PDF 原檔：報告_Citi_國巨2327_20260729_original.pdf
圖片清單（已驗證 2026-07-31）
| 檔名 | size | 分類 | 親眼所見內容 |
|---|---|---|---|
260729_citi_yageo_001.png |
14KB | 真資料圖 | 股價走勢折線圖（TWD，Sep–Jun，約 0–1,000+ 區間） |
260729_citi_yageo_002.png |
114KB | 真資料圖 | Figure 2/3 並排圓餅圖：2Q26 銷售產品組合（MLCC 19%／Tantalum 24%／Magnetics 24%／Resistor 14%／Sensors 11%／Other 8%）與應用組合（Computing & Enterprise 27%／Industrial 28%／Automotive 16%／Consumer 12%／Telecom 12%／Aero/Def/Med 4%） |
260729_citi_yageo_003.png |
88KB | 真資料圖 | Figure 4/5 並排圓餅圖：2Q26 銷售地區組合（US 27%／Japan-Asia 27%／China 27%／Europe 19%）與通路組合（Global Distributors 46%／Direct Sales 35%／EMS 18%） |
260729_citi_yageo_004.png |
56KB | 真資料圖 | Figure 6 稼動率趨勢折線圖（Commodity vs Specialty/Premium，1Q21–3Q26E），兩線於 3Q26E 皆升至約 90% |
260729_citi_yageo_005.png |
151KB | 真資料圖 | Figure 9/10 並排：Forward P/E band（7x/15x/23x/31x）與 Forward P/B band（0.8x/2.6x/4.4x/6.2x + Forward ROE），股價線 Jan-17 至 Jan-26 |
260729_citi_yageo_006.png |
159KB | 真資料圖 | Bull/Base/Bear 情境圖：Bull NT$2,000（+294% Upside，45x）／Base NT$1,450（+186% Upside，OPM 27.6% in 2026E，35x）／Bear NT$450（-11% Downside，OPM 20.0%，15x），現價 NT$507（2026-07-29） |
260729_citi_yageo_007.png |
250KB | 真資料圖 | Ratings and Target Price History（上圖）+ Short-Term View/Catalyst Watch History（下圖），2023-12 至 2026-06，最新第 12 筆評等紀錄 2026-06-08 TP NT$1,500、收盤 NT$751 |
分類只有三類：
真資料圖/裝飾·logo·banner/文字卡。<40KB 未 Read 者免列（預設 logo）；本份僅 001 低於 40KB，因其在正文明確標示為「Price Performance」圖表故仍 Read 驗證。
原始內容
(RIC: 2326.IW, BB: 232611)
TWD
1,000
800
600
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0
Prepared for Kevin Lu
29 Jul 2026 12:38:28 ET │ 16 pages
Sep
Dec
Mar
Jun
Yageo (2327.TW)
2Q26 Beat on Broad-Based Strength; Recalibrating TP as Sector Multiple Resets, Structural Thesis Intact
CITI'S TAKE
Yageo's 2Q26 results beat across scale and margins, with AI revenue mix rising to 16% and BB ratio climbing to 2.2, underscoring accelerating forward demand. Mgmt.'s 3Q26E guidance for moderate rev growth and further margin improvement, alongside commodity/specialty UTR set to reach 90%+, points to a tightening S/D backdrop, while rising customer interest in multi-year LTAs across AI, computing, and memory sectors signals extending demand visibility. We raise our 2026E-28E EPS forecasts by 11%-13% and lift our ASP growth CAGR assumptions. That said, we adjust our TP to NT$1,450 (from NT$1,500), applying a 35x average 202728E EPS (vs. 40x prior) to reflect the sector's ongoing, deleveraging-driven multiple compression, while maintaining our positive view and Buy rating.
2Q26 results beat on scale and margins -Yageo's reported 2Q26 net profit at NT$9.4bn (+18% QoQ/+88% YoY) beat Citi/cons forecasts by 15%/3%, driven by better scale, margin expansion, and opex control. GPM came in at 38.5% (+0.4ppt QoQ/+2.9ppts YoY), below cons estimate as higher commodity shipments diluted mix; however, we are starting to see early pricing pass-through flow into margins. AI revenue mix rose to 16% (from c.14-15% in 1Q26), while the BB ratio climbed MoM to 2.2 by end-Jun (vs. 1.3 at AGM), pointing to robust forward demand visibility.
