PDF 原檔：報告_BofA_緯創3231_20260909_original.pdf
原始內容
Wistron
Reiterate Buy: Aug sales +49% MoM, aided by solid AI momentum; lift PO to NT$265
Reiterate Rating: BUY | PO: 265.00 TWD | Price: 189.00 TWD
Aug'26 sales +49% MoM, mainly driven by AI
Wistron ' s Aug ' 26 sales of NT$460bn grew 49% MoM (+166% YoY), with subsidiary Wiwynn ' s Aug sales of NT$144bn grew 23% MoM (+50% YoY). Wistron ' s strong Aug sales were mainly driven by enterprise AI server projects, with overall AI server rack shipments roughly doubling MoM. Given the strong Aug sales, we lift our 3Q26 sales forecast by 11%. We expect Sep sales to decline 20% MoM to NT$370bn from the high Aug base. Yet, Sep sales should remain above July ' s NT$308bn as we stay positive on AI order momentum into following quarters, driven by Nvidia ' s new Vera Rubin generation.
PC remains soft; Aug shipments down 13% MoM
Wistron ' s Aug NB shipments were 1.4mn (-13% MoM, -36% YoY). We view it as in line with supply chain ' s commentary on weaker demand in 2H26 amid continued component cost inflation issue. This also echoes Wistron management ' s cautious tone that PC shipment should decline 10-20% HoH in 2H26 following earlier order pull-in 1H26. We now expect 3Q26 NB shipment to fall 18% QoQ, implying 1.5mn units of NB shipments in Sep (+8% MoM, -31% YoY) with potential quarter-end pull-in demand.
Lift PO to NT$265; reiterate Buy on solid AI momentum
We lift our 2026-28E EPS by 4-6% to reflect higher sales, mainly driven by AI (with diversifying clients/projects), better operating leverage, and actual 2Q26 data. We raise our PO to NT$265 from NT$238, with our valuation method unchanged at 15x 2H261H27E EPS. We reiterate Buy on Wistron ' s solid multi-year AI server outlook. We expect a positive near-term market reaction to the strong Aug sales.
| Estimates (Dec) (NT$) | 2024A | 2025A | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|
| Net Income (Adjusted - mn) | 17,446 | 27,408 | 56,376 | 71,475 | 89,432 |
| EPS | 6.11 | 9.04 | 16.14 | 19.53 | 24.44 |
| EPS Change (YoY) | 49.7% | 47.9% | 78.6% | 21.0% | 25.1% |
| Dividend / Share | 3.80 | 5.50 | 6.46 | 7.81 | 8.55 |
| Free Cash Flow / Share | (3.80) | (47.97) | (49.54) | (39.34) | (26.47) |
| Valuation (Dec) | |||||
| P/E | 30.92x | 20.91x | 11.71x | 9.68x | 7.73x |
| Dividend Yield | 2.01% | 2.91% | 3.42% | 4.13% | 4.53% |
| EV / EBITDA* | 20.47x | 11.23x | 6.15x | 4.74x | 3.91x |
| Free Cash Flow Yield* | -1.80% | -24.20% | -28.78% | -23.95% | -16.11% |
| * For full definitions of iQ method SM measures, see page 9. |
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.
