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43KB | 真資料圖 | 健策股價歷史折線圖（NT$0-6000），標示 9-Mar B Kao PO:NT$4655 標記點，時間軸 1-Jan-24 至 1-Jan-26，含「No Coverage」灰色區間與「PO」藍色區間圖例 |
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32KB | 真資料圖 | P/E 歷史趨勢折線圖，時間軸 Nov-08 至 Nov-24+，Y軸 0-80x，含 P/E(x) 深藍線、-1 S.D. 淺藍線、Mean P/E(x) 橘線、+1 S.D. 綠線四條圖例線 |
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23KB | 真資料圖 | P/B 歷史趨勢折線圖，時間軸 Nov-08 至 Nov-24+，Y軸 0-30x，含 P/B(x)、-1 S.D.、Mean P/B(x)、+1 S.D. 四條圖例線 |
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7KB | 文字卡 | 「Stock Data」標題下僅一行文字「Price to Book Value 17.3x」，無圖表 |
原始內容
Jentech
Buy: heat spreader momentum still solid with ASP growth; MCL more likely in 2H28
Reiterate Rating: BUY | PO: 4,000 TWD | Price: 3,370 TWD
Ongoing ASP growth for next-gen GPU heat spreader
Our latest checks suggest that (1) heat spreaders will still be used in Nvidia ' s Rubin Ultra generation and (2) ASP for the Rubin/Rubin Ultra generations will be US$100/US$200 (vs. US$30 for Blackwell Ultra), driven by design upgrades, such as the removable lid design for Rubin Ultra, and higher quality requirements, such as flatness.
Stronger 2Q26 sales; expect ongoing margin expansion
Jentech ' s 2Q26 sales (+37% QoQ, +40% YoY) were 14%/12% above BofAe/consensus. We attribute solid sales mainly to heat spreader ASP hike amid generation migration. With stronger sales, we expect its ongoing margin expansion trend to remain intact. We project 2Q26 GM/OPM at 44.3%/36.0%, vs. 41.8%/32.0% in 1Q26 and 41.5%/32.8% in 2Q25. Jentech plans to post 2Q26 results on 12 Aug after market close. We project Jentech ' s sales to grow 10% QoQ in 3Q26 off a high 2Q26 base and 18% QoQ in 4Q26, supported by stronger momentum for next-gen products, such as AMD MI450.
MCL now more likely in 2H28 for Feynman generation
Our latest checks also suggest that microchannel lid (MCL) will likely be used from 2H28 for Nvidia ' s Feynman generation, vs. our previous expectation for the Rubin Ultra generation. We view supply chain readiness and yield rate as the major reasons for the delay. Still, we think Jentech is the enabler for MCL and should be the first MCL supplier. On the other hand, we expect limited sales contribution from cold plate/CPO in 2026-28.
New PO NT$4,000; reit. Buy: top packaging-level cooling name
We lift our 2026E EPS by 7% and keep 2027E EPS roughly unchanged to reflect still solid sales/margin outlook for packaging-level cooling business but cut our 2028E EPS by 20% for a later MCL adoption schedule. We trim our PO to NT$4,000 from NT$4,655 with valuation methodology unchanged at 25x 2H27-1H28E EPS. Reiterate Buy as top semi packaging-level component maker with 65%/86% sales/EPS CAGR in 2026-28E.