Positive from all leading indicators -Mgmt. guided 3Q26 revenue to moderate growth with GPM/OPM improving slightly, as commodity and specialty UTR are set to rise from 2Q26's 80%/85% to 90%+/90%+, and mgmt. does not rule out further price hikes if raw material costs keep climbing. Mgmt. further flagged rising customer interest in signing LTAs across AI, computing, and memory end-markets, implying underlying demand is running ahead of prior expectations. We accordingly raise our 2025-28E ASP growth CAGR assumptions to 22%/23%/27% (from 20%/16%/25%) across Yageo's MLCC/resistor/tantalum lines.
Implications -We raise our 2026E-28E earnings forecasts by 11%-13% to reflect stronger results and guidance. We adjust our TP to NT$1,450, implying 35x avg. 2027E-28E EPS (from NT$1,500 based on 40x), a moderate step-down reflecting the sector's deleverage-driven multiple compression rather than any change to Yageo's earnings trajectory. We expect profitability and growth visibility to keep improving through the cycle. Reiterate Buy.
Earnings Summary
| Year to 31Dec | Net Profit (NT$M) | DilutedEPS (NT$) | EPSgrowth (%) | P/E (x) | P/B (x) | ROE (%) | Yield (%) |
|---|---|---|---|---|---|---|---|
| 2024A | 19,356 | 9.56 | 10 | 53 | 6.5 | 13.1 | 0.8 |
| 2025A | 23,634 | 11.51 | 20.4 | 44 | 6.1 | 14.3 | 1 |
| 2026E | 40,811 | 19.87 | 72.7 | 25.5 | 5.2 | 22 | 1.2 |
| 2027E | 72,611 | 35.36 | 77.9 | 14.3 | 3.8 | 30.8 | 2 |
| 2028E | 98,682 | 48.05 | 35.9 | 10.6 | 2.8 | 30.7 | 3.6 |
Source: Powered by dataCentral
See Appendix A-1 for Analyst Certification, Important Disclosures and Research Analyst Affiliations.
n Buy
Price (29 Jul 26 13:30)
NT$507.00
Target price
NT$1,450.00↓
from NT$1,500.00
Expected share price return
186.0%
Expected dividend yield
2.0%
Expected total return
188.0%
Market Cap
NT$1,050,233M
US$32,441M
Price Performance (RIC: 2327.TW, BB: 2327 TT)
Michael Hung AC
+886-2-8726-9092 michael.hung@citi.com
Laura (Chia Yi) Chen +886-2-8726-9090 laura.cy.chen@citi.com
Prepared for Kevin Lu
| 2327.TW: Fiscalyearend31-Dec | 2327.TW: Fiscalyearend31-Dec | 2327.TW: Fiscalyearend31-Dec | 2327.TW: Fiscalyearend31-Dec | 2327.TW: Fiscalyearend31-Dec | 2327.TW: Fiscalyearend31-Dec | NT$507.00; TP: | NT$1,450.00; | Market Cap: | NT$1,050,233m; | Recomm:Buy | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Profit&Loss(NT$m) | 2024 | 2025 | 2026E | 2027E | 2028E | Valuation ratios | 2024 | 2025 | 2026E | 2027E | 2028E |
| Sales revenue | 121,667 | 132,930 | 184,630 | 262,437 | 330,955 | PE(x) | 53.0 | 44.0 | 25.5 | 14.3 | 10.6 |
| Cost of sales | -79,864 | -84,800 | -111,651 | -141,651 | -169,900 | PB(x) | 6.5 | 6.1 | 5.2 | 3.8 | 2.8 |
| Gross profit | 41,803 | 48,130 | 72,979 | 120,785 | 161,054 | EV/EBITDA(x) | 31.8 | 25.8 | 16.5 | 9.3 | 6.3 |
| Gross Margin (%) | 34.4 | 36.2 | 39.5 | 46.0 | 48.7 | FCFyield (%) | 2.4 | 2.4 | 5.5 | 6.6 | 10.2 |
| EBITDA(Adj) | 33,014 | 39,635 | 59,652 | 99,714 | 132,845 | Dividend yield (%) | 0.8 | 1.0 | 1.2 | 2.0 | 3.6 |
| EBITDAMargin(Adj) (%) | 27.1 | 29.8 | 32.3 | 38.0 | 40.1 | Payout ratio (%) | 42 | 43 | 30 | 29 | 38 |
