PDF 原檔：報告_Citi_國巨2327_20261029_original.pdf
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66KB | 真資料圖 | Figure 4 國巨 3Q26 營收依地區圓餅（US 27%、Europe 20%、Japan/Asia 26%、China 27%）與 Figure 5 依通路圓餅（Global Distributors 49%、EMS 19%、Direct Sales 32%）；營收結構圖，不嵌 |
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45KB | 真資料圖 | Figure 6 國巨 UTR 趨勢折線（1Q21–4Q26E，Commodity 與 Specialty 兩線）：Commodity 低點約 45%（約 4Q22–4Q23）、3Q26 與 4Q26E 升至約 95%；Specialty 3Q26 起同樣約 95%；稼動率圖，不嵌 |
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124KB | 真資料圖 | Figure 9 Forward P/E band（7x／15x／23x／31x）與 Figure 10 Forward P/B band（0.8x／2.6x／4.4x／6.2x，附 ROE 右軸），2017–2026；股價評價圖，不嵌 |
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149KB | 真資料圖 | Citi Bull／Base／Bear 目標價圖：Bull NT$1,300（+139%，目標 30x）、Base NT$1,000（+84%，OPM 2026E 28.3%、目標 23x）、Bear NT$435（-20%，OPM 20.0%、目標 10x），現價 NT$543（29 Oct 26）；評價情境圖，不嵌 |
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242KB | 文字卡 | Citi 評等與目標價歷史表（分析師 Michael Hung）及 Short-Term View／Catalyst Watch 歷史表；含 2026-04-15 TP 400、05-13 TP 495、06-08 TP 1,500、07-29 TP 1,450；不嵌 |
原始內容
29 Oct 2026 16:57:58 ET │ 16 pages
Yageo (2327.TW)
3Q26 Beat on Margin Expansion; Cut TP on Continued Multiple Compression; Structural Thesis Intact
CITI'S TAKE
Yageo's 3Q26 results beat across margins and scale, with GPM reaching a cycle-high and AI-related mix climbing to 20%. Mgmt's 4Q26 guidance for slight revenue growth and further margin improvement, alongside UTR guided above 95%, reinforces our view that effective capacity continues tightening even as 2027 capacity expansion plans are confirmed. The BB ratio's dip to c.2 reflects a higher billing base rather than softening demand. We raise our 2026E-28E EPS forecasts by 3-6% on stronger margins and guidance. That said, we adjust our TP to NT$1,000 (from NT$1,450), applying 23x avg. 2027E-28E EPS to reflect continued compression in global peer multiples. We maintain our positive view and reiterate Buy.
3Q26 results beat on margin expansion and opex - Yageo's 3Q26 net profit came in at NT$12.0bn (+27 QoQ/+88% YoY), beating Citi/cons estimates by 8%/10%, driven by stronger revenue scale, margin expansion, and continued opex control. GPM came in at 41.0% (+2.5 ppts QoQ/+4.8 ppts YoY), above cons estimates, on a combination of price adjustments and a favorable mix. We are increasingly seeing price hike effects flow through into margins. AI mix rose to 20% (from 16% in 2Q26), while the BB ratio remains strong at close to 2, pointing to robust forward demand.
Leading indicators continue to strengthen - Mgmt. guided 4Q26 revenue to slight growth with margins improving slightly further, as commodity and specialty UTR move from 3Q26's close to 95% to above 95%. AI related mix keeps climbing, with MLCC outgrowing other lines on AI pull, while UTR is guided higher despite a planned capacity expansion, consistent with our view that effective capacity is tightening faster than nameplate growth. The BB ratio's dop to close to 2 reflects a higher billing base instead of weaker bookings.
Implications - We raise our 2026E-28E earnings forecasts by 3-6% to reflect the stronger 3Q26 results and higher margin assumptions, with earnings revisions positive across the forecast period despite the lower TP. We adjust our TP to NT$1,000, implying 23x avg. 2027E-28E EPS (from NT$1,450 based on 35x), in line with global peer avg. at 24x forward EPS, reflecting concerns around decelerating data center capex and softer consumer demand that have weighed on global passive peer multiples. We view these as over concern given Yageo's robust results and growth outlook. Reiterate Buy.