| Estimates (Dec) (NT$) | 2024A | 2025A | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|
| Net Income (Adjusted - mn) | 3,428 | 5,277 | 8,927 | 17,379 | 30,797 |
| EPS | 24.15 | 36.75 | 61.62 | 119.96 | 212.59 |
| EPS Change (YoY) | 45.5% | 52.2% | 67.7% | 94.7% | 77.2% |
| Dividend / Share | 14.50 | 22.00 | 30.81 | 53.98 | 74.41 |
| Free Cash Flow / Share | 16.05 | 25.08 | 35.84 | 70.76 | 137.02 |
| Valuation (Dec) | |||||
| P/E | 139.55x | 91.70x | 54.69x | 28.09x | 15.85x |
| Dividend Yield | 0.430% | 0.653% | 0.914% | 1.60% | 2.21% |
| EV / EBITDA* | 112.88x | 69.43x | 40.35x | 21.40x | 12.30x |
| Free Cash Flow Yield* | 0.461% | 0.728% | 1.05% | 2.07% | 4.01% |
| * For full definitions of iQ method SM measures, see page 7. |
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 8 to 10. Analyst Certification on page 5. Price
28 July 2026
Equity
| Key Changes (NT$) | Previous | Current |
|---|---|---|
| Price Obj. | 4,655.00 | 4,000.00 |
| 2026E EPS | 57.77 | 61.62 |
| 2027E EPS | 120.52 | 119.96 |
| 2028E EPS | 264.47 | 212.59 |
| 2026E EBITDA (m) | 11,681.0 | 12,298.3 |
| 2027E EBITDA (m) | 23,365.2 | 23,186.6 |
| 2028E EBITDA (m) | 50,064.1 | 40,346.5 |
Doris Kao >>
Research Analyst
Merrill Lynch (Taiwan)
+886 2 2376 3722
doris.kao@bofa.com
Robert Cheng >> Research Analyst Merrill Lynch (Taiwan) +886 2 2376 3731 robert.cheng@bofa.com
Katherine Zhu >> Research Analyst Merrill Lynch (Hong Kong) +852 3508 3374
kexin.zhu@bofa.com
Stock Data
| Price | 3,370 TWD |
|---|---|
| Price Objective | 4,000 TWD |
| Date Established | 28-Jul-2026 |
| Investment Opinion | C-1-7 |
| 52-Week Range | 1,265 TWD-5,685TWD |
| Mrkt Val / Shares Out (mn) | 15,317 USD / 146.7 |
| Market Value (mn) | 494,490 TWD |
| Average Daily Value (mn) | 140.76 USD |
| Free Float | 51.9% |
| BofA Ticker / Exchange | XVFSF / TAI |
| Bloomberg / Reuters | 3653 TT / 3653.TW |
| ROE (2026E) | 34.7% |
| Net Dbt to Eqty (Dec-2025A) | -39.6% |
Acronyms, see Exhibit 8
iQ profile SM Jentech
| Key Income Statement Data (Dec) | 2024A | 2025A | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|
| (NT$ Millions) | |||||
| Sales | 14,278 | 20,276 | 29,960 | 49,975 | 81,505 |
| Gross Profit | 5,365 | 8,434 | 13,564 | 24,488 | 41,732 |
| Sell General &Admin Expense | (969) | (1,196) | (1,394) | (1,414) | (1,512) |
| Operating Profit | 3,799 | 6,498 | 11,251 | 22,081 | 39,190 |
| Net Interest &Other Income | 447 | 109 | 182 | 129 | 129 |
| Associates | NA | NA | NA | NA | NA |
| Pretax Income | 4,245 | 6,607 | 11,433 | 22,210 | 39,319 |
| Tax (expense) / Benefit | (830) | (1,297) | (2,469) | (4,796) | (8,486) |
| Net Income (Adjusted) | 3,428 | 5,277 | 8,927 | 17,379 | 30,797 |
| Average Fully Diluted Shares Outstanding | 142 | 144 | 145 | 145 | 145 |
| Key Cash Flow Statement Data | |||||
| Net Income | 3,428 | 5,277 | 8,927 | 17,379 | 30,797 |
| Depreciation &Amortization | 597 | 648 | 1,047 | 1,106 | 1,157 |
| Change in Working Capital | (1,489) | (1,655) | (3,283) | (6,734) | (10,604) |
| Deferred Taxation Charge | NA | NA | NA | NA | NA |
| Other Adjustments, Net | 355 | 503 | 0 | 0 | 0 |
| Cash Flow from Operations | 2,891 | 4,774 | 6,692 | 11,751 | 21,350 |