| Depreciation | -9,629 | -9,834 | -8,700 | -7,250 | -6,708 | ROE(%) | 13.1 | 14.3 | 22.0 | 30.8 | 30.7 |
| Amortisation | 0 | 0 | 0 | 0 | 0 | Cashflow(NT$m) | 2024 | 2025 | 2026E | 2027E | 2028E |
| EBIT (Adj) | 23,386 | 29,801 | 50,951 | 92,464 | 126,137 | EBITDA | 33,014 | 39,635 | 59,652 | 99,714 | 132,845 |
| EBIT Margin (Adj) (%) | 19.2 | 22.4 | 27.6 | 35.2 | 38.1 | Working capital | 10,346 | -37,431 | 1,044 | 0 | 0 |
| Net interest | 2,190 | 1,571 | 1,340 | 1,340 | 1,340 | Other | -12,198 | 28,660 | 2,268 | -24,787 | -21,128 |
| Associates | 846 | 830 | 467 | 0 | 0 | Operating cashflow | 31,162 | 30,863 | 62,965 | 74,926 | 111,717 |
| Non-Op/Except/Other Adj | 441 | -1,082 | -27 | 0 | 0 | Capex | -6,646 | -6,056 | -6,034 | -6,034 | -6,034 |
| Pre-tax profit | 26,863 | 31,120 | 52,731 | 93,804 | 127,478 | Net acq/disposals | -6,218 | -5,902 | -2,487 | 0 | 0 |
| Tax | -7,377 | -7,343 | -11,751 | -20,899 | -28,397 | Other | -16,896 | 8,233 | 0 | 0 | 0 |
| Extraord./Min.Int./Pref.div. | -130 | -143 | -169 | -293 | -399 | Investing cashflow | -29,760 | -3,725 | -8,522 | -6,034 | -6,034 |
| Reported net profit | 19,356 | 23,634 | 40,811 | 72,611 | 98,682 | Dividends paid | -8,369 | -10,265 | -12,438 | -21,477 | -38,213 |
| Net Margin (%) | 15.9 | 17.8 | 22.1 | 27.7 | 29.8 | Financing cashflow | 2,780 | -3,135 | -7,312 | 1,315 | -2,164 |
| CoreNPAT | 19,356 | 23,634 | 40,811 | 72,611 | 98,682 | Net change in cash | 8,166 | 20,356 | 47,131 | 70,207 | 103,518 |
| Per share data | 2024 | 2025 | 2026E | 2027E | 2028E | Free cashflow to s/holders | 24,516 | 24,807 | 56,930 | 68,892 | 105,682 |
| Reported EPS($) | 9.56 | 11.51 | 19.87 | 35.36 | 48.05 | ||||||
| Core EPS($) | 9.56 | 11.51 | 19.87 | 35.36 | 48.05 | ||||||
| DPS($) | 4.03 | 4.95 | 6.00 | 10.36 | 18.43 | ||||||
| CFPS($) | 15.39 | 15.03 | 30.66 | 36.49 | 54.40 | ||||||
| FCFPS($) | 12.11 | 12.08 | 27.72 | 33.55 | 51.46 | ||||||
| BVPS($) | 78.10 | 83.14 | 97.15 | 132.48 | 180.49 | ||||||
| Wtdavgordshares(m) | 2,025 | 2,053 | 2,054 | 2,054 | 2,054 | ||||||
| Wtdavgdiluted shares (m) | 2,025 | 2,053 | 2,054 | 2,054 | 2,054 | ||||||
| Growthrates | 2024 | 2025 | 2026E | 2027E | 2028E | ||||||
| Sales revenue (%) | 13.1 | 9.3 | 38.9 | 42.1 | 26.1 | ||||||
| EBIT (Adj) (%) | 14.5 | 27.4 | 71.0 | 81.5 | 36.4 | ||||||
| CoreNPAT(%) | 11.1 | 22.1 | 72.7 | 77.9 | 35.9 | ||||||
| CoreEPS(%) | 10.0 | 20.4 | 72.7 | 77.9 | 35.9 | ||||||
| BalanceSheet(NT$m) | 2024 | 2025 | 2026E | 2027E | 2028E | ||||||
| Cash&cashequiv. | 61,118 | 81,473 | 128,605 | 198,812 | 302,330 | ||||||
| Accounts receivables | 21,969 | 27,792 | 42,993 | 56,852 | 66,964 | ||||||
| Inventory | 27,823 | 31,636 | 46,528 | 53,882 | 62,785 | ||||||
| Net fixed &other tangibles | 74,072 | 73,541 | 68,726 | 66,675 | 65,229 | ||||||
| assets | 86,768 | 106,315 | |||||||||
| Financial &other Total assets | 366,676 | 69,648 390,789 | 85,345 | 97,469 | 711,113 | ||||||
| Accounts | 15,003 | 18,031 | 479,685 | 581,179 | |||||||