Earnings Summary
| Year to 31 Dec | Net Profit (NT$M) | Diluted EPS (NT$) | EPS growth (%) | P/E (x) | P/B (x) | ROE (%) | Yield (%) |
|---|---|---|---|---|---|---|---|
| 2024A | 19,356 | 9.56 | 10.0 | 56.8 | 7.0 | 13.1 | 0.7 |
| 2025A | 23,634 | 11.51 | 20.4 | 47.2 | 6.5 | 14.3 | 0.9 |
| 2026E | 42,338 | 20.62 | 79.1 | 26.3 | 5.5 | 22.7 | 1.1 |
| 2027E | 74,450 | 36.25 | 75.8 | 15.0 | 4.0 | 31.2 | 2.0 |
| 2028E | 104,583 | 50.92 | 40.5 | 10.7 | 2.9 | 31.8 | 3.5 |
Source: Powered by dataCentral
See Appendix A-1 for Analyst Certification, Important Disclosures and Research Analyst Affiliations.
n Buy
Price (29 Oct 26 13:30)
NT$543.00
Target price NT$1,000.00↓
from NT$1,450.00
Expected share price return
84.2%
Expected dividend yield
2.0%
Expected total return
86.2%
Market Cap NT$1,119,680M US$34,571M
Price Performance (RIC: 2327.TW, BB: 2327 TT)
Michael Hung AC
+886-2-8726-9092 michael.hung@citi.com
Laura (Chia Yi) Chen +886-2-8726-9090 laura.cy.chen@citi.com Source: Company Reports, Citi Research
| Profit & Loss (NT$m) | 2327.TW: Fiscal year end 31-Dec - 2024 | 2327.TW: Fiscal year end 31-Dec - 2025 | 2327.TW: Fiscal year end 31-Dec - 2026E | 2327.TW: Fiscal year end 31-Dec - 2027E | 2327.TW: Fiscal year end 31-Dec - 2028E | 2327.TW: Fiscal year end 31-Dec - Valuation ratios | Price: NT$543.00; TP: NT$1,000.00; Market Cap: NT$1,119,680m; Recomm: Buy - 2024 | Price: NT$543.00; TP: NT$1,000.00; Market Cap: NT$1,119,680m; Recomm: Buy - 2025 | Price: NT$543.00; TP: NT$1,000.00; Market Cap: NT$1,119,680m; Recomm: Buy - 2026E | Price: NT$543.00; TP: NT$1,000.00; Market Cap: NT$1,119,680m; Recomm: Buy - 2027E | Price: NT$543.00; TP: NT$1,000.00; Market Cap: NT$1,119,680m; Recomm: Buy - 2028E |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales revenue | 121,667 | 132,930 | 184,855 | 261,681 | 344,174 | PE (x) | 56.8 | 47.2 | 26.3 | 15.0 | 10.7 |
| Cost of sales | -79,864 | -84,800 | -110,443 | -139,183 | -174,960 | PB (x) | 7.0 | 6.5 | 5.5 | 4.0 | 2.9 |
| Gross profit | 41,803 | 48,130 | 74,412 | 122,498 | 169,214 | EV/EBITDA (x) | 33.9 | 27.6 | 17.1 | 9.9 | 6.6 |
| Gross Margin (%) | 34.4 | 36.2 | 40.3 | 46.8 | 49.2 | FCF yield (%) | 2.2 | 2.2 | 3.1 | 6.2 | 9.8 |
| EBITDA (Adj) | 33,014 | 39,635 | 62,133 | 102,490 | 140,714 | Dividend yield (%) | 0.7 | 0.9 | 1.1 | 2.0 | 3.5 |
| EBITDA Margin (Adj) (%) | 27.1 | 29.8 | 33.6 | 39.2 | 40.9 | Payout ratio (%) | 42 | 43 | 29 | 30 | 37 |
| Depreciation | -9,629 | -9,834 | -9,760 | -8,177 | -7,748 | ROE (%) | 13.1 | 14.3 | 22.7 | 31.2 | 31.8 |
