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報告_MS_國巨2327_3Q26預覽_20261026

更新 2026-10-27

PDF 原檔:報告_MS_國巨2327_3Q26預覽_20261026_original.pdf

圖片清單(已驗證 2026-10-27)

檔名 size 分類 親眼所見內容
報告_MS_國巨2327_3Q26預覽_20261026_001.png 51KB 真資料圖 Exhibit 2 國巨季度營收依產品別堆疊百分比圖(1Q24–2Q26):MLCC 約 17.7–20%、Chip Resistor 13–14%、Tantalum 16%→23.8%、Magnetics 30%→23.5%、Sensor、Other;2Q26 MLCC 19.1%、鉭質 23.8%、磁性 23.5%;營收結構圖,不嵌公司頁
報告_MS_國巨2327_3Q26預覽_20261026_002.png 34KB 真資料圖(未逐張驗證) <40KB,依 md 圖說為 Exhibit 4 季度營收依通路別(1Q24–2Q26);不嵌
報告_MS_國巨2327_3Q26預覽_20261026_003.png 58KB 真資料圖 Exhibit 6 季度營收依終端應用別堆疊百分比(1Q24–2Q26):Telecom 9%→12.2%、Computer & Enterprise Systems 21%→27.3%、Consumer、Industrial 36%→28.4%、Automotive 20%→15.9%、Aerospace & Defense;營收結構圖,不嵌
報告_MS_國巨2327_3Q26預覽_20261026_004.png 40KB 真資料圖 Exhibit 3 年度營收依產品別(2018–2025):MLCC 61%(2018)→19%(2025)、Chip Resistor、Tantalum、Magnetics、Sensor、Other;營收結構圖,不嵌
報告_MS_國巨2327_3Q26預覽_20261026_005.png 30KB 真資料圖(未逐張驗證) <40KB,依 md 圖說為 Exhibit 5 年度營收依通路別(2018–25);不嵌
報告_MS_國巨2327_3Q26預覽_20261026_006.png 43KB 真資料圖 Exhibit 7 年度營收依終端應用別(2018–2025):Telecom 24%→10%、Computer & Enterprise Systems 25%→26%、Consumer、Industrial 30%→29%、Automotive 11%→20%、Aerospace & Defense;營收結構圖,不嵌
報告_MS_國巨2327_3Q26預覽_20261026_007.png 28KB 真資料圖(未逐張驗證) <40KB,依 md 圖說為 Exhibit 11 國巨 P/E 區間圖(TEJ);股價評價圖,不嵌
報告_MS_國巨2327_3Q26預覽_20261026_008.png 39KB 真資料圖 Exhibit 13 MLCC 同業營業利益率趨勢(2015FY–2028FYe):Yageo 2018FY 峰值約 48%,2028FYe 約 40%;Murata、Taiyo Yuden、TDK、SEMCO 2028FYe 約 30%/20%/14%/27%;財務圖,不嵌
報告_MS_國巨2327_3Q26預覽_20261026_009.png 27KB 真資料圖(未逐張驗證) <40KB,依 md 圖說為 Exhibit 12 國巨 P/B 區間圖(TEJ);不嵌
報告_MS_國巨2327_3Q26預覽_20261026_010.png 14KB 真資料圖(未逐張驗證) <40KB,依 md 圖說為 Exhibit 14 2027e P/E vs ROE;不嵌
報告_MS_國巨2327_3Q26預覽_20261026_011.png 50KB 真資料圖 Risk Reward 圖:上方為共識目標價分布(NT$740–1,450,MS PT 與 Mean 標示);下方為股價走勢(2025/10–2026/10)與 base/bull/bear 目標價扇形:NT$1,050(+107.1%)、NT$1,490(+193.89%)、NT$480(-5.33%),現價 NT$507;股價評價圖,不嵌
報告_MS_國巨2327_3Q26預覽_20261026_012.png 14KB 真資料圖(未逐張驗證) <40KB,依 md 位置為 Consensus Rating Distribution 圓餅/長條;不嵌
報告_MS_國巨2327_3Q26預覽_20261026_013.png 17KB 真資料圖(未逐張驗證) <40KB,依 md 位置為 Global Revenue Exposure 地區營收曝險圖;不嵌
報告_MS_國巨2327_3Q26預覽_20261026_014.png 33KB 真資料圖(未逐張驗證) <40KB,依 md 位置為 MS Estimates vs Consensus 圖;不嵌
報告_MS_國巨2327_3Q26預覽_20261026_015.png 54KB 真資料圖 md 內未引用的額外抽圖:股價線(2023/10–2026/10,由約 NT$130 升至高點約 NT$1,010 後回落)與 MS 目標價階梯線(146–1,515,最後降至 1,050),標示評等 O/NA/O;股價與目標價歷史圖,不嵌

原始內容

M Idea October 26, 2026 09:00 PM GMT

Yageo Corp. | Asia Pacific

3Q preview - margin upside; MLCC tightening thesis intact

3Q revenue exceeded guidance, and we expect OpM of 29 1%, 140bps above the Street Robust AI and general server demand, together with pricing, should offset consumer softness, supporting 4Q revenue and margin guidance of 'up slightly q/q ' Stay OW; price target unchanged

Key Takeaways

  • 3Q margins should beat consensus: we forecast GM of 40.4% and OpM of 29.1%, 50bps and 140bps above the Street, and EPS of NT$5.63, 6% above consensus.
  • Expect 4Q revenue, GM, and OpM guidance "up slightly q/q."