| payable | 26,639 | 30,890 | 36,036 | ||||||||
| 70,578 | |||||||||||
| Long-term debt | 62,088 | 58,413 | 59,728 | 57,564 | |||||||
| Provisions &other liab | 100,839 | 118,256 | 165,378 | 188,401 | 216,271 | ||||||
| Total liabilities | 204,123 | 216,793 | 277,643 | 306,232 | 337,085 | ||||||
| Minority interests | 2,092 | 3,119 | 2,361 | 2,654 | 3,053 | ||||||
| Total equity | 162,553 | 173,997 | 202,042 | ||||||||
| -969 | 274,947 | 374,028 | |||||||||
| Net debt (Adj) | 27,162 | -42,979 | -111,871 | -217,553 | |||||||
| Net debt to equity (Adj) (%) | 16.7 | -0.6 | -21.3 | ||||||||
| For definitions of the items in this | please click here. | -40.7 | -58.2 |
Prepared for Kevin Lu
Figure 1. Yageo - 2Q26 earnings review
| 2Q26 | 1Q26 | 2Q25 | 2Q25 | 2Q26 | 2Q26 | 2Q26 | 2Q26 | 2Q26 | |
|---|---|---|---|---|---|---|---|---|---|
| (NT$mn) | Actual | Actual | Q/Q | Actual | Y/Y | Citi | Diff. | Cons. | Diff. |
| Revenue | 44,456 | 38,166 | 16% | 32,771 | 36% | 40,487 | 10% | 42,712 | 4% |
| Gross profit | 17,116 | 14,542 | 18% | 11,652 | 47% | 15,599 | 10% | 16,620 | 3% |
| Gross margin | 38.5% | 38.1% | +0.4 ppt | 35.6% | +2.9 ppt | 38.5% | -0.0 ppt | 38.9% | -0.4 ppt |
| Op. profit | 11,749 | 9,613 | 22% | 7,044 | 67% | 10,332 | 14% | 11,413 | 3% |
| OP margin | 26.4% | 25.2% | +1.2 ppt | 21.5% | +4.9 ppt | 25.5% | +0.9 ppt | 26.7% | -0.3 ppt |
| Net income | 9,418 | 8,001 | 18% | 4,998 | 88% | 8,184 | 15% | 9,156 | 3% |
| EPS (NT$) | 4.59 | 3.90 | 18% | 2.43 | 88% | 3.99 | 15% | 4.45 | 3% |
Prepared for Kevin Lu
Figure 6. Yageo - UTR trend
© 2026 Citigroup Inc. No redistribution without Citigroup's written permission.
Source: Company Reports, Citi Research Estimates
Figure 7. Yageo - Earnings estimates revision
| 2026E | 2026E | 2026E | 2027E | 2027E | 2027E | 2028E | 2028E | 2028E | |
|---|---|---|---|---|---|---|---|---|---|
| (NT$mn) | New | Old | Chg. | New | Old | Chg. | New | Old | Chg. |
| Sales | 184,630 | 171,414 | 8% | 262,437 | 239,989 | 9% | 330,955 | 305,472 | 8% |
| Sequential growth | 39% | 29% | 42% | 40% | 26% | 27% | |||
| Gross profit | 72,979 | 67,501 | 8% | 120,785 | 110,685 | 9% | 161,054 | 149,150 | 8% |
| Opex | 22,028 | 21,739 | 1% | 28,322 | 28,149 | 1% | 34,917 | 35,095 | -1% |
| Operating profit | 50,951 | 45,763 | 11% | 92,464 | 82,536 | 12% | 126,137 | 114,055 | 11% |
| Pre-tax profit | 52,731 | 47,512 | 11% | 93,804 | 83,876 | 12% | 127,478 | 115,395 | 10% |
| Net income | 40,811 | 36,564 | 12% | 72,611 | 64,531 | 13% | 98,682 | 88,789 | 11% |
| EPS (NT$) | 19.87 | 17.81 | 12% | 35.36 | 31.42 | 13% | 48.05 | 43.24 | 11% |
| Gross margin | 39.5% | 39.4% | +0.1 ppt | 46.0% | 46.1% | -0.1 ppt | 48.7% | 48.8% | -0.2 ppt |
| Opex ratio | 11.9% | 12.7% | -0.8 ppt | 10.8% | 11.7% | -0.9 ppt | 10.6% | 11.5% | -0.9 ppt |
| Operating margin | 27.6% | 26.7% | +0.9 ppt | 35.2% | 34.4% | +0.8 ppt | 38.1% | 37.3% | +0.8 ppt |
| Net margin | 22.1% | 21.3% | +0.8 ppt | 27.7% | 26.9% | +0.8 ppt | 29.8% | 29.1% | +0.8 ppt |
© 2026 Citigroup Inc. No redistribution without Citigroup's written permission.