| Amortisation | 0 | 0 | 0 | 0 | 0 | Cashflow (NT$m) | 2024 | 2025 | 2026E | 2027E | 2028E |
| EBIT (Adj) | 23,386 | 29,801 | 52,373 | 94,313 | 132,966 | EBITDA | 33,014 | 39,635 | 62,133 | 102,490 | 140,714 |
| EBIT Margin (Adj) (%) | 19.2 | 22.4 | 28.3 | 36.0 | 38.6 | Working capital | 10,346 | -37,431 | 1,397 | 0 | 0 |
| Net interest | 2,190 | 1,571 | 1,243 | 1,243 | 1,243 | Other | -12,198 | 28,660 | -21,362 | -25,149 | -23,653 |
| Associates | 846 | 830 | 691 | 0 | 0 | Operating cashflow | 31,162 | 30,863 | 42,168 | 77,341 | 117,061 |
| Non-Op/Except/Other Adj | 441 | -1,082 | 83 | 0 | 0 | Capex | -6,646 | -6,056 | -7,480 | -8,105 | -8,105 |
| Pre-tax profit | 26,863 | 31,120 | 54,390 | 95,556 | 134,209 | Net acq/disposals | -6,218 | -5,902 | -7,633 | 0 | 0 |
| Tax | -7,377 | -7,343 | -11,890 | -20,849 | -29,264 | Other | -16,896 | 8,233 | 0 | 0 | 0 |
| Extraord./Min.Int./Pref.div. | -130 | -143 | -161 | -258 | -362 | Investing cashflow | -29,760 | -3,725 | -15,113 | -8,105 | -8,105 |
| Reported net profit | 19,356 | 23,634 | 42,338 | 74,450 | 104,583 | Dividends paid | -8,369 | -10,265 | -12,438 | -22,281 | -39,180 |
| Net Margin (%) | 15.9 | 17.8 | 22.9 | 28.5 | 30.4 | Financing cashflow | 2,780 | -3,135 | 62,784 | 2,616 | -1,918 |
| Core NPAT | 19,356 | 23,634 | 42,338 | 74,450 | 104,583 | Net change in cash | 8,166 | 20,356 | 89,840 | 71,852 | 107,038 |
| Per share data | 2024 | 2025 | 2026E | 2027E | 2028E | Free cashflow to s/holders | 24,516 | 24,807 | 34,688 | 69,236 | 108,956 |
| Reported EPS ($) | 9.56 | 11.51 | 20.62 | 36.25 | 50.92 | ||||||
| Core EPS ($) | 9.56 | 11.51 | 20.62 | 36.25 | 50.92 | ||||||
| DPS ($) | 4.03 | 4.95 | 6.04 | 10.82 | 19.03 | ||||||
| CFPS ($) | 15.39 | 15.03 | 20.53 | 37.66 | 57.00 | ||||||
| FCFPS ($) | 12.11 | 12.08 | 16.89 | 33.71 | 53.05 | ||||||
| BVPS ($) | 78.10 | 83.14 | 98.18 | 134.42 | 185.34 | ||||||
| Wtd avg ord shares (m) | 2,025 | 2,053 | 2,054 | 2,054 | 2,054 | ||||||
| Wtd avg diluted shares (m) | 2,025 | 2,053 | 2,054 | 2,054 | 2,054 | ||||||
| Growth rates | 2024 | 2025 | 2026E | 2027E | 2028E | ||||||
| Sales revenue (%) | 13.1 | 9.3 | 39.1 | 41.6 | 31.5 | ||||||
| EBIT (Adj) (%) | 14.5 | 27.4 | 75.7 | 80.1 | 41.0 | ||||||
| Core NPAT (%) | 11.1 | 22.1 | 79.1 | 75.8 | 40.5 | ||||||
| Core EPS (%) | 10.0 | 20.4 | 79.1 | 75.8 | 40.5 | ||||||
| Balance Sheet (NT$m) | 2024 | 2025 | 2026E | 2027E | 2028E | ||||||