3Q preview - better than guidance, driven by stronger volumes and pricing:

Unaudited revenue reached ~NT$49.5bn (+11% q/q, +50% y/y , stronger than management's guidance of a "moderate increase q/q" (which we interpret as mid- to high-single-digit growth . We did highlight in our results takeaway report (link that there was no pushback from management when we asked whether the guidance was on the conservative side. We think some conservatism was baked into the guidance in view of uncertainties and limited visibility into the consumer segment. As a result of the stronger top line, we now expect GM to surpass 40%, reaching 40.4% (+190bps q/q, +420bps y/y , and for OpM to increase to 29.1% (+270bps q/q, +620bps y/y . This is still considered in line with management's margin guidance of up "slightly" q/q (which we interpret as 0-3% sequential growth . With the slightly stronger top line and margin forecast, we now estimate 3Q net profit to come in at ~NT$11.6bn (+23% q/q, +82% y/y for EPS of NT$5.63.

4Q outloo - pricing and AI demand should continue to drive revenue growth

and margin expansion: Consumer demand is likely going to weaken in 4Q, based on our supply chain checks, as well as PC demand coming in weaker than expected in 3Q, per IDC. However, AI and general server demand should remain robust, and Yageo should continue to see strong momentum for non-consumer related passive component demand. As a result, we see management issuing 4Q revenue guidance of "up slightly q/q" and GM/OpM guidance of "up slightly q/q".

Key issues on which we will focus in the earnings call: 1 demand visibility for nonAI; 2 pricing actions for MLCC in 1Q, 3 pricing actions for tantalum, resistors, magnetics, etc., 4 customer inventory levels for consumer, 5 thoughts on the TDK/ Taiyo Yuden MOU, 6 view on midrange/low-end capacity shortage in CY27.

Reiterate OW with price target at NT$1,050: This implies ~24x CY28e P/E; however, PEG is only 0.72x. We favor Yageo for its scale, broad product portfolio across all passive components, and leverage to an improving industry cycle.

Morgan Stanley Taiwan Limited+ Howard Kao Equity Analyst H ward.Ka @m rganstanley.c m +886 2 2730-2989
Irene Yen Equity Analyst Irene.Yen@m rganstanley.c m +886 2 2730-2869
Morgan Stanley Asia Limited+ Andy Meng, CFA Equity Analyst Andy.Meng@m rganstanley.c m +852 2239-7689

Yageo Corp.(2327.TW, 2327 TT)

Greater China Technology Hardware | Taiwan

Stock Rating Overweight
Industry View In-Line
Price target NT$1,050.00
Up/downside to price target (%) 107
S r price, close (Oct 22, 2026) NT$507.00
52-Week Range NT$1,220.00-207.00
S out, dil, curr (mn) 1,997
Mkt cap, curr (mn) NT$1,012,410
EV, curr (mn) NT$1,029,149
Avg daily trading value (mn) NT$20,946
Fiscal Year Ending 12/25 12/26e 12/27e 12/28e
EPS (NT$)** 11.51 20.14 32.48 43.39
Prior EPS (NT$)** - 19.79 32.11 43.41
EPS (NT$)§ 11.61 19.59 31.62 45.58
Revenue, net (NT$ mn) 132,930183,232253,608308,798
EBITDA (NT$ mn) 39,635 60,485 94,316123,250
ModelWare net inc (NT 23,634 41,360 66,698 89,119
$ mn)
P/E 20.1 25.2 15.6 11.7
P/BV 2.7 4.8 4.0 3.4
RNOA (%) 12.0 20.9 35.6 49.2
ROE (%) 14.5 23.8 30.6 34.4
EV/EBITDA 12.4 16.4 10.0 7.3
Div yld (%) 2.2 1.2 2.4 3.8
FCF yld ratio (%)** 6.6 4.6 6.9 8.7
Leverage (EOP) (%) 9.6 (15.6) (31.0) (42.2)

Unless ot erwise noted, all metrics are based on Morgan Stanley ModelWare framework

  • ** = Based on consensus met odology
  • § = Consensus data is provided by Refinitiv Estimates
  • e = Morgan Stanley Researc estimates

Morgan Stanley does and seeks to do business with companies covered in Morgan Stanley Research. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Research. Investors should consider Morgan Stanley Research as only a single factor in making their investment decision.

For analyst certification and other important disclosures, refer to the Disclosure Section, located at the end of this report.

