | 5.1% | 16.9% | 26.6% | 31.9% |
| EBITDA Margin | 19.4% | 8.6% | 27.6% | 35.8% | 39.6% |
| iQ method SM - Quality of Earnings* | |||||
| Cash Realization Ratio | 2.0x | 2.2x | 1.7x | 1.3x | 1.3x |
| Asset Replacement Ratio | 1.5x | 5.3x | 2.7x | 1.4x | 1.2x |
| Tax Rate (Reported) | 24.1% | 14.5% | 17.0% | 20.2% | 20.3% |
| Net Debt-to-Equity Ratio | -14.7% | -18.7% | -11.9% | -18.6% | -34.2% |
| Interest Cover | 4.0x | 5.2x | 25.0x | NM | NM |
Key Metrics
- For full definitions of iQ method SM measures, see page 7.
Company Sector
Electronics
Company Description
Unimicron (3037 TT) was founded in 1990 and listed on the Taiwan Stock Exchange in 1998. The firm manufactures a wide range of PCB and IC substrates for consumer electronics, industrial, and automotive. It is also the leading ABF supplier globally. The company merged with Phoenix Precision Technology (PPT, delisted) in 2009 and expanded its exposure in the IC substrate business. UMC is the biggest shareholder in Unimicron with a 13.3% stake.
Investment Rationale
We have a Buy rating on Unimicron, in view of strong demand from AI accelerators (especially ASICs) to boost the utilization rate of ABF substrate business from 2H26, which should also in turn bolster the margin profile and profitability toward 2027.
Stock Data
Price to Book Value
8.1x
Exhibit 1: 2Q26 result review
2Q26 EPS was ahead by 138% vs consensus given the beat in gross margin and more significant non-op gains
| (NT$mn) | 2Q25A | 1Q26A | 2Q26A | QoQ% | YoY% | BofAe | Diff (%) | Consensus | Diff (%) |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 32,466 | 37,446 | 42,890 | 14.5% | 32.1% | 41,524 | 3.3% | 42,739 | 0.4% |
| Gross profit | 4,246 | 6,726 | 10,638 | 58.2% | 150.6% | 8,775 | 21.2% | 9,365 | 13.6% |
| Gross margin (%) | 13.1% | 18.0% | 24.8% | 6.8 ppt | 11.7 ppt | 21.1% | 3.7 ppt | 21.9% | 2.9 ppt |
| Operating Income | 1,509 | 2,757 | 6,651 | 141.3% | NM | 5,154 | 29.0% | 5,695 | 16.8% |
| Operating margin (%) | 4.6% | 7.4% | 15.5% | 8.1 ppt | 10.9 ppt | 12.4% | 3.1 ppt | 13.3% | 2.2 ppt |
| Pre-tax Income | 357 | 6,299 | 15,576 | 147.3% | NM | 5,946 | 162.0% | 7,033 | 121.5% |
| Pre-tax margin (%) | 1.1% | 16.8% | 36.3% | 19.5 ppt | 35.2 ppt | 14.3% | 22.0 ppt | 16.5% | 19.9 ppt |
| Net Income | 30 | 5,043 | 13,115 | 160.1% | NM | 4,045 | NM | 5,503 | 138.3% |
| Net margin (%) | 0.1% | 13.5% | 30.6% | 17.1 ppt | 30.5 ppt | 9.7% | 20.8 ppt | 12.9% | 17.7 ppt |
| EPS (NT$) | 0.02 | 3.28 | 8.53 | 160.1% | NM | 2.66 | NM | 3.58 | 138.3% |
Source: BofA Global Research estimates, company data, Bloomberg
Exhibit 2: Earnings estimate change
We raise 2026E EPS by 28% after baking in 2Q26 results, while we slightly tweak 2027-28E EPS by 1-2%
| (NT$mn) | BofA 26 (E) | BofA 26 (E) | BofA 26 (E) | BofA 27 (E) | BofA 27 (E) | BofA 27 (E) | BofA 28 (E) | BofA 28 (E) | BofA 28 (E) |
|---|---|---|---|---|---|---|---|---|---|
| New | Old | Diff (%) | New | Old | Diff (%) | New | Old | Diff (%) | |
| Total sales | 188,093 | 181,361 | 3.7 | 265,345 | 254,419 | 4.3 | 333,843 | 320,669 | 4.1 |
| Gross profit | 47,902 | 41,990 | 14.1 | 88,486 | 79,411 | 11.4 | 127,150 | 117,478 | 8.2 |
| Gross margin | 25.5% | 23.2% | 2.3 ppt | 33.3% | 31.2% | 2.1 ppt | 38.1% | 36.6% | 1.5 ppt |
| Operating profit | 31,858 | 26,819 | 18.8 | 70,650 | 63,164 | 11.9 | 106,417 | 99,369 | 7.1 |
| Operating margin | 16.9% | 14.8% | 2.1 ppt | 26.6% | 24.8% | 1.8 ppt | 31.9% | 31.0% | 0.9 ppt |
| Pretax income | 40,652 | 32,736 | 24.2 | 72,103 | 68,531 | 5.2 | 107,970 | 104,736 | 3.1 |
| Pretax margin | 21.6% | 18.1% | 3.6 ppt | 27.2% | 26.9% | 0.2 ppt | 32.3% | 32.7% | -0.3 ppt |
| Net income | 31,481 | 23,639 | 33.2 | 51,287 | 48,018 | 6.8 | 76,712 | 73,981 | 3.7 |
| Net margin | 16.7% | 13.0% | 3.7 ppt | 19.3% | 18.9% | 0.5 ppt | 23.0% | 23.1% | -0.1 ppt |
| EPS (NT$) | 19.81 | 15.52 | 27.7 | 32.28 | 31.52 | 2.4 | 48.28 | 48.57 | -0.6 |
Source: BofA Global Research estimates
Exhibit 3: BofAe vs consensus
We are 8%/1% ahead of consensus for 2027/28E operating profit, given the assumptions of stronger gross margin and operating leverage
| (NT$mn) | 2026E | 2026E | 2026E | 2027E | 2027E | 2027E | 2028E | 2028E | 2028E |
|---|---|---|---|---|---|---|---|---|---|
| BofAe | Consensus | Diff (%) | BofAe | Consensus | Diff (%) | BofAe | Consensus | Diff (%) | |
| Total sales | 188,093 | 184,396 | 2.0 | 265,345 | 265,798 | -0.2 | 333,843 | 349,156 | -4.4 |
| Gross profit | 47,902 | 43,005 | 11.4 | 88,486 | 85,497 | 3.5 | 127,150 | 118,992 | 6.9 |
| Gross margin | 25.5% | 23.3% | 2.1 ppt | 33.3% | 32.2% | 1.2 ppt | 38.1% | 34.1% | 4.0 ppt |
| Operating profit | 31,858 | 26,831 | 18.7 | 70,650 | 65,240 | 8.3 | 106,417 | 105,856 | 0.5 |
| Operating margin | 16.9% | 14.6% | 2.4 ppt | 26.6% | 24.5% | 2.1 ppt | 31.9% | 30.3% | 1.6 ppt |
| Pretax income | 40,652 | 33,001 | 23.2 | 72,103 | 67,768 | 6.4 | 107,970 | 106,906 | 1.0 |
| Pretax margin | 21.6% | 17.9% | 3.7 ppt | 27.2% | 25.5% | 1.7 ppt | 32.3% | 30.6% | 1.7 ppt |
| Net income | 31,481 | 23,088 | 36.4 | 51,287 | 53,072 | -3.4 | 76,712 | 85,426 | -10.2 |
| Net margin | 16.7% | 12.5% | 4.2 ppt | 19.3% | 20.0% | -0.6 ppt | 23.0% | 24.5% | -1.5 ppt |
| EPS (NT$) | 19.81 | 14.53 | 36.4 | 32.28 | 33.40 | -3.4 | 48.28 | 53.76 | -10.2 |
Source: BofA Global Research estimates, Bloomberg
BofA GLOBAL RESEARCH
BofA GLOBAL RESEARCH
BofA GLOBAL RESEARCH
Exhibit 4: Income statement
We expect gross margin expansion toward 33%/38% in 2027/28, along with 30+% revenue CAGR during 2026-28
| (NT$mn) | 1Q26 | 2Q26 | 3Q26E | 4Q26E | 1Q27E | 2Q27E | 3Q27E | 4Q27E | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 37,446 | 42,890 | 50,415 | 57,342 | 59,357 | 62,041 | 68,972 | 74,974 | 131,241 | 188,093 | 265,345 | 333,843 |
| COGS | -30,720 | -32,252 | -36,792 | -40,427 | -41,549 | -42,296 | -45,374 | -47,639 | -112,949 | -140,191 | -176,858 | -206,693 |
| Gross Profit | 6,726 | 10,638 | 13,623 | 16,915 | 17,807 | 19,746 | 23,599 | 27,335 | 18,292 | 47,902 | 88,486 | 127,150 |
| Operating | -3,969 | -3,987 | -4,026 | -4,061 | -4,113 | -4,382 | -4,592 | -4,749 | -11,618 | -16,044 | -17,837 | -20,733 |
| expenses | ||||||||||||
| SG&A | -2,382 | -2,130 | -2,227 | -2,292 | -2,288 | -2,386 | -2,568 | -2,626 | -6,619 | -9,031 | -9,868 | -10,975 |
| R&D | -1,587 | -1,857 | -1,799 | -1,769 | -1,825 | -1,997 | -2,024 | -2,123 | -4,999 | -7,012 | -7,968 | -9,758 |