| Cash & cash equiv. | 61,118 | 81,473 | 171,313 | 243,166 | 350,204 | ||||||
| Accounts receivables | 21,969 | 27,792 | 38,152 | 53,390 | 66,131 | ||||||
| Inventory | 27,823 | 31,636 | 38,480 | 48,095 | 59,061 | ||||||
| Net fixed & other tangibles | 74,072 | 73,541 | 69,597 | 68,104 | 67,113 | ||||||
| Goodwill & intangibles assets | 94,926 | 106,700 | 106,536 | 106,536 | 106,536 | ||||||
| Financial & other | 86,768 | 69,648 | 119,870 | 140,646 | 158,018 | ||||||
| Total assets | 366,676 | 390,789 | 543,949 | 659,937 | 807,063 | ||||||
| Accounts payable | 15,003 | 18,031 | 22,450 | 28,069 | 34,478 | ||||||
| Short-term debt | 17,702 70,578 | 18,417 | 56,551 | 56,551 | 56,551 | ||||||
| Long-term debt | 62,088 | 99,025 | 101,641 | 99,723 | |||||||
| Provisions & other liab | 100,839 | 118,256 216,793 | 161,969 | 195,014 | 232,704 | ||||||
| Total liabilities | 204,123 | 339,995 | 381,275 | 423,457 | |||||||
| Shareholders' equity Minority interests | 160,461 2,092 | 170,878 3,119 | 201,671 2,283 | 276,120 2,541 | 380,703 | ||||||
| Total equity | 162,553 | 173,997 | 203,954 | 278,662 | 2,904 383,607 | ||||||
| Net debt (Adj) | 27,162 | -969 | -15,738 | -84,974 | -193,930 | ||||||
| Net debt to equity (Adj) (%) | 16.7 | -0.6 | -7.7 | -30.5 | -50.6 | ||||||
| For definitions of the items in this | table, please click here. |
Figure 1. Yageo - 3Q26 earnings review
| (NT$mn) | 3Q26 - Actual | 2Q26 - Actual | 3Q25 - Q/Q | 3Q25 - Actual | 3Q26 - Y/Y | 3Q26 - Citi | 3Q26 - Diff. | 3Q26 - Cons. | 3Q26 - Diff. |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 49,532 | 44,456 | 11% | 33,087 | 50% | 49,122 | 1% | 48,495 | 2% |
| Gross profit | 20,308 | 17,116 | 19% | 11,974 | 70% | 19,626 | 3% | 19,289 | 5% |
| Gross margin | 41.0% | 38.5% | +2.5 ppt | 36.2% | +4.8 ppt | 40.0% | +1.0 ppt | 39.8% | +1.2 ppt |
| Op. profit | 14,603 | 11,749 | 24% | 7,562 | 93% | 13,961 | 5% | 13,477 | 8% |
| OP margin | 29.5% | 26.4% | +3.1 ppt | 22.9% | +6.6 ppt | 28.4% | +1.1 ppt | 27.8% | +1.7 ppt |
| Net income | 11,981 | 9,418 | 27% | 6,356 | 88% | 11,114 | 8% | 10,914 | 10% |
| EPS (NT$) | 5.83 | 4.59 | 27% | 3.10 | 88% | 5.41 | 8% | 5.30 | 10% |
Figure 2. Yageo - 3Q26 Sales mix by product
Figure 3. Yageo - 3Q26 Sales mix by application
© 2026 Citigroup Inc. No redistribution without Citigroup's written permission. Source: Company Reports, Citi Research
Figure 6. Yageo - UTR trend
© 2026 Citigroup Inc. No redistribution without Citigroup's written permission.
