PDF 原檔：報告_Citi_京元電2449_3Q26_20261105_original.pdf
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113KB | 真資料圖 | Figure 3 KYEC 遠期 P/E band（2012-2026，股價線對 -0.8x／7.4x／15.5x／23.7x／31.8x）與 Figure 4 遠期 P/B band＋ROE（P/B 0.0x／1.3x／2.6x／3.9x／5.2x，右軸 ROE）。屬評價圖，不嵌 lib |
報告_Citi_京元電2449_3Q26_20261105_003.png |
98KB | 真資料圖 | Citi Bull／Base／Bear 情境圖：現價 NT$228.50，Bull NT$350（+53%）、Base NT$286（+25%）、Bear NT$200（-12%），左側為近一年股價走勢。屬股價情境圖，不嵌 lib |
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206KB | 真資料圖 | Citi 京元電評等與目標價歷史（Laura Chen）：股價線＋編號標記，表列 2024-10 至 2026-08 TP（133.33→104.76→156.19→258.10→314.29→380.95→381.00→342.00）；下半為 Short-Term View／Catalyst Watch 歷史。屬評等歷史，不嵌 lib |
_001.png（18KB）價格表現小圖，未列入；<40KB 未逐張驗證，預設裝飾／小圖，未列入。
原始內容
[讀者資訊已遮蔽] citi
05 Nov 2026 13:22:24 ET │ 14 pages
King Yuan Electronics Co (2449.TW)
AI-Driven Capacity Expansion, Supply Chain Diversification and Margin Outlook
CITI'S TAKE
KYEC's 3Q earnings of NT$2.65bn (up 6% QoQ, 15% YoY) with GM/OPM 37.6%/25.8%, in line with Street's estimate but lower than our expectation. The management expect 8-10% QoQ growth in 4Q with slight GM decline due to rising depreciation cost, weaker than expectation. Despite nearterm shortfall due to slower ramp-up for its key customers' new chips, the management see order visibility into next year remains intact. We lower our TP but maintain Buy on the stock.
AI Demand to Drive Significant Capacity Expansion - Nvidia remains the primary growth driver, with AI-related testing capacity expected to double next year, in our view, considering Nvidia's comment on its target of 70% YoY growth into next year. Broadcom and Mediatek are also accelerating equipment orders, while GUC's revenue contribution could see multiple growth. KYEC's growth into next year would be stronger than 2026 considering more significant new AI compute chip ramping. We believe Nvidia remains the largest customer followed by Google's ASIC providers including Mediatek, Broadcom and GUC.
Regional Manufacturing Expansion and Consignment Model - KYEC is expanding its manufacturing footprints across Taiwan, the US and Singapore. US operations are expected to ramp progressively, supported by a consignment model under customers, particularly Nvidia, funding equipment investments. The evolving regional manufacturing structure should enhance supply chain resilience while reducing the manufacturer's direct capital exposure. ·
Continued evolving AI chip to support long-term growth. Nvidia's transition toward Rubin, Rubin Ultra, and subsequent architectures should create incremental opportunities for testing service suppliers. Increasing chip dimensions, more complex architectures, and broader adoption of SoIC packaging are expected to require significant upgrades in testing processes, handlers, and equipment configurations. More substantial testing process upgrade could emerge from late 2027 onward as next-generation products enter production. Meanwhile, next generation TPU development and testing preparations are progressing, supporting longer-term product diversification and equipment demand beyond the current AI capacity expansion cycle.
Earnings Summary
| Year to 31 Dec | Net Profit (NT$M) | Diluted EPS (NT$) | EPS growth (%) | P/E (x) | P/B (x) | ROE (%) | Yield (%) |
|---|---|---|---|---|---|---|---|
| 2024A | 7,779 | 6.04 | 33.5 | 37.9 | 6.5 | 18.9 | 1.4 |
| 2025A | 11,016 | 8.53 | 41.4 | 26.8 | 5.5 | 23.5 | 1.8 |
| 2026E | 10,096 | 7.85 | -8.0 | 29.1 | 4.3 | 17.1 | 0.4 |
| 2027E | 14,640 | 11.39 | 45.1 | 20.1 | 3.6 | 19.4 | 1.7 |
| 2028E | 22,142 | 17.22 | 51.2 | 13.3 | 2.8 | 23.6 | 3.0 |
Source: Powered by dataCentral
See Appendix A-1 for Analyst Certification, Important Disclosures and Research Analyst Affiliations.
