PDF 原檔:報告_Daiwa_富世達6805_20261103_original.pdf
圖片清單(已驗證 2026-11-04)
| 檔名 | size | 分類 | 親眼所見內容 |
|---|---|---|---|
報告_Daiwa_富世達6805_20261103_001.png |
27KB | 真資料圖 | Fositek Co(左軸 TWD,約 1,200-2,600)與相對 TWSE 指數(右軸)走勢折線,Nov-25 至 Nov-26,股價 8 月低點後回升至 11 月約 2,300 |
報告_Daiwa_富世達6805_20261103_002.png |
29KB | 真資料圖 | 產品組合堆疊長條圖(2021-2028E):Foldable phone 71%→83%(2024)→56%(2025)→26%(2026E)→15%→11%;Server 5%(2024)→36%→69%→82%→86%;NB、Others 為灰色小段 |
報告_Daiwa_富世達6805_20261103_003.png |
35KB | 真資料圖 | 股價與 8x/16x/24x/32x/40x 一年期前瞻 PER 估值帶(Nov-22 至 Nov-26),股價近期落在 24x 至 32x 帶之間 |
小於 40KB 但為資料圖,逐張查看後保留。
原始內容
Fositek Corp (6805 TT)
Target price: TWD2,910.00 (from TWD2,615.00)
Shareprice(3Nov):TWD2,160.00 | Up/downside:+34.7%
Brighter 2027 outlook driven by server segment
- 3Q26 results beat our estimates and Bloomberg consensus
- Stronger revenue outlook in 2027 with gross margin expansion
- Reaffirming our Buy (1) rating and raising 12M TP to TWD2,910
What's new: We attended Fositek's investor meeting following its 3Q26 results announcement on 3 November. We believe the company will benefit from the AI server trend with a rising liquid-cooling penetration rate in the following years. With rising server revenue over 2026-28E given its sharegain potential, we reaffirm our Buy (1) rating. See our previous memo 3Q26 revenue largely in line with expectations, 7 October 2026.
What's the impact: 3Q26 results beat our estimates and Bloomberg consensus. Fositek's 3Q26 revenue of TWD4,502m (+20.4% QoQ, +26.2% YoY), a record high, was in line with our estimate and the Bloomberg consensus. Its 3Q26 gross margin came in at 38.0% (vs. 34.0% in 2Q26 and 27.7% in 3Q25), also a record-high level, above our estimates (34.3%) and the consensus (36.5%), mainly on manufacturing process improvements and better-than-expected product mix (server revenue accounted for 81.6% in 3Q26, up from 54.9% in 2Q26 and 56.4% in 1Q26). Its operating margin of 32.4% (vs. 27.9% in 2Q26 and 22.2% in 3Q25), another record high, beat our estimate (28.9%) and the consensus (31.2%), on better opex control. Thus, its operating profit of TWD1,460m (+39.9% QoQ, +84.2% YoY) beat our estimate and the consensus by 11.0% and 3.3%, respectively. Its net profit of TWD1,242m (+46.3% QoQ, +80.8% YoY) beat our estimate and the consensus by 15.9% and 6.5%, respectively. Its 3Q26 EPS finished at TWD18.11. Its 3Q26 product mix was: server (81.6%, +92.7% YoY), foldable phone (15.4%, -53.1% YoY), notebook (4.5%, -28.1% YoY) and others (0.6%, -10.8% YoY).
Brighter 2027 outlook, driven by server segment. Following the ramping up of GPU and ASICs projects in 2H26, we expect a stronger 2027 revenue outlook vs. 2026, along with gross margin expansion. With the rise in the liquid-cooling penetration rate, quick disconnect (QD) shipments per rack and QD spec upgrade for ASP expansion, we forecast its revenue to grow by 40.3% YoY in 2026 and 59.2% YoY in 2027. We raise our 2026-28E EPS by 9-29% on our more aggressive revenue and gross- and operatingmargin assumptions.
What we recommend: We reaffirm our Buy (1) call and lift our 12M TP to TWD2,910 (from TWD2,615), still based on a target PER of 32x (vs. its past-3-year range of 9-42x [average of 24x]), translating to a 0.6x PEG over 2026-28E on our 1-year forward EPS. Key downside risks: lower-thanexpected market share for key clients; slower-than-expected penetration rate of foldable phones; and geopolitical risks.
How we differ: Our 2028E EPS is 8% above the Bloomberg consensus likely as we are more aggressive on revenue.
