PDF 原檔：260822_3665_貿聯_ml_bizlink_original.pdf
圖片清單（已驗證 2026-08-24）
| 檔名 | size | 分類 | 親眼所見內容 |
|---|---|---|---|
260822_3665_貿聯_ml_bizlink_001.png |
33KB | 真資料圖 | 「BizLink's P/E trend and -1/+1 standard deviation since IPO」本益比走勢圖（IPO 以來均值 11x） |
260822_3665_貿聯_ml_bizlink_002.png |
30KB | 真資料圖 | 「BizLink's P/B trend and -1/+1 standard deviation since IPO」股價淨值比走勢圖（IPO 以來均值 1.8x） |
260822_3665_貿聯_ml_bizlink_003.png |
57KB | 真資料圖 | BofA 目標價調整歷史圖：2024-08-28 PO NT$347 → 2024-11-08 NT$396 → 2025-03-12 NT$455 → 2025-07-28 NT$685 → 2025-08-21 NT$820 → 2025-10-08 NT$1,120 → 2025-11-10 NT$1,800 → 2026-03-06 NT$2,050 → 2026-04-22 NT$3,088 → 2026-05-12 NT$3,230，股價線同期由約 NT$200 升至約 NT$2,300 |
原始內容
BizLink
2Q26 results in line; positive on AI & semi equipment; trim PO to NT$3,088; Buy
Reiterate Rating: BUY | PO: 3,088 TWD | Price: 2,275 TWD
2Q in line; GM reflects deployment cycle and product mix
BizLink ' s 2Q GM/OPM of 30.7%/17.2% came in roughly in line with BofAe of 30.9%/ 17.4% and consensus of 30.7%/17.3%, with 3%/1% higher sales than BofAe/consensus. We believe 2Q GM/OPM mainly reflects different deployment cycle among HPC clients and product-mix change. HPC comprised 42% of 2Q sales (with a higher mix from power vs. data), vs. 45% in 1Q (evenly sales split between power and data). Industrial remained the second-largest segment at 35% in 2Q, vs. 34% in 1Q. Yet, sales mix from lightermargin EA business rose to 12% in 2Q, vs. 8% in 1Q, after consolidating newly acquired PAS. With opex control and a lighter tax rate, NP was 4%/3% above BofAe/consensus.
Positive on AI & semi equip.; BofAe 2H QoQ sales growth
Mgmt. remains positive on AI and semi equipment, and sees them as two key structural growth drivers. For AI, mgmt. highlighted rising power density and data speed with more integrated system requirements. For semi equipment, mgmt. cited a higher value-add and clear order visibility into 2H27 as the higher-level assembler and system integrator from purely component maker. We now expect 3Q/4Q26 sales to grow 18%/10% QoQ and the GM to improve to 31.8%/32.8% (vs. 28.8%/30.7% in 1Q/2Q), supported by new AI GPU/ASIC platform launches and sustainable demand from semi equipment business.
Lower PO to NT$3,088 but reiterate Buy
We lift 2026-28E EPS by 2-4% to reflect in-line 2Q26 results, solid AI momentum, sales from Interplex Datacom acquisition from 2027 (see our 11 June note), and subtotal 5% share dilution from new GDR and ECB issued in mid-Aug. We trim PO to NT$3,088 (28x 2027E EPS) from NT$3,230 (30x 2027E EPS), with the valuation base unchanged but a lower P/E multiple. We now use 28x (3SD above average) on potentially slower margin expansion amid clients ' different deployment schedule. Yet, we reiterate Buy as BizLink benefits from AI copper/power/optical cable demand with volume/content increase.
| Estimates (Dec) (NT$) | 2024A | 2025A | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|
| Net Income (Adjusted - mn) | 4,396 | 9,005 | 13,625 | 22,576 | 30,300 |
| EPS | 25.16 | 46.12 | 68.80 | 110.27 | 148.00 |
| EPS Change (YoY) | 76.9% | 83.3% | 49.2% | 60.3% | 34.2% |
| Consensus EPS (Visible Alpha) | 65.00 | 111.07 | 143.05 | ||
| Dividend / Share | 8.91 | 15.00 | 20.64 | 33.08 | 44.40 |
| Free Cash Flow / Share | 20.86 | 26.01 | 27.49 | 60.53 | 98.25 |
| Valuation (Dec) | |||||
| P/E | 90.43x | 49.33x | 33.07x | 20.63x | 15.37x |
| Dividend Yield | 0.392% | 0.659% | 0.907% | 1.45% | 1.95% |
| EV / EBITDA* | 52.07x | 30.44x | 21.52x | 13.65x | 10.39x |
| Free Cash Flow Yield* | 0.803% | 1.12% | 1.20% | 2.73% | 4.43% |
| * For full definitions of iQ method SM measures, see page 8. |
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 9 to 11. Analyst Certification on page 6. Price
22 August 2026
Equity
| Key Changes (NT$) | Previous | Current |
|---|---|---|
| Price Obj. | 3,230.00 | 3,088.00 |
| 2026E EPS | 66.37 | 68.80 |
| 2027E EPS | 107.68 | 110.27 |
| 2028E EPS | 143.16 | 148.00 |
| 2026E EBITDA (m) | 20,459.5 | 21,238.2 |
| 2027E EBITDA (m) | 31,484.2 | 33,484.3 |
| 2028E EBITDA (m) | 40,939.7 | 43,998.4 |
Doris Kao >>
Research Analyst
Merrill Lynch (Taiwan)
+886 2 2376 3722
doris.kao@bofa.com
Robert Cheng >> Research Analyst Merrill Lynch (Taiwan) +886 2 2376 3731 robert.cheng@bofa.com
Katherine Zhu >>
Research Analyst Merrill Lynch (Hong Kong) +852 3508 3374
kexin.zhu@bofa.com
| Stock Data | |
|---|---|
| Price | 2,275 TWD |
| Price Objective | 3,088 TWD |
| Date Established | 22-Aug-2026 |
| Investment Opinion | C-1-7 |
| 52-Week Range | 912.00 TWD-3,010 |
| TWD | |
| Mrkt Val / Shares Out (mn) | 14,195 USD / 199.6 |
| Market Value (mn) | 454,041 TWD |
| Average Daily Value (mn) | 237.19 USD |
| Free Float | 78.3% |
| BofA Ticker / Exchange | BIZLF / TAI |
| Bloomberg / Reuters | 3665 TT / 3665.TW |
| ROE (2026E) | 26.2% |
| Net Dbt to Eqty (Dec-2025A) | -13.3% |
Acronyms, see Exhibit 8
iQ profile SM BizLink
| Key Income Statement Data (Dec) | 2024A | 2025A | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|
| (NT$ Millions) | |||||
| Sales | 54,080 | 71,247 | 101,935 | 143,915 | 181,619 |
| Gross Profit | 15,253 | 22,605 | 31,834 | 48,455 | 63,413 |
| Sell General &Admin Expense | (7,177) | (8,329) | (10,633) | (13,775) | (17,447) |
| Operating Profit | 6,566 | 12,458 | 18,314 | 30,339 | 40,664 |
| Net Interest &Other Income | (248) | (592) | (294) | (230) | (231) |
| Associates | NA | NA | NA | NA | NA |
| Pretax Income | 6,318 | 11,866 | 18,020 | 30,110 | 40,433 |
| Tax (expense) / Benefit | (1,928) | (2,861) | (4,396) | (7,534) | (10,132) |
| Net Income (Adjusted) | 4,396 | 9,005 | 13,625 | 22,576 | 30,300 |
| Average Fully Diluted Shares Outstanding | 175 | 195 | 198 | 205 | 205 |
| Key Cash Flow Statement Data | |||||
| Net Income | 4,396 | 9,005 | 13,625 | 22,576 | 30,300 |
| Depreciation &Amortization | 2,211 | 2,554 | 2,924 | 3,145 | 3,335 |
| Change in Working Capital | (1,724) | (3,231) | (7,105) | (9,328) | (9,519) |
| Deferred Taxation Charge | NA | NA | NA | NA | NA |
| Other Adjustments, Net | 2,026 | 267 | 0 | 0 | 0 |
| Cash Flow from Operations | 6,909 | 8,595 | 9,444 | 16,393 | 24,116 |