n Buy
Price (05 Nov 26 13:30)
NT$228.50
Target price NT$286.00↓
from NT$342.00
Expected share price return
25.2%
Expected dividend yield
0.4%
Expected total return
25.6%
Market Cap NT$293,367M
US$8,927M
Price Performance (RIC: 2449.TW, BB: 2449 TT)
Laura (Chia Yi) Chen AC
+886-2-8726-9090 laura.cy.chen@citi.com
Jack Chen +886-2-8726-9091 jack1.chen@citi.com
Nicholas Lai +886-2-8726-9093
nicholas.lai@citi.com [讀者資訊已遮蔽] [讀者資訊已遮蔽]
| Profit & Loss (NT$m) | 2449.TW: Fiscal year end 31-Dec - 2024 | 2025 | 2026E | 2027E | 2028E | Valuation ratios | Price: NT$228.50; TP: NT$286.00; Market Cap: NT$293,367m; Recomm: Buy - 2024 | Price: NT$228.50; TP: NT$286.00; Market Cap: NT$293,367m; Recomm: Buy - 2025 | Price: NT$228.50; TP: NT$286.00; Market Cap: NT$293,367m; Recomm: Buy - 2026E | Price: NT$228.50; TP: NT$286.00; Market Cap: NT$293,367m; Recomm: Buy - 2027E | Price: NT$228.50; TP: NT$286.00; Market Cap: NT$293,367m; Recomm: Buy - 2028E |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales revenue | 26,856 | 34,934 | 46,142 | 66,903 | 97,392 | PE (x) | 37.9 | 26.8 | 29.1 | 20.1 | 13.3 |
| Cost of sales | -17,512 | -22,411 | -28,438 | -41,576 | -59,780 | PB (x) | 6.5 | 5.5 | 4.3 | 3.6 | 2.8 |
| Gross profit | 9,344 | 12,522 | 17,704 | 25,327 | 37,612 | EV/EBITDA (x) | 24.8 | 18.8 | 14.1 | 9.7 | 6.0 |
| Gross Margin (%) | 34.8 | 35.8 | 38.4 | 37.9 | 38.6 | FCF yield (%) | -3.6 | 3.7 | -9.3 | -7.3 | -0.9 |
| EBITDA (Adj) | 12,037 | 15,867 | 21,784 | 33,252 | 54,999 | Dividend yield (%) | 1.4 | 1.8 | 0.4 | 1.7 | 3.0 |
| EBITDA Margin (Adj) (%) | 44.8 | 45.4 | 47.2 | 49.7 | 56.5 | Payout ratio (%) | 53 | 47 | 12 | 35 | 40 |
| Depreciation | -5,865 | -6,864 | -9,814 | -15,572 | -28,046 | ROE (%) | 18.9 | 23.5 | 17.1 | 19.4 | 23.6 |
| Amortisation | 0 | 0 | 0 | 0 | 0 | Cashflow (NT$m) | 2024 | 2025 | 2026E | 2027E | 2028E |
| EBIT (Adj) | 6,172 | 9,003 | 11,969 | 17,680 | 26,953 | EBITDA | 12,037 | 15,867 | 21,784 | 33,252 | 54,999 |
| EBIT Margin (Adj) (%) | 23.0 | 25.8 | 25.9 | 26.4 | 27.7 | Working capital | 1,439 | -1,172 | -1,950 | -6,966 | -8,940 |
| Net interest | -362 | 188 | -206 | 98 | 98 | Other | -9,191 | 28,516 | 1,115 | 9,913 | 11,860 |
| Associates | 142 | 620 | 398 | 124 | 124 | Operating cashflow | 4,286 | 43,211 | 20,949 | 36,200 | 57,919 |
| Non-Op/Except/Other Adj | 20 | 819 | 317 | 216 | 216 | Capex | -14,857 | -32,355 | -48,168 | -57,713 | -60,599 |
| Pre-tax profit | 5,972 | 10,629 | 12,479 | 18,118 | 27,391 | Net acq/disposals | 279 | -2,080 | -10,372 | 0 | 0 |
| Tax | -1,211 | -2,624 | -2,379 | -3,463 | -5,233 | Other | 0 | 0 | 0 | 0 | 0 |
| Extraord./Min.Int./Pref.div. | 3,019 | 3,011 | -4 | -16 | -16 | Investing cashflow | -14,578 | -34,436 | -58,540 | -57,713 | -60,599 |
| Reported net profit | 7,779 | 11,016 | 10,096 | 14,640 | 22,142 | Dividends paid | -3,913 | -4,891 | -1,223 | -5,048 | -8,784 |
| Net Margin (%) | 29.0 | 31.5 | 21.9 | 21.9 | 22.7 | Financing cashflow | -1,915 | 7,450 | 27,488 | 21,383 | 8,871 |
| Core NPAT | 7,779 | 11,016 | 10,096 | 14,640 | 22,142 | Net change in cash | -12,206 | 16,226 | -10,104 | -131 | 6,191 |