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Helen Chien (886) 2 8758 6254
helen.chien@daiwacm-cathay.com.tw
Neil Teng, CFA (886) 2 8758 6256 neil.teng@daiwacm-cathay.com.tw
Forecast revisions (%)
| Year to 31 Dec | 26E | 27E | 28E |
|---|---|---|---|
| Revenue change | (0.4) | 11.9 | 21.9 |
| Net profit change | 8.9 | 18.8 | 28.6 |
| Core EPS (FD) change | 8.9 | 18.8 | 28.6 |
Source: Daiwa forecasts
Share price performance
| 12-month range | 1,230.00-2,600.00 |
|---|---|
| Market cap (USDbn) | 4.54 |
| 3m avg daily turnover (USDm) | 117.05 |
| Shares outstanding (m) | 69 |
| Major shareholder | AVC (16.9%) |
Financial summary (TWD)
| Year to 31 Dec | 26E | 27E | 28E |
|---|---|---|---|
| Revenue (m) | 17,421 | 27,740 | 36,848 |
| Operating profit (m) | 5,261 | 9,182 | 12,676 |
| Net profit (m) | 4,406 | 7,429 | 10,206 |
| Core EPS (fully-diluted) | 64.257 | 108.335 | 148.844 |
| EPS change (%) | 107.4 | 68.6 | 37.4 |
| Daiwa vs Cons. EPS (%) | 1.8 | (1.4) | 8.4 |
| PER (x) | 33.6 | 19.9 | 14.5 |
| Dividend yield (%) | 1.5 | 2.5 | 3.4 |
| DPS | 32.1 | 54.2 | 74.4 |
| PBR (x) | 13.3 | 9.1 | 6.5 |
| EV/EBITDA (x) | 23.7 | 13.7 | 9.6 |
| ROE (%) | 48.1 | 54.1 | 52.1 |
Source: FactSet, Daiwa forecasts
Fositek: revenue and earnings forecasts revisions
| (TWDm) | 2026E - New | 2026E - Previous | 2026E - Change | 2027E - New | 2027E - Previous | 2027E - Change | 2028E - New | 2028E - Previous | 2028E - Change |
|---|---|---|---|---|---|---|---|---|---|
| Sales | 17,421 | 17,494 | -0.4% | 27,740 | 24,793 | 11.9% | 36,848 | 30,230 | 21.9% |
| Gross profit | 6,254 | 5,948 | 5.1% | 10,541 | 8,925 | 18.1% | 14,371 | 11,185 | 28.5% |
| Gross margin | 35.9% | 34.0% | 1.9pp | 38.0% | 36.0% | 2pp | 39.0% | 37.0% | 2pp |
| Operating profit | 5,261 | 4,948 | 6.3% | 9,182 | 7,711 | 19.1% | 12,676 | 9,825 | 29.0% |
| Operating margin | 30.2% | 28.3% | 1.9pp | 33.1% | 31.1% | 2pp | 34.4% | 32.5% | 1.9pp |
| Net profit | 4,406 | 4,046 | 8.9% | 7,429 | 6,254 | 18.8% | 10,206 | 7,935 | 28.6% |
| Net margin | 25.3% | 23.1% | 2.2pp | 26.8% | 25.2% | 1.6pp | 27.7% | 26.2% | 1.4pp |
| Fully diluted EPS (TWD) | 64.26 | 59.00 | 8.9% | 108.34 | 91.21 | 18.8% | 148.84 | 115.72 | 28.6% |
Source: Daiwa forecasts
Fositek: 3Q26 results review
| (TWDm) | Fositek's 3Q26 results | Our forecasts | Differ | Bloomberg consensus | Differ |
|---|---|---|---|---|---|
| Revenue | 4,502 | 4,550 | -1.1% | 4,534 | -0.7% |
| Gross profit | 1,712 | 1,561 | 9.7% | 1,654 | 3.5% |
| Operating profit | 1,460 | 1,316 | 11.0% | 1,413 | 3.3% |
| Profit before tax | 1,562 | 1,348 | 15.9% | 1,444 | 8.2% |
| Net profit | 1,242 | 1,071 | 15.9% | 1,153 | 7.7% |
| EPS | 18.11 | 15.63 | 15.9% | 17.00 | 6.5% |
| Margin | |||||
| Gross margin | 38.0% | 34.3% | 3.7pp | 36.5% | 1.5pp |
| Operating margin | 32.4% | 28.9% | 3.5pp | 31.2% | 1.3pp |