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Refer to important disclosures on page 10 to 12. Analyst Certification on page 7. Price
09 September 2026
Equity
| Key Changes (NT$) | Previous | Current |
|---|---|---|
| Price Obj. | 238.00 | 265.00 |
| 2026E EPS | 15.32 | 16.14 |
| 2027E EPS | 18.48 | 19.53 |
| 2028E EPS | 23.43 | 24.44 |
| 2026E EBITDA (m) | 158,468.4 | 167,021.9 |
| 2027E EBITDA (m) | 207,238.7 | 216,822.7 |
| 2028E EBITDA (m) | 246,127.6 | 262,663.8 |
Doris Kao >>
Research Analyst
Merrill Lynch (Taiwan)
+886 2 2376 3722
doris.kao@bofa.com
Robert Cheng >> Research Analyst Merrill Lynch (Taiwan) +886 2 2376 3731
robert.cheng@bofa.com
Katherine Zhu >> Research Analyst Merrill Lynch (Hong Kong) +852 3508 3374
kexin.zhu@bofa.com
| Stock Data | |
|---|---|
| Price | 189.00 TWD |
| Price Objective | 265.00 TWD |
| Date Established | 9-Sep-2026 |
| Investment Opinion | C-1-7 |
| 52-Week Range | 114.50 TWD-206.00 |
| TWD | |
| Mrkt Val / Shares Out (mn) | 19,060 USD / 3,180.1 |
| Market Value (mn) | 601,030 TWD |
| Average Daily Value (mn) | 447.36 USD |
| Free Float | 90.8% |
| BofA Ticker / Exchange | WICOF / TAI |
| Bloomberg / Reuters | 3231 TT / 3231.TW |
| ROE (2026E) | 25.5% |
| Net Dbt to Eqty (Dec-2025A) | 55.4% |
Acronyms, see Exhibit 11
iQ profile SM Wistron
| Key Income Statement Data (Dec) | 2024A | 2025A | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|
| (NT$ Millions) | |||||
| Sales | 1,049,256 | 2,186,523 | 4,091,969 | 5,569,338 | 6,778,524 |
| Gross Profit | 84,091 | 133,983 | 219,851 | 285,152 | 346,868 |
| Sell General &Admin Expense | (19,141) | (24,059) | (32,542) | (46,656) | (58,043) |
| Operating Profit | 38,979 | 78,553 | 147,481 | 188,434 | 231,645 |
| Net Interest &Other Income | 997 | (2,296) | (20,952) | (27,401) | (27,327) |
| Associates | NA | NA | NA | NA | NA |
| Pretax Income | 39,975 | 76,257 | 126,529 | 161,032 | 204,318 |
| Tax (expense) / Benefit | (9,339) | (18,485) | (30,458) | (38,862) | (49,305) |
| Non-Controlling Interest | (13,191) | (30,364) | (39,695) | (50,695) | (65,582) |
| Net Income (Adjusted) | 17,446 | 27,408 | 56,376 | 71,475 | 89,432 |
| Average Fully Diluted Shares Outstanding | 2,854 | 3,032 | 3,492 | 3,659 | 3,659 |
| Key Cash Flow Statement Data | |||||
| Net Income | 17,446 | 27,408 | 56,376 | 71,475 | 89,432 |
| Depreciation &Amortization | 11,246 | 12,938 | 19,541 | 28,389 | 31,019 |
| Change in Working Capital | (82,466) | (218,203) | (188,912) | (203,799) | (187,295) |
| Deferred Taxation Charge | NA | NA | NA | NA | NA |
| Other Adjustments, Net | 59,524 | 72,048 | 0 | 0 | 0 |
| Cash Flow from Operations | 5,750 | (105,810) | (112,995) | (103,934) | (66,844) |
| Capital Expenditure | (16,593) | (39,615) | (60,000) | (40,000) | (30,000) |
| (Acquisition) / Disposal of Investments | 2,173 | 1,935 | 0 | 0 | 0 |
| Other Cash Inflow / (Outflow) | (5,674) | (5,833) | 0 | 0 | 0 |
| Cash Flow from Investing | (20,094) | (43,513) | (60,000) | (40,000) | (30,000) |
| Cost of Dividends Paid | (7,462) | (10,997) | (16,675) | (22,550) | |
| Cash Flow from Financing | 12,855 | 217,195 | 129,885 | 77,450 | (28,590) 71,410 |