Source: Company Reports, Citi Research Estimates
Figure 7. Yageo - Earnings estimates revision
| (NT$mn) | 2026E - New | 2026E - Old | 2026E - Chg. | 2027E - New | 2027E - Old | 2027E - Chg. | 2028E - New | 2028E - Old | 2028E - Chg. |
|---|---|---|---|---|---|---|---|---|---|
| Sales | 184,855 | 184,630 | 0% | 261,681 | 262,437 | 0% | 344,174 | 330,955 | 4% |
| Sequential growth | 39% | 39% | 42% | 42% | 32% | 26% | |||
| Gross profit | 74,412 | 72,979 | 2% | 122,498 | 120,785 | 1% | 169,214 | 161,054 | 5% |
| Opex | 22,039 | 22,028 | 0% | 28,184 | 28,322 | 0% | 36,248 | 34,917 | 4% |
| Operating profit | 52,373 | 50,951 | 3% | 94,313 | 92,464 | 2% | 132,966 | 126,137 | 5% |
| Pre-tax profit | 54,390 | 52,731 | 3% | 95,556 | 93,804 | 2% | 134,209 | 127,478 | 5% |
| Net income | 42,338 | 40,811 | 4% | 74,450 | 72,611 | 3% | 104,583 | 98,682 | 6% |
| EPS (NT$) | 20.62 | 19.87 | 4% | 36.25 | 35.36 | 3% | 50.92 | 48.05 | 6% |
| Gross margin | 40.3% | 39.5% | +0.7 ppt | 46.8% | 46.0% | +0.8 ppt | 49.2% | 48.7% | +0.5 ppt |
| Opex ratio | 11.9% | 11.9% | -0.0 ppt | 10.8% | 10.8% | -0.0 ppt | 10.5% | 10.6% | -0.0 ppt |
| Operating margin | 28.3% | 27.6% | +0.7 ppt | 36.0% | 35.2% | +0.8 ppt | 38.6% | 38.1% | +0.5 ppt |
| Net margin | 22.9% | 22.1% | +0.8 ppt | 28.5% | 27.7% | +0.8 ppt | 30.4% | 29.8% | +0.6 ppt |
© 2026 Citigroup Inc. No redistribution without Citigroup's written permission.
Source: Citi Research Estimates
Figure 8. Passive components peer valuation
| Company | Ticker | Rating | LC | Target Price - 10/29/2026 | Price - 10/29/2026 | Market cap - (US$mn) | P/E(x) - 2026 | P/E(x) - 2027 | EPS growth (%) - 2026 | EPS growth (%) - 2027 | P/BV (x) - 2026 | P/BV (x) - 2027 | ROE(%) - 2026 | ROE(%) - 2027 | Div yield (%) - 2026 | Div yield (%) - 2027 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Ta iwa n | ||||||||||||||||
| Yageo | 2327.TW | 1 | TWD | 1,000.0 | 543.0 | 34,571 | 26.3 | 15.0 | 79.1% | 75.8% | 5.5 | 4.0 | 22.7% | 31.2% | 1.1% | 2.0% |
| Lelon | 2472.TW | NR | TWD | NA | 203.0 | 1,033 | 18.1 | 13.2 | NA | 37.0% | 2.2 | 2.4 | 12.7% | 19.0% | 2.1% | 2.6% |
| Holy Stone | 3026.TW | NR | TWD | NA | 767.0 | 3,929 | 48.7 | 22.1 | NA | 120.8% | 10.9 | 7.7 | 23.6% | 42.7% | 1.4% | 2.6% |
| Nichidenbo Corp | 3090.TW | NR | TWD | NA | 158.5 | 1,407 | 17.4 | 11.9 | NA | 46.7% | 2.3 | 2.6 | 12.7% | 19.4% | 4.7% | 6.2% |
| Taiwan Average | 27.6 | 15 .5 | 5 .2 | 4. 2 | ||||||||||||
| J a pa n | ||||||||||||||||
| Murata | 6981.JP | 1 | JPY | 11,000.0 | 6,890.0 | 79,017 | 54.2 | 34.1 | 1.9% | 59.1% | 4.6 | 4.2 | 8.8% | 13.0% | 0.9% | 1.0% |