Source: Citi Research Estimates
Prepared for Kevin Lu
Figure 8. Passive components peer valuation
| Company | Ticker | Rating | LC | Target Price | Price | Market cap | P/E(x) | P/E(x) | EPSgrowth (%) | EPSgrowth (%) | P/BV (x) | P/BV (x) | ROE(%) | ROE(%) | Div yield (%) | Div yield (%) |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Taiwan | ||||||||||||||||
| Yageo | 2327.TW | 1 | TWD | 1,450.0 | 507.0 | 32,441 | 25.5 | 14.3 | 72.6% | 78.0% | 5.3 | 3.9 | 22.0% | 30.8% | 1.2% | 2.0% |
| Lelon | 2472.TW | NR | TWD | NA | 220.0 | 1,119 | 19.6 | 14.3 | NA | 37.0% | 2.4 | 2.6 | 12.7% | 19.0% | 1.9% | 2.4% |
| Holy Stone | 3026.TW | NR | TWD | NA | 474.5 | 2,431 | 35.1 | 12.5 | NA | 181.5% | 7.5 | 5.3 | 16.8% | 33.9% | 2.3% | 4.2% |
| Nichidenbo Corp | 3090.TW | NR | TWD | NA | 126.5 | 1,124 | 14.2 | 10.6 | NA | 34.9% | 1.8 | 2.1 | 12.7% | 19.4% | 8.1% | 11.0% |
| Taiwan Average | 23.6 | 12.9 | 4.3 | 3.5 | ||||||||||||
| Japan | ||||||||||||||||
| Murata | 6981.JP | 1 | JPY | 15,000.0 | 6,231.0 | 69,226 | 49.0 | 32.7 | 1.9% | 50.0% | 4.2 | 3.9 | 8.8% | 12.3% | 1.0% | 1.1% |
| TDK | 6762.JP | 1 | JPY | 4,500.0 | 2,746.0 | 31,813 | 27.2 | 22.4 | 14.8% | 21.2% | 2.4 | 2.2 | 9.8% | 10.5% | 1.3% | 1.5% |
| Kyocera | 6971.JP | 1 | JPY | 4,100.0 | 3,613.0 | 28,631 | 34.9 | 36.3 | 504.5% | -3.8% | 1.4 | 1.4 | 4.3% | 3.9% | 1.4% | 1.5% |
| TaiyoYuden | 6976.JP | 3 | JPY | 16,000.0 | 9,005.0 | 7,159 | 76.1 | 46.2 | 633.7% | 64.8% | 3.5 | 3.3 | 4.6% | 7.4% | 1.0% | 1.0% |
| Japan Average | 46.8 | 34.4 | 2.9 | 2.7 | ||||||||||||
| Korea | ||||||||||||||||
| SEMCO | 009150.KR | 1 | KRW | 3,000,000.0 | 1,029,000.0 | 52,894 | 48.5 | 22.8 | 124.5% | 112.7% | 7.7 | 5.8 | 16.2% | 29.1% | 0.2% | 0.2% |
| SamwhaCapacitor | 001820.KR | NR | KRW | NA | 62,900.0 | 450 | 30.6 | 20.5 | 68.3% | 49.6% | 2.2 | 2.0 | 7.5% | 10.2% | 0.8% | 0.9% |
| Korea Average | 39.6 | 21.6 | 5.0 | 3.9 | ||||||||||||
| US | ||||||||||||||||
| Vishay | VSH.US | NR | USD | NA | 32.7 | 5,018 | 43.5 | 21.2 | 1606.0% | 104.5% | 2.3 | 2.2 | 5.1% | 11.4% | 1.2% | 1.2% |
| Littlefuse | LFUS.US | NR | USD | NA | 390.9 | 9,915 | 26.5 | 22.7 | 38.3% | 17.0% | 3.6 | 3.2 | 14.0% | 14.1% | 0.8% | 0.9% |
| US Average | 35.0 | 22.0 | 2.3 | 2.2 | ||||||||||||
| China | ||||||||||||||||
| Chaozhou Three-circle China Average | 300408.CN | NR | CNY | NA | 108.9 | 30,820 | 55.2 55.2 | 44.1 44.1 | 43.9% | 25.3% | 8.5 | 7.4 7.4 | 15.7% | 17.5% | 0.6% | 0.7% |
| Average | 8.5 | |||||||||||||||
| 40.0 | 27.0 | 4.6 | 3.9 |
© 2026 Citigroup Inc. No redistribution without Citigroup's written permission.