| Free Cash Flow | (10,843) | (145,425) | (172,995) | (143,934) | (96,844) |
| Net Debt | 29,141 | 140,232 | 283,343 | 449,828 | 575,262 |
| Change in Net Debt | (21,988) | (64,593) | 143,111 | 166,485 | 125,434 |
| Key Balance Sheet Data | |||||
| Property, Plant &Equipment | 57,284 | 87,914 | 128,963 | 141,164 | 140,734 |
| Other Non-Current Assets | 52,345 | 65,680 | 65,091 | 64,501 | 63,912 |
| Trade Receivables | 190,483 | 422,913 | 591,000 | 792,786 | 971,964 |
| Cash &Equivalents | 79,880 | 144,474 | 101,363 | 34,878 | 9,444 |
| Other Current Assets | 209,848 | 376,745 | 590,198 | 760,996 | 943,948 |
| Total Assets | 589,841 | 1,097,726 | 1,476,615 | 1,794,325 | 2,130,003 |
| Long-Term Debt | 21,989 | 44,394 | 44,394 | 44,394 | 44,394 |
| Other Non-Current Liabilities | 31,479 | 67,823 | 67,823 | 67,823 | 67,823 |
| Short-Term Debt | 87,033 | 240,313 | 340,313 | 440,313 | 540,313 |
| Other Current Liabilities | 262,554 | 491,908 | 684,536 | 853,322 | 1,028,158 |
| Total Liabilities | 403,055 | 844,438 | 1,137,066 | 1,405,851 | 1,680,687 |
| Total Equity | 186,785 | 253,288 | 339,549 | 388,474 | 449,316 |
| iQ method SM - Bus Performance* | |||||
| Return On Capital Employed | 10.9% | 13.2% | 16.4% | 16.8% | 17.5% |
| Return On Equity | 14.7% | 17.7% | 25.5% | 24.8% | 26.1% |
| Operating Margin | 3.7% | 3.6% | 3.6% | 3.4% | 3.4% |
| EBITDA Margin | 4.8% | 4.2% | 4.1% | 3.9% | 3.9% |
| iQ method SM - Quality of Earnings* | |||||
| Cash Realization Ratio | 0.3x | -3.9x | -2.0x | -1.5x | -0.7x |
| Asset Replacement Ratio | 1.5x | 3.2x | 3.2x | 1.4x | 1.0x |
| Tax Rate (Reported) | 23.4% | 24.2% | 24.1% | 24.1% | 24.1% |
| Net Debt-to-Equity Ratio | 15.6% | 55.4% | 83.4% | 115.8% | 128.0% |
| Interest Cover | 4.9x | 5.0x | 5.4x | 7.0x | 8.6x |
Key Metrics
- For full definitions of iQ method SM measures, see page 9.
Company Sector
IT Hardware
Company Description
Wistron is one of the top-5 ODMs globally. Server/storage and PC business accounted for 73% and 24% of sales in 2025, respectively. Key server/storage customers include Dell, Lenovo, HPE, Cisco, Nvidia, AMD, Intel. Key NB customers include Dell, Lenovo, Acer. Wistron was spun off from Acer (2353 TT) in 2000 and was incorporated in May 2001. It went publicly listed on the Taiwan stock exchange in Aug 2003. It is headquartered in Taipei, Taiwan.
Investment Rationale
We assign a Buy rating to Wistron in view of improving sales/profit mix, solid outlook from Wiwynn, high exposure to server business after exiting from low-margin iPhone assembly business, and improving OPM. We believe Wistron will benefit from Dell's strong demand in Nvidia AI GPU server rack as the key supplier.
Stock Data
Price to Book Value
2.3x
Exhibit 1: We lift 2026-28E EPS by 4-6%
Earnings estimates revision summary, 2026-28E
| BofA 2026E | BofA 2026E | BofA 2026E | BofA 2027E | BofA 2027E | BofA 2027E | BofA 2028E | BofA 2028E | BofA 2028E | |
|---|---|---|---|---|---|---|---|---|---|
| NT$mn | New | Old | Diff (%) | New | Old | Diff (%) | New | Old | Diff (%) |