| TDK | 6762.JP | 1 | JPY | 4,500.0 | 2,772.0 | 33,337 | 27.4 | 18.1 | 14.8% | 51.8% | 2.4 | 2.2 | 9.8% | 12.9% | 1.3% | 1.4% |
| Kyocera | 6971.JP | 1 | JPY | 4,400.0 | 3,572.0 | 28,702 | 34.5 | 29.7 | 504.5% | 16.3% | 1.4 | 1.4 | 4.3% | 4.7% | 1.5% | 1.6% |
| Taiyo Yuden | 6976.JP | 3 | JPY | 16,000.0 | 9,231.0 | 7,744 | 78.0 | 47.3 | 633.7% | 64.8% | 3.6 | 3.4 | 4.6% | 7.4% | 1.0% | 1.0% |
| Japan Average | 48 . 6 | 32 . 3 | 3.0 | 2 .8 | ||||||||||||
| Korea | ||||||||||||||||
| SEMCO | 009150.KR | 1 | KRW2,300,000.01,293,000.0 | 71,969 | 56.4 | 27.4 | 142.6% | 105.7% | 9.5 | 7.2 | 17.4% | 29.8% | 0.2% | 0.2% | ||
| Samwha Capacitor | 001820.KR | NR | KRW | NA | 113,200.0 | 877 | 42.3 | 24.8 | 119.0% | 70.9% | 3.9 | 3.4 | 9.6% | 14.7% | 0.4% | 0.4% |
| Korea Average | 49 . 4 | 26. 1 | 6.7 | 5 .3 | ||||||||||||
| US | ||||||||||||||||
| Vishay | VSH.US | NR | USD | NA | 29.9 | 4,589 | 35.5 | 17.1 | 1786.0% | 107.5% | 1.6 | 1.6 | 5.2% | 9.4% | 1.3% | 1.3% |
| Littlefuse | LFUS.US | NR | USD | NA | 385.0 | 9,835 | 20.8 | 17.9 | 74.1% | 16.0% | 3.5 | 2.9 | 16.7% | 17.5% | 0.8% | 0.9% |
| US Average | 28.2 | 17.5 | 1 .6 | 1 .6 | ||||||||||||
| China | ||||||||||||||||
| Chaozhou Three-circle | 300408.CN | NR | CNY | NA | 84.5 | 24,305 | 35.5 | 24.9 | 73.8% | 42.7% | 6.0 | 5.0 | 19.2% | 22.3% | 0.7% | 1.3% |
| China Average | 35 . 5 | 24.9 | 6.0 | 5 .0 | ||||||||||||
| Average | 40. 1 | 24.3 | 4. 7 | 3.9 |
© 2026 Citigroup Inc. No redistribution without Citigroup's written permission.
Source: dataCentral, Citi Research, Company Reports, FactSet
Figure 11. Yageo - Quarterly earnings forecast
| (NT$ in Mn, year-end Dec) | 1Q26 | 2Q26 | 3Q26 | 4Q26E | 1Q27E | 2Q27E | 3Q27E | 4Q27E | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net sales | 38,166 | 44,456 | 49,532 | 5 2 , 702 | 57,641 | 62,539 | 67,869 | 73,633 | 132,930 | 184,855 | 261,681 | 344,174 |
| Gross Profit | 14,542 | 17,116 | 20,308 | 22,446 | 25,687 | 28 , 72 1 | 32,128 | 35,961 | 48 , 1 30 | 74,412 | 122,498 | 169,214 |
| OPEX | (4,929) | (5,368) | (5,705) | (6,037) | (6,228) | (6,782) | (7,294) | (7,880) | (18,329) | (22,039) | (28,184) | (36,248) |
| Operating profit | 9,613 | 1 1 ,749 | 14,603 | 16,409 | 19,459 | 21,939 | 24,834 | 28,081 | 29,801 | 5 2 ,373 | 94,313 | 132,966 |
| Total Non-OP | 712 | 474 | 616 | 216 | 303 | 345 | 379 | 216 | 1,319 | 2,017 | 1,243 | 1,243 |
| Pre-tax profit | 10,325 | 12,222 | 15,219 | 16,624 | 19,762 | 22,285 | 25,213 | 28,297 | 31,120 | 54,390 | 95,556 | 134,209 |
| Net Profit | 8 ,001 | 9 ,41 8 | 1 1 ,981 | 1 2 ,938 | 1 5 ,377 | 17,352 | 19,681 | 2 2 ,040 | 23,634 | 42 ,338 | 74,450 | 104,583 |
| EPS (NT$) | 3.90 | 4.59 | 5 .83 | 6 . 30 | 7.49 | 8 . 45 | 9.58 | 10.73 | 11 .51 | 20.62 | 36 . 25 | 50.92 |
| Revenue mix | ||||||||||||
| MLCC | 19% | 19% | 22% | 22% | 23% | 24% | 25% | 25% | 19% | 21% | 24% | 27% |
| Chip resistors | 14% | 14% | 15% | 15% | 15% | 15% | 14% | 14% | 14% | 15% | 14% | 14% |
| Magnetics | 25% | 24% | 22% | 22% | 22% | 21% | 20% | 20% | 27% | 23% | 20% | 19% |
| Tantalum capacitor | 24% | 24% | 24% | 24% | 26% | 26% | 27% | 28% | 22% | 24% | 27% | 29% |
| Sensor | 13% | 11% | 11% | 10% | 9% | 9% | 9% | 8% | 10% | 11% | 9% | 7% |
| Other components | 5% | 8% | 6% | 6% | 6% | 5% | 5% | 5% | 9% | 6% | 5% | 4% |
| Margins (%) | ||||||||||||
| Gross profit | 38.1% | 38.5% | 41.0% | 42.6% | 44.6% | 45.9% | 47.3% | 48.8% | 36.2% | 40.3% | 46.8% | 49.2% |
| OPEX to sales | 12.9% | 12.1% | 11.5% | 11.5% | 10.8% | 10.8% | 10.7% | 10.7% | 13.8% | 11.9% | 10.8% | 10.5% |
| Operating Margin | 25.2% | 26.4% | 29.5% | 31.1% | 33.8% | 35.1% | 36.6% | 38.1% | 22.4% | 28.3% | 36.0% | 38.6% |
| Pre-tax profit | 27.1% | 27.5% | 30.7% | 31.5% | 34.3% | 35.6% | 37.1% | 38.4% | 23.4% | 29.4% | 36.5% | 39.0% |
| Net Margin | 21.0% | 21.2% | 24.2% | 24.6% | 26.7% | 27.7% | 29.0% | 29.9% | 17.8% | 22.9% | 28.5% | 30.4% |
| Y/ Y | ||||||||||||
| Net sales | 22.7% | 35.7% | 49.7% | 46.5% | 51.0% | 40.7% | 37.0% | 39.7% | 9.3% | 39.1% | 41.6% | 31.5% |
| Gross profit | 31.2% | 46.9% | 69.6% | 67.3% | 76.6% | 67.8% | 58.2% | 60.2% | 6.2% | 30.2% | 26.0% | 25.7% |
| Operating profit | 48.7% | 66.8% | 93.1% | 87.9% | 102.4% | 86.7% | 70.1% | 71.1% | 27.4% | 75.7% | 80.1% | 41.0% |
| Pre-tax profit | 43.9% | 73.9% | 85.3% | 91.0% | 91.4% | 82.3% | 65.7% | 70.2% | 15.8% | 74.8% | 75.7% | 40.5% |
| Net Margin | 44.7% | 88.5% | 88.5% | 91.7% | 92.2% | 84.2% | 64.3% | 70.3% | 22.1% | 79.1% | 75.8% | 40.5% |
| Q/Q | ||||||||||||
| Net sales | 6.1% | 16.5% | 11.4% | 6.4% | 9.4% | 8.5% | 8.5% | 8.5% | ||||
| Gross profit | 8.4% | 17.7% | 18.6% | 10.5% | 14.4% | 11.8% | 11.9% | 11.9% | ||||
| Operating profit | 10.1% | 22.2% | 24.3% | 12.4% | 18.6% | 12.7% | 13.2% | 13.1% | ||||
| Pre-tax profit | 18.6% | 18.4% | 24.5% | 9.2% | 18.9% | 12.8% | 13.1% | 12.2% | ||||
| Net Margin | 18.5% | 17.7% | 27.2% | 8.0% | 18.8% | 12.8% | 13.4% | 12.0% |
Bull/Bear: Yageo (2327.TW)
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$1,000, based on 23x 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 23x is at the higher end of the trading range since 2022 but in line with global peers average. 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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