= Analysts employed by non-U.S. affiliates are not registered with FINRA, may not be associated persons of the member and may not be subject to FINRA restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

M Idea

lphaSignals Earnings Preview

Focus KPI

Focus KPI Surprise Likely impact to consensus EPS*

Yageo Corp. 2327.TW

3Q OpM

Very likely upside surprise ↑

Modest revision ig er

  • ·We are 140bps above t e Street on 3Q OpM (MSe at 29.1% vs t e Street at 27.7%)

*Likely impact to consensus EPS is for t e next 12 mont s

Source: Company data, Morgan Stanley Researc M Idea

3Q26 Results Preview

Exhibit 1: 3Q26 Results Preview

Results - NT$mn Results - Actual Results - QoQ Results - YoY Results - Cons Results - Variance
Net sales 49,532 11% 50% 48,560 2%
COGS -29,519 8% 40% -29,191 1%
Gross profit 20,012 17% 67% 19,369 3%
Operating expenses -5,604 4% 27% -5,910 -5%
Operating income 14,408 23% 91% 13,459 7%
Non-operating income 468 -1% -28% 629 -26%
Pre-tax income 14,876 22% 81% 14,088 6%
Income tax -3,273 18% 80% -3,160 4%
Net income 11,565 23% 82% 10,928 6%
EPS (NT$) 5.63 23% 82% 5.32 6%
Margins (%) ppt ppt ppt
Gross margin 40.4% 1.9 4.2 39.9% 0.5
Operating margin 29.1% 2.7 6.2 27.7% 1.4
Pre-tax margin 30.0% 2.5 5.2 29.0% 1.0
Net margin 23.3% 2.2 4.1 22.5% 0.8

S urce: Visible Alpha, M rgan Stanley Research estimates (E).

M Idea

Details for Yageo's 3Q26 Earnings Virtual NDR Conference Call

Pre-registration is required.

Date and time: October 29, Thursday, 4.00 PM Taiwan / HK / China / Singapore Spea ers: Mr. David Wang (President & CEO), Mr. Eddie Chen (Co-COO), Mr. Claudio Lollini (Co-COO), Mr. Gavin Zhong (CFO)

Webcast URL: https://morganstanley.webcasts.com/starthere.jsp? ei=1779480&tp_key=60a78fb2bd

Webcast URL for PRC: https://morganstanley.cnwebcasts.cn/starthere.jsp? ei=1779480&tp_key=60a78fb2bd

Click the webcast link and enter your name and e-mail address. If you have pre-registered, simply log-in again with your registered e-mail address five minutes before the start time.

Replay will be available through the same webcast link post-event.

Only pre-registered clients will be allowed to join the webcast.

RSVP - Please register via the webcast links above or contact your Morgan Stanley Sales Representative.

M Idea

Charts

Exhibit 2: Quarterly Sales, by Pr duct, 1Q24-2Q26

S urce: C mpany data, M rgan Stanley Research

Exhibit 4: Quarterly Sales, by Channel, 1Q24-2Q26

100%

S urce: C mpany data, M rgan Stanley Research

Exhibit 6: Quarterly Sales, by Segment, 1Q24-2Q26

S urce: C mpany data, M rgan Stanley Research

Exhibit 3: Annual Sales, by Pr duct, 2018-25

S urce: C mpany data, M rgan Stanley Research

Exhibit 5: Annual Sales, by Channel, 2018-25

S urce: C mpany data, M rgan Stanley Research

Exhibit 7: Annual Sales, by Segment, 2018-25

S urce: C mpany data, M rgan Stanley Research M Idea

Earnings Estimates Changes

We fine-tune our model, resulting in very slight decreases in our CY26-28 EPS estimates.

Exhibit 8: Earnings Estimates

NT$ mn 2026e Earnings Estimates - New 2026e Earnings Estimates - Old 2026e Earnings Estimates - Variance 2027e Earnings Estimates - New 2027e Earnings Estimates - Old 2027e Earnings Estimates - Variance 2028e Earnings Estimates - New 2028e Earnings Estimates - Old 2028e Earnings Estimates - Variance
Net sales 183,232 182,769 0% 253,608 251,501 1% 308,798 306,659 1%
COGS -110,622 -110,968 0% -142,807 -142,878 0% -164,980 -165,373 0%
Gross profit 72,610 71,801 1% 110,802 108,623 2% 143,818 141,286 2%
Operating expenses -21,595 -21,691 0% -25,648 -24,729 4% -29,432 -27,229 8%
Operating income 51,015 50,110 2% 85,153 83,894 2% 114,386 114,057 0%
Non-operating income 2,121 2,121 0% 1,809 1,809 0% 1,828 1,828 0%
Pre-tax income 53,136 52,231 2% 86,962 85,703 1% 116,214 115,885 0%
Income tax -11,626 -11,428 2% -20,112 -19,614 3% -26,943 -26,581 1%
Net income 41,360 40,652 2% 66,698 65,937 1% 89,119 89,152 0%
EPS (NT$) 20.14 19.79 2% 32.48 32.11 1% 43.39 43.41 0%
Margins (%) ppt ppt ppt
Gross margin 39.6% 39.3% 0.3 43.7% 43.2% 0.5 46.6% 46.1% 0.5
Operating margin 27.8% 27.4% 0.4 33.6% 33.4% 0.2 37.0% 37.2% -0.2
Pre-tax margin 29.0% 28.6% 0.4 34.3% 34.1% 0.2 37.6% 37.8% -0.2
Net margin 22.6% 22.2% 0.3 26.3% 26.2% 0.1 28.9% 29.1% -0.2