| Sales | 4,091,969 | 3,925,292 | 4% | 5,569,338 | 5,267,075 | 6% | 6,778,524 | 6,258,478 | 8% |
| Gross profit | 219,851 | 212,179 | 4% | 285,152 | 280,389 | 2% | 346,868 | 330,872 | 5% |
| Operating profit | 147,481 | 138,928 | 6% | 188,434 | 178,850 | 5% | 231,645 | 215,109 | 8% |
| Pretax profit | 126,529 | 119,475 | 6% | 161,032 | 153,447 | 5% | 204,318 | 189,781 | 8% |
| Net income | 56,376 | 53,499 | 5% | 71,475 | 67,621 | 6% | 89,432 | 85,718 | 4% |
| EPS (NT$) | 16.14 | 15.32 | 5% | 19.53 | 18.48 | 6% | 24.44 | 23.43 | 4% |
| Margin% | |||||||||
| Gross margin | 5.37% | 5.41% | 5.12% | 5.32% | 5.12% | 5.29% | |||
| Operating margin | 3.60% | 3.54% | 3.38% | 3.40% | 3.42% | 3.44% | |||
| Pre-tax margin | 3.09% | 3.04% | 2.89% | 2.91% | 3.01% | 3.03% | |||
| Net margin | 1.38% | 1.36% | 1.28% | 1.28% | 1.32% | 1.37% |
Source: BofA Global Research estimates
Exhibit 2: Our 2026-28 EPS estimates are 3-20% below consensus
BofAe vs. consensus, 2026-28E
| 2026E | 2026E | 2026E | 2027E | 2027E | 2027E | 2028E | 2028E | 2028E | |
|---|---|---|---|---|---|---|---|---|---|
| NT$mn | BofAe | Consensus | Diff (%) | BofAe | Consensus | Diff (%) | BofAe | Consensus | Diff (%) |
| Sales | 4,091,969 | 3,919,631 | 4% | 5,569,338 | 6,016,726 | -7% | 6,778,524 | 7,731,136 | -12% |
| Gross profit | 219,851 | 215,462 | 2% | 285,152 | 299,091 | -5% | 346,868 | 373,259 | -7% |
| Operating profit | 147,481 | 142,102 | 4% | 188,434 | 202,619 | -7% | 231,645 | 257,174 | -10% |
| Pretax profit | 126,529 | 123,297 | 3% | 161,032 | 177,491 | -9% | 204,318 | 228,472 | -11% |
| Net income | 56,376 | 54,217 | 4% | 71,475 | 78,955 | -9% | 89,432 | 101,630 | -12% |
| EPS (NT$) | 16.14 | 16.64 | -3% | 19.53 | 23.95 | -18% | 24.44 | 30.60 | -20% |
| Margin% | |||||||||
| Gross margin | 5.37% | 5.50% | 5.12% | 4.97% | 5.12% | 4.83% | |||
| Operating margin | 3.60% | 3.63% | 3.38% | 3.37% | 3.42% | 3.33% | |||
| Pre-tax margin | 3.09% | 3.15% | 2.89% | 2.95% | 3.01% | 2.96% | |||
| Net margin | 1.38% | 1.38% | 1.28% | 1.31% | 1.32% | 1.31% |
Source: BofA Global Research estimates, Bloomberg
Exhibit 3: Our new 3Q26E sales/EPS estimates are 12%/6% above consensus
3Q26 forecasts summary
| NT$mn | 3Q26 BofAe New | QoQ% | YoY% | 3Q26 BofAe Old | Diff (%) | Consensus | Diff (%) | 2Q26 | 3Q25 |
|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,137,938 | 27% | 100% | 1,023,338 | 11% | 1,014,823 | 12% | 895,443 | 567,805 |
| Gross profit | 60,967 | 20% | 45% | 55,265 | 10% | 56,698 | 8% | 50,664 | 41,965 |
| Operating profit | 41,622 | 24% | 53% | 36,231 | 15% | 37,996 | 10% | 33,447 | 27,142 |
| Pretax profit | 35,267 | 13% | 60% | 30,876 | 14% | 32,891 | 7% | 31,084 | 22,038 |
| Net income | 15,924 | 7% | 115% | 14,262 | 12% | 14,167 | 12% | 14,827 | 7,406 |
| EPS (NT$) | 4.56 | 7% | 87% | 4.08 | 12% | 4.30 | 6% | 4.25 | 2.44 |
| Margin% | |||||||||
| Gross margin | 5.36% | -0.3 ppt | -2.0 ppt | 5.40% | 0.0 ppt | 5.59% | -0.2 ppt | 5.66% | 7.39% |
| Operating margin | 3.66% | -0.1 ppt | -1.1 ppt | 3.54% | 0.1 ppt | 3.74% | -0.1 ppt | 3.74% | 4.78% |
| Pre-tax margin | 3.10% | -0.4 ppt | -0.8 ppt | 3.02% | 0.1 ppt | 3.24% | -0.1 ppt | 3.47% | 3.88% |