| Capital Expenditure | (613) | (1,173) | (1,500) | (1,500) | (1,500) |
| (Acquisition) / Disposal of Investments | 0 | 0 | 0 | 0 | 0 |
| Other Cash Inflow / (Outflow) | (1,950) | 159 | 0 | 0 | 0 |
| Cash Flow from Investing | (2,563) | (1,014) | (1,500) | (1,500) | (1,500) |
| Shares Issue / (Repurchase) | 0 | 0 | 0 | 0 | 0 |
| Cost of Dividends Paid | (1,436) | (2,072) | (3,159) | (4,464) | (7,821) |
| Cash Flow from Financing | (2,215) | 3,077 | (3,159) | (4,464) | (7,821) |
| Free Cash Flow | 2,278 | 3,601 | 5,192 | 10,251 | 19,850 |
| Net Debt | (2,267) | (9,134) | (11,167) | (16,954) | (28,983) |
| Change in Net Debt | 1,204 | (6,867) | (2,033) | (5,787) | (12,030) |
| Key Balance Sheet Data | |||||
| Property, Plant &Equipment | 4,852 | 8,073 | 8,526 | 8,921 | 9,264 |
| Other Non-Current Assets | 4,115 | 1,329 | 1,329 | 1,329 | 1,329 |
| Trade Receivables | 4,061 | 5,414 | 7,999 | 13,343 | 21,762 |
| Cash &Equivalents | 2,267 | 9,134 | 11,167 | 16,954 | 28,983 |
| Other Current Assets | 3,167 | 4,019 | 5,424 | 8,227 | 12,634 |
| Total Assets | 18,462 | 27,969 | 34,445 | 48,774 | 73,971 |
| Long-Term Debt | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 384 | 451 | 451 | 451 | 451 |
| Short-Term Debt | 0 | 0 | 0 | 0 | 0 |
| Other Current Liabilities | 3,420 | 4,453 | 5,161 | 6,575 | 8,795 |
| Total Liabilities | 3,804 | 4,904 | 5,612 | 7,025 | 9,246 |
| Total Equity | 14,658 | 23,065 | 28,833 | 41,749 | 64,725 |
| Total Equity &Liabilities | 18,462 | 27,969 | 34,445 | 48,774 | 73,971 |
| iQ method SM - Bus Performance* | |||||
| Return On Capital Employed | 22.0% | 27.5% | 33.7% | 48.7% | 57.4% |
| Return On Equity | 26.4% | 28.3% | 34.7% | 49.6% | 58.1% |
| Operating Margin | 26.6% | 32.0% | 37.6% | 44.2% | 48.1% |
| EBITDA Margin | 30.8% | 35.2% | 41.0% | 46.4% | 49.5% |
| iQ method SM - Quality of Earnings* | |||||
| Cash Realization Ratio | 0.8x | 0.9x | 0.7x | 0.7x | 0.7x |
| Asset Replacement Ratio | 1.0x | 1.8x | 1.4x | 1.4x | 1.3x |
| Tax Rate (Reported) | 19.6% | 19.6% | 21.6% | 21.6% | 21.6% |
| Net Debt-to-Equity Ratio | -15.5% | -39.6% | -38.7% | -40.6% | -44.8% |
| Interest Cover | NM | NM | NM | NM | NM |
Key Metrics
- For full definitions of iQ method SM measures, see page 7.
Company Sector
IT Hardware
Company Description
Jentech is the globally leading semi-packaging level cooling component (heat spreader, lid, stiffener) manufacturer from Taiwan for PC and server. It also offers lead frame for auto and other component/connector for consumer electronic devices.
Jentech was founded on 28 March 1987 and was publicly listed on the Taiwan Stock Exchange on 18 Nov 2009. Its manufacturing facilities are located in Taiwan and China and its headquarter is located in Taoyuan, Taiwan.
Investment Rationale
We assign a Buy rating to Jentech given its leading position in semi-packaging level cooling component to ride on strong AI market demand and still evolving cooling design. We also believe Jentech will be the enabler and first/key maker for the most-advanced microchannel lid (MCL) liquid cooling design, driving its concrete sales/EPS CAGR in 202628.
