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原始內容
EliteMaterial (2383TT)
Target price: TWD10,000.00 (from TWD7,200.00)
Shareprice(28Oct):TWD5,025.00 | Up/downside:+99.0%
3Q26 review: beat on better-than-expected price hike
- Ongoing better-than-expected price hike level from 3Q26 onwards
- Capacity expansion plan announced on improved demand visibility
- Reaffirming our Buy (1) rating; raising 12M TP to TWD10,000
What's new: We provide our latest view on EMC after its 3Q26 results announced on 28 October.
What's the impact: 3Q26 results beat on higher-than-expected price hike. EMC's net income came in at TWD14.5bn (EPS: TWD40.47), beating our estimate (TWD11.8bn) and Bloomberg consensus (TWD12.6bn) by 23% and 15%, respectively. We attribute this outperformance to a higherthan-expected price hike in 3Q26 (c.10% higher than our expectation). 3Q26 revenue was TWD60.9bn, up 29% QoQ and 142% YoY, and c.10% above our expectation. Gross margin also rose 3.8pp QoQ to 37.7%, reflecting improved pricing.
Business outlook. Looking ahead, the company expects to implement a second price increase in 4Q26, after its first in 2Q26. We forecast a 1520% increase, which we expect to be a key revenue growth driver in 4Q26; we currently estimate revenue to rise 18% QoQ, with gross margin reaching 39.4%. Today, EMC also announced its capacity expansion plan for 2H28-2030. Despite some delays at its Guanyin plant in Taiwan, the company expects progress in 2027-28 to remain largely on track; EMC expects the total monthly capacity to rise to 15.25m in 2030 from 5.85m in 2026 and 10.45m in 2028. Management expects total orders under longterm agreements (LTAs) to exceed the planned capacity expansion. LTAs secure 3-year volume but not pricing; penalties apply if clients do not honor the agreements. This also suggests that management is optimistic about demand, particularly in 2030, when the company plans its largest percentage increase in capacity during 2028-30, despite having no protection from LTAs. Management sees rising demand from LEO satellites (which are likely to adopt M10-grade CCL by 2030) and robotics as key growth drivers by 2030. For ABF CCL, the company currently targets monthly capacity of 1.2m by end-2027. As this capacity may be shared with high-end PCB CCL and substrate CCL, utilisation of the initial capacity will depend on an ASIC project involving a Taiwan IC design house in 2H27, per EMC. Following TPCA Show, we believe interest in PTFE adoption has waned. Based on the technology migration roadmap, we remain positive on EMC's decision to use Q-glass alongside HC resin in its M10 development.
What we recommend: We raise our 2026-28E EPS by 19-31% to reflect 3Q26 results and higher price hike. We reaffirm our Buy (1) call and raise our 12M TP to TWD10,000 (from TWD7,200), based on an unchanged PER multiple of 38x on 1-year-forward EPS. Key downside risk: weakerthan-expected AI server demand.
How we differ: Our 2026-28E EPS are 13-22% above the Bloomberg consensus, likely due to our higher price hike assumptions.
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Sheng Cheng (886) 2 8758 6253
sheng.cheng@daiwacm-cathay.com.tw
Thomas Kim (886) 2 8758 6249 thomas.kim@daiwacm-cathay.com.tw
Forecast revisions (%)