| Net margin | 1.40% | -0.3 ppt | 0.1 ppt | 1.39% | 0.0 ppt | 1.40% | 0.0 ppt | 1.66% | 1.30% |
Source: BofA Global Research estimates, company data, Bloomberg consensus. Diff refers to the differences to our new 3Q26 estimates
BofA GLOBAL RESEARCH
BofA GLOBAL RESEARCH
BofA GLOBAL RESEARCH
Exhibit 4: We expect server/storage, as the biggest segment, to comprise 83-89% of 2026-28 sales
Wistron's sales mix, 2018-28E
Source: BofA Global Research estimates, company data. PC includes notebook, desktop, and display
BofA GLOBAL RESEARCH
Exhibit 5: We expect Wistron's own AI business to contribute 48-49% of 2026-28 sales Sales breakdown within server/storage business, 2018-28E
Source: BofA Global Research estimates. Wistron's own AI business includes AI rack and AI component
BofA GLOBAL RESEARCH
Exhibit 6: Server/storage will maintain key profit driver, accounting for 85-90% of total gross profit
in 2026-28
Wistron's gross profit mix, 2018-28E
Source: BofA Global Research estimates. PC includes notebook, desktop, and display
BofA GLOBAL RESEARCH
Exhibit 7: We expect Wistron's own AI business to contribute 33-36% of gross profit in 2026-28 Gross profit breakdown within server/storage business, 2018-28E
Source: BofA Global Research estimates. Wistron's own AI business includes AI rack and AI component
BofA GLOBAL RESEARCH
Exhibit 8: Wistron's historical P/E trading average since 2020 is 9x
P/E trend and -1/+1 standard deviation since 2020
Source: BofA Global Research estimates, TEJ, Bloomberg
BofA GLOBAL RESEARCH
Exhibit 4: We model 2026-28E sales/net income CAGR at 29%/26%
Quarterly earnings summary, 2026-28E
| NT$mn | 1Q26 | 2Q26 | 3Q26E | 4Q26E | 1Q27E | 2Q27E | 3Q27E | 4Q27E | 1Q28E | 2Q28E | 3Q28E | 4Q28E | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 846,303 | 895,443 | 1,137,938 | 1,212,285 | 1,249,668 | 1,310,576 | 1,468,040 | 1,541,055 | 1,553,137 | 1,606,867 | 1,767,648 | 1,850,872 | 4,091,969 | 5,569,338 | 6,778,524 |
| Gross profit | 44,094 | 50,664 | 60,967 | 64,126 | 64,247 | 67,915 | 74,511 | 78,479 | 79,586 | 82,906 | 89,979 | 94,397 | 219,851 | 285,152 | 346,868 |
| Operating profit | 29,137 | 33,447 | 41,622 | 43,275 | 41,503 | 44,325 | 49,555 | 53,052 | 52,406 | 55,107 | 60,459 | 63,672 | 147,481 | 188,434 | 231,645 |
| Pretax profit | 23,508 | 31,084 | 35,267 | 36,670 | 34,643 | 37,296 | 42,843 | 46,250 | 45,556 | 48,259 | 53,656 | 56,847 | 126,529 | 161,032 | 204,318 |
| Net income | 9,631 | 14,827 | 15,924 | 15,993 | 15,108 | 16,097 | 19,265 | 21,006 | 19,618 | 21,041 | 23,706 | 25,066 | 56,376 | 71,475 | 89,432 |
| EPS (NT$) | 2.76 | 4.25 | 4.56 | 4.58 | 4.13 | 4.40 | 5.27 | 5.74 | 5.36 | 5.75 | 6.48 | 6.85 | 16.14 | 19.53 | 24.44 |
| Margin% | |||||||||||||||
| Gross margin | 5.21% | 5.66% | 5.36% | 5.29% | 5.14% | 5.18% | 5.08% | 5.09% | 5.12% | 5.16% | 5.09% | 5.10% | 5.37% | 5.12% | 5.12% |
| Operating margin | 3.44% | 3.74% | 3.66% | 3.57% | 3.32% | 3.38% | 3.38% | 3.44% | 3.37% | 3.43% | 3.42% | 3.44% | 3.60% | 3.38% | 3.42% |
| Pretax margin | 2.78% | 3.47% | 3.10% | 3.02% | 2.77% | 2.85% | 2.92% | 3.00% | 2.93% | 3.00% | 3.04% | 3.07% | 3.09% | 2.89% | 3.01% |
