PDF 原檔：260617_daiwa_emc_original.pdf
原始內容
Elite Material (2383 TT)
Share price (17 Jun):
TWD5,200.00
12-mth rating: Buy (1)
May results released: short-term upside risk
Sheng Cheng
(886) 2 8758 6253
sheng.cheng@daiwacm-cathay.com.tw
Allan Wang
(886) 2 8758 6249
allan.wang@daiwacm-cathay.com.tw
Summary: EMC reported May results with net profit of TWD3.2bn (+199% YoY), EPS of TWD9.07 (+190% YoY), and pre-tax margin of 27%. The May pre-tax margin of 27% compares favourably against 21% in 1Q26, coming in ahead of our estimate (24% in 2Q26E). The meaningful sequential margin expansion implies a better margin profile than previously modelled, and we see clear upside to our current forecasts. We view this as a near-term price catalyst.
We reaffirm our positive view on EMC with further upside to consensus and maintain our positive stance. We have a Buy (1) rating on EMC with a 12-month TP of TWD6,022, based on a 48x PER on the 1-year-forward EPS. Key downside risk: weaker-thanexpected AI server demand.
EMC reported May results with net profit of TWD3.2bn (+199% YoY), EPS of TWD9.07 (+190% YoY), and pre-tax margin of 27%. The May pre-tax margin of 27% compares favourably against 21% in 1Q26, coming in ahead of our estimate (24% in 2Q26E). The meaningful sequential margin expansion implies a structurally better margin profile than previously modelled, and we see clear upside to our current forecasts. We view this as a near-term price catalyst.
We reaffirm our positive view on EMC. The May margin beat (27% pre-tax vs. 21% in 1Q26) is an early signal of structural margin re-rating driven by the ongoing spec upgrade cycle. With M7+ revenue reaching c.70% by end-2026 and M8-M10 becoming mainstream from 2027, each generation upgrade carrying c.30% ASP upside, EMC's earnings growth trajectory remains intact. We see further upside to consensus and maintain our positive stance.
We have a Buy (1) rating on EMC with a 12-month TP of TWD6,022, based on a 48x PER on the 1-year-forward EPS. Key downside risk: weaker-than-expected AI server demand.
In the interests of timeliness, this document has not been edited.
17 June 2026
Information Technology: Taiwan