S urce: M rgan Stanley Research (e) estimates

Where we are vs. consensus earnings estimates

Exhibit 9: M rgan Stanley estimates vs. c nsensus

Yageo MSe - 2026 MSe - 2027 MSe - 2028 Consensus - 2026 Consensus - 2027 Consensus - 2028 Variance - 2026 Variance - 2027 Variance - 2028
Revenue 183,232 253,608 308,798 182,681 247,057 305,340 0% 3% 1%
GM 39.6% 43.7% 46.6% 39.5% 44.9% 49.0% 0.1% -1.2% -2.4%
OpM 27.8% 33.6% 37.0% 27.3% 33.9% 38.3% 0.5% -0.3% -1.3%
Net income 41,360 66,698 89,119 40,429 67,010 93,576 2% 0% -5%
EPS 20.14 32.48 43.39 19.69 32.63 45.56 2% 0% -5%

S urce: Visible Alpha, M rgan Stanley Research estimates.

M Idea

Price target discussion and valuation methodology

Our 12-month price target is unchanged at NT$1,050: Our price target is our base case value, derived from our residual income valuation model. Similar to our analysis of other tech hardware companies within our coverage, we think this methodology provides the most accurate value of the firm by taking into account the cost of equity.

Our key assumptions are all unchanged, including:

  • Cost of equity of 7.8%
  • ° Risk-free rate of 1.0% (10-year Taiwanese government bond yield
  • ° Equity risk premium of 6.8%
  • ° Beta of 1.1
  • Medium-term growth rate of 12%
  • Terminal growth rate of 3%

Our price target implies 32x 2027e P/E and 24x 2028e P/E. These are above its five-year historical range of 8x to 18x, which we view as justified considering its longer-term transformation story to become a global total solutions provider, moving from passive into active components. In addition, compared to global passive component peers, we believe Yageo stock remains undervalued with higher ROE and margins but lower P/E vs. Japanese peers (which trade on an average at 30x+ P/E .

Our bull and bear case scenario values are also unchanged at NT$1,490 and NT$480, respectively.

Exhibit 10: Residual Inc me (RI) M del

2026E 2027E 2028E 2029E 2030E 2031E 2032E 2033E 2034E 2035E 2036E
Total Equity 217,869 258,924 307,178 353,520 405,423 463,555 528,662 601,582 683,252 774,723 859,439
Net Profit 41,360 66,698 89,119 99,814 111,791 125,206 140,231 157,059 175,906 197,014 202,925
Return on Equity 21.1% 28.0% 31.5% 30.2% 29.5% 28.8% 28.3% 27.8% 27.4% 27.0% 24.8%
Beta 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Equity Risk Premium (Rm-Rf) 6.8% 6.8% 6.8% 6.8% 6.8% 6.8% 6.8% 6.8% 6.8% 6.8% 6.8% 6.8%
Risk Free Rate (Rf) 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
Cost of Equity 7.8% 7.8% 7.8% 7.8% 7.8% 7.8% 7.8% 7.8% 7.8% 7.8% 7.8% 7.8%
Residual Income 23,227 44,048 61,430 68,975 76,713 85,369 95,057 105,901 118,041 131,634 132,286
Spread 13.3% 20.2% 23.7% 22.5% 21.7% 21.1% 20.5% 20.0% 19.6% 19.3% 17.1%
Beginning Equity Capital 217,869
PV of Forecast Period 582,763
PV of Continuing Value 1,355,719
Equity Value 2,156,351
No. of Shares 2,054
Projected Price 1,050.0
Implied 2027e PE 32x
Implied 2028e PE 24x

S urce: M rgan Stanley Research (E) estimates.

M Idea

Exhibit 11: Yage - P/E

S urce: TEJ, M rgan Stanley Research.

Exhibit 13: MLCC peers - perating margins

OpM trend vs. Japanese/Korean passive component suppliers

S urce: Visible Alpha.

Exhibit 12: Yage - P/B

S urce: TEJ, M rgan Stanley Research.

Exhibit 14: 2027e P/E vs. ROE

■

S urce: M rgan Stanley Research estimates.

P/E

d

M Idea

Risk Reward - Yageo Corp (2327 TW) Risk Reward - Yageo Corp. (2327.TW)

Demand looks stronger and price increases appear likely - stay OW

NT$1,050.00 PRICE TARGET

Base case, multistage residual income valuation model. Key assumptions: cost of equity 7.8% (risk-free rate 1%, equity risk premium 6.8% and beta of 1.1), medium-term growth rate 12%, terminal growth rate 3%.

NT$1,081.11

Source: Refinitiv, Morgan Stanley Research

BULL CASE

BASE CASE

OVERWEIGHT THESIS

  • ▪There is fear that leading Japanese and Korean MLCC suppliers are shifting more capacity to cater to the high end, resulting in undersupply for the midrange/low end.
  • ▪The same narrative that drove the 2018 cycle is now back in play.
  • ▪Utilization rates are increasing, so suppliers are expecting price hikes for the midrange/low end. Distributors and ODMs are both building inventory.
  • ▪AI demand is growing and tantalum capacitor pricing may show further price increases in 2H.
  • ▪All of this should help support a re-rating in the stock.