| Per share data | 2024 | 2025 | 2026E | 2027E | 2028E | Free cashflow to s/holders | -10,571 | 10,856 | -27,220 | -21,514 | -2,680 |
| Reported EPS ($) | 6.04 | 8.53 | 7.85 | 11.39 | 17.22 | ||||||
| Core EPS ($) | 6.04 | 8.53 | 7.85 | 11.39 | 17.22 | ||||||
| DPS ($) | 3.20 | 4.00 | 0.95 | 3.93 | 6.84 | ||||||
| CFPS ($) | 3.33 | 33.47 | 16.29 | 28.16 | 45.06 | ||||||
| FCFPS | -8.20 | 8.41 | -21.16 | -16.74 | -2.09 | ||||||
| ($) BVPS ($) | 35.41 | 41.24 | 52.95 | 64.35 | 81.60 | ||||||
| Wtd avg ord shares (m) | 1,284 | 1,284 | 1,284 | 1,284 | 1,284 | ||||||
| Wtd avg diluted shares (m) | 1,289 | 1,291 | 1,286 | 1,285 | 1,285 | ||||||
| Growth rates | 2024 | 2025 | 2026E | 2027E | 2028E | ||||||
| Sales revenue (%) | -18.7 | 30.1 | 32.1 | 45.0 | 45.6 | ||||||
| EBIT (Adj) (%) | -16.2 | 45.9 | 33.0 | 47.7 | 52.4 | ||||||
| Core NPAT (%) | 33.2 | 41.6 | -8.3 | 45.0 | 51.2 | ||||||
| Core EPS (%) | 33.5 | 41.4 | -8.0 | 45.1 | 51.2 | ||||||
| Balance Sheet (NT$m) | 2024 | 2025 | 2026E | 2027E | 2028E | ||||||
| Cash & cash equiv. | 10,329 | 17,964 | 1,562 | 1,431 | 7,622 | ||||||
| Accounts receivables | 6,032 | 7,203 | 9,153 | 16,119 | 25,060 | ||||||
| Inventory | 848 | 1,159 | 2,833 | 4,686 | 6,924 | ||||||
| Net fixed & other tangibles | 35,271 | 61,034 | 98,219 | 137,901 | 166,023 | ||||||
| Goodwill & intangibles | 1,053 | 2,809 | 8,238 | 8,238 | 8,238 | ||||||
| Financial & other assets | 33,178 | 11,010 | 25,968 | 31,502 | 38,606 | ||||||
| Total assets | 86,711 | 101,178 | 145,973 | 199,878 | 252,473 | ||||||
| Accounts payable | 942 | 909 | 3,188 | 5,233 | 7,702 | ||||||
| Short-term debt | 0 | 0 | 0 | 0 | 0 | ||||||
| Long-term debt | 20,581 | 30,275 | 43,317 | 56,235 | 65,106 | ||||||
| Provisions & other liab | 20,476 | 19,556 | 31,473 | 55,760 | 74,857 | ||||||
| Total liabilities | 41,999 | 50,740 | 77,978 | 117,228 | 147,665 | ||||||
| Shareholders' equity interests | 43,296 | 50,429 | 67,982 | 82,622 | 104,763 | ||||||
| Minority | 1,415 | 8 | 12 | 28 | 44 | ||||||
| Total equity | 44,711 10,251 | 50,438 12,311 | 67,995 41,755 | 82,650 54,804 | 104,808 57,484 | ||||||
| Net debt (Adj) | |||||||||||
| Net debt to equity (Adj) (%) For definitions of the items in this table, | 22.9 please click here. | 24.4 | 61.4 | 66.3 | 54.8 |
Near-term weakness already in the price; maintain Buy and lower TP to NT$286
- Despite near-term margin pressure from softer-than-expected quarterly revenue and rising depreciation cost, electricity and OPEX, management sees GM expansion into next year supported by stronger utilization, operating leverage, and favorable AI-related product mix, in particular substantial upside from wafer sorting. We lower our earnings projection for 2026/2027/2028 by 6%/17%/15% reflecting near-term GM shortfall and potential increasing depreciation cost. Considering remaining strong AI cycle, we keep our Buy rating but lower our DCFderived TP to NT$286 given our lower estimates and concerns on recent macro/policy uncertainty. Our new TP of NT$286 implies 25x/17x of our 2027/28 EPS estimates.