| Year to 31 Dec | 26E | 27E | 28E |
|---|---|---|---|
| Revenue change | 9.8 | 17.3 | 19.3 |
| Net profit change | 18.4 | 29.6 | 30.8 |
| Core EPS (FD) change | 18.5 | 29.7 | 30.9 |
Source: Daiwa forecasts
Share price performance
| 12-month range | 1,250.00-6,350.00 |
|---|---|
| Market cap (USDbn) | 55.44 |
| 3m avg daily turnover (USDm) | 402.34 |
| Shares outstanding (m) | 358 |
| Major shareholder | Yu Chang Investment Co Ltd (7.4%) |
Financial summary (TWD)
| Year to 31 Dec | 26E | 27E | 28E |
|---|---|---|---|
| Revenue (m) | 213,032 | 387,633 | 577,750 |
| Operating profit (m) | 61,777 | 132,162 | 206,183 |
| Net profit (m) | 47,742 | 102,457 | 159,864 |
| Core EPS (fully-diluted) | 133.215 | 285.963 | 446.191 |
| EPS change (%) | 219.7 | 114.7 | 56.0 |
| Daiwa vs Cons. EPS (%) | 13.3 | 21.7 | 17.3 |
| PER (x) | 37.7 | 17.6 | 11.3 |
| Dividend yield (%) | 1.6 | 3.4 | 5.3 |
| DPS | 79.9 | 171.6 | 267.7 |
| PBR (x) | 19.2 | 10.7 | 6.7 |
| EV/EBITDA (x) | 28.2 | 13.3 | 8.4 |
| ROE (%) | 66.3 | 78.2 | 73.2 |
Source: FactSet, Daiwa forecasts
EMC: Daiwa revenue and earnings forecasts revisions vs. Bloomberg consensus
| (TWDm) | 2026E - Previous | 2026E - New | 2026E - Consensus | 2027E - Previous | 2027E - New | 2027E - Consensus | 2028E - Previous | 2028E - New | 2028E - Consensus |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 193,997 | 213,032 | 197,854 | 330,550 | 387,633 | 338,254 | 484,308 | 577,750 | 513,568 |
| Diff (%) | 9.8% | 7.7% | 17.3% | 14.6% | 19.3% | 12.5% | |||
| Gross Margin (%) | 34.3% | 36.1% | 34.3% | 37.9% | 41.3% | 38.1% | 39.3% | 42.7% | 39.4% |
| Operating profit | 51,970 | 61,777 | 54,366 | 101,298 | 132,162 | 108,411 | 156,513 | 206,183 | 174,162 |
| Op Margin (%) | 26.8% | 29.0% | 27.5% | 30.6% | 34.1% | 32.1% | 32.3% | 35.7% | 33.9% |
| Net profit | 40,324 | 47,742 | 42,146 | 79,072 | 102,456.656 | 84,208 | 122,177 | 159,864 | 136,273 |
| EPS (TWD) | 112.46 | 133.21 | 117.60 | 220.53 | 285.96 | 235.03 | 340.75 | 446.19 | 380.35 |
| Diff (%) | 18.4% | 13.3% | 29.6% | 21.7% | 30.8% | 17.3% |
Source: Bloomberg, Daiwa forecasts
EMC: quarterly and annual P&L statement
| 2026E | 2026E | 2026E | 2026E | 2027E | 2025 | 2026E | 2027E | 2028E | ||||
| (TWDm) | 1Q | 2Q | 3Q | 4QE | 1QE | 2QE | 3QE | 4QE | ||||
| Net revenue | 33,067 | 47,275 | 60,885 | 71,805 | 79,812 | 91,068 | 104,371 | 112,381 | 94,261 | 213,032 | 387,633 | 577,750 |
| COGS | -23,338 | -31,272 | -37,934 | -43,548 | -47,523 | -53,492 | -61,223 | -65,163 | -66,141 | -136,092 | -227,401 | -331,124 |
| Gross profit | 9,729 | 16,003 | 22,951 | 28,257 | 32,289 | 37,577 | 43,148 | 47,218 | 28,120 | 76,940 | 160,232 | 246,626 |
| Operating expenses | 2,601 | 3,269 | 4,264 | 5,029 | 5,906 | 6,557 | 7,515 | 8,091 | 9,012 | 15,163 | 28,069 | 40,443 |
| Operating profit | 7,128 | 12,734 | 18,687 | 23,228 | 26,383 | 31,020 | 35,633 | 39,126 | 19,108 | 61,777 | 132,162 | 206,183 |
| Non-operating profit | 66 | 52 | 17 | 27 | 27 | 26 | -25 | -30 | -232 | 161 | -2 | 31 |
| Pre-tax profit | 7,194 | 12,785 | 18,703 | 23,255 | 26,410 | 31,046 | 35,608 | 39,096 | 18,876 | 61,938 | 132,160 | 206,214 |
| Income taxes | -1,855 | -2,914 | -4,204 | -5,228 | -5,937 | -6,979 | -8,004 | -8,788 | -4,231 | -14,201 | -29,708 | -46,355 |