Consensus Rating Distribution

Risk Reward Themes

Electric Vehicles:

Self-help:

Positive

Positive

Special Situation:

Positive

View descriptions of Risk Rewards Themes here

BEAR CASE

34x 2028e EPS

Demand continues to grow faster than expected in 2027-28: 1) Demand improves significantly, driving pricing power for Yageo in premium and standard products alike. 2) Yageo makes meaningful progress into AI, driving significant share gains. 3) Yageo takes on more acquisition initiatives to further widen its product portfolio. 4) Severe undersupply leads to continued price hikes for an extended period of time, which helps expand Yageo's margins in 2027-28.

24x 2028e EPS

Demand remains strong into 2027-28: 1) Utilization remains high for premium products. 2) Utilization for standard products stabilizes at 70%+ with resilient consumer tech demand. 3) Transformation and synergies are ongoing with continued active initiatives. 4) Yageo continues to drive expansion into the AI realm and slowly gains market share. 5) High utilization rates and inflationary raw material costs result in continued price hikes.

11x 2028e EPS

Earnings erode as macro conditions weaken and demand falls again in 2027-28: 1) Non-AI demand weakens from 2H26 onward, despite AI demand remaining strong. 2) Pricing power shifts to end customers with heightened competition among peers. 3) Acquisitions do not bear fruit, resulting in layoffs and leading to cost burdens. 4) Automotive and industrial end demand does not recover, hampering Yageo's premium business. 5) Yageo does not make any material advancements into AI.

NT$480.00

NT$1,490.00

NT$1,050.00

M Idea

Risk Reward - Yageo Corp. (2327.TW)

KEY EARNINGS INPUTS

Drivers Dec 2025 Dec 2026e Dec 2027e Dec 2028e
MLCC ASP y/y (%) 0.6 23.9 65.9 14.9
MLCC GM (%) 31.7 36.5 43.6 47.2
r-chip ASP y/y (%) 0.8 11.4 46.0 27.3
r-chip GM (%) 43.4 46.3 51.7 54.8

INVESTMENT DRIVERS

  • Transformation into global total solutions service provider
  • Premium/standard sales mix
  • Utilization rates and capacity
  • Inventory and pricing

GLOBAL REVENUE EXPOSURE

Source: Morgan Stanley Research Estimate View explanation of regional hierarchies here

MS ALPHA MODELS

2/5

MOST

3 Month

Horizon

Source: Refinitiv, FactSet, Morgan Stanley Research; 1 is the highest favored Quintile and 5 is the least favored Quintile

RISKS TO PT/RATING

RISKS TO UPSIDE

  • Faster-than-expected revenue/profit recognition from stronger AI server/notebook demand
  • Further price hikes led by stronger pricing power arising from better demand and/or tighter supply

RISKS TO DOWNSIDE

  • A sudden bursting of demand for AI
  • Inventory risk
  • Consumer electronics demand risk

OWNERSHIP POSITIONING

Inst. Owners, % Active

70.4%

Source: Refinitiv, Morgan Stanley Research

MS ESTIMATES VS. CONSENSUS

■

Source: Refinitiv, Morgan Stanley Research M Idea

Financials

Exhibit 15: Quarterly Earnings Estimates

1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26E 4Q26E 2025 2026E 2027E 2028E
Net sales 31,104 32,771 33,087 35,968 38,166 44,456 49,532 51,079 132,930 183,232 253,608 308,798
COGS (20,018) (21,119) (21,112) (22,551) (23,624) (27,340) (29,519) (30,139) (84,800) (110,622) (142,807) (164,980)
Gross profit 11,086 11,652 11,974 13,417 14,542 17,116 20,012 20,940 48,130 72,610 110,802 143,818
Operating expenses (4,623) (4,609) (4,412) (4,685) (4,929) (5,368) (5,604) (5,694) (18,329) (21,595) (25,648) (29,432)
SG&A (3,758) (3,774) (3,578) (3,800) (4,035) (4,461) (4,679) (4,751) (14,910) (17,926) (21,644) (25,064)
R&D (865) (834) (834) (886) (894) (907) (925) (943) (3,419) (3,669) (4,004) (4,368)
Operating income 6,463 7,044 7,562 8,732 9,613 11,749 14,408 15,246 29,801 51,015 85,153 114,386
Non-operating income 710 (15) 650 (26) 712 474 468 468 1,319 2,121 1,809 1,828
Interest income 533 443 379 216 303 345 345 345 1,571 1,339 1,382 1,382
Investment income 117 24 144 195 181 202 222 222 480 827 827 846
Disposal of investment 100 0 0 0 7 0 0 0 100 7 0 0
Exchange gain (148) 194 (110) (677) (139) (194) 0 0 (742) (333) 0 0
Other 108 (676) 237 241 359 121 (100) (100) (90) 280 (400) (400)
Pre-tax income 7,173 7,028 8,212 8,706 10,325 12,222 14,876 15,713 31,120 53,136 86,962 116,214
Income tax (1,610) (2,016) (1,817) (1,900) (2,287) (2,766) (3,273) (3,300) (7,343) (11,626) (20,112) (26,943)
Minority interest 33 14 39 56 37 38 38 38 143 151 152 152
Net income 5,530 4,998 6,356 6,751 8,001 9,418 11,565 12,375 23,634 41,360 66,698 89,119
Adj.wtd.avg.shrs (mn) 2,053 2,053 2,054 2,053 2,054 2,054 2,054 2,054 2,053 2,054 2,054 2,054
EPS 2.69 2.43 3.10 3.29 3.90 4.59 5.63 6.03 11.51 20.14 32.48 43.39
Fully Diluted shares (mn) 2,459 2,456 2,055 2,053 2,054 2,054 2,054 2,054 2,053 2,054 2,054 2,054
Diluted EPS (NT$) 2.25 2.03 3.09 3.29 3.90 4.59 5.63 6.03 11.51 20.14 32.48 43.39
Margins (%)
Gross Margin 35.6 35.6 36.2 37.3 38.1 38.5 40.4 41.0 36.2 39.6 43.7 46.6
Operating Margin 20.8 21.5 22.9 24.3 25.2 26.4 29.1 29.8 22.4 27.8 33.6 37.0
Pretax Margin 23.1 21.4 24.8 24.2 27.1 27.5 30.0 30.8 23.4 29.0 34.3 37.6
Net Margin 17.8 15.3 19.2 18.8 21.0 21.2 23.3 24.2 17.8 22.6 26.3 28.9
QoQ Growth (%)
Sales 4 5 1 9 6 16 11 3
Gross Profit 11 5 3 12 8 18 17 5
Operating Profit 20 9 7 15 10 22 23 6
Pretax Profit 15 -2 17 6 19 18 22 6
Net Profit 49 -10 27 6 19 18 23 7
YoY Growth (%)
Sales 9 4 4 20 23 36 50 42 9 38 38 22
Gross Profit 15 6 7 35 31 47 67 56 15 51 53 30
Operating Profit 31 9 14 63 49 67 91 75 27 71 67 34
Pretax Profit 18 -5 15 39 44 74 81 80 16 71 64 34
Net Profit 21 -8 13 82 45 88 82 83 22 75 61 34