Figure 1. KYEC - 3Q26 results overview
| (NT$mn) | 3Q26 Actual | 2Q26 Actual | Q/Q | 3Q25 Actual | 3Q26 Citi | Diff. | 3Q26 Cons. | Diff. | |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 12,142 | 11,142 | 9% | 9,291 | 31% | 12,102 | 0% | 12,123 | 0% |
| Gross profit | 4,560 | 4,400 | 4% | 3,347 | 36% | 4,749 | -4% | 4,620 | -1% |
| Grossmargin | 37.6% | 39.5% | -1.9 ppt | 36.0% | +1.5ppt | 39.2% | -1.7ppt | 38.1% | -0.6 ppt |
| Op. profit | 3,133 | 2,828 | 11% | 2,492 | 26% | 3,297 | -5% | 3,250 | -4% |
| OPmargin | 25.8% | 25.4% | +0.4ppt | 26.8% | -1.0ppt | 27.2% | -1.4ppt | 26.8% | -1.0ppt |
| Net income | 2,645 | 2,492 | 6% | 2,302 | 15% | 2,713 | -3% | 2,644 | 0% |
| EPS (NT$) | 2.06 | 1.94 | 6% | 1.78 | 15% | 2.10 | -2% | 2.12 | -3% |
© 2026 Citigroup Inc. No redistribution without Citigroup's written permission.
Source: Citi Research, Bloomberg
Figure 2. KYEC - Estimates Revisions
| (NT$mn) | 2026E - New | 2026E - Old | 2026E - Chg. | 2027E - New | 2027E - Old | 2027E - Chg. | 2028E - New | 2028E - Old | 2028E - Chg. |
|---|---|---|---|---|---|---|---|---|---|
| Sales | 46,142 | 48,327 | -5%66,903 | 75,783 | -12% | 97,392 | 108,361 | -10% | |
| YoY growth | 32% | 38% | 45% | 57% | 46% | 43% | |||
| Gross profit | 17,704 | 19,173 | -8% | 25,327 | 30,555 | -17% | 37,612 | 44,369 | -15% |
| Opex | -5,735 | -6,016 | -5% | -7,647 | -8,608 | -11%-10,660 | -11,931 | -11% | |
| Operating profit | 11,969 | 13,157 | -9% | 17,680 | 21,947 | -19% | 26,953 | 32,438 | -17% |
| Pre-tax profit | 12,479 | 13,661 | -9% | 18,118 | 22,385 | -19% | 27,391 | 32,876 | -17% |
| Net income | 10,096 | 10,812 | -7% | 14,640 | 17,724 | -17% | 22,142 | 26,039 | -15% |
| EPS (NT$) | 7.85 | 8.38 | -6% | 11.39 | 13.74 | -17% | 17.22 | 20.19 | -15% |
| Gross margin | 38.4% | 39.7% | -1.3 ppt | 37.9% | 40.3% | -2.5 ppt | 38.6% | 40.9% | -2.3 ppt |
| Opex ratio | -12.4% | -12.4%+0.0 | ppt | -11.4% | -11.4% | -0.1 ppt | -10.9% | -11.0% | +0.1 ppt |
| Operating margin | 25.9% | 27.2% | -1.3 ppt | 26.4% | 29.0% | -2.5 ppt | 27.7% | 29.9% | -2.3 ppt |
| Net margin | 21.9% | 22.4% | -0.5 ppt | 21.9% | 23.4% | -1.5 ppt | 22.7% | 24.0% | -1.3 ppt |
© 2026 Citigroup Inc. No redistribution without Citigroup's written permission.
Source: Citi Research [讀者資訊已遮蔽]
© 2026 Citigroup Inc. No redistribution without Citigroup's written permission. Source: Citi Research
© 2026 Citigroup Inc. No redistribution without Citigroup's written permission. Source: Citi Research
Figure 5. KYEC - Forecast summary
| KYEC - (NT$ in Mn, year-end Dec) | 1Q | 2Q | 3Q | 2025 - 4Q | 2025 - 1Q | 2025 - 2Q | 2025 - 3Q | 2026 - 4QE | 2026 - 1QE | 2026 - 2027 2QE | 2026 - 3QE | 2026 - 4QE | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 7,315 | 8,362 | 9,291 | 9,966 | 10,192 | 11,142 | 12,142 | 12,666 | 13,698 | 15,367 | 17,458 | 20,380 | 34,934 | 46,142 | 66,903 | 97,392 |
| COGS | -4,865 | -5,390 | -5,944 | -6,212 | -6,141 | -6,741 | -7,583 | -7,972 | -8,549 | -9,599 | -10,796 | -12,633 | -22,411 | -28,438 | -41,576 | -59,780 |
| Depreciation costs | -1,506 | -1,621 | -1,742 | -1,995 | -2,160 | -2,366 | -2,536 | -2,751 | -3,390 | -3,848 | -4,033 | -4,300 | -6,864 | -9,814 | -15,572 | -28,046 |
| Gross Profit | 2,450 | 2,972 | 3,347 | 3,753 | 4,051 | 4,400 | 4,560 | 4,694 | 5,149 | 5,769 | 6,663 | 7,747 | 12,522 | 17,704 | 25,327 | 37,612 |
| Operating Expense | -928 | -795 | -855 | -942 | -1,279 | -1,572 | -1,427 | -1,457 | -1,548 | -1,875 | -1,982 | -2,242 | -3,520 | -5,735 | -7,647 | -10,660 |
| SG&A expenses | -685 | -583 | -637 | -684 | -971 | -1,257 | -1,063 | -1,013 | -1,096 | -1,383 | -1,441 | -1,630 | -2,590 | -4,305 | -5,550 | -7,590 |
| R&D expenses | -243 | -212 | -218 | -258 | -307 | -315 | -364 | -443 | -452 | -492 | -541 | -611 | -930 | -1,430 | -2,096 | -3,070 |
| EBIT | 1,523 | 2,176 | 2,492 | 2,812 | 2,772 | 2,828 | 3,133 | 3,237 | 3,601 | 3,894 | 4,681 | 5,505 | 9,003 | 11,969 | 17,680 | 26,953 |
| Net Interest Income | -11 | 144 | 54 | -100 | -154 | 24 | 24 | 25 | 25 | 24 | 24 | 188 | -206 | 98 | 98 | |
| Net Other Income | 618 | 338 | 340 | 143 | 137 | 402 | 91 | 86 | 84 | 85 | 85 | 86 | 1,438 | 716 | 340 | 340 |
| Pre-Tax Profit | 2,129 | 2,658 | 2,886 | 2,955 | 2,808 | 3,076 | 3,248 | 3,347 | 3,710 | 4,004 | 4,790 | 5,615 | 10,629 | 12,479 | 18,118 | 27,391 |
| Tax | -850 | -483 | -584 | -707 | -522 | -584 | -603 | -669 | -689 | -761 | -890 | -1,123 | -2,624 | -2,379 | -3,463 | -5,233 |
| Net Profit | 4,290 | 2,175 | 2,302 | 2,248 | 2,286 | 2,492 | 2,645 | 2,674 | 3,017 | 3,239 | 3,896 | 4,488 | 11,016 | 10,096 | 14,640 | 22,142 |
| EPS (NT$) | 3.32 | 1.68 | 1.78 | 1.74 | 1.78 | 1.94 | 2.06 | 2.08 | 2.35 | 2.52 | 3.03 | 3.49 | 8.53 | 7.85 | 11.39 | 17.22 |
| Margins (%) | ||||||||||||||||
| Gross Margin | 33.5% | 35.5% | 36.0% | 37.7% | 39.7% | 39.5% | 37.6% | 37.1% | 37.6% | 37.5% | 38.2% | 38.0% | 35.8% | 38.4% | 37.9% | 38.6% |
| Operating Margin | 20.8% | 26.0% | 26.8% | 28.2% | 27.2% | 25.4% | 25.8% | 25.6% | 26.3% | 25.3% | 26.8% | 27.0% | 25.8% | 25.9% | 26.4% | 27.7% |
| Net Margin | 58.6% | 26.0% | 24.8% | 22.6% | 22.4% | 22.4% | 21.8% | 21.1% | 22.0% | 21.1% | 22.3% | 22.0% | 31.5% | 21.9% | 21.9% | 22.7% |
| Sequential Growth (%) | ||||||||||||||||
| Revenue | 0% | 14% | 11% | 7% | 2% | 9% | %6 | 4% | 8% | 12% | 14% | 17% | 30% | 32% | 45% | 46% |
| Gross Profit | -3% | 21% | 13% | 12% | 8% | 9% | 4% | 3% | 10% | 12% | 16% | 16% | 34% | 41% | 43% | 49% |