| Net profit | 5,340 | 9,873 | 14,500 | 18,029 | 20,475 | 24,068 | 27,605 | 30,309 | 14,649 | 47,742 | 102,457 | 159,864 |
| Net EPS (TWD) | 14.89 | 27.55 | 40.47 | 50.32 | 57.15 | 67.18 | 77.05 | 84.59 | 40.84 | 133.21 | 285.96 | 446.19 |
| Operating Ratios | ||||||||||||
| Gross margin | 29.4% | 33.9% | 37.7% | 39.4% | 40.5% | 41.3% | 41.3% | 42.0% | 29.8% | 36.1% | 41.3% | 42.7% |
| Operating margin | 21.6% | 26.9% | 30.7% | 32.3% | 33.1% | 34.1% | 34.1% | 34.8% | 20.3% | 29.0% | 34.1% | 35.7% |
| Pre-tax margin | 21.8% | 27.0% | 30.7% | 32.4% | 33.1% | 34.1% | 34.1% | 34.8% | 20.0% | 29.1% | 34.1% | 35.7% |
| Net margin | 16.1% | 20.9% | 23.8% | 25.1% | 25.7% | 26.4% | 26.4% | 27.0% | 15.5% | 22.4% | 26.4% | 27.7% |
| YoY (%) | ||||||||||||
| Net revenue | 53% | 110% | 142% | 188% | 141% | 93% | 71% | 57% | 46% | 126% | 82% | 49% |
| Gross profit | 48% | 134% | 203% | 297% | 232% | 135% | 88% | 67% | 56% | 174% | 108% | 54% |
| Operating profit | 57% | 174% | 274% | 371% | 270% | 144% | 91% | 68% | 57% | 223% | 114% | 56% |
| Pre-tax profit | 54% | 186% | 265% | 403% | 267% | 143% | 90% | 68% | 56% | 228% | 113% | 56% |
| Net profit | 54% | 184% | 266% | 382% | 283% | 144% | 90% | 68% | 53% | 226% | 115% | 56% |
| QoQ (%) | ||||||||||||
| Net revenue | 33% | 43% | 29% | 18% | 11% | 14% | 15% | 8% | ||||
| Gross profit | 37% | 64% | 43% | 23% | 14% | 16% | 15% | 9% | ||||
| Operating profit | 44% | 79% | 47% | 24% | 14% | 18% | 15% | 10% | ||||
| Pre-tax profit | 56% | 78% | 46% | 24% | 14% | 18% | 15% | 10% | ||||
| Net profit | 43% | 85% | 47% | 24% | 14% | 18% | 15% | 10% |
Source: Company, Daiwa forecasts
EMC: 3Q26 comparison table
| (TWDm) | Actual | QoQ% | YoY% | Daiwa | Diff % | Consensus | Diff % |
|---|---|---|---|---|---|---|---|
| Revenue | 60,885 | 29% | 142% | 54,443 | 12% | 56,148 | 8% |
| Gross profit | 22,951 | 43% | 203% | 19,201 | 20% | 20,073 | 14% |
| Gross margin (%) | 37.7% | 35.3% | 35.7% | ||||
| Operating profit | 18,687 | 47% | 274% | 15,064 | 24% | 16,232 | 15% |
| Operating margin (%) | 30.7% | 27.7% | 28.9% | ||||
| Pre-tax profit | 18,703 | 46% | 265% | 15,103 | 24% | 16,163 | 16% |
| Net profit | 14,500 | 47% | 266% | 11,782 | 23% | 12,566 | 15% |
| EPS (TWD) | 40.47 | 47% | 266% | 32.86 | 23% | 35.07 | 15% |
Source: Company data, Daiwa forecasts, Bloomberg
EMC: 1-year forward PER bands
EMC: revenue breakdown by product
Source: TEJ, Daiwa forecasts
Source: Company, Daiwa forecasts
Financial summary
Key assumptions
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Global PC shipment (m) | 361 | 301 | 260 | 263 | 287 | 244 | 244 | 244 |
| Regular server shipment (m) | 14 | 15 | 12 | 14 | 16 | 18 | 22 | 26 |
| Global smartphone shipment (m) | 1,655 | 1,437 | 1,381 | 1,439 | 1,429 | 1,249 | 1,255 | 1,300 |
Profit and loss (TWDm)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Infra | 12,089 | 15,289 | 21,125 | 39,046 | 64,617 | 168,111 | 328,567 | 510,997 |
| Handset | 19,413 | 16,378 | 14,716 | 17,033 | 20,538 | 29,774 | 38,601 | 42,628 |
| Other Revenue | 6,998 | 7,005 | 5,455 | 8,297 | 9,106 | 15,147 | 20,465 | 24,126 |
| Total Revenue | 38,500 | 38,673 | 41,296 | 64,377 | 94,261 | 213,032 | 387,633 | 577,750 |
