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33KB | 真資料圖 | 折線圖：King Slide 月營收 MoM，Jan'23-Sep'26；Y 軸 -40% 至 60%；2026 年中段出現多個正向高點，最末點約 -31% |
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37KB | 真資料圖 | 折線圖：King Slide 月營收 MoM，Jan'16-Sep'26；Y 軸 -80% 至 80%；長期波動大，最末點約 -31% |
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37KB | 真資料圖 | 股價與 PO 沿革圖：Price 與 PO 階梯（含 No Coverage 灰區）；標註 PO 4300、4700、4550、6350、7600、9100、14888（最後一筆標 7-Aug）；財務／股價類圖，不嵌公司頁 |
原始內容
King Slide
Maintain Buy: Sep sales -31% MoM from high bases; Aug earnings remain solid
Maintain Rating: BUY | PO: 14,888 TWD | Price: 13,100 TWD
Sep sales -31% MoM from high bases; 3Q26 sales in-line
King Slide's Sep sales of NT$4.46bn declined 31% MoM (+196% YoY), after the strong sales in the past few months (up 17-46% MoM in Apr-Jul and up 1% MoM in Aug). 3Q26 sales of NT$17.34bn (+60% QoQ, +297% YoY) were 0.5% above BofAe of NT$17.26bn and 0.9% below consensus of NT$17.49bn.
We are not surprised with the MoM sales drop in Sep as (1) the company's MoM sales trend has been volatile (Exhibit 1 and Exhibit 2), (2) sales bases in Apr-Aug were at record levels, (3) contribution from Nvidia Rubin GPU projects should be more meaningful in 4Q26 after hardware components ramp-up, and (4) partial general server orders/demand likely were pushed out due to key component shortage (e.g. memory, CPU).
Solid Aug EPS NT$40.07; pre-tax/net margin 74.6%/59.1%
In addition to Sep sales, on the same day (6 Oct), King Slide also announced its Aug unaudited key financial data as required by local regulations (Exhibit 3). Aug sales were NT$6,466mn (+344% YoY), while pre-tax profit was NT$4,826mn (+216% YoY) and net income was NT$3,819mn (+212% YoY). EPS came in at NT$40.07 (+212% YoY). Pre-tax margin and net margin were 74.6% and 59.1%, respectively.
Compared to July unaudited figures announced on 14 Aug (see our 17 Aug report), including sales of NT$6,407mn, pre-tax margin of 93.4%, net margin of 74.7%, and EPS of NT$50.24, we believe the margin and EPS differences mainly reflected FX impact under similar sales scale.
Combining Jul and Aug unaudited results, sales totaled NT$12.87bn and EPS reached NT$90.31. Pre-tax margin and net margin were 84.0% and 66.9%, respectively. Jul + Aug sales achieved 75%/74% of BofAe/consensus 3Q26 sales. Pre-tax profit, net income, and EPS all achieved 79% of BofAe (79.4% pre-tax margin, 62.9% net margin, and NT$113.87 EPS) and 77-78% of consensus (80.3% pre-tax margin, 63.1% net margin, and NT$117.62 EPS). We also noted that Jul + Aug EPS of NT$90.31 already surpassed EPS of NT$74.38 in 2Q26 with similar pre-tax/net margin (84.0%/66.9% in Jul + Aug, vs. 84.2%/65.4% in 2Q26).
Maintain Buy; expect a neutral-to-positive market reaction
We expect a neutral-to-positive market reaction in the near term in view of significant MoM sales decline in Sep but also still solid Aug unaudited data. We maintain Buy on King Slide as the server rail market leader with broad and diversified client/project base. We expect the company to post 3Q26 results after market close on 12 Nov (Thu).