Exhibit 1: We lift 2026E ESP by 7%, keep 2027E EPS roughly unchanged, and trim 2028E EPS by 20%
Earnings revision summary, 2026-28
| BofA 2026E | BofA 2026E | BofA 2026E | BofA 2027E | BofA 2027E | BofA 2027E | BofA 2028E | BofA 2028E | BofA 2028E | |
|---|---|---|---|---|---|---|---|---|---|
| NT$mn | New | Old | Diff (%) | New | Old | Diff (%) | New | Old | Diff (%) |
| Sales | 29,960 | 28,392 | 6% | 49,975 | 50,322 | -1% | 81,505 | 98,346 | -17% |
| Gross profit | 13,564 | 12,828 | 6% | 24,488 | 24,648 | -1% | 41,732 | 51,650 | -19% |
| Operating profit | 11,251 | 10,634 | 6% | 22,081 | 22,260 | -1% | 39,190 | 48,907 | -20% |
| Pretax profit | 11,433 | 10,745 | 6% | 22,210 | 22,371 | -1% | 39,319 | 49,019 | -20% |
| Net income | 8,927 | 8,370 | 7% | 17,379 | 17,459 | 0% | 30,797 | 38,313 | -20% |
| EPS (NT$) | 61.62 | 57.77 | 7% | 119.96 | 120.52 | 0% | 212.59 | 264.47 | -20% |
| Margin% | |||||||||
| Gross margin | 45.3% | 45.2% | 49.0% | 49.0% | 51.2% | 52.5% | |||
| Operating margin | 37.6% | 37.5% | 44.2% | 44.2% | 48.1% | 49.7% | |||
| Pre-tax margin | 38.2% | 37.8% | 44.4% | 44.5% | 48.2% | 49.8% | |||
| Net margin | 29.8% | 29.5% | 34.8% | 34.7% | 37.8% | 39.0% |
Source: BofA Global Research estimates
Exhibit 2: Our 2026/28E EPS is 6%/15% above consensus while 2027E EPS is in line with consensus
BofAe vs. consensus, 2026-28
| 2026E | 2026E | 2026E | 2027E | 2027E | 2027E | 2028E | 2028E | 2028E | |
|---|---|---|---|---|---|---|---|---|---|
| NT$mn | BofAe | Consensus | Diff (%) | BofAe | Consensus | Diff (%) | BofAe | Consensus | Diff (%) |
| Sales | 29,960 | 29,158 | 3% | 49,975 | 52,549 | -5% | 81,505 | 76,688 | 6% |
| Gross profit | 13,564 | 13,002 | 4% | 24,488 | 25,791 | -5% | 41,732 | 37,193 | 12% |
| Operating profit | 11,251 | 10,548 | 7% | 22,081 | 22,349 | -1% | 39,190 | 34,207 | 15% |
| Pretax profit | 11,433 | 10,697 | 7% | 22,210 | 22,468 | -1% | 39,319 | 34,340 | 14% |
| Net income | 8,927 | 8,478 | 5% | 17,379 | 17,810 | -2% | 30,797 | 27,190 | 13% |
| EPS (NT$) | 61.62 | 57.93 | 6% | 119.96 | 120.39 | 0% | 212.59 | 185.27 | 15% |
| Margin% | |||||||||
| Gross margin | 45.3% | 44.6% | 49.0% | 49.1% | 51.2% | 48.5% | |||
| Operating margin | 37.6% | 36.2% | 44.2% | 42.5% | 48.1% | 44.6% | |||
| Pre-tax margin | 38.2% | 36.7% | 44.4% | 42.8% | 48.2% | 44.8% | |||
| Net margin | 29.8% | 29.1% | 34.8% | 33.9% | 37.8% | 35.5% |
Source: BofA Global Research estimates, Bloomberg consensus
Exhibit 3: Our new 2Q26E EPS is 15% above consensus
2Q26 results preview
| NT$mn | BofAe 2Q26E New | QoQ% | YoY% | BofAe 2Q26E Old | Diff (%) | 2Q26E Consensus | Diff (%) | 1Q26 | 2Q25 |
|---|---|---|---|---|---|---|---|---|---|
| Sales | 7,275 | 37% | 40% | 6,380 | 14% | 6,470 | 12% | 5,305 | 5,181 |
| Gross profit | 3,221 | 45% | 50% | 2,842 | 13% | 2,832 | 14% | 2,217 | 2,149 |
| Operating profit | 2,617 | 54% | 54% | 2,306 | 13% | 2,254 | 16% | 1,697 | 1,699 |