Source: powered by dataCentral, Company Reports, Citi Research, FactSet
Prepared for Kevin Lu
Figure 11. Yageo - Quarterly earnings forecast
| (NT$in Mn, year-end Dec) | 1Q26 | 2Q26 | 3Q26E | 4Q26E | 1Q27E | 2Q27E | 3Q27E | 4Q27E | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net sales | 38,166 | 44,456 | 49,122 | 52,886 | 58,119 | 63,740 | 68,516 | 72,061 | 132,930 | 184,630 | 262,437 | 330,955 |
| Gross Profit | 14,542 | 17,116 | 19,626 | 21,695 | 25,170 | 28,868 | 31,976 | 34,772 | 48,130 | 72,979 | 120,785 | 161,054 |
| OPEX | (4,929) | (5,368) | (5,665) | (6,066) | (6,289) | (6,937) | (7,373) | (7,722) | (18,329) | (22,028) | (28,322) | (34,917) |
| Operating profit | 9,613 | 11,749 | 13,961 | 15,629 | 18,881 | 21,930 | 24,603 | 27,050 | 29,801 | 50,951 | 92,464 | 126,137 |
| Total Non-OP | 712 | 474 | 379 | 216 | 303 | 443 | 379 | 216 | 1,319 | 1,780 | 1,340 | 1,340 |
| Pre-tax profit | 10,325 | 12,222 | 14,340 | 15,844 | 19,184 | 22,373 | 24,982 | 27,265 | 31,120 | 52,731 | 93,804 | 127,478 |
| Net Profit | 8,001 | 9,418 | 11,114 | 12,278 | 14,848 | 17,309 | 19,346 | 21,110 | 23,634 | 40,811 | 72,611 | 98,682 |
| EPS (NT$) | 3.90 | 4.59 | 5.41 | 5.98 | 7.23 | 8.43 | 9.42 | 10.28 | 11.51 | 19.87 | 35.36 | 48.05 |
| Revenue mix | ||||||||||||
| MLCC | 19% | 19% | 21% | 22% | 22% | 21% | 21% | 21% | 19% | 20% | 22% | 21% |
| Chip resistors | 14% | 14% | 15% | 15% | 15% | 14% | 14% | 14% | 14% | 15% | 14% | 14% |
| Magnetics | 25% | 24% | 23% | 22% | 21% | 21% | 21% | 20% | 27% | 23% | 21% | 20% |
| Tantalum capacitor | 24% | 24% | 24% | 25% | 26% | 28% | 29% | 30% | 22% | 24% | 28% | 32% |
| Sensor | 13% | 11% | 10% | 9% | 9% | 9% | 8% | 8% | 10% | 11% | 9% | 8% |
| Other components | 5% | 8% | 8% | 7% | 7% | 6% | 6% | 6% | 9% | 7% | 6% | 5% |
| Margins (%) | ||||||||||||
| Gross profit | 38.1% | 38.5% | 40.0% | 41.0% | 43.3% | 45.3% | 46.7% | 48.3% | 36.2% | 39.5% | 46.0% | 48.7% |
| OPEXtosales | 12.9% | 12.1% | 11.5% | 11.5% | 10.8% | 10.9% | 10.8% | 10.7% | 13.8% | 11.9% | 10.8% | 10.6% |
| Operating Margin | 25.2% | 26.4% | 28.4% | 29.6% | 32.5% | 34.4% | 35.9% | 37.5% | 22.4% | 27.6% | 35.2% | 38.1% |
| Pre-tax profit | 27.1% | 27.5% | 29.2% | 30.0% | 33.0% | 35.1% | 36.5% | 37.8% | 23.4% | 28.6% | 35.7% | 38.5% |
| Net Margin | 21.0% | 21.2% | 22.6% | 23.2% | 25.5% | 27.2% | 28.2% | 29.3% | 17.8% | 22.1% | 27.7% | 29.8% |
| Y/Y | ||||||||||||
| Net sales | 22.7% | 35.7% | 48.5% | 47.0% | 52.3% | 43.4% | 39.5% | 36.3% | 9.3% | 38.9% | 42.1% | 26.1% |
| Gross profit | 31.2% | 46.9% | 63.9% | 61.7% | 73.1% | 68.7% | 62.9% | 60.3% | 6.2% | 31.7% | 26.9% | 19.9% |
| Operating profit | 48.7% | 66.8% | 84.6% | 79.0% | 96.4% | 86.7% | 76.2% | 73.1% | 27.4% | 71.0% | 81.5% | 36.4% |
| Pre-tax profit | 43.9% | 73.9% | 74.6% | 82.0% | 85.8% | 83.1% | 74.2% | 72.1% | 15.8% | 69.4% | 77.9% | 35.9% |