| Operating | 2,757 | 6,651 | 9,597 | 12,854 | 13,694 | 15,363 | 19,007 | 22,586 | 6,674 | 31,858 | 70,650 | 106,417 |
| income Non-operating | 3,542 | 8,925 | -4,137 | 463 | 1,413 | 1,413 | -687 | -687 | 2,153 | 8,794 | 1,453 | 1,553 |
| Interest income | -319 | -319 | -319 | -319 | -319 | -319 | -319 | -319 | -1,287 | -1,274 | -1,274 | -1,274 |
| Investment | -10 | 9,150 | -4,600 | 0 | 0 | 0 | 0 | 0 | -50 | 4,540 | 0 | 0 |
| income | ||||||||||||
| Others | 3,870 | 94 | 782 | 782 | 1,732 | 1,732 | -368 | -368 | 3,489 | 5,527 | 2,727 | 2,827 |
| Pre-tax profit | 6,299 | 15,576 | 5,461 | 13,317 | 15,107 | 16,776 | 18,320 | 21,899 | 8,827 | 40,652 | 72,103 | 107,970 |
| Tax | -918 | -2,234 | -1,092 | -2,663 | -2,266 | -3,020 | -4,030 | -5,256 | -1,277 | -6,908 | -14,572 | -21,933 |
| Net income | 5,043 | 13,115 | 3,893 | 9,430 | 11,592 | 12,369 | 12,695 | 14,631 | 6,673 | 31,481 | 51,287 | 76,712 |
| EPS (NT$) | 3.28 | 8.53 | 2.45 | 5.93 | 7.30 | 7.78 | 7.99 | 9.21 | 4.38 | 19.81 | 32.28 | 48.28 |
| Margin | ||||||||||||
| Gross margin | 18.0% | 24.8% | 27.0% | 29.5% | 30.0% | 31.8% | 34.2% | 36.5% | 13.9% | 25.5% | 33.3% | 38.1% |
| Operating margin | 7.4% | 15.5% | 19.0% | 22.4% | 23.1% | 24.8% | 27.6% | 30.1% | 5.1% | 16.9% | 26.6% | 31.9% |
| Pre-tax margin | 16.8% | 36.3% | 10.8% | 23.2% | 25.5% | 27.0% | 26.6% | 29.2% | 6.7% | 21.6% | 27.2% | 32.3% |
| Net margin | 13.5% | 30.6% | 7.7% | 16.4% | 19.5% | 19.9% | 18.4% | 19.5% | 5.1% | 16.7% | 19.3% | 23.0% |
| QoQ growth | ||||||||||||
| Revenue | 7.9% | 14.5% | 17.5% | 13.7% | 3.5% | 4.5% | 11.2% | 8.7% | ||||
| Gross profit | 22.9% | 58.2% | 28.1% | 24.2% | 5.3% | 10.9% | 19.5% | 15.8% | ||||
| Operating profit | 16.5% | 141.3% | 44.3% | 33.9% | 6.5% | 12.2% | 23.7% | 18.8% | ||||
| Pre-tax profit | 51.8% | 147.3% | -64.9% | 143.9% | 13.4% | 11.0% | 9.2% | 19.5% | ||||
| Net profit | 42.7% | 160.1% | -70.3% | 142.2% | 22.9% | 6.7% | 2.6% | 15.3% | ||||
| YoY growth | ||||||||||||
| Revenue | 24.5% | 32.1% | 48.3% | 65.3% | 58.5% | 44.7% | 36.8% | 30.7% | 13.8% | 43.3% | 41.1% | 25.8% |
| Gross profit | 67.1% | 150.6% | 199.5% | 209.1% | 164.8% | 85.6% | 73.2% | 61.6% | 12.1% | 161.9% | 84.7% | 43.7% |
| Operating profit | 117.6% | 340.6% | 526.2% | 443.3% | 396.8% | 131.0% | 98.0% | 75.7% | 30.4% | 377.3% | 121.8% | 50.6% |
| Pre-tax profit | 358.6% | 4266.1% | 85.3% | 220.8% | 139.8% | 7.7% | 235.5% | 64.4% | 20.6% | 360.5% | 77.4% | 49.7% |
| Net profit | 451.4% | 44196.8% | 77.4% | 166.8% | 129.9% | -5.7% | 226.1% | 55.2% | 31.3% | 371.8% | 62.9% | 49.6% |
Source: BofA Global Research estimates, company data
BofA GLOBAL RESEARCH
Price objective basis & risk
Unimicron (UMCRF)
Our PO of NT$1,200 is based on 33x 2H27-1H28E, which is roughly 1x standard deviation above the historical average of 20x since 2017. In our view, the multiple is appropriate as we expect Unimicron earnings to be supported by its high-end technology offerings, where end market demand seems more resilient.
Upside risks are (1) tighter ABF supply, (2) greater PC and regular server demand, and (3) lower competition pressure.
Downside risks are (1) greater ABF expansion from peers, (2) lower ASP content increase at AI server, and (3) bigger drop in the demand of consumer electronic products.