PDF 原檔：260601_2059_川湖_gs_kingslide_original.pdf
原始內容
King Slide (2059.TW): Mgmt. visit: Rail kits expansion in AI data center; Positive on margin sustainability and growth; Buy
We hosted King Slide management in Taipei on June 1 during our Taiwan Corporate Day. Management remains positive on its growth driven by growing AI servers trend. We remain positive on King Slide on (1) its leading market position in AI servers rail kits, backed by a comprehensive customer base and diversi fi ed architecture, which support extensive customization and protect margins, (2) the rising rail kits adoption in AI data center, expanding from computing rack to networking rack / CPO switch rack, power rack, etc., (3) its highly automated production and strong cost controls due to large scale, supporting the company's margins level. Maintain Buy.
Key takeaways: Management remains positive on the company's leading market position, highlighting their strong patents and early participants across various architecture (e.g. GPU, ASIC, HGX, DGX, MGX, OCP, etc.). King Slide's diversi fi ed architecture, strong customization capabilities, and early participation in the design stage (e.g. end users are used to King Slide's interface, easy to adopt, etc.) help secure its leading market position and margins. Management highlighted that, while rail kits account for only a small portion of AI servers total BOM costs, they are a critical component in ensuring AI servers smooth operation and maintenance. As a result, end customers prioritize product quality rather than ASP. The company remains committed to capacity expansion, based on April 2026 revenues, the company's utilization rate is at 50%, and will add additional capacity in the US in 3Q26, and further expansion in Taiwan in 2H27.
Price Target Risks and Methodology - King Slide
Valuation methodology : Our 12m target price for King Slide is based on a near-term P/E, consistent with our Taiwan Technology coverage. Our 12m TP of NT$4,386 is based on a target P/E multiple of 20x on our forward year EPS (2027E). Our target P/E is derived from the company's peak PEG at 0.8x, as we expect the migration to AI server rail kits to drive the company's pro fi tability.
Downside risks: (1) New entrants intensifying competition, (2) slower-than-expected AI server growth, (3) lower-than-expected general server shipment growth.
Verena Jeng
+852-2978-1681 | verena.jeng@gs.com Goldman Sachs (Asia) L.L.C.
Allen Chang +852-2978-2930 | allen.k.chang@gs.com Goldman Sachs (Asia) L.L.C.
e92c7a75ab8b4efbba794e6b187208c8
2059.TW
12m Price Target:
NT$4,386.00
Price:
NT$5,065.00
Downside:
13.4%
| Buy | GS Forecast | ||||
|---|---|---|---|---|---|
| 12/25 | 12/26E | 12/27E | 12/28E | ||
| Market c ap: NT$491.3bn / $1 5 . 7 bn E nterpr is e v a lu NT$4 60 . 5 bn / $14. 7 3 m AD T V : NT$ 2 . 8 bn / $ 87 . 6m Ta iw an G reater Chi na Te ch n ology M &A R ank: 3 L ea s e s i n cl . i n net d ebt & EV? : Y e s | Revenue (NT$ mn) EBITDA (NT$ mn) | 17,500.7 | 26,678.8 | 36,867.8 | 41,801.9 |
| e: | 12,449.1 | 19,205.2 | 26,572.0 | 30,016.7 | |
| bn | EPS (NT$) | 103.23 | 162.48 | 223.21 | 251.75 |
| n | P/E (X) | 24.9 | 31.2 | 22.7 | 20.1 |
| P/B (X) | 8.7 | 13.5 | 10.4 | 8.3 | |
| Dividend yield (%) | 2.0 | 1.6 | 2.2 | 2.4 | |
| N debt/EBITDA (ex lease,X) | (1.9) | (1.6) | (1.6) | (1.8) | |
| CROCI (%) | 158.4 | 190.3 | 253.0 | 302.1 | |
| FCF yield (%) | 4.3 | 2.5 | 4.0 | 4.9 | |
| 12/25 | 3/26E | 6/26E | 9/26E | ||
| EPS (NT$) | 36.88 | 31.34 | 34.05 | 44.37 |
Source: Company data, Goldman Sachs Research estimates, FactSet. Price as of 29 May 2026 close.
e92c7a75ab8b4efbba794e6b187208c8