| Net Margin | 44.7% | 88.5% | 74.9% | 81.9% | 85.6% | 83.8% | 74.1% | 71.9% | 22.1% | 72.7% | 77.9% | 35.9% |
| Q/Q | ||||||||||||
| Net sales | 6.1% | 16.5% | 10.5% | 7.7% | 9.9% | 9.7% | 7.5% | 5.2% | ||||
| Gross profit | 8.4% | 17.7% | 14.7% | 10.5% | 16.0% | 14.7% | 10.8% | 8.7% | ||||
| Operating profit | 10.1% | 22.2% | 18.8% | 11.9% | 20.8% | 16.2% | 12.2% | 9.9% | ||||
| Pre-tax profit | 18.6% | 18.4% | 17.3% | 10.5% | 21.1% | 16.6% | 11.7% | 9.1% | ||||
| Net Margin | 18.5% | 17.7% | 18.0% | 10.5% | 20.9% | 16.6% | 11.8% | 9.1% |
© 2026 Citigroup Inc. No redistribution without Citigroup's written permission.
Source: Company Reports, Citi Research Estimates
NT$
2,004
1,670
1,336
1,002
668
334
0
Jul 25
L. OPM at 20.0% in 2026E
Prepared for Kevin Lu
7 294% Upside
NT$ 1,450.00
186% Upside
Bull/Bear: Yageo (2327.TW)
NT$ 450.00
• 11% Downside
Prepared for Kevin Lu
Yageo
Company description
Established in 1977 and listed in 1993, Yageo is a leading supplier of passive electronic components based in Taiwan. The company offers a wide array of products including MLCC, chip resistors, magnetics, tantalum, and other components, aiming to be the total solution provider for its customers. By capacity, the company currently ranks No. 1 in chip resistor and tantalum and No. 3 in MLCC and inductor globally. Key customers of Yageo include leading EMS, ODMs, and distributors. The company also has 29 sales offices, 51 manufacturing sites, and 20 R&D centers in 29 nations worldwide.
Investment strategy
We have a Buy rating on Yageo shares. Yageo is widely known as a passive electronic component supplier. Although passive components are generally viewed as a commodity, Yageo is no longer a commodity play, in our view, given the company's foray into premium markets through M&As, which should help mitigate the impact of sector cyclicality and order volatility. We expect a more diversified product portfolio to drive stable earnings and better margins, while improving utilization in its commodity component business following the end of inventory digestions should add additional fuel.
Valuation
We set our target price at NT$1,450, based on 35x average 2027E-28E earnings. We value Yageo based on PE as we believe the company's earnings performance and industry dynamics would be the key focuses of the market. Our target multiple of 35x is at the higher end of the trading range since 2022. During this period the company has gone through the cycles, successfully integrated the acquired business to enhance its product offerings, and started to deliver stable margins and earnings.
Risks
Key downside risks to our target price and rating include: 1) slower-thanexpected demand recovery; 2) intensified peer and pricing competition; 3) execution risks associated with M&A integration and synergies; and 4) FX and interest rate fluctuations.
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