| Capital Expenditure | (3,265) | (3,517) | (4,000) | (4,000) | (4,000) |
| (Acquisition) / Disposal of Investments | 0 | 0 | 0 | 0 | 0 |
| Other Cash Inflow / (Outflow) | (1,112) | (7,321) | 0 | 0 | 0 |
| Cash Flow from Investing | (4,377) | (10,838) | (4,000) | (4,000) | (4,000) |
| Shares Issue / (Repurchase) | 0 | 0 | 0 | 0 | 0 |
| Cost of Dividends Paid | (1,470) | (2,278) | (2,929) | (4,087) | (6,773) |
| Cash Flow from Financing | (2,943) | 5,312 | (2,929) | (4,087) | (6,773) |
| Free Cash Flow | 3,644 | 5,079 | 5,444 | 12,393 | 20,116 |
| Net Debt | (1,296) | (6,194) | (8,708) | (17,014) | (30,358) |
| Change in Net Debt | 452 | (4,220) | (2,515) | (8,306) | (13,343) |
| Key Balance Sheet Data | |||||
| Property, Plant &Equipment | 14,677 | 17,324 | 18,903 | 20,262 | 21,430 |
| Other Non-Current Assets | 12,570 | 13,577 | 13,074 | 12,571 | 12,067 |
| Trade Receivables | 10,473 | 14,302 | 17,747 | 25,039 | 31,610 |
| Cash &Equivalents | 10,176 | 14,395 | 16,910 | 25,216 | 38,559 |
| Other Current Assets | 13,019 | 22,714 | 27,547 | 33,886 | 40,096 |
| Total Assets | 60,915 | 82,313 | 94,181 | 116,974 | 143,763 |
| Long-Term Debt | 3,865 | 3,388 | 3,388 | 3,388 | 3,388 |
| Other Non-Current Liabilities | 4,038 | 11,653 | 11,653 | 11,653 | 11,653 |
| Short-Term Debt | 5,014 | 4,814 | 4,814 | 4,814 | 4,814 |
| Other Current Liabilities | 11,781 | 15,816 | 16,989 | 21,293 | 24,554 |
| Total Liabilities | 24,698 | 35,670 | 36,843 | 41,147 | 44,408 |
| Total Equity | 36,217 | 46,643 | 57,338 | 75,827 | 99,354 |
| Total Equity &Liabilities | 60,915 | 82,313 | 94,181 | 116,974 | 143,763 |
| iQ method SM - Bus Performance* | |||||
| Return On Capital Employed | 10.3% | 16.8% | 19.8% | 26.7% | 28.7% |
| Return On Equity | 14.5% | 21.7% | 26.2% | 33.9% | 34.6% |
| Operating Margin | 12.1% | 17.5% | 18.0% | 21.1% | 22.4% |
| EBITDA Margin | 16.2% | 21.1% | 20.8% | 23.3% | 24.2% |
| iQ method SM - Quality of Earnings* | |||||
| Cash Realization Ratio | 1.6x | 1.0x | 0.7x | 0.7x | 0.8x |
| Asset Replacement Ratio | 1.5x | 1.4x | 1.4x | 1.3x | 1.2x |
| Tax Rate (Reported) | 30.5% | 24.1% | 24.4% | 25.0% | 25.1% |
| Net Debt-to-Equity Ratio | -3.6% | -13.3% | -15.2% | -22.4% | -30.6% |
| Interest Cover | 8.1x | 19.8x | 24.6x | 40.8x | NM |
Key Metrics
- For full definitions of iQ method SM measures, see page 8.
Company Sector
Connectors, Passive Components & Distribution
Company Description
BizLink is a global interconnect solutions provider, making products like cables, wire harnesses connectors, etc. BizLink's key business segments are IT DataCom (43% of 2025 sales), Industrial (34%), Automotive (11%), and Electrics Appliance (11%). BizLink is headquartered in the Silicon Valley, California, US. Globally, it has 40 production sites post INBG acquisition in 2022. It was founded in 1996 and was listed on the Taiwan Stock Exchange in 2011.
Investment Rationale
We assign a Buy rating to BizLink in view of (1) cable/connector volume/content increase under strong AI server market demand and rising computing power, (2) BizLink's solid delivery in better-margin HPC business, (3) solid partnership with Credo for AEC business and expansion into optical business, (4) industrial business bottoming out, (5) ongoing margin expansion with improving mix.