| Other income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| COGS | (28,431) | (28,962) | (29,964) | (46,407) | (66,141) | (136,092) | (227,401) | (331,124) |
| SG&A | (2,379) | (2,532) | (2,717) | (4,048) | (6,320) | (10,507) | (19,555) | (28,186) |
| Other op.expenses | (767) | (953) | (1,269) | (1,770) | (2,692) | (4,657) | (8,514) | (12,256) |
| Operating profit | 6,923 | 6,225 | 7,346 | 12,152 | 19,108 | 61,777 | 132,162 | 206,183 |
| Net-interest inc./(exp.) | (76) | (184) | (319) | (459) | (476) | (630) | (574) | (601) |
| Assoc/forex/extraord./others | 66 | 255 | 392 | 440 | 244 | 791 | 572 | 632 |
| Pre-tax profit | 6,912 | 6,296 | 7,420 | 12,133 | 18,876 | 61,938 | 132,160 | 206,214 |
| Tax | (1,412) | (1,220) | (1,931) | (2,564) | (4,231) | (14,201) | (29,708) | (46,355) |
| Min. int./pref. div./others | (7) | (3) | 0 | 9 | 4 | 5 | 4 | 5 |
| Net profit (reported) | 5,493 | 5,073 | 5,488 | 9,578 | 14,649 | 47,742 | 102,457 | 159,864 |
| Net profit (adjusted) | 5,493 | 5,073 | 5,488 | 9,578 | 14,649 | 47,742 | 102,457 | 159,864 |
| EPS (reported)(TWD) | 16.500 | 15.238 | 16.349 | 27.807 | 41.667 | 133.252 | 285.963 | 446.191 |
| EPS (adjusted)(TWD) | 16.500 | 15.238 | 16.349 | 27.807 | 41.667 | 133.252 | 285.963 | 446.191 |
| EPS (adjusted fully-diluted)(TWD) | 16.472 | 14.798 | 15.797 | 27.552 | 41.667 | 133.215 | 285.963 | 446.191 |
| DPS (TWD) | 10.000 | 8.407 | 9.979 | 16.575 | 24.996 | 79.944 | 171.578 | 267.715 |
| EBIT | 6,923 | 6,225 | 7,346 | 12,152 | 19,108 | 61,777 | 132,162 | 206,183 |
| EBITDA | 7,642 | 7,000 | 8,648 | 13,921 | 20,958 | 64,454 | 135,839 | 210,861 |
Cash flow (TWDm)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Profit before tax | 6,912 | 6,296 | 7,420 | 12,133 | 18,876 | 61,938 | 132,160 | 206,214 |
| Depreciation and amortisation | 719 | 774 | 1,302 | 1,769 | 1,849 | 2,677 | 3,677 | 4,677 |
| Tax paid | (1,412) | (1,220) | (1,931) | (2,564) | (4,231) | (14,201) | (29,708) | (46,355) |
| Change in working capital | 7,481 | (4,810) | 12,237 | 16,078 | 25,148 | 117,500 | 122,721 | 128,536 |
| Other operational CF items | (9,679) | 6,457 | (16,138) | (20,153) | (29,674) | (153,105) | (161,616) | (170,911) |
| Cash flow from operations | 4,022 | 7,498 | 2,890 | 7,263 | 11,968 | 14,810 | 67,235 | 122,161 |
| Capex | (2,470) | (6,493) | (3,281) | (5,867) | (9,490) | (21,878) | (25,160) | (28,934) |
| Net (acquisitions)/disposals | (26) | 0 | 6 | 13 | (18) | 7 | (6) | 1 |
| Other investing CF items | (122) | (103) | (782) | (47) | (380) | (1,618) | 0 | 0 |
| Cash flow from investing | (2,618) | (6,596) | (4,057) | (5,901) | (9,888) | (23,489) | (25,166) | (28,933) |
| Change in debt | 1,719 | 2,732 | 2,954 | 5,296 | 8,721 | 27,970 | 19,597 | 23,863 |
| Net share issues/(repurchases) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends paid | (2,333) | (3,333) | (2,830) | (3,439) | (5,894) | (8,958) | (28,643) | (61,474) |
| Other financing CF items | 194 | 3,289 | (15) | 2,259 | (51) | 1,985 | 0 | 0 |
| Cash flow from financing | (420) | 2,687 | 109 | 4,116 | 2,776 | 20,997 | (9,046) | (37,611) |
| Forex effect/others | (73) | 211 | (126) | 251 | 163 | 1,297 | 1,086 | 1,106 |
| Change in cash | 910 | 3,802 | (1,185) | 5,729 | 5,020 | 13,614 | 34,109 | 56,723 |
| Free cash flow | 1,551 | 1,005 | (391) | 1,397 | 2,478 | (7,069) | 42,075 | 93,227 |