| Pretax profit | 2,653 | 49% | 100% | 2,340 | 13% | 2,276 | 17% | 1,776 | 1,327 |
| Net income | 2,086 | 49% | 86% | 1,838 | 13% | 1,828 | 14% | 1,398 | 1,121 |
| EPS (NT$) | 14.40 | 49% | 84% | 12.69 | 13% | 12.51 | 15% | 9.65 | 7.81 |
| Margin% | |||||||||
| Gross margin | 44.3% | 2.5 ppt | 2.8 ppt | 44.5% | -0.3 ppt | 43.8% | 0.5 ppt | 41.8% | 41.5% |
| Operating margin | 36.0% | 4.0 ppt | 3.2 ppt | 36.1% | -0.2 ppt | 34.8% | 1.1 ppt | 32.0% | 32.8% |
| Pre-tax margin | 36.5% | 3.0 ppt | 10.9 ppt | 36.7% | -0.2 ppt | 35.2% | 1.3 ppt | 33.5% | 25.6% |
| Net margin | 28.7% | 2.3 ppt | 7.0 ppt | 28.8% | -0.1 ppt | 28.3% | 0.4 ppt | 26.4% | 21.6% |
Source: BofA Global Research estimates, Bloomberg consensus
BofA GLOBAL RESEARCH
BofA GLOBAL RESEARCH
BofA GLOBAL RESEARCH
Exhibit 4: Jentech's historical P/E trading average since IPO is around 19x, vs. currently 35x one-year forward P/E
Jentech's P/E trend and -1/+1 standard deviation since IPO in Nov 2008
Source: BofA Global Research estimates, TEJ, Bloomberg
BofA GLOBAL RESEARCH
Exhibit 4: We project 2026-28E sales/EPS CAGR at 65%/86%
Quarterly earnings summary, 2025-28
| NT$mn | 1Q26 | 2Q26E | 3Q26E | 4Q26E | 1Q27E | 2Q27E | 3Q27E | 4Q27E | 1Q28E | 2Q28E | 3Q28E | 4Q28E | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 5,305 | 7,275 | 7,977 | 9,403 | 10,104 | 11,035 | 13,510 | 15,326 | 16,569 | 18,146 | 21,870 | 24,920 | 20,276 | 29,960 | 49,975 | 81,505 |
| Gross profit | 2,217 | 3,221 | 3,673 | 4,454 | 4,838 | 5,337 | 6,672 | 7,641 | 8,333 | 9,208 | 11,252 | 12,939 | 8,434 | 13,564 | 24,488 | 41,732 |
| Operating profit | 1,697 | 2,617 | 3,091 | 3,847 | 4,242 | 4,733 | 6,071 | 7,036 | 7,723 | 8,595 | 10,618 | 12,254 | 6,498 | 11,251 | 22,081 | 39,190 |
| Pretax profit | 1,776 | 2,653 | 3,137 | 3,867 | 4,271 | 4,771 | 6,114 | 7,054 | 7,752 | 8,633 | 10,661 | 12,272 | 6,607 | 11,433 | 22,210 | 39,319 |
| Net income | 1,398 | 2,086 | 2,437 | 3,006 | 3,369 | 3,759 | 4,759 | 5,492 | 6,119 | 6,810 | 8,306 | 9,563 | 5,277 | 8,927 | 17,379 | 30,797 |
| EPS (NT$) | 9.65 | 14.40 | 16.82 | 20.75 | 23.25 | 25.95 | 32.85 | 37.91 | 42.24 | 47.01 | 57.33 | 66.01 | 36.75 | 61.62 | 119.96 | 212.59 |
| Margin% | ||||||||||||||||
| Gross margin | 41.8% | 44.3% | 46.0% | 47.4% | 47.9% | 48.4% | 49.4% | 49.9% | 50.3% | 50.7% | 51.4% | 51.9% | 41.6% | 45.3% | 49.0% | 51.2% |
| Operating margin | 32.0% | 36.0% | 38.7% | 40.9% | 42.0% | 42.9% | 44.9% | 45.9% | 46.6% | 47.4% | 48.5% | 49.2% | 32.0% | 37.6% | 44.2% | 48.1% |
| Pretax margin | 33.5% | 36.5% | 39.3% | 41.1% | 42.3% | 43.2% | 45.3% | 46.0% | 46.8% | 47.6% | 48.7% | 49.2% | 32.6% | 38.2% | 44.4% | 48.2% |
| Net margin | 26.4% | 28.7% | 30.6% | 32.0% | 33.3% | 34.1% | 35.2% | 35.8% | 36.9% | 37.5% | 38.0% | 38.4% | 26.0% | 29.8% | 34.8% | 37.8% |
| QoQ% | ||||||||||||||||
| Sales | 1% | 37% | 10% | 18% | 7% | 9% | 22% | 13% | 8% | 10% | 21% | 14% | ||||
