PDF 原檔：報告_Daiwa_瑞昱2379_20261103_original.pdf
圖片清單（已驗證 2026-11-04）
| 檔名 | size | 分類 | 親眼所見內容 |
|---|---|---|---|
報告_Daiwa_瑞昱2379_20261103_001.png |
13KB | 文字卡 | 評等標示卡：Outperform (2)（unchanged），評等箭頭未變 |
報告_Daiwa_瑞昱2379_20261103_002.png |
25KB | 真資料圖 | 股價走勢圖（Share price performance），無可讀數值，不嵌 |
報告_Daiwa_瑞昱2379_20261103_003.png |
44KB | 真資料圖 | Realtek monthly revenue run-rate：月營收長條（TWDm，橫軸 Jan-16 至 2026）與 YoY 成長折線，2025 後月營收約 12,000〜13,000 百萬元，YoY 約 +40% |
報告_Daiwa_瑞昱2379_20261103_004.png |
27KB | 真資料圖 | Realtek 季度存貨天數（Inventory days）：1Q10 至 3Q26，均值約 87 天，3Q26 升至約 134 天，僅次於 2022 年高峰約 190 天 |
報告_Daiwa_瑞昱2379_20261103_005.png |
38KB | 真資料圖 | 4-quarter forward PER band：股價線與 5x／10x／15x／20x／25x／30x，橫軸 Jan-11 至 2026，近期股價約 750〜800 落在 20x 上下 |
原始內容
RealtekSemiconductor (2379TT)
Target price: TWD798.00 (from TWD750.00)
Shareprice(3Nov):TWD756.00 | Up/downside:+5.6%
Back on track after rebalancing
- Fine-tuning our forecasts on demand rebalancing after pre-stocking
- Likely back on seasonal track after this year's hiccups
- Reaffirming Outperform (2) call with a higher 12-month TP of TWD798
What's new: Following our results memo, we fine-tune our forecasts for Realtek. We believe its near-term demand-rebalancing hiccups have come to an end, thanks to its pricing power and its ability to pass on supply-chain cost inflation. Given our interpretation of management's tone that 4Q26 is likely to be sequentially flat, we expect Realtek's business to return to its seasonal track from 1Q27. We expect it to continue capitalising on its structure growth driver of multi-year/multi-G (gigabits per second) connectivity bandwidth upgrade cycle, with any AI penetration adding to upside. We reaffirm Outperform (2) call with a higher 12M TP of TWD798.
What's the impact: Forecast revisions. We fine-tune our 2026-28E EPS given that fundamentals are broadly intact heading into 2027. Recall management's commentary at its results call (29 October) of expecting 4Q26 to be a 'prudent and steady' quarter. We interpret this as likely a sequentially flat revenue, counter-seasonal after its 3Q26 miss on deeper demand rebalancing. Without quantifying its 2027 business outlook, management expects the year to be one of steady growth. We forecast Realtek's 2027 revenue to grow by 18% YoY, assuming its business returns to seasonal track after 2 years of demand rebalancing hiccups caused by customers' unusual restocking and pre-stocking activities.
Back on track after recent hiccups. After 2 years of anti-seasonal performance on customer pre-stocking amid uncertainty over Trump's reciprocal tariffs, followed by component price hikes and supply-chain uncertainty related to AI cannibalisation, we expect Realtek's business to return to its seasonal track from 1Q27. We believe it should continue to capitalise on its secular driver of multi-year/multi-G bandwidth upgrade cycle from both wireline and wireless connectivity, including 2.5G/5G/10G Ethernet, 10GPON, managed switches and WiFi 7/8. Its penetration into AI, from cloud AI companion chips to edge AI to physical AI, should add to growth upside, although any meaningful contribution may take time, evidenced by its new product offering/development such as SSD, Ethernet hub, optical cable, i3C security and SerDes controllers, to name a few. According to management, AI will contribute a high single-digit % revenue this year, ramping to over 30% contribution by 2030.
What we recommend: Following forecast revisions, we raise our 12M TP for Realtek to TWD798 (previous: TWD750), on the same 4-quarter forward PER target of 20x. We reaffirm our Outperform (2) rating with key downside risk of any component price hikes leading to worse-than-expected demand.
How we differ: Our 2026-28E EPS are broadly in line with consensus, ranging from -3% to +2%.