| Net margin | 1.14% | 1.66% | 1.40% | 1.32% | 1.21% | 1.23% | 1.31% | 1.36% | 1.26% | 1.31% | 1.34% | 1.35% | 1.38% | 1.28% | 1.32% |
| QoQ% | |||||||||||||||
| Sales | 17% | 6% | 27% | 7% | 3% | 5% | 12% | 5% | 1% | 3% | 10% | 5% | |||
| Gross profit | 9% | 15% | 20% | 5% | 0% | 6% | 10% | 5% | 1% | 4% | 9% | 5% | |||
| Operating profit | 14% | 15% | 24% | 4% | -4% | 7% | 12% | 7% | -1% | 5% | 10% | 5% | |||
| Pretax profit | 11% | 32% | 13% | 4% | -6% | 8% | 15% | 8% | -2% | 6% | 11% | 6% | |||
| Net income | 18% | 54% | 7% | 0% | -6% | 7% | 20% | 9% | -7% | 7% | 13% | 6% | |||
| YoY% | |||||||||||||||
| Sales | 144% | 62% | 100% | 68% | 48% | 46% | 29% | 27% | 24% | 23% | 20% | 20% | 87% | 36% | 22% |
| Gross profit | 63% | 107% | 45% | 58% | 46% | 34% | 22% | 22% | 24% | 22% | 21% | 20% | 64% | 30% | 22% |
| Operating profit | 92% | 210% | 53% | 70% | 42% | 33% | 19% | 23% | 26% | 24% | 22% | 20% | 88% | 28% | 23% |
| Pretax profit | 59% | 71% | 60% | 72% | 47% | 20% | 21% | 26% | 32% | 29% | 25% | 23% | 66% | 27% | 27% |
| Net income | 81% | 128% | 115% | 96% | 57% | 9% | 21% | 31% | 30% | 31% | 23% | 19% | 106% | 27% | 25% |
Source: BofA Global Research estimates, company data
Exhibit 11: Acronyms
Acronyms and their respective definitions
| Acronyms | Acronyms | Acronyms | Acronyms | Acronyms | |
|---|---|---|---|---|---|
| AI | Artificial Intelligence | NB | Notebook | PO | Price Objective |
| CAGR | Compound Annual Growth Rate | NT$ / NTD | New Taiwan Dollar | RHS | Right Hand Side |
| Diff | Difference | ODM | Original Design Manufacturer | RMB | Renminbi (Chinese Yuan) |
| EPS | Earnings Per Share | OPM | Operating Profit Margin | SD | Standard Deviation |
| FX | Foreign Exchange | P/B | Price to Book | S/S | Server/Storage |
| GM | Gross Margin | P/E | Price to Earnings | US | United States |
| GPU | Graphic Processing Unit | PC | Personal Computer | US$ / USD | US Dollar |
Source: BofA Global Research
Exhibit 9: Wistron's historical P/B trading average since 2004 is 0.7x
P/B trend and -1/+1 standard deviation since 2004
Source: BofA Global Research estimates, TEJ, Bloomberg
BofA GLOBAL RESEARCH
BofA GLOBAL RESEARCH
BofA GLOBAL RESEARCH
Price objective basis & risk
Wistron (WICOF)
Our PO of NT$265 is based on 15x 2H26-1H27E EPS. We use 15x valuation multiple (around 1.5SD above historical P/E average since 2022) in view of high server mix, a key position in AI server supply chain with exposure both to component/rack business, and ongoing OPM improvement.
Upside risks to our PO are (1) stronger server market demand, especially for AI, (2) stronger PC demand, (3) share/order win in AI server business, and (4) favorable FX trend.
Downside risks to our PO are (1) softer AI server demand due to AI GPU short supply or supply chain hiccup, (2) weaker PC market demand amid inflation/macro uncertainties, (3) GM pressure due to higher labor/logistics cost, (4) more intensified competition in NB and server business, and (5) unfavorable FX movement (USD/RMB and/or USD/NTD) to weigh on GM and/or non-operating items.