| Gross profit | 2% | 45% | 14% | 21% | 9% | 10% | 25% | 15% | 9% | 11% | 22% | 15% | ||||
| Operating profit | 3% | 54% | 18% | 24% | 10% | 12% | 28% | 16% | 10% | 11% | 24% | 15% | ||||
| Pretax profit | -2% | 49% | 18% | 23% | 10% | 12% | 28% | 15% | 10% | 11% | 23% | 15% | ||||
| Net income | -2% | 49% | 17% | 23% | 12% | 12% | 27% | 15% | 11% | 11% | 22% | 15% | ||||
| YoY% | ||||||||||||||||
| Sales | 12% | 40% | 57% | 78% | 90% | 52% | 69% | 63% | 64% | 64% | 62% | 63% | 42% | 48% | 67% | 63% |
| Gross profit | 4% | 50% | 86% | 105% | 118% | 66% | 82% | 72% | 72% | 73% | 69% | 69% | 57% | 61% | 81% | 70% |
| Operating profit | 2% | 54% | 108% | 133% | 150% | 81% | 96% | 83% | 82% | 82% | 75% | 74% | 71% | 73% | 96% | 77% |
| Pretax profit | 2% | 100% | 82% | 113% | 141% | 80% | 95% | 82% | 82% | 81% | 74% | 74% | 56% | 73% | 94% | 77% |
| Net income | 2% | 86% | 80% | 110% | 141% | 80% | 95% | 83% | 82% | 81% | 75% | 74% | 54% | 69% | 95% | 77% |
Source:
BofA Global Research estimates, company data
Exhibit 8: Acronyms
Acronyms used throughout the report
| Acronym | Acronym | Acronym | |||
|---|---|---|---|---|---|
| AI | Artificial Intelligence | FX | Foreign Exchange | P/B | Price to Book |
| AMD | Advanced Micro Devices (AMD US) | Gen | Generation | P/E | Price to Earnings |
| ASP | Average Selling Price | GM | Gross Margin | PC | Personal Computer |
| CAGR | Compound Annual Growth Rate | GPU | Graphic Processing Unit | PO | Price Objective |
| CPO | Co-Packaged Optics | IPO | Initial Public Offering | RHS | Right Hand Side |
| CSP | Cloud Service Provider | MCL | Microchannel Lid | SD | Standard Deviation |
| Diff | Difference | NTD / NT$ | New Taiwan Dollars | USD / US$ | US Dollars |
| EPS | Earnings Per Share | OPM | Operating Profit Margin |
Source: BofA Global Research
Exhibit 5: Jentech's historical P/B trading average since IPO is around 3.2x, vs. currently 13.4x one-year forward P/B
Jentech's P/B trend and -1/+1 standard deviation since IPO in Nov 2008
Source: BofA Global Research estimates, TEJ, Bloomberg
BofA GLOBAL RESEARCH
BofA GLOBAL RESEARCH
BofA GLOBAL RESEARCH
Price objective basis & risk
Jentech (XVFSF)
Our PO of NT$4,000 is based on 25x 2H27-1H28E EPS. We use 25x P/E multiple (around 1SD above P/E average since IPO) in view of strong AI server market demand, leading position in semi-packaging level cooling components, expanding margins, and doubledigit sales/EPS CAGR in 2026-28E.
Upside risks to our PO are: (1) stronger AI server demand, (2) supply chain's faster cooling design migration, (3) faster capacity expansion, (4) favorable FX movement (mainly USD/NTD).
Downside risks to our PO are: (1) softer AI server demand, (2) GM pressure due to higher raw material cost, (3) supply chain's delayed cooling design migration, (4) slower capacity expansion, (5) unfavorable FX movement (mainly USD/NTD) to weigh on GM and/or non-operating items.