Rick Hsu (886) 2 8758 6261 rick.hsu@daiwacm-cathay.com.tw
Sam Weng (886) 2 8758 6255 sam.weng@daiwacm-cathay.com.tw
Forecast revisions (%)
| Year to 31 Dec | 26E | 27E | 28E |
|---|---|---|---|
| Revenue change | (2.4) | (2.3) | (2.8) |
| Net profit change | (2.2) | (0.4) | (2.0) |
| Core EPS (FD) change | (2.2) | (0.4) | (2.0) |
Source: Daiwa forecasts
Share price performance
| 12-month range | 445.00-900.00 |
|---|---|
| Market cap (USDbn) | 11.87 |
| 3m avg daily turnover (USDm) | 62.52 |
| Shares outstanding (m) | 513 |
| Major shareholder | JPMorgan Chase & Co (5.2%) |
Financial summary (TWD)
| Year to 31 Dec | 26E | 27E | 28E |
|---|---|---|---|
| Revenue (m) | 149,703 | 176,162 | 210,509 |
| Operating profit (m) | 16,278 | 20,957 | 25,315 |
| Net profit (m) | 16,379 | 20,338 | 24,149 |
| Core EPS (fully-diluted) | 31.393 | 38.981 | 46.287 |
| EPS change (%) | 11.9 | 24.2 | 18.7 |
| Daiwa vs Cons. EPS (%) | (0.3) | 1.7 | (3.2) |
| PER (x) | 24.1 | 19.4 | 16.3 |
| Dividend yield (%) | 3.3 | 3.6 | 4.2 |
| DPS | 25.0 | 27.0 | 32.0 |
| PBR (x) | 7.0 | 6.1 | 5.4 |
| EV/EBITDA (x) | 15.9 | 12.5 | 10.3 |
| ROE (%) | 30.3 | 34.2 | 35.7 |
Source: FactSet, Daiwa forecasts
Realtek: quarterly P&L forecasts
| TWDm | 1Q26 | 2Q26 | 3Q26 | 4Q26E | 1Q27E | 2Q27E | 3Q27E | 4Q27E | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 36,423 | 37,553 | 37,732 | 37,995 | 39,565 | 44,569 | 47,708 | 44,320 | 122,706 | 149,703 | 176,162 | 210,509 |
| COGS | -18,336 | -19,902 | -19,829 | -19,861 | -20,565 | -23,001 | -24,425 | -22,665 | -61,333 | -77,927 | -90,656 | -107,719 |
| Gross profit | 18,087 | 17,651 | 17,903 | 18,135 | 19,000 | 21,567 | 23,283 | 21,655 | 61,374 | 71,776 | 85,506 | 102,791 |
| Opex | -13,755 | -13,926 | -13,758 | -14,058 | -14,520 | -16,357 | -17,318 | -16,354 | -47,014 | -55,497 | -64,549 | -77,476 |
| SG&A | -3,784 | -3,711 | -3,676 | -3,610 | -3,759 | -4,189 | -4,055 | -4,077 | -11,841 | -14,781 | -16,081 | -19,110 |
| R&D | -9,971 | -10,215 | -10,082 | -10,449 | -10,762 | -12,167 | -13,263 | -12,277 | -35,172 | -40,717 | -48,468 | -58,366 |
| Operating profit | 4,332 | 3,725 | 4,145 | 4,076 | 4,480 | 5,211 | 5,965 | 5,301 | 14,360 | 16,278 | 20,957 | 25,315 |
| Pre-tax profit | 4,977 | 4,370 | 4,751 | 4,816 | 5,165 | 5,896 | 6,695 | 6,031 | 17,261 | 18,915 | 23,787 | 28,245 |
| Income taxes | -648 | -565 | -625 | -698 | -749 | -855 | -971 | -874 | -2,507 | -2,536 | -3,449 | -4,095 |
| Net profit | 4,330 | 3,805 | 4,126 | 4,118 | 4,416 | 5,041 | 5,724 | 5,156 | 14,753 | 16,379 | 20,338 | 24,149 |
| O/S (M, fully diluted) | 522 | 522 | 522 | 522 | 522 | 522 | 522 | 522 | 526 | 522 | 522 | 522 |
| FD EPS (TWD) | 8.30 | 7.29 | 7.91 | 7.89 | 8.46 | 9.66 | 10.97 | 9.88 | 28.06 | 31.39 | 38.98 | 46.29 |
| As a % of revenue | ||||||||||||
| Gross profit | 49.7% | 47.0% | 47.4% | 47.7% | 48.0% | 48.4% | 48.8% | 48.9% | 50.0% | 47.9% | 48.5% | 48.8% |
| Opex | -37.8% | -37.1% | -36.5% | -37.0% | -36.7% | -36.7% | -36.3% | -36.9% | -38.3% | -37.1% | -36.6% | -36.8% |
| SG&A | -10.4% | -9.9% | -9.7% | -9.5% | -9.5% | -9.4% | -8.5% | -9.2% | -9.7% | -9.9% | -9.1% | -9.1% |
| R&D | -27.4% | -27.2% | -26.7% | -27.5% | -27.2% | -27.3% | -27.8% | -27.7% | -28.7% | -27.2% | -27.5% | -27.7% |
| Operating profit | 11.9% | 9.9% | 11.0% | 10.7% | 11.3% | 11.7% | 12.5% | 12.0% | 11.7% | 10.9% | 11.9% | 12.0% |
| Net profit | 11.9% | 10.1% | 10.9% | 10.8% | 11.2% | 11.3% | 12.0% | 11.6% | 12.0% | 10.9% | 11.5% | 11.5% |
| Growth (QoQ) | ||||||||||||
| Revenue | 39% | 3% | 0% | 1% | 4% | 13% | 7% | -7% | ||||
| Gross profit | 43% | -2% | 1% | 1% | 5% | 14% | 8% | -7% | ||||
| Operating profit | 86% | -14% | 11% | -2% | 10% | 16% | 14% | -11% | ||||
| Net profit | 63% | -12% | 8% | 0% | 7% | 14% | 14% | -10% | ||||
| FD EPS | 64% | -12% | 8% | 0% | 7% | 14% | 14% | -10% | ||||
| Growth (YoY) | ||||||||||||
| Revenue | 4% | 18% | 28% | 45% | 9% | 19% | 26% | 17% | 8% | 22% | 18% | 19% |
| Gross profit | 0% | 10% | 22% | 44% | 5% | 22% | 30% | 19% | 7% | 17% | 19% | 20% |
| Operating profit | -12% | -7% | 33% | 75% | 3% | 40% | 44% | 30% | 6% | 13% | 29% | 21% |
| Net profit | -9% | -3% | 20% | 55% | 2% | 32% | 39% | 25% | -4% | 11% | 24% | 19% |
| FD EPS | -9% | -4% | 18% | 56% | 2% | 32% | 39% | 25% | -5% | 12% | 24% | 19% |
Source: Company, Daiwa forecasts
Realtek: revenue mix by application
Realtek: monthly revenue run-rate
Source: Daiwa estimates
Realtek: quarterly inventory trend
Source: Company, Daiwa forecasts (for October-December 2026)
Realtek: 4-quarter forward PER band
Source: Company, Daiwa estimates
Source: Company, TEJ, Daiwa forecasts
Financial summary
Key assumptions
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Networking & communication (%) | 71 | 76 | 77 | 77 | 77 | 81 | 82 | 83 |
| Computer & peripheral (%) | 14 | 12 | 10 | 11 | 10 | 8 | 8 | 8 |
| Multimedia & consumer (%) | 15 | 13 | 13 | 13 | 13 | 11 | 10 | 9 |
Profit and loss (TWDm)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Networking & communication revenue | 75,067 | 84,710 | 73,133 | 86,991 | 94,382 | 121,593 | 144,985 | 175,422 |
| Computer & peripheral revenue | 14,542 | 12,871 | 9,464 | 12,180 | 12,379 | 11,590 | 14,020 | 16,414 |
| Other Revenue | 15,896 | 14,209 | 12,582 | 14,223 | 15,945 | 16,520 | 17,156 | 18,674 |
| Total Revenue | 105,504 | 111,790 | 95,179 | 113,394 | 122,706 | 149,703 | 176,162 | 210,509 |
| Other income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| COGS | (52,316) | (57,155) | (54,431) | (56,232) | (61,333) | (77,927) | (90,656) | (107,719) |
| SG&A | (7,910) | (8,863) | (7,633) | (10,073) | (11,841) | (14,781) | (16,081) | (19,110) |
| Other op.expenses | (27,953) | (30,048) | (26,460) | (33,544) | (35,172) | (40,717) | (48,468) | (58,366) |
| Operating profit | 17,325 | 15,724 | 6,655 | 13,545 | 14,360 | 16,278 | 20,957 | 25,315 |
| Net-interest inc./(exp.) | 220 | 733 | 2,335 | 2,504 | 2,548 | 2,624 | 2,830 | 2,930 |
| Assoc/forex/extraord./others | 30 | 465 | 555 | 336 | 353 | 13 | 0 | 0 |
| Pre-tax profit | 17,575 | 16,922 | 9,545 | 16,384 | 17,261 | 18,915 | 23,787 | 28,245 |
| Tax | (722) | (718) | (392) | (1,050) | (2,507) | (2,536) | (3,449) | (4,095) |
| Min. int./pref. div./others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net profit (reported) | 16,853 | 16,204 | 9,153 | 15,335 | 14,753 | 16,379 | 20,338 | 24,149 |
| Net profit (adjusted) | 16,853 | 16,204 | 9,153 | 15,335 | 14,753 | 16,379 | 20,338 | 24,149 |
| EPS (reported)(TWD) | 33.000 | 31.623 | 17.847 | 29.900 | 28.619 | 31.936 | 39.655 | 47.087 |
| EPS (adjusted)(TWD) | 33.000 | 31.623 | 17.847 | 29.900 | 28.619 | 31.936 | 39.655 | 47.087 |
| EPS (adjusted fully-diluted)(TWD) | 32.384 | 30.483 | 17.587 | 29.742 | 28.064 | 31.393 | 38.981 | 46.287 |
| DPS (TWD) | 14.000 | 27.023 | 27.000 | 15.499 | 25.369 | 25.000 | 27.000 | 32.000 |
| EBIT | 17,325 | 15,724 | 6,655 | 13,545 | 14,360 | 16,278 | 20,957 | 25,315 |
| EBITDA | 19,626 | 18,528 | 9,680 | 16,889 | 18,079 | 20,890 | 26,396 | 31,778 |
Cash flow (TWDm)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Profit before tax | 17,575 | 16,922 | 9,545 | 16,384 | 17,261 | 18,915 | 23,787 | 28,245 |
| Depreciation and amortisation | 2,301 | 2,804 | 3,025 | 3,344 | 3,719 | 4,612 | 5,439 | 6,463 |
| Tax paid | (722) | (718) | (392) | (1,050) | (2,507) | (2,536) | (3,449) | (4,095) |
| Change in working capital | (9,811) | (5,938) | 9,803 | 1,875 | 8,115 | 2,350 | (4,953) | (3,984) |
| Other operational CF items | 9,009 | 5,987 | (4,084) | 3,424 | (3,573) | 0 | 0 | 0 |
| Cash flow from operations | 18,352 | 19,058 | 17,896 | 23,978 | 23,015 | 23,340 | 20,824 | 26,628 |
| Capex | (2,510) | (2,451) | (2,167) | (2,347) | (2,089) | (2,994) | (3,523) | (4,210) |
| Net (acquisitions)/disposals | (45) | (370) | 0 | (2,240) | 0 | 0 | 0 | 0 |
| Other investing CF items | (11,478) | 2,456 | 3,251 | (5,121) | (14,291) | (2,246) | (2,642) | (3,158) |
| Cash flow from investing | (14,033) | (366) | 1,084 | (9,707) | (16,380) | (5,240) | (6,166) | (7,368) |
| Change in debt | 2,903 | 1,107 | (8,977) | 250 | 5,590 | 0 | 0 | 0 |
| Net share issues/(repurchases) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends paid | (7,150) | (13,847) | (13,847) | (7,949) | (13,078) | (12,822) | (13,847) | (16,412) |
| Other financing CF items | (90) | (98) | (115) | (2,367) | (128) | 0 | 0 | 0 |
| Cash flow from financing | (4,337) | (12,838) | (22,939) | (10,066) | (7,616) | (12,822) | (13,847) | (16,412) |
| Forex effect/others | (81) | 703 | 472 | 383 | (766) | 0 | 0 | 0 |
| Change in cash | (99) | 6,557 | (3,486) | 4,588 | (1,747) | 5,279 | 811 | 2,849 |
| Free cash flow | 15,842 | 16,607 | 15,730 | 21,631 | 20,926 | 20,346 | 17,301 | 22,418 |
Source: FactSet, Daiwa forecasts
Financial summary continued …
Balance sheet (TWDm)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Cash & short-term investment | 52,891 | 56,913 | 43,590 | 55,099 | 61,376 | 66,655 | 67,466 | 70,315 |
| Inventory | 16,549 | 25,553 | 11,757 | 13,506 | 19,561 | 14,599 | 20,173 | 21,144 |
| Accounts receivable | 15,989 | 12,013 | 12,757 | 12,305 | 15,011 | 21,902 | 21,535 | 30,371 |
| Other current assets | 817 | 1,013 | 1,183 | 3,747 | 1,409 | 1,409 | 1,409 | 1,409 |
| Total current assets | 86,245 | 95,492 | 69,288 | 84,658 | 97,357 | 104,565 | 110,584 | 123,239 |
| Fixed assets | 6,303 | 5,210 | 7,068 | 8,441 | 10,100 | 11,572 | 13,300 | 15,378 |
| Goodwill & intangibles | 2,232 | 2,413 | 2,625 | 2,659 | 3,475 | 2,630 | 2,553 | 2,479 |
| Other non-current assets | 6,452 | 10,586 | 14,836 | 18,138 | 18,972 | 18,972 | 18,972 | 18,972 |
| Total assets | 101,232 | 113,701 | 93,815 | 113,897 | 129,903 | 137,739 | 145,409 | 160,068 |
| Short-term debt | 13,342 | 13,738 | 4,250 | 4,500 | 10,090 | 10,090 | 10,090 | 10,090 |
| Accounts payable | 11,443 | 10,496 | 7,273 | 9,584 | 11,738 | 16,017 | 16,272 | 22,094 |
| Other current liabilities | 34,036 | 38,310 | 34,723 | 43,877 | 52,928 | 52,928 | 52,928 | 52,928 |
| Total current liabilities | 58,821 | 62,545 | 46,246 | 57,961 | 74,756 | 79,035 | 79,289 | 85,112 |
| Long-term debt | 1,003 | 1,713 | 2,227 | 0 | 0 | 0 | 0 | 0 |
| Other non-current liabilities | 2,456 | 2,680 | 3,104 | 2,978 | 2,935 | 2,935 | 2,935 | 2,935 |
| Total liabilities | 62,280 | 66,938 | 51,577 | 60,939 | 77,691 | 81,970 | 82,225 | 88,047 |
| Share capital | 5,107 | 5,129 | 5,129 | 5,129 | 5,155 | 5,155 | 5,155 | 5,155 |
| Reserves/R.E./others | 33,836 | 41,625 | 37,100 | 47,819 | 47,047 | 50,604 | 58,019 | 66,856 |
| Shareholders' equity | 38,943 | 46,753 | 42,228 | 52,948 | 52,202 | 55,759 | 63,174 | 72,011 |
| Minority interests | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 |
| Total equity & liabilities | 101,232 | 113,701 | 93,815 | 113,897 | 129,903 | 137,739 | 145,409 | 160,068 |
| EV | 349,188 | 346,272 | 350,621 | 337,135 | 336,449 | 331,169 | 330,358 | 327,509 |
| Net debt/(cash) | (38,546) | (41,462) | (37,113) | (50,599) | (51,286) | (56,565) | (57,376) | (60,225) |
| BVPS (TWD) | 76.256 | 91.242 | 82.339 | 103.240 | 101.263 | 108.722 | 123.180 | 140.409 |
Key ratios (%)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Sales (YoY) | 35.7 | 6.0 | (14.9) | 19.1 | 8.2 | 22.0 | 17.7 | 19.5 |
| EBITDA (YoY) | 84.7 | (5.6) | (47.8) | 74.5 | 7.0 | 15.5 | 26.4 | 20.4 |
| Operating profit (YoY) | 100.5 | (9.2) | (57.7) | 103.5 | 6.0 | 13.4 | 28.7 | 20.8 |
| Net profit (YoY) | 91.7 | (3.8) | (43.5) | 67.5 | (3.8) | 11.0 | 24.2 | 18.7 |
| Core EPS (fully-diluted) (YoY) | 91.3 | (5.9) | (42.3) | 69.1 | (5.6) | 11.9 | 24.2 | 18.7 |
| Gross-profit margin | 50.4 | 48.9 | 42.8 | 50.4 | 50.0 | 47.9 | 48.5 | 48.8 |
| EBITDA margin | 18.6 | 16.6 | 10.2 | 14.9 | 14.7 | 14.0 | 15.0 | 15.1 |
| Operating-profit margin | 16.4 | 14.1 | 7.0 | 11.9 | 11.7 | 10.9 | 11.9 | 12.0 |
| Net profit margin | 16.0 | 14.5 | 9.6 | 13.5 | 12.0 | 10.9 | 11.5 | 11.5 |
| ROAE | 49.3 | 37.8 | 20.6 | 32.2 | 28.1 | 30.3 | 34.2 | 35.7 |
| ROAA | 18.8 | 15.1 | 8.8 | 14.8 | 12.1 | 12.2 | 14.4 | 15.8 |
| ROCE | 36.8 | 27.2 | 12.0 | 25.5 | 24.0 | 25.4 | 30.1 | 32.6 |
| ROIC | n.a. | n.a | n.a | n.a | n.a | n.a | n.a | n.a |
| Net debt to equity | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
| Effective tax rate | 4.1 | 4.2 | 4.1 | 6.4 | 14.5 | 13.4 | 14.5 | 14.5 |
| Accounts receivable (days) | 51.3 | 45.7 | 47.5 | 40.3 | 40.6 | 45.0 | 45.0 | 45.0 |
| Current ratio (x) | 1.5 | 1.5 | 1.5 | 1.5 | 1.3 | 1.3 | 1.4 | 1.4 |
| Net interest cover (x) | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
| Net dividend payout | 81.3 | 82.1 | 85.5 | 86.9 | 87.7 | 86.9 | 84.5 | 80.7 |
| Free cash flow yield | 4.1 | 4.3 | 4.1 | 5.6 | 5.4 | 5.2 | 4.5 | 5.8 |
Source: FactSet, Daiwa forecasts
Company profile
Realtek focuses on research, design, development and distribution of integrated circuits (ICs) for applications across networking & communication (NC), computer & peripheral (CP) and multimedia & consumer (MM). The majority of its revenue comes from NC products, including WiFi, Bluetooth, Ethernet and switch controllers. It also provides diversified CP products such as audio codec, IP cam, and solid-state drive (SSD) controllers as well as MM products like TV SoC and monitor controllers.
ESG analysis
ESG risks
| Risks Management | Analystcomments |
|---|---|
| G Executive/board quality 2 | Realtek's Board of Directors consists of nine members whose expertise spans industry, academia, finance, accounting, and management, providing the company with a broad and diverse range of professional perspectives. Three of these directors are independent, representing 33 percent of the board and exceeding the regulatory minimum requirement of 20 percent for independent directors. This higher proportion of independent directors enhances oversight, helps safeguard shareholder interests, and supports more objective decision-making. However, an important governance risk remains in the area of board diversity. The board currently includes only one female director out of nine members, which represents 11 percent of the total. This limited female representation may constrain the breadth of viewpoints and experiences reflected in board discussions and could be perceived as misaligned with evolving stakeholder expectations and best practices on gender diversity in corporate governance. |
| Capital management 1 | In the past 8 years, Realtek's dividend payout ratios were above 80%. As a fabless company, it does not need high capital expenditure for manufacturing sites. Realtek's business has shown stable earnings growth over its 30-year history. Thus, we see its dividend policy with a high payout ratio as appropriate. |
| Related party & transaction 2 | Realtek's related-party transactions are primarily with G.M.I. Technology Inc. and Greatek Electronics Inc. Realtek pays certain processing costs to related parties. These payments are made under standard commercial terms and conditions. Overall, we do not observe any significant impact on Realtek's business arising from these related-party transactions. |
| S Supplychain management 2 | Realtek has formulated a set of supplier management regulations in accordance with Realtek's Supplier Sustainability Management Policy. It requires suppliers to obtain ISO9001 quality management system certification to ensure that all of its suppliers possess a high level of environment awareness. |
| E Water&wastewater management 1 | As a fabless company without manufacturing plants, Realtek does not produce much wastewater compared to manufacturing companies, and thus has a relatively limited impact on the environment. Realtek has implemented a water conservation plan to increase water efficiency, such as the reuse of rainwater, re-circulating water in its cooling tower and installing water- saving devices. Its water saving rate (=reduced water consumption/total water withdrawn) increased gradually. |
| E Waste & hazardous materials management 1 | The company reports to the Executive Yuan's Environmental Protection Administration waste and reporting management system every month on the quantity of waste and its method of disposal. In 2024, it produced 26.10 tonnes of industrial waste, maintaining over a 90% recycling rate for hazardous industrial waste. |
| E GHGemissions 1 | Realtek has independently conducted GHG emission inventory and management at its Hsinchu Headquarters since 2019. In 2022, Realtek implemented a comprehensive ISO 14064-1:2018 GHG inventory and passed third-party verification. As of 2024, the company has completed GHG emission inventory and third-party verification for all sites within the Realtek Group. |
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: 29 Jan 2026
Source: Daiwa, Company