S urce: C mpany data, M rgan Stanley Research (E) estimates.

M Idea

Exhibit 16: C ns lidated Financial Summary

Consolidated Income Statement

Consolidated Cash Flow Statement

NT$mn (Year End Dec 31)

2025

2026E

2027E

2028E NT$mn (Year End Dec 31)

2025

2026E

2027E

2028E

Net sales

132,930

183,232

253,608

308,798 Operating Cashflow

30,863

46,038

65,817

86,898

COGS

(84,800)

(110,622)

(142,807)

(164,980) Net Profits

23,634

41,360

66,698

89,119

Gross profit

48,130

72,610

110,802

143,818

Depreciation & Amort.

9,834

9,469

9,163

8,864

Operating expenses

(18,329)

(21,595)

(25,648)

(29,432)

Investment losses/(income)

(581)

(827)

(827)

(846)

Operating income

29,801

51,015

85,153

114,386 Working capital change

(12,663)

(1,000)

(5,082)

(6,997)

Non-operating income

1,319

2,121

1,809

1,828 Other adjustments

10,944

(2,956)

(4,135)

(3,243)

Interest income

1,571

1,339

1,382

1,382

Investing Cashflow

(3,725)

(7,355)

(7,107)

(6,912)

Investment income

480

827

827

846

Capex

(6,056)

(8,000)

(8,000)

(8,000)

Disposal of investment

100

7

-

-

Change of L/T investment

(4,146)

0

0

0

Exchange gain

(742)

(333)

-

-

Change of S/T investment

817

0

0

0

Other

(90)

280

(400)

(400) Other adjustments

5,191

0

0

0

Pre-tax income

31,120

53,136

86,962

116,214

Financing Cashflow

(3,135)

10,765

(13,574)

(31,418)

Income tax

(7,343)

(11,626)

(20,112)

(26,943)

Increase in L/T debt

(543)

(1,000)

(1,000)

(1,000)

Minority interests

143

151

152

152

Increase in S/T debt

7,613

0

0

0

Net income

23,634

41,360

66,698

89,119

Issuance of stock

0

15,337

0

0

Adj. wtd. Avg. shrs (m)

2,053

2,054

2,054

2,054

Cash dividends

(10,265)

(12,322)

(24,816)

(40,019)

Reported EPS (NT$)

11.51

20.14

32.48

43.39 Other adjustments

61

8,751

12,243

9,601

Diluted shrs (m)

2,053

2,054

2,054

2,054

FX adjustment

(3,647)

333

0

0

Diluted EPS (NT$)

11.51

20.14

32.48

43.39

Net change in cash

20,356

49,782

45,136

48,567

Consolidated Balance Sheet

Consolidated Financial Ratios

NT$mn (Year End Dec 31) 2025 2026E 2027E 2028E
Cash 81,473 131,255 176,391 224,959
Mkt securities 16,634 16,634 16,634 16,634
AR/NR 27,792 34,199 46,916 60,159
Inventory 31,636 41,419 52,715 59,512
Others 7,811 10,767 14,902 18,145
Current Assets 165,346 234,274 307,559 379,409
Long-term investments 45,572 45,572 45,572 45,572
Fixed assets 65,305 63,190 61,134 59,182
Other assets 114,566 114,566 114,566 114,566
Total Assets 390,789 457,602 528,832 598,730
S/T borrowings 86,196 86,196 86,196 86,196
AP/NP 18,031 23,522 30,366 35,080
Other ST liabilities 31,852 41,551 53,639 61,968
Total Current Liabilities 136,079 151,269 170,201 183,244
L/T debt 57,589 56,589 55,589 54,589
Other LT libilities 23,124 31,875 44,118 53,718
Total Liabilities 216,793 239,733 269,908 291,551
Common shares 5,182 20,519 20,519 20,519
Retained Earnings 104,669 133,205 174,260 222,514
Other SH' Equity 64,145 64,145 64,145 64,145
Total Shareholders' Equity 173,997 217,869 258,924 307,178
Total Liab./SH's Equity 390,789 457,602 528,832 598,730