Source: FactSet, Daiwa forecasts
Financial summary continued …
Balance sheet (TWDm)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Cash & short-term investment | 6,642 | 10,444 | 9,259 | 14,989 | 20,008 | 33,622 | 67,731 | 124,454 |
| Inventory | 5,465 | 4,236 | 6,135 | 9,437 | 16,752 | 35,961 | 57,564 | 77,598 |
| Accounts receivable | 13,274 | 11,683 | 17,327 | 25,897 | 36,115 | 102,105 | 161,311 | 226,732 |
| Other current assets | 463 | 217 | 955 | 1,171 | 1,106 | 1,788 | 1,788 | 1,788 |
| Total current assets | 25,844 | 26,580 | 33,675 | 51,494 | 73,980 | 173,477 | 288,393 | 430,572 |
| Fixed assets | 10,721 | 16,803 | 19,746 | 24,568 | 33,933 | 56,671 | 78,154 | 102,411 |
| Goodwill & intangibles | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other non-current assets | 0 | 0 | 6 | 18 | 0 | (7) | (2) | (2) |
| Total assets | 36,565 | 43,382 | 53,427 | 76,080 | 107,913 | 230,140 | 366,545 | 532,980 |
| Short-term debt | 2,717 | 5,299 | 7,866 | 7,781 | 11,264 | 23,115 | 30,048 | 38,055 |
| Accounts payable | 10,969 | 9,802 | 14,491 | 21,199 | 33,285 | 75,467 | 117,380 | 160,460 |
| Other current liabilities | 799 | 659 | 716 | 1,202 | 1,682 | 7,622 | 7,622 | 7,622 |
| Total current liabilities | 14,485 | 15,760 | 23,073 | 30,182 | 46,231 | 106,204 | 155,050 | 206,137 |
| Long-term debt | 721 | 4,218 | 2,109 | 8,772 | 8,219 | 25,451 | 38,115 | 53,971 |
| Other non-current liabilities | 1,585 | 1,330 | 1,435 | 2,032 | 3,027 | 4,876 | 4,876 | 4,876 |
| Total liabilities | 16,791 | 21,308 | 26,617 | 40,986 | 57,477 | 136,530 | 198,041 | 264,984 |
| Share capital | 3,329 | 3,329 | 3,432 | 3,466 | 3,583 | 3,583 | 3,583 | 3,583 |
| Reserves/R.E./others | 16,424 | 18,745 | 23,378 | 31,644 | 46,872 | 90,052 | 164,951 | 264,447 |
| Shareholders' equity | 19,753 | 22,075 | 26,809 | 35,111 | 50,456 | 93,635 | 168,534 | 268,030 |
| Minority interests | 21 | 0 | 0 | (17) | (20) | (26) | (30) | (35) |
| Total equity & liabilities | 36,565 | 43,382 | 53,427 | 76,080 | 107,913 | 230,140 | 366,545 | 532,980 |
| EV | 1,797,205 | 1,799,461 | 1,801,103 | 1,801,934 | 1,799,842 | 1,815,305 | 1,800,789 | 1,767,925 |
| Net debt/(cash) | (3,203) | (926) | 716 | 1,564 | (525) | 14,944 | 432 | (32,428) |
| BVPS (TWD) | 59.332 | 66.306 | 79.860 | 101.931 | 143.516 | 261.342 | 470.391 | 748.091 |
Key ratios (%)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Sales (YoY) | 41.5 | 0.4 | 6.8 | 55.9 | 46.4 | 126.0 | 82.0 | 49.0 |
| EBITDA (YoY) | 44.4 | (8.4) | 23.6 | 61.0 | 50.5 | 207.5 | 110.8 | 55.2 |
| Operating profit (YoY) | 47.8 | (10.1) | 18.0 | 65.4 | 57.2 | 223.3 | 113.9 | 56.0 |
| Net profit (YoY) | 48.9 | (7.7) | 8.2 | 74.5 | 52.9 | 225.9 | 114.6 | 56.0 |
| Core EPS (fully-diluted) (YoY) | 48.9 | (10.2) | 6.7 | 74.4 | 51.2 | 219.7 | 114.7 | 56.0 |
| Gross-profit margin | 26.2 | 25.1 | 27.4 | 27.9 | 29.8 | 36.1 | 41.3 | 42.7 |
| EBITDA margin | 19.8 | 18.1 | 20.9 | 21.6 | 22.2 | 30.3 | 35.0 | 36.5 |
| Operating-profit margin | 18.0 | 16.1 | 17.8 | 18.9 | 20.3 | 29.0 | 34.1 | 35.7 |
| Net profit margin | 14.3 | 13.1 | 13.3 | 14.9 | 15.5 | 22.4 | 26.4 | 27.7 |
| ROAE | 30.1 | 24.3 | 22.5 | 30.9 | 34.2 | 66.3 | 78.2 | 73.2 |
| ROAA | 17.1 | 12.7 | 11.3 | 14.8 | 15.9 | 28.2 | 34.3 | 35.5 |
| ROCE | 33.2 | 22.7 | 21.5 | 27.5 | 31.4 | 58.3 | 69.8 | 69.1 |
| ROIC | 37.6 | 26.6 | 22.3 | 29.9 | 34.3 | 60.1 | 73.8 | 79.0 |
| Net debt to equity | net cash | net cash | 2.7 | 4.5 | net cash | 16.0 | 0.3 | net cash |
| Effective tax rate | 20.4 | 19.4 | 26.0 | 21.1 | 22.4 | 22.9 | 22.5 | 22.5 |
| Accounts receivable (days) | 110.0 | 117.8 | 128.2 | 122.5 | 120.1 | 118.4 | 124.0 | 122.6 |
| Current ratio (x) | 1.8 | 1.7 | 1.5 | 1.7 | 1.6 | 1.6 | 1.9 | 2.1 |
| Net interest cover (x) | 0.9 | 0.4 | 0.2 | 0.3 | 0.4 | 1.0 | 2.3 | 3.4 |
| Net dividend payout | 60.6 | 55.2 | 61.1 | 59.6 | 60.0 | 60.0 | 60.0 | 60.0 |
| Free cash flow yield | 0.1 | 0.1 | n.a. | 0.1 | 0.1 | n.a. | 2.3 | 5.2 |
Source: FactSet, Daiwa forecasts
Company profile
Established in 1992 and listed on the Taiwan Stock Exchange in 1996, Elite Material Co. (EMC) is a leading manufacturer of copper clad laminate (CCL) and prepreg (PP), and a mass lamination foundry for PCB players. The company is also the world's largest green (halogen-free) CCL supplier.
ESG analysis
ESG risks
| Risks | Management | Analystcomments | |
|---|---|---|---|
| G | Executive/board quality | 2 | EMC has incorporated 3 independent members into its 7-people board of directors in pursuit of better governance. Besides, EMC's Chairman and CEO roles are held separately, which reduce the risk of conflict of interest and excessive concentration of power. In addition, the company has 2 committees: the Audit Committee and the Remuneration Committee to assist the Board of Directors in performing their supervisory duties |
| G | Capital management | 1 | EMC has declared a dividend payout ratio of over 50% in the past ten years, which we view as a shareholder-friendly dividend policy. |
| G | Related party & transaction | 2 | Revenue from related parties accounted for <1% of total revenue, and the purchases from related parties comprised <1% of cost of sales. We see limited risk from related-party transactions |
| S | Productdesign& lifecycle management | 2 | EMC strives to create a safe and healthy workplace for every employee. EMC has introduced the occupational safety and health management systems (ISO 45001) in its Headquarters and all production plants to reduce the workplace hazards and enhance its safety and health management level. |
| E | GHGemissions | 2 | EMC follows ISO 14061-1 2018 standards to conduct GHG emissions inventory and propose feasible solutions for greenhouse gas reduction. Besides, a third-party inspection agency is appointed to perform external verification. |
| Company specific | Company specific | Management | Analystcomments |
| G | Cybersecurity&data protection | 2 | To ensure data security, EMC has formulated its Directions for Information Security Management based on three principles for information security management, which are confidentiality, integrity, and availability. In 2025, there were no incidents involving the violation of information-security-related laws and regulations, and no information security incidents occurred. |
Note: Management score represents a company's ability to manage/benefit from certain ESG topics. The scores range from 1 to 3, with 1 being the strongest.
Update Date: 28 Oct 2026
Source: Daiwa, Company