| Pre-tax margin | 34.7% | 29.6% | 5.1pp | 31.9% | 2.8pp |
| Net margin | 27.6% | 23.5% | 4pp | 25.4% | 2.2pp |
Source: Company, Bloomberg, Daiwa forecasts
Fositek: quarterly and annual P&L
| (TWDm) | 2026E - 1Q26 | 2026E - 2Q26 | 2026E - 3Q26 | 2026E - 4Q26E | 2027E - 1Q27E | 2027E - 2Q27E | 2027E - 3Q27E | 2027E - 4Q27E | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 4,184 | 3,740 | 4,502 | 4,996 | 5,100 | 6,000 | 7,200 | 9,440 | 17,421 | 27,740 | 36,848 |
| Gross profit | 1,352 | 1,273 | 1,712 | 1,917 | 1,928 | 2,280 | 2,736 | 3,597 | 6,254 | 10,541 | 14,371 |
| Operating profit | 1,120 | 1,043 | 1,460 | 1,638 | 1,628 | 1,950 | 2,391 | 3,213 | 5,261 | 9,182 | 12,676 |
| Pre-tax profit | 1,165 | 1,075 | 1,562 | 1,740 | 1,668 | 1,991 | 2,432 | 3,254 | 5,542 | 9,344 | 12,838 |
| Net profit | 917 | 849 | 1,242 | 1,398 | 1,326 | 1,582 | 1,933 | 2,587 | 4,406 | 7,429 | 10,206 |
| Basic EPS (TWD) | 13.38 | 12.39 | 18.11 | 20.38 | 19.34 | 23.08 | 28.19 | 37.73 | 64.27 | 108.34 | 148.85 |
| Margin | |||||||||||
| Gross margin | 32.3% | 34.0% | 38.0% | 38.4% | 37.8% | 38.0% | 38.0% | 38.1% | 35.9% | 38.0% | 39.0% |
| Operating margin | 26.8% | 27.9% | 32.4% | 32.8% | 31.9% | 32.5% | 33.2% | 34.0% | 30.2% | 33.1% | 34.4% |
| Pre-tax margin | 27.9% | 28.8% | 34.7% | 34.8% | 32.7% | 33.2% | 33.8% | 34.5% | 31.8% | 33.7% | 34.8% |
| Net margin | 21.9% | 22.7% | 27.6% | 28.0% | 26.0% | 26.4% | 26.8% | 27.4% | 25.3% | 26.8% | 27.7% |
| YoY | |||||||||||
| Revenue | 85.8% | 42.7% | 26.2% | 25.6% | 21.9% | 60.4% | 59.9% | 89.0% | 40.3% | 59.2% | 32.8% |
| Gross profit | 171.2% | 101.9% | 73.5% | 66.0% | 42.6% | 79.1% | 59.8% | 87.6% | 91.2% | 68.5% | 36.3% |
| Operating profit | 206.3% | 110.0% | 84.2% | 88.4% | 45.3% | 86.9% | 63.8% | 96.2% | 108.4% | 74.5% | 38.0% |
| Pre-tax profit | 177.1% | 172.5% | 88.1% | 93.5% | 43.2% | 85.1% | 55.7% | 87.0% | 117.8% | 68.6% | 37.4% |
| Net profit | 157.3% | 157.0% | 80.8% | 86.0% | 44.6% | 86.4% | 55.6% | 85.1% | 107.3% | 68.6% | 37.4% |
| QoQ | |||||||||||
| Revenue | 5.2% | -10.6% | 20.4% | 11.0% | 2.1% | 17.6% | 20.0% | 31.1% | |||
| Gross profit | 17.1% | -5.8% | 34.5% | 12.0% | 0.5% | 18.3% | 20.0% | 31.5% | |||
| Operating profit | 28.9% | -6.9% | 39.9% | 12.2% | -0.6% | 19.8% | 22.6% | 34.4% | |||
| Pre-tax profit | 29.6% | -7.7% | 45.2% | 11.4% | -4.1% | 19.3% | 22.2% | 33.8% | |||
| Net profit | 22.1% | -7.4% | 46.3% | 12.5% | -5.1% | 19.3% | 22.2% | 33.8% |
Source: Company, Daiwa forecasts
Fositek: product mix
Fositek: 1-year forward PER
Source: Company, Daiwa forecasts
Source: Bloomberg, Daiwa forecasts
Financial summary
Key assumptions
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Foldablephone revenueYoYgrowth | 0.0 | 8.9 | 19.1 | 45.9 | 3.6 | (35.0) | (10.0) | 0.0 |
| (%) NB YoY growth (%) | 0.0 | 2.4 | (5.5) | (7.7) | (11.1) | 0.0 | 0.0 | 0.0 |