| EBI1T | 1% | 43% | 15% | 13% | -1% | 2% | 11% | 3% | 11% | 8% | 20% | 18% | 46% | 33% | 48% | 52% |
| Net Profit | 111% | -49% | 6% | -2% | 2% | %6 | 6% | 1% | 13% | 7% | 20% | 15% | 42% | -8% | 45% | 51% |
| EPS | 111% | -49% | 6% | -2% | 2% | 9% | 6% | 1% | 13% | 7% | 20% | 15% | 41% | %8- | 45% | 51% |
© 2026 Citigroup Inc. No redistribution without Citigroup's written permission.
Source: Citi Research [讀者資訊已遮蔽]
Bull/Bear: King Yuan Electronics Co (2449.TW)
Spread 66pp
1
Current Price and expected returns (upside/downside) as of 05 Nov 2026
BULLAssumptions
- Stronger than expected demand outlook from global consumer electronic products
- Better than expected demand from automotive and base station sector
BASEAssumptions
- ·Smooth products transition schedule for AI GPU and ASIC
- Ongoing GM expansion from 2024's 35% to 38% in 2027-2028E
BEAR Assumptions
- Weaker than expected end-demand for global smartphone/consumer electronic products
- Pricing pressure from increasing competition
[讀者資訊已遮蔽]
King Yuan Electronics Co
Company description
Founded in 1987, King Yuan Electronics Corp. (KYEC) mainly provides testing services for the back-end process of semiconductor production globally. With more than 30 years of industry experience, KYEC has built up firm relationships with several leading global IC design/IDM customers. Its headquarters and production facilities are both located in Taiwan, with sales offices in North America, Japan, and Singapore.
Investment strategy
We rate KYEC as Buy. As a key testing service provider for AI GPU and ASIC products, KYEC is well positioned to benefit from the significant AI growth opportunity in the years to come. Currently, KYEC is the major final testing service provider for its major customer's AI GPU, and we expect KYEC to continue to secure its dominant share in its customer's upcoming AI GPU product lines due to its specialty in burn-in testing, smooth product delivery capability, and its strong business partnership with its customer. We are also positive over the growth outlook of its smartphone business thanks to the integration of AI functionality, leading to a better replacement cycle. We believe KYEC's major customer in smartphone will benefit from an improved product mix, which will result in longer testing times for the flagship SoC.
Valuation
Our target price for KYEC of NT$286 is derived using a DCF methodology. Using Bloomberg data, we apply a risk-free rate of 4%, a risk premium of 5%, and a beta of 1.4x for a 10.8% cost of equity. With 20% corporate tax and a 3.0% interest rate on its debt, our WACC for KYEC is 9.7%. We assume terminal sales growth of 5%. We model its adjusted EBIT margin to gradually improve from 23% in 2024 to c30% in 2035E. At our target price, the shares would trade at 2027/28E P/B of 4x/4x and 2027/28E P/E of 25x/17x, in line with its global peers.
Risks
Key downside risks that could prevent KYEC shares from reaching our target price include: 1) weaker-than-expected end-demand for global smartphone/consumer electronic products; 2) slower ramp for AI-related products; 3) slower-than-expected demand recovery in the automotive and base station sector; and 4) pricing pressure on increasing competition.
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