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 4 to 6. Analyst Certification on page 3. Price
06 October 2026
Equity
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
Katherine Zhu >>
Research Analyst Merrill Lynch (Hong Kong) +852 3508 3374
Carol Hu >> Research Analyst Merrill Lynch (Taiwan) +886 2 2376 3721
Stock Data
Price
Price Objective
13,100 TWD
14,888 TWD
Date Established
7-Aug-2026
Investment Opinion C-1-7
52-Week Range
2,875 TWD-15,085
TWD
Mrkt Val / Shares Out (mn) Market Value (mn) Average Daily Value (mn) Free Float BofA Ticker / Exchange Bloomberg / Reuters ROE (2026E)
39,309 USD / 95.3
1,248,392 TWD
201.14 USD
67.5%
KGSLF / TAI
2059 TT / 2059.TW
77.4%
Net Dbt to Eqty (Dec-2025A)
-84.2%
Acronyms
CPU: Central Processing Unit
FX: Foreign Exchange
GPU: Graphic Processing Unit
Exhibit 1: King Slide's sales MoM trend has been volatile in AI era King Slide monthly sales MoM trend, Jan'23-Sep'26
Exhibit 2: King Slide's sales MoM trend has been volatile in the past decade
King Slide monthly sales MoM trend, Jan'16-Sep'26
Source: BofA Global Research, company data. AI: artificial intelligence
BofA GLOBAL RESEARCH
lül
Source: BofA Global Research, company data
BofA GLOBAL RESEARCH
Exhibit 3: Jul + Aug sales achieved 75%/74% of BofA/consensus 3Q26 estimate and EPS achieved 79%/77% of BofA/consensus 3Q26 estimate
King Slide Jul'26 and Aug'26 unaudited key financial data vs. 3Q26 BofAe/consensus
| NT$mn | Jul'26 | YoY % | Aug'26 | YoY % | Jul + Aug Subtotal | 3Q26 BofAe | Jul + Aug Run rate | 3Q26 Consensus | Jul + Aug Run rate |
|---|---|---|---|---|---|---|---|---|---|
| Sales | 6,407 | 336% | 6,466 | 344% | 12,873 | 17,260 | 75% | 17,494 | 74% |
| Pretax profit | 5,985 | 321% | 4,826 | 216% | 10,811 | 13,702 | 79% | 14,049 | 77% |
| Net income | 4,787 | 321% | 3,819 | 212% | 8,606 | 10,852 | 79% | 11,038 | 78% |
| EPS (NT$) | 50.24 | 321% | 40.07 | 212% | 90.31 | 113.87 | 79% | 117.62 | 77% |
| Margin % | |||||||||
| Pre-tax margin | 93.4% | 74.6% | 84.0% | 79.4% | 80.3% | ||||
| Net margin | 74.7% | 59.1% | 66.9% | 62.9% | 63.1% |
Source: BofA Global Research estimates, Bloomberg, company data
Price objective basis & risk
King Slide (KGSLF)
Our PO of NT$14,888 is based on 32x 2027E EPS. We use 32x P/E multiple (2.5SD above P/E average since listing) in view of strong AI server market demand, leading position in server rail, solid/high margin profiles, and double-digit sales/EPS CAGR in 2026-28E. Its early step into server market since 2001 with proven track record, much larger scale than peer, and 3,600+ patents as strong moats for high/above-peer margins. Its above-30x P/E is a similar case to other component sub-sector leaders in Taiwan.
Upside risks to our PO are: (1) even stronger AI server demand, (2) margin upside thanks to larger scale and/or better efficiency, (3) better kitchen slides market demand, (4) faster capacity expansion, (5) favorable FX movement (mainly USD/NTD) for GM and/or non-operating items.
Downside risks to our PO are: (1) softer AI server demand due to GPU/components shortage, (2) GM pressure due to higher raw material cost (e.g. steel, aluminum), (3) softer kitchen slides market demand under macro uncertainty/weakness, (4) delayed product certification, (5) slower capacity expansion, (6) unfavorable FX movement (mainly USD/NTD) to weigh on GM and/or non-operating items.
BofA GLOBAL RESEARCH