| Server revenue YoY growth (%) | 0.0 | 0.0 | 0.0 | 0.0 | 935.9 | 165.0 | 90.0 | 40.0 |
Profit and loss (TWDm)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Foldable phone | 3,572 | 3,889 | 4,633 | 6,759 | 7,001 | 4,551 | 4,096 | 4,096 |
| Server | 0 | 0 | 0 | 435 | 4,506 | 11,942 | 22,689 | 31,765 |
| Other Revenue | 1,449 | 1,125 | 1,011 | 994 | 906 | 929 | 955 | 988 |
| Total Revenue | 5,020 | 5,014 | 5,644 | 8,188 | 12,414 | 17,421 | 27,740 | 36,848 |
| Other income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| COGS | (3,827) | (3,848) | (4,326) | (6,361) | (9,144) | (11,167) | (17,199) | (22,477) |
| SG&A | (133) | (153) | (151) | (180) | (187) | (261) | (388) | (479) |
| Other op.expenses | (251) | (238) | (286) | (450) | (559) | (732) | (971) | (1,216) |
| Operating profit | 809 | 775 | 881 | 1,197 | 2,524 | 5,261 | 9,182 | 12,676 |
| Net-interest inc./(exp.) | (9) | (15) | 1 | 52 | 41 | 22 | 22 | 22 |
| Assoc/forex/extraord./others | (24) | 76 | 30 | 245 | (21) | 259 | 140 | 140 |
| Pre-tax profit | 776 | 835 | 911 | 1,495 | 2,545 | 5,542 | 9,344 | 12,838 |
| Tax | (243) | (271) | (283) | (267) | (419) | (1,136) | (1,916) | (2,632) |
| Min. int./pref. div./others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net profit (reported) | 533 | 564 | 628 | 1,227 | 2,125 | 4,406 | 7,429 | 10,206 |
| Net profit (adjusted) | 533 | 564 | 628 | 1,227 | 2,125 | 4,406 | 7,429 | 10,206 |
| EPS (reported)(TWD) | 9.289 | 9.331 | 10.185 | 17.904 | 31.002 | 64.269 | 108.339 | 148.849 |
| EPS (adjusted)(TWD) | 9.289 | 9.331 | 10.185 | 17.904 | 31.002 | 64.269 | 108.339 | 148.849 |
| EPS (adjusted fully-diluted)(TWD) | 9.276 | 9.311 | 10.174 | 17.890 | 30.982 | 64.257 | 108.335 | 148.844 |
| DPS (TWD) | 3.688 | 4.000 | 6.115 | 8.000 | 10.500 | 32.134 | 54.169 | 74.424 |
| EBIT | 809 | 775 | 881 | 1,197 | 2,524 | 5,261 | 9,182 | 12,676 |
| EBITDA | 910 | 966 | 1,043 | 1,638 | 2,801 | 5,845 | 9,741 | 13,329 |
Cash flow (TWDm)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Profit before tax | 776 | 835 | 911 | 1,495 | 2,545 | 5,542 | 9,344 | 12,838 |
| Depreciation and amortisation | 126 | 115 | 132 | 196 | 298 | 325 | 419 | 513 |
| Tax paid | (78) | (128) | (125) | (173) | (337) | (1,136) | (1,916) | (2,632) |
| Change in working capital | (726) | 1,400 | 221 | (212) | (260) | (655) | (226) | (494) |
| Other operational CF items | 386 | 96 | 80 | 103 | (274) | (22) | (22) | (22) |
| Cash flow from operations | 484 | 2,318 | 1,218 | 1,409 | 1,970 | 4,054 | 7,599 | 10,203 |
| Capex | (204) | (106) | (189) | (541) | (322) | (500) | (500) | (500) |
| Net (acquisitions)/disposals | 0 | 3 | 5 | (70) | 6 | 0 | 0 | 0 |
| Other investing CF items | 54 | (16) | 2 | (53) | (47) | 0 | 0 | 0 |
| Cash flow from investing | (150) | (119) | (182) | (664) | (362) