PDF 原檔：報告_Daiwa_建準2421_20260828_original.pdf
圖片清單（已驗證 2026-09-01）
| 檔名 | size | 分類 | 親眼所見內容 |
|---|---|---|---|
報告_Daiwa_建準2421_20260828_003.png |
63KB | 真資料圖 | 建準營收結構堆疊長條圖，2019-2028E，各年度依 IT&OE／Telecom & Server／Industrial Medical Equipment／Home Application／Distribution／Automobile／LED lighting 分項占比，顯示 Telecom & Server 占比由 2019 年 26% 逐年攀升至 2028E 約 68%，IT&OE 占比由 37% 降至 1% |
報告_Daiwa_建準2421_20260828_004.png |
41KB | 真資料圖 | 建準 12 個月 forward PER 帶狀圖，Aug-20 至 Aug-26，股價線疊加 5x/10x/15x/20x/25x 本益比軌道，近期股價落於約 15-20x 區間並持續上揚 |
報告_Daiwa_建準2421_20260828_001.png |
30KB | 裝飾·logo·banner | <40KB，未逐張 Read（預設 logo／版面裝飾） |
報告_Daiwa_建準2421_20260828_002.png |
19KB | 裝飾·logo·banner | <40KB，未逐張 Read（預設 logo／版面裝飾） |
原始內容
Taiwan
28 August 2026
Sunonwealth Electric Machine Industry (2421 TT)
5
Daiwa
2
1
Buy
Helen Chien
Helen Chien
(886) 2 8758 6254 helen.chien@daiwacm-cathay.com.tw
Neil Teng, CFA (886) 2 8758 6256 neil.teng@daiwacm-cathay.com.tw
Forecast revisions (%)
| Year to 31 Dec | 26E | 27E | 28E |
|---|---|---|---|
| Revenue change | 2.2 | 6.2 | 6.2 |
| Net profit change | 5.8 | 13.6 | 13.2 |
| Core EPS (FD) change | 5.7 | 13.6 | 13.2 |
Source: Daiwa forecasts
Share price performance
| 12-month range | 120.35-188.48 |
|---|---|
| Market cap (USDbn) | 1.38 |
| 3m avg daily turnover (USDm) | 15.49 |
| Shares outstanding (m) | 273 |
| Major shareholder | Hung family (33.0%) |
Financial summary (TWD)
| Year to 31 Dec | 26E | 27E | 28E |
|---|---|---|---|
| Revenue (m) | 23,186 | 27,364 | 31,278 |
| Operating profit (m) | 3,803 | 4,843 | 5,661 |
| Net profit (m) | 3,136 | 3,975 | 4,608 |
| Core EPS (fully-diluted) | 11.041 | 13.881 | 16.092 |
| EPS change (%) | 39.3 | 25.7 | 15.9 |
| Daiwa vs Cons. EPS (%) | 5.6 | 12.2 | 12.8 |
| PER (x) | 14.4 | 11.5 | 9.9 |
| Dividend yield (%) | 4.8 | 6.1 | 7.1 |
| DPS | 7.7 | 9.7 | 11.3 |
| PBR (x) | 4.3 | 3.7 | 3.2 |
| EV/EBITDA (x) | 9.7 | 7.5 | 6.3 |
| ROE (%) | 32.4 | 35.0 | 34.9 |
Source: FactSet, Daiwa forecasts
Target price:
TWD236.00 (from TWD205.00)
Share price (27 Aug): TWD159.50 | Up/downside:
+48.0%
Stronger-than-expected earnings visibility
- Rising liquid cooling contribution in 2027 from a low base in 2026
- Likely EPS upward revision trend in the near term
- Reaffirming our Buy (1) call; raising 12M TP to TWD236
What's new: Following our update with Sunon's management on 28 August, we reaffirm our Buy (1) call, as we expect its 2026 outlook for telecom, server, industrial and auto segments to remain intact, with both gross and operating margin set to expand. We now forecast its net profit CAGR at 21.2% for 2026-28E, up from 17.2% previously (see previous flash on 7 August).
What's the impact: Rising liquid cooling revenue exposure in 2027. We expect its cold plate products (ie, enterprise and GPU clients) to contribute revenue from 4Q26 (low single % revenue contribution) and to be in the process of certification for CSP clients. Sunon also offers other liquid cooling products, such as CDUs.
From fan to air-cooling module, with fan spec upgrade trend and new applications. Sunon plans to deliver fan modules in the server segment to ODM and enterprise clients by the end of 2026, extending its more integrated product solutions. We believe AI server demand will further support spec upgrade in its fan products. We are also positive on the development of Sunon's EC fans (ie, for infrastructure) for the industrial segment, as well as its air-cooling solutions for power racks.
Upward EPS revision trend likely, with intact near-term revenue and earnings outlook. We expect 3Q26 revenue, supported by record-high monthly revenue in July 2026, and similar levels in August and September to grow by 16.6% QoQ (vs. Bloomberg consensus of 10.3% QoQ) and 4Q26 revenue to increase by 1.7% QoQ (vs. Bloomberg consensus of flat QoQ). Furthermore, we forecast its gross margin of 32.5% in 2H26 vs. the Bloomberg consensus of 31.9%. We revise our 2026-28E EPS by 6-14%, mainly on higher revenue, gross- and operating-margin assumptions.
What we recommend: We reaffirm our Buy (1) call and raise our 12M TP to TWD236 (from TWD205), based on a target PER of 18x (from 17x vs. its past-5-year PER range of 6-25x), applied to our 1-year forward EPS forecast. We use a higher target multiple to reflect stronger earnings visibility amid intact demand from the server, telecom, industrial and auto segments. Downside risks: weaker-than-expected gross-margin expansion and slower AI server development progress.
How we differ: We are one of only two overseas brokers covering the stock. Our 2026-28E EPS is 6-13% above than the Bloomberg consensus, due to our more aggressive revenue, and gross-/operating-margin estimates.
→
Sunon: revenue and earnings forecast revisions
| 2026E | 2026E | 2026E | 2027E | 2027E | 2027E | 2028E | 2028E | 2028E | |
|---|---|---|---|---|---|---|---|---|---|
| (TWDm) | New | Previous | Change | New | Previous | Change | New | Previous | Change |
| Sales | 23,186 | 22,678 | 2.2% | 27,364 | 25,773 | 6.2% | 31,278 | 29,453 | 6.2% |
| Gross profit | 7,420 | 7,211 | 2.9% | 9,030 | 8,325 | 8.5% | 10,384 | 9,572 | 8.5% |
| Gross margin | 32.0% | 31.8% | 0.2pp | 33.0% | 32.3% | 0.7pp | 33.2% | 32.5% | 0.7pp |
| Operating profit | 3,803 | 3,628 | 4.8% | 4,843 | 4,330 | 11.9% | 5,661 | 5,066 | 11.8% |
| Operating margin | 16.4% | 16.0% | 0.4pp | 17.7% | 16.8% | 0.9pp | 18.1% | 17.2% | 0.9pp |
| Net profit | 3,136 | 2,965 | 5.8% | 3,975 | 3,500 | 13.6% | 4,608 | 4,069 | 13.2% |
| Net margin | 13.5% | 13.1% | 0.4pp | 14.5% | 13.6% | 0.9pp | 14.7% | 13.8% | 0.9pp |
| Fully diluted EPS (TWD) | 11.04 | 10.45 | 5.7% | 13.88 | 12.22 | 13.6% | 16.09 | 14.21 | 13.2% |
Source: Daiwa forecasts
Sunon: quarterly and annual P&L
| 2026E | 2026E | 2026E | 2026E | 2027E | 2026E | 2027E | 2028E | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (TWDm) | 1Q26 | 2Q26 | 3Q26E | 4Q26E | 1Q27E | 2Q27E | 3Q27E | 4Q27E | |||
| Revenue | 5,019 | 5,419 | 6,319 | 6,429 | 6,500 | 6,600 | 6,800 | 7,464 | 23,186 | 27,364 | 31,278 |
| Gross profit | 1,589 | 1,693 | 2,041 | 2,096 | 2,126 | 2,165 | 2,244 | 2,496 | 7,420 | 9,030 | 10,384 |
| Operating profit | 788 | 836 | 1141 | 1037 | 1126 | 1125 | 1224 | 1369 | 3,803 | 4,843 | 5,661 |
| Pre-tax profit | 805 | 912 | 1218 | 1114 | 1198 | 1197 | 1296 | 1442 | 4,050 | 5,133 | 5,951 |
| Net profit | 649 | 690 | 950 | 846 | 970 | 910 | 1011 | 1083 | 3,136 | 3,975 | 4,608 |
| Basic EPS (TWD) | 2.36 | 2.42 | 3.33 | 2.97 | 3.40 | 3.19 | 3.55 | 3.80 | 11.08 | 13.94 | 16.16 |
| Margin | |||||||||||
| Gross margin | 31.7% | 31.3% | 32.3% | 32.6% | 32.7% | 32.8% | 33.0% | 33.4% | 32.0% | 33.0% | 33.2% |
| Operating margin | 15.7% | 15.4% | 18.1% | 16.1% | 17.3% | 17.0% | 18.0% | 18.3% | 16.4% | 17.7% | 18.1% |
| Pre-tax margin | 16.0% | 16.8% | 19.3% | 17.3% | 18.4% | 18.1% | 19.1% | 19.3% | 17.5% | 18.8% | 19.0% |
| Net margin | 12.9% | 12.7% | 15.0% | 13.2% | 14.9% | 13.8% | 14.9% | 14.5% | 13.5% | 14.5% | 14.7% |
| YoY | |||||||||||
| Revenue | 20.6% | 16.2% | 28.1% | 30.7% | 29.5% | 21.8% | 7.6% | 16.1% | 24.1% | 18.0% | 14.3% |
| Gross profit | 30.5% | 18.9% | 32.0% | 29.9% | 33.7% | 27.8% | 9.9% | 19.1% | 27.9% | 21.7% | 15.0% |
| Operating profit | 52.9% | 16.9% | 48.5% | 28.0% | 42.8% | 34.5% | 7.3% | 32.0% | 35.4% | 27.4% | 16.9% |
| Pre-tax profit | 38.7% | 76.5% | 35.6% | 39.0% | 48.9% | 31.2% | 6.4% | 29.4% | 44.8% | 26.8% | 15.9% |
| Net profit | 37.5% | 84.5% | 36.9% | 35.4% | 49.5% | 31.9% | 6.4% | 28.0% | 44.8% | 26.8% | 15.9% |
| QoQ | |||||||||||
| Revenue | 2.1% | 8.0% | 16.6% | 1.7% | 1.1% | 1.5% | 3.0% | 9.8% | |||
| Gross profit | -1.5% | 6.5% | 20.5% | 2.7% | 1.4% | 1.8% | 3.7% | 11.2% | |||
| Operating profit | -2.7% | 6.1% | 36.5% | -9.1% | 8.5% | -0.1% | 8.8% | 11.9% | |||
| Pre-tax profit | 0.4% | 13.4% | 33.5% | -8.6% | 7.5% | -0.1% | 8.3% | 11.2% | |||
| Net profit | 3.8% | 6.3% | 37.7% | -10.9% | 14.7% | -6.2% | 11.1% | 7.1% |
Source: Company, Daiwa forecasts
Sunon: product mix
Source: Company, Daiwa forecasts
Sunonwealth Electric Machine Industry (2421 TT): 28 August 2026
Sunon: 1-year forward PER
Source: Bloomberg, Daiwa forecasts
Daiwa
Financial summary
Key assumptions
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Automotive revenue YoY growth (%) | 6.1 | 59.5 | 9.1 | 31.1 | 2.8 | 20 | 10 | 5 |
| IT&OE revenue YoY growth (%) | 2.3 | (26.8) | (16.8) | (10.7) | 13.8 | 15 | 0 | 0 |
| Telecom & server revenue YoY growth (%) | 6.5 | 16.2 | 21.4 | 43.5 | 40.4 | 30 | 25 | 20 |
Profit and loss (TWDm)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Telecom & Server revenue | 3,838 | 4,458 | 5,411 | 7,765 | 10,901 | 14,172 | 17,714 | 21,257 |
| Industrial & Medical equipment & Automobile revenue | 2,645 | 3,178 | 2,686 | 2,910 | 3,400 | 4,167 | 4,802 | 5,173 |
| Other Revenue | 7,079 | 6,427 | 4,817 | 3,948 | 4,377 | 4,848 | 4,848 | 4,848 |
| Total Revenue | 13,562 | 14,063 | 12,915 | 14,624 | 18,678 | 23,186 | 27,364 | 31,278 |
| Other income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| COGS | (11,026) | (10,892) | (9,313) | (10,467) | (12,876) | (15,767) | (18,334) | (20,894) |
| SG&A | (1,258) | (1,268) | (1,272) | (1,587) | (1,910) | (2,272) | (2,627) | (2,971) |
| Other op.expenses | (814) | (781) | (799) | (893) | (1,082) | (1,345) | (1,560) | (1,752) |
| Operating profit | 464 | 1,122 | 1,530 | 1,677 | 2,809 | 3,803 | 4,843 | 5,661 |
| Net-interest inc./(exp.) | (14) | (30) | 49 | 95 | 71 | 97 | 90 | 90 |
| Assoc/forex/extraord./others | 136 | 334 | 172 | 210 | (83) | 150 | 200 | 200 |
| Pre-tax profit | 585 | 1,426 | 1,752 | 1,982 | 2,797 | 4,050 | 5,133 | 5,951 |
| Tax | (156) | (337) | (418) | (490) | (631) | (914) | (1,159) | (1,343) |
| Min. int./pref. div./others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net profit (reported) | 429 | 1,089 | 1,334 | 1,492 | 2,165 | 3,136 | 3,975 | 4,608 |
| Net profit (adjusted) | 429 | 1,089 | 1,334 | 1,492 | 2,165 | 3,136 | 3,975 | 4,608 |
| EPS (reported)(TWD) | 1.711 | 4.340 | 5.163 | 5.457 | 7.937 | 11.083 | 13.938 | 16.159 |
| EPS (adjusted)(TWD) | 1.711 | 4.340 | 5.163 | 5.457 | 7.937 | 11.083 | 13.938 | 16.159 |
| EPS (adjusted fully-diluted)(TWD) | 1.711 | 4.327 | 5.074 | 5.448 | 7.924 | 11.041 | 13.881 | 16.092 |
| DPS (TWD) | 1.200 | 2.600 | 3.500 | 3.687 | 5.442 | 7.680 | 9.734 | 11.285 |
| EBIT | 464 | 1,122 | 1,530 | 1,677 | 2,809 | 3,803 | 4,843 | 5,661 |
| EBITDA | 981 | 1,635 | 2,065 | 2,171 | 3,359 | 4,143 | 5,261 | 6,140 |
Cash flow (TWDm)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Profit before tax | 585 | 1,426 | 1,752 | 1,982 | 2,797 | 4,050 | 5,133 | 5,951 |
| Depreciation and amortisation | 517 | 513 | 534 | 495 | 550 | 341 | 417 | 478 |
| Tax paid | (156) | (337) | (418) | (490) | (631) | (914) | (1,159) | (1,343) |
| Change in working capital | (874) | 292 | 387 | (465) | (254) | (945) | (587) | (816) |
| Other operational CF items | 118 | 264 | (81) | 160 | 836 | (92) | (90) | (90) |
| Cash flow from operations | 191 | 2,158 | 2,175 | 1,682 | 3,297 | 2,439 | 3,715 | 4,180 |
| Capex | (444) | (394) | (298) | (513) | (953) | (1,500) | (1,000) | (1,000) |
| Net (acquisitions)/disposals | 178 | 0 | (14) | (2) | (29) | (29) | (29) | (29) |
| Other investing CF items | (215) | (44) | (43) | (229) | (132) | 0 | 0 | 0 |
| Cash flow from investing | (480) | (438) | (354) | (745) | (1,114) | (1,529) | (1,029) | (1,029) |
| Change in debt | 1,279 | (662) | (830) | 470 | (458) | 117 | 0 | 0 |
| Net share issues/(repurchases) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends paid | (602) | (301) | (652) | (957) | (1,012) | (1,499) | (2,173) | (2,754) |
| Other financing CF items | (91) | (226) | 1,274 | 77 | (49) | 0 | 0 | 0 |
| Cash flow from financing | 585 | (1,189) | (208) | (410) | (1,519) | (1,382) | (2,173) | (2,754) |
| Forex effect/others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in cash | 296 | 531 | 1,612 | 527 | 664 | (473) | 512 | 397 |
| Free cash flow | (253) | 1,764 | 1,877 | 1,169 | 2,344 | 939 | 2,715 | 3,180 |
Source: FactSet, Daiwa forecasts
Sunonwealth Electric Machine Industry (2421 TT): 28 August 2026
Daiwa
Financial summary continued …
Balance sheet (TWDm)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Cash & short-term investment | 1,912 | 2,457 | 4,031 | 4,678 | 5,256 | 4,834 | 5,469 | 5,989 |
| Inventory | 2,763 | 2,863 | 2,052 | 2,181 | 2,424 | 3,127 | 3,544 | 4,091 |
| Accounts receivable | 3,546 | 3,555 | 3,180 | 4,247 | 5,413 | 6,491 | 7,652 | 8,752 |
| Other current assets | 169 | 150 | 313 | 332 | 100 | 100 | 100 | 100 |
| Total current assets | 8,391 | 9,026 | 9,576 | 11,438 | 13,193 | 14,552 | 16,765 | 18,931 |
| Fixed assets | 2,059 | 2,273 | 2,171 | 2,461 | 3,054 | 4,213 | 4,796 | 5,318 |
| Goodwill & intangibles | 24 | 27 | 24 | 53 | 63 | 63 | 63 | 63 |
| Other non-current assets | 1,043 | 866 | 843 | 1,046 | 1,117 | 1,117 | 1,117 | 1,117 |
| Total assets | 11,517 | 12,192 | 12,615 | 14,998 | 17,427 | 19,945 | 22,741 | 25,429 |
| Short-term debt | 1,985 | 1,408 | 640 | 1,050 | 586 | 703 | 703 | 703 |
| Accounts payable | 3,986 | 4,530 | 3,846 | 4,759 | 6,174 | 7,010 | 8,001 | 8,831 |
| Other current liabilities | 268 | 385 | 235 | 273 | 429 | 429 | 429 | 429 |
| Total current liabilities | 6,239 | 6,323 | 4,721 | 6,082 | 7,189 | 8,141 | 9,132 | 9,962 |
| Long-term debt | 524 | 287 | 213 | 478 | 613 | 613 | 613 | 613 |
| Other non-current liabilities | 387 | 380 | 462 | 517 | 738 | 738 | 738 | 738 |
| Total liabilities | 7,151 | 6,989 | 5,396 | 7,078 | 8,539 | 9,492 | 10,483 | 11,313 |
| Share capital | 2,509 | 2,509 | 2,734 | 2,734 | 2,734 | 2,829 | 2,829 | 2,829 |
| Reserves/R.E./others | 1,857 | 2,693 | 4,484 | 5,186 | 6,153 | 7,623 | 9,429 | 11,286 |
| Shareholders' equity | 4,367 | 5,202 | 7,219 | 7,920 | 8,887 | 10,453 | 12,258 | 14,116 |
| Minority interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total equity & liabilities | 11,517 | 12,192 | 12,615 | 14,998 | 17,427 | 19,945 | 22,741 | 25,429 |
| EV | 44,211 | 42,852 | 40,437 | 40,464 | 39,556 | 40,096 | 39,460 | 38,941 |
| Net debt/(cash) | 597 | (763) | (3,178) | (3,150) | (4,058) | (3,519) | (4,154) | (4,673) |
| BVPS (TWD) | 17.402 | 20.733 | 26.399 | 28.859 | 32.265 | 36.942 | 43.323 | 49.888 |
Key ratios (%)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Sales (YoY) | 6.1 | 3.7 | (8.2) | 13.2 | 27.7 | 24.1 | 18.0 | 14.3 |
| EBITDA (YoY) | (37.3) | 66.6 | 26.3 | 5.2 | 54.7 | 23.3 | 27.0 | 16.7 |
| Operating profit (YoY) | (58.4) | 142.0 | 36.4 | 9.6 | 67.5 | 35.4 | 27.4 | 16.9 |
| Net profit (YoY) | (49.6) | 153.7 | 22.5 | 11.9 | 45.1 | 44.8 | 26.8 | 15.9 |
| Core EPS (fully-diluted) (YoY) | (49.6) | 153.0 | 17.3 | 7.4 | 45.5 | 39.3 | 25.7 | 15.9 |
| Gross-profit margin | 18.7 | 22.5 | 27.9 | 28.4 | 31.1 | 32.0 | 33.0 | 33.2 |
| EBITDA margin | 7.2 | 11.6 | 16.0 | 14.8 | 18.0 | 17.9 | 19.2 | 19.6 |
| Operating-profit margin | 3.4 | 8.0 | 11.8 | 11.5 | 15.0 | 16.4 | 17.7 | 18.1 |
| Net profit margin | 3.2 | 7.7 | 10.3 | 10.2 | 11.6 | 13.5 | 14.5 | 14.7 |
| ROAE | 9.6 | 22.8 | 21.5 | 19.7 | 25.8 | 32.4 | 35.0 | 34.9 |
| ROAA | 3.9 | 9.2 | 10.8 | 10.8 | 13.4 | 16.8 | 18.6 | 19.1 |
| ROCE | 7.3 | 16.3 | 20.4 | 19.1 | 28.8 | 34.8 | 38.2 | 39.0 |
| ROIC | 7.4 | 18.2 | 27.5 | 28.7 | 45.3 | 50.1 | 49.9 | 50.0 |
| Net debt to equity | 13.7 | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
| Effective tax rate | 26.7 | 23.6 | 23.8 | 24.7 | 22.6 | 22.6 | 22.6 | 22.6 |
| Accounts receivable (days) | 92.9 | 92.1 | 95.2 | 92.7 | 94.4 | 93.7 | 94.3 | 95.7 |
| Current ratio (x) | 1.3 | 1.4 | 2.0 | 1.9 | 1.8 | 1.8 | 1.8 | 1.9 |
| Net interest cover (x) | 32.6 | 37.6 | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
| Net dividend payout | 70.1 | 59.9 | 67.8 | 67.6 | 68.6 | 69.3 | 69.8 | 69.8 |
| Free cash flow yield | n.a. | 4.0 | 4.3 | 2.7 | 5.4 | 2.2 | 6.2 | 7.3 |
Source: FactSet, Daiwa forecasts
Company profile
Founded in 1980 and listed on Taiwan's main board in 2000, Sunonwealth Electric Machine Industry (Sunon) is one of the top-4 fan and motor providers in the world, along with Delta Electronics, Nidec and ebm-papst. Its major clients are Apple, Dell, Lenovo, Bosch, Siemens and Tesla. Its applications include IT & OE, telecoms & servers, industrial & medical equipment, home applications, distribution, autos and LED lighting.
Sunonwealth Electric Machine Industry (2421 TT): 28 August 2026
Daiwa
Sunonwealth Electric Machine Industry (2421 TT): 28 August 2026
ESG analysis
ESG risks
| Risks | Risks | Management | Analyst comments |
|---|---|---|---|
| G | Executive/board quality | 2 | The CEO and chairperson of Sunonwealth are the same individual; Sunonwealth's board is led by the Hung family. We see no issues with the company's board. We view the chairman leading the R&D team as a sign of the company's continuing focus on developing new products to achieve a long-term competitive advantage. |
| G | Capital management | 2 | Sunonwealth's dividend payout ratio was 83-88% in 2015-18, but it decreased to 60-69% during 2022-25 due to its capacity expansion plans. |
| G | Related party & transaction | 2 | Revenue generated from related-party transactions was less than 1% of total revenue during 2023-25. |
| E | Materials sourcing & efficiency | 1 | Sunonwealth's sourcing of raw materials has been relatively stable (including IC, copper, plastic, aluminium and steel), and we also note that Sunonwealth abides by RoHS regulations and relevant international standards (ISO14001, IECQ QC080000, ISO9001) for its material sourcing activities. With the ongoing ESG trend, its clients may move towards a more energy-efficient production cycle, which will likely benefit Sunonwealth's energy-efficient products. |
| E | Product design & lifecycle management | 2 | Sunonwealth has improved its product designs to stronger but lighter form factors. Besides, we have observed more green projects utilising Sunonwealth's capabilities. Thus, we believe Sunonwealth has strong product design and lifecycle management capabilities to address the ongoing changing business environment. |
| S | Product quality & safety | 2 | Sunonwealth has its own Quality Strategy Centre to evaluate quality issues. With international standards in place, we believe Sunonwealth has taken relevant measures to address product quality and safety issues. |
Note: Management score represents a company's ability to manage/benefit from certain ESG topics. The scores range from 1 to 3, with 1 being the strongest.
Update Date: 8 May 2026
Source: Daiwa, Company
Daiwa