Stock Data
Price to Book Value
7.9x
Exhibit 1: We lift 2026-28E EPS by 2-4%
Earnings revisions summary in 2026-28E
| BofA 2026E | BofA 2026E | BofA 2026E | BofA 2027E | BofA 2027E | BofA 2027E | BofA 2028E | BofA 2028E | BofA 2028E | |
|---|---|---|---|---|---|---|---|---|---|
| NT$mn | New | Old | Diff (%) | New | Old | Diff (%) | New | Old | Diff (%) |
| Sales | 101,935 | 96,747 | 5% | 143,915 | 130,764 | 10% | 181,619 | 165,384 | 10% |
| Gross profit | 31,834 | 30,589 | 4% | 48,455 | 45,205 | 7% | 63,413 | 58,813 | 8% |
| Operating profit | 18,314 | 17,535 | 4% | 30,339 | 28,339 | 7% | 40,664 | 37,605 | 8% |
| Pretax profit | 18,020 | 17,296 | 4% | 30,110 | 28,097 | 7% | 40,433 | 37,362 | 8% |
| Net income | 13,625 | 12,961 | 5% | 22,576 | 21,027 | 7% | 30,300 | 27,955 | 8% |
| EPS (NT$) | 68.80 | 66.37 | 4% | 110.27 | 107.68 | 2% | 148.00 | 143.16 | 3% |
| Margin% | |||||||||
| Gross margin | 31.2% | 31.6% | 33.7% | 34.6% | 34.9% | 35.6% | |||
| Operating margin | 18.0% | 18.1% | 21.1% | 21.7% | 22.4% | 22.7% | |||
| Pre-tax margin | 17.7% | 17.9% | 20.9% | 21.5% | 22.3% | 22.6% | |||
| Net margin | 13.4% | 13.4% | 15.7% | 16.1% | 16.7% | 16.9% |
Source: BofA Global Research estimates
Exhibit 2: Our 2026E EPS is 4% above consensus; 2027-28E EPS is 2-3% below consensus
BofAe vs. Bloomberg consensus, 2026-28E
| 2026E | 2026E | 2026E | 2027E | 2027E | 2027E | 2028E | 2028E | 2028E | |
|---|---|---|---|---|---|---|---|---|---|
| NT$mn | BofAe | Consensus | Diff (%) | BofAe | Consensus | Diff (%) | BofAe | Consensus | Diff (%) |
| Sales | 101,935 | 96,794 | 5% | 143,915 | 136,961 | 5% | 181,619 | 153,228 | 19% |
| Gross profit | 31,834 | 30,396 | 5% | 48,455 | 47,023 | 3% | 63,413 | 53,656 | 18% |
| Operating profit | 18,314 | 17,422 | 5% | 30,339 | 29,704 | 2% | 40,664 | 38,499 | 6% |
| Pretax profit | 18,020 | 17,143 | 5% | 30,110 | 29,552 | 2% | 40,433 | 38,551 | 5% |
| Net income | 13,625 | 12,910 | 6% | 22,576 | 22,238 | 2% | 30,300 | 28,947 | 5% |
| EPS (NT$) | 68.80 | 66.29 | 4% | 110.27 | 114.11 | -3% | 148.00 | 150.38 | -2% |
| Margin% | |||||||||
| Gross margin | 31.2% | 31.4% | 33.7% | 34.3% | 34.9% | 35.0% | |||
| Operating margin | 18.0% | 18.0% | 21.1% | 21.7% | 22.4% | 25.1% | |||
| Pre-tax margin | 17.7% | 17.7% | 20.9% | 21.6% | 22.3% | 25.2% | |||
| Net margin | 13.4% | 13.3% | 15.7% | 16.2% | 16.7% | 18.9% |
Source: BofA Global Research estimates, Bloomberg consensus
Exhibit 3: 2Q26 operating income is 2%/1% above BofAe/consensus; net income is 4%/3% above BofAe/consensus
2Q26 results summary
| NT$mn | 2Q26P | QoQ% | YoY% | BofAe | Diff (%) | Consensus | Diff (%) | 1Q26 | 2Q25 |
|---|---|---|---|---|---|---|---|---|---|
| Sales | 23,281 | 12% | 37% | 22,658 | 3% | 22,978 | 1% | 20,864 | 16,933 |
| Gross profit | 7,154 | 19% | 36% | 7,007 | 2% | 7,056 | 1% | 6,002 | 5,269 |
| Operating profit | 4,010 | 29% | 40% | 3,949 | 2% | 3,967 | 1% | 3,108 | 2,867 |
| Pretax profit | 3,897 | 28% | 43% | 3,891 | 0% | 3,905 | 0% | 3,043 | 2,726 |
| Net income | 2,982 | 31% | 47% | 2,860 | 4% | 2,897 | 3% | 2,274 | 2,024 |
| EPS (NT$) | 15.06 | 31% | 45% | 14.64 | 3% | 15.07 | 0% | 11.48 | 10.37 |