S urce: C mpany data, M rgan Stanley Research (E) estimates.

224,959 Margins (%)

16,634 Gross margin

2025

2026E

2027E

2028E

36.2

39.6

43.7

46.6

60,159 Operating margin

22.4

27.8

33.6

37.0

Pretax margin

23.4

29.0

34.3

37.6

Net margin

17.8

22.6

26.3

28.9

YoY growth (%)

Sales

9.3

37.8

38.4

21.8

59,182 Operating profits

27.4

71.2

66.9

34.3

Pretax profits

15.8

70.7

63.7

33.6

Net profits

22.1

75.0

61.3

33.6

86,196 Others

Cash dividend payout (%)

52%

60%

60%

60%

Cash div (NT$)

6.00

12.08

19.49

26.04

Yield (%)

1%

2%

4%

5%

Net Debt/Equity (%)

26%

-2%

-20%

-33%

Liabilities/Equity (%)

125%

110%

104%

95%

Liabilities/Assets (%)

55%

52%

51%

49%

ROAE (%)

14%

21%

28%

31%

ROAA (%)

6%

10%

14%

16%

AR/NR Turnover (days)

68

62

58

63

Inventory Turnover (days)

128

121

120

124

AP/NP Turnover (days)

71

69

69

72

Cash conversion cycle

125

114

110

115

M Idea

  1. View explanation of Options Probabilities methodology -

Options_Probabilities_Exhibit_Link.pdf

  1. View descriptions of Risk Rewards Themes - RR_Themes_Exhibit_Link.pdf
  2. View explanation of regional hierarchies - GEG_Exhibit_Link.pdf

  3. View explanation of Theme/Exposure methodology -

ESG_Sustainable_Solutions_External_Link.pdf

  1. View explanation of HERS methodology - ESG_HERS_External_Link.pdf

M Idea

INDUSTRY COVERAGE: Greater C ina Tec nology Hardware

Company (Ticker) Rating ( s Of) Price* (10/23/2026)
Andy Meng, CFA
AAC Tec nologies Holdings (2018.HK) O (01/29/2024) HK$35.60
Accelink Tec nologies Co. Ltd. (002281.SZ) U (05/12/2022) Rmb128.63
BYD Electronics (0285.HK) O (04/28/2023) HK$22.46
C ina TransInfo Tec nology Co Ltd (002373.SZ) E (07/18/2023) Rmb7.84
Da ua Tec nology Co. Ltd. (002236.SZ) E (12/12/2024) Rmb15.11
Eoptolink Tec nology Inc Ltd (300502.SZ) O (02/27/2026) Rmb261.00
Genius Electronic Optical Co. Ltd. (3406.TW) E (10/13/2026) NT$1,160.00
GoerTek Inc (002241.SZ) E (08/14/2026) Rmb23.11
Gosuncn Tec nology Group Co Ltd (300098.SZ) U (11/07/2022) Rmb4.26
HIKVision Digital Tec nology (002415.SZ) E (12/12/2024) Rmb33.78
Largan Precision (3008.TW) O (10/13/2026) NT$6,175.00
LianC uang Electronic Tec nology Co Ltd (002036.SZ) U (06/12/2024) Rmb5.82
Lingyi Itec Guangdong Co (002600.SZ) U (04/23/2025) Rmb11.55
Lingyi Itec Guangdong Co (1688.HK) O (08/14/2026) HK$4.92
Luxs are Precision Industry Co., Ltd. (2475.HK) O (08/14/2026) HK$50.00
Luxs are Precision Industry Co., Ltd. (002475.SZ) O (10/24/2016) Rmb50.42
OFILM Group Co Ltd (002456.SZ) U (06/12/2024) Rmb6.44
Q Tec nology (Group) Company Ltd (1478.HK) U (03/23/2026) HK$4.75
Quectel Wireless Solutions Co Ltd (603236.SS) E (10/09/2024) Rmb80.74
S ang ai Conant Optical Co Ltd (2276.HK) O (04/10/2026) HK$36.64
S enz en Transsion Holdings Co Ltd (688036.SS) E (03/23/2026) Rmb59.11
Sunny Optical (2382.HK) E (03/23/2026) HK$63.15
Suz ou TFC Optical Communication Co Ltd. (300394.SZ) E (11/06/2025) Rmb200.81

M Idea M Idea St ck Ratings are subject t change. Please see latest research f r each c mpany.

Wingtec Tec nology Co Ltd (600745.SS) U (05/18/2026) Rmb11.58
Xiaomi Corp (1810.HK) O (04/14/2021) HK$26.80
Yangtze Optical Fibre and Cable JSC Ltd (601869.SS) U (10/13/2021) Rmb322.75
Yangtze Optical Fibre and Cable JSC Ltd (6869.HK) O (07/15/2026) HK$112.20
Yongxin Optics Co Ltd (603297.SS) E (11/15/2022) Rmb97.14
Z ejiang Crystal-Optec Co Ltd (002273.SZ) O (11/15/2022) Rmb22.84
Z ongji Innolig t Co Ltd (300308.SZ) O (09/07/2026) Rmb612.63
Z ongji Innolig t Co Ltd (3308.HK) O (09/07/2026) HK$754.50
ZTE Corporation (0763.HK) O (06/04/2026) HK$19.31
ZTE Corporation (000063.SZ) E (06/04/2026) Rmb28.16
Derrick Yang
Accton Tec nology Corporation (2345.TW) O (06/06/2024) NT$1,775.00
Advantec (2395.TW) O (01/20/2021) NT$670.00
AirTAC International (1590.TW) O (04/16/2025) NT$1,100.00
Asia Vital Components Co. Ltd. (3017.TW) O (07/30/2024) NT$3,145.00
AU Optronics (2409.TW) E (02/10/2026) NT$35.40
Auras Tec nology Co Ltd (3324.TWO) E (05/04/2023) NT$1,360.00
Bizlink (3665.TW) O (03/10/2025) NT$1,875.00
BOE Tec nology (000725.SZ) O (09/06/2019) Rmb4.93
C enbro (8210.TW) O (07/23/2025) NT$764.00
C roma Ate Inc. (2360.TW) O (10/05/2021) NT$1,980.00
Delta Electronics Inc. (2308.TW) O (07/13/2017) NT$1,560.00
E Ink Holdings Inc. (8069.TWO) E (08/10/2026) NT$153.50
Ennostar Inc (3714.TW) U (09/23/2022) NT$61.70
Fositek Corp (6805.TW) O (06/25/2025) NT$2,335.00
Hiwin Tec nologies Corp. (2049.TW) O (03/30/2026) NT$299.00
Innolux (3481.TW) E (04/07/2025) NT$46.75
King Slide Works Co. Ltd. (2059.TW) O (11/08/2023) NT$9,755.00
Lens Tec nology (300433.SZ) E (07/22/2020) Rmb27.81
Lite-On Tec nology (2301.TW) E (01/15/2025) NT$255.50
TCL Corp. (000100.SZ) E (04/07/2025) Rmb4.47
Tianma Microelectronics (000050.SZ) U (01/24/2018) Rmb5.98
Howard Kao
Acer Inc. (2353.TW) U (04/23/2025) NT$32.45
Asustek Computer Inc. (2357.TW) U (11/16/2025) NT$946.00
Catc er Tec nology (2474.TW) U (11/17/2025) NT$196.50
Compal Electronics (2324.TW) U (04/23/2025) NT$37.30
Elite Material Co. (2383.TW) O (09/14/2026) NT$5,070.00
FIT Hon Teng Ltd (6088.HK) O (11/03/2025) HK$3.71
Foxconn Industrial Internet Co. Ltd. (601138.SS) O (07/10/2019) Rmb48.85
Giga-Byte Tec nology Co. Ltd. (2376.TW) E (11/16/2025) NT$349.00
Gold Circuit Electronics Ltd. (2368.TW) O (10/06/2022) NT$1,115.00
Hon Hai Precision (2317.TW) O (03/15/2024) NT$245.00
Inspur Electronic Information (000977.SZ) E (08/28/2023) Rmb58.50
Kingboard Laminates Holdings Ltd. (1888.HK) O (09/14/2026) HK$37.70
LandMark Optoelectronics Corporation (3081.TWO) E (03/26/2026) NT$2,375.00
Lenovo (0992.HK) O (07/10/2026) HK$22.64
Lotes Co. Ltd. (3533.TW) E (05/12/2025) NT$1,795.00
Nan Ya PCB (8046.TW) O (02/23/2026) NT$1,265.00
Pegatron Corporation (4938.TW) E (03/25/2026) NT$103.50
Quanta Computer Inc. (2382.TW) O (05/01/2023) NT$322.00
S engyi Tec nology Co Ltd. (600183.SS) E (05/26/2022) Rmb110.81
S ennan Circuits Co Ltd (002916.SZ) E (08/24/2023) Rmb282.98
Unimicron (3037.TW) O (02/23/2026) NT$1,085.00
Visual P otonics Epitaxy Co Ltd (2455.TW) E (09/11/2023) NT$467.00
Wistron Corporation (3231.TW) O (07/12/2023) NT$190.00
Wiwynn Corp (6669.TW) O (11/10/2025) NT$1,840.00
Yageo Corp. (2327.TW) O (10/28/2025) NT$507.00
Z en Ding (4958.TW) ++ NT$567.00
Irene Yen
Co-Tec Development Corp. (8358.TWO) O (09/14/2026) NT$438.50
Taiwan Union Tec nology Corporation (6274.TWO) O (09/14/2026) NT$1,420.00
  • Hist rical prices are n t split adjusted.

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