| Margin% | |||||||||
| Gross margin | 30.7% | 2.0 ppt | -0.4 ppt | 30.9% | -0.2 ppt | 30.7% | 0.0 ppt | 28.8% | 31.1% |
| Operating margin | 17.2% | 2.3 ppt | 0.3 ppt | 17.4% | -0.2 ppt | 17.3% | 0.0 ppt | 14.9% | 16.9% |
| Pre-tax margin | 16.7% | 2.2 ppt | 0.6 ppt | 17.2% | -0.4 ppt | 17.0% | -0.3 ppt | 14.6% | 16.1% |
| Net margin | 12.8% | 1.9 ppt | 0.9 ppt | 12.6% | 0.2 ppt | 12.6% | 0.2 ppt | 10.9% | 12.0% |
Source: BofA Global Research estimates, company data, Bloomberg consensus. P = preliminary
BofA GLOBAL RESEARCH
BofA GLOBAL RESEARCH
BofA GLOBAL RESEARCH
Exhibit 4: BizLink's historical P/E trading average since IPO is 11x
BizLink's P/E trend and -1/+1 standard deviation since IPO
Source: BofA Global Research estimates, Bloomberg
BofA GLOBAL RESEARCH
Exhibit 7: We model 2026-28E sales/EPS CAGR at 33%/49%
Quarterly earnings summary, 2025-28E
| NT$mn | 1Q26 | 2Q26P | 3Q26E | 4Q26E | 1Q27E | 2Q27E | 3Q27E | 4Q27E | 1Q28E | 2Q28E | 3Q28E | 4Q28E | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 20,864 | 23,281 | 27,553 | 30,237 | 30,887 | 33,639 | 37,936 | 41,453 | 41,806 | 43,272 | 47,149 | 49,392 | 71,247 | 101,935 | 143,915 | 181,619 |
| Gross profit | 6,002 | 7,154 | 8,760 | 9,919 | 10,130 | 11,212 | 12,848 | 14,265 | 14,400 | 15,015 | 16,524 | 17,475 | 22,605 | 31,834 | 48,455 | 63,413 |
| Operating profit | 3,108 | 4,010 | 5,178 | 6,018 | 6,145 | 6,839 | 8,106 | 9,249 | 8,965 | 9,476 | 10,724 | 11,498 | 12,458 | 18,314 | 30,339 | 40,664 |
| Pretax profit | 3,043 | 3,897 | 5,118 | 5,961 | 6,086 | 6,780 | 8,052 | 9,192 | 8,903 | 9,418 | 10,671 | 11,440 | 11,866 | 18,020 | 30,110 | 40,433 |
| Net income | 2,274 | 2,982 | 3,839 | 4,530 | 4,534 | 5,017 | 6,039 | 6,986 | 6,633 | 6,969 | 8,004 | 8,695 | 9,005 | 13,625 | 22,576 | 30,300 |
| EPS (NT$) | 11.48 | 15.06 | 19.38 | 22.88 | 22.15 | 24.51 | 29.50 | 34.12 | 32.40 | 34.04 | 39.09 | 42.47 | 46.12 | 68.80 | 110.27 | 148.00 |
| Margin% | ||||||||||||||||
| Gross margin | 28.8% | 30.7% | 31.8% | 32.8% | 32.8% | 33.3% | 33.9% | 34.4% | 34.4% | 34.7% | 35.0% | 35.4% | 31.7% | 31.2% | 33.7% | 34.9% |
| Operating margin | 14.9% | 17.2% | 18.8% | 19.9% | 19.9% | 20.3% | 21.4% | 22.3% | 21.4% | 21.9% | 22.7% | 23.3% | 17.5% | 18.0% | 21.1% | 22.4% |
| Pretax margin | 14.6% | 16.7% | 18.6% | 19.7% | 19.7% | 20.2% | 21.2% | 22.2% | 21.3% | 21.8% | 22.6% | 23.2% | 16.7% | 17.7% | 20.9% | 22.3% |
| Net margin | 10.9% | 12.8% | 13.9% | 15.0% | 14.7% | 14.9% | 15.9% | 16.9% | 15.9% | 16.1% | 17.0% | 17.6% | 12.6% | 13.4% | 15.7% | 16.7% |
| QoQ% | ||||||||||||||||
| Sales | 5% | 12% | 18% | 10% | 2% | 9% | 13% | 9% | 1% | 4% | 9% | 5% | ||||
| Gross profit | -5% | 19% | 22% | 13% | 2% | 11% | 15% | 11% | 1% | 4% | 10% | 6% | ||||
| Operating profit | -14% | 29% | 29% | 16% | 2% | 11% | 19% | 14% | -3% | 6% | 13% | 7% | ||||
| Pretax profit | -11% | 28% | 31% | 16% | 2% | 11% | 19% | 14% | -3% | 6% | 13% | 7% | ||||
| Net income | -17% | 31% | 29% | 18% | 0% | 11% | 20% | 16% | -5% | 5% | 15% | 9% | ||||
| YoY% | ||||||||||||||||
| Sales | 29% | 37% | 50% | 53% | 48% | 44% | 38% | 37% | 35% | 29% | 24% | 19% | 32% | 43% | 41% | 26% |
| Gross profit | 23% | 36% | 43% | 57% | 69% | 57% | 47% | 44% | 42% | 34% | 29% | 23% | 48% | 41% | 52% | 31% |
| Operating profit | 32% | 40% | 44% | 66% | 98% | 71% | 57% | 54% | 46% | 39% | 32% | 24% | 90% | 47% | 66% | 34% |
| Pretax profit | 34% | 43% | 48% | 75% | 100% | 74% | 57% | 54% | 46% | 39% | 33% | 24% | 88% | 52% | 67% | 34% |
| Net income | 41% | 47% | 46% | 65% | 99% | 68% | 57% | 54% | 46% | 39% | 33% | 24% | 105% | 51% | 66% | 34% |
Source: BofA Global Research estimates, company data. P: preliminary
Exhibit 5: BizLink's historical P/B trading average since IPO is 1.8x
BizLink's P/B trend and -1/+1 standard deviation since IPO
Source: BofA Global Research estimates, Bloomberg
BofA GLOBAL RESEARCH
BofA GLOBAL RESEARCH
Exhibit 8: Acronyms
Acronyms and the corresponding full forms
| Acronym | Acronym | Acronym | |||
|---|---|---|---|---|---|
| AEC | Active Electrical Cable | GDR | Global Depositary Receipt | OPEX | Operating Expense |
| AI | Artificial Intelligence | GM | Gross Margin | OPM | Operating Profit Margin |
| ASIC | Application Specific Integrated Circuit | GPU | Graphic Processing Unit | P/B | Price to Book |
| CAGR | Compound Annual Growth Rate | INBG | Industrial Solutions Business Group | P/E | Price to Earnings |
| Cons | Consensus | HPC | High Performance Computing | PO | Price Objective |
| Diff | Difference | IPO | Initial Public Offering | ROE | Return On Equity |
| EA | Electrical Appliances | IT DataCom | Information Technology DataCommunication | RHS | Right Hand Side |
| ECB | European Convertible Bond | M&A | Merger and Acquisition | RMB | Renminbi |
| EPS | Earnings Per Share | Mgmt. | Management | SD | Standard Deviation |
| Equip | Equipment | NP | Net Profit | US | United State |
| EV | Electric Vehicle | NT$ | New Taiwan Dollar | USD | US Dollar |
| FX | Foreign Exchange | OP | Operating Profit |
Source:
BofA Global Research
BofA GLOBAL RESEARCH
Price objective basis & risk
BizLink (BIZLF)
Our PO of NT$3,088 is based on 28x 2027E EPS. Our valuation multiple of 28x (3SD above historical average since IPO) reflects positive outlook for better-margin HPC business to ride on multi-year AI demand, content/volume growth driven by ongoing copper/power/optical cable/connector development for AI, industrial business overall bottoming out, robust semi equipment demand with over one year order visibility, and expanding margins.
Upside risks: (1) stronger demand in AI, (2) stronger semi-cap/datacenter market demand, (3) improving profitability for EV business, (4) margin upside from more stable raw material prices (copper, plastic, gold) and operating leverage, (5) favorable FX movement, and (6) more synergies from M&A.
Downside risks: (1) delayed order from AI business, (2) intensifying competition and/or pricing pressure, (3) weaker macro to hinder Industrial market demand, (4) more intense competition in EV business, (4) GM pressure from higher raw material prices and/or increasing labor cost in China/US/Europe/Malaysia, (5) unfavorable FX movement, and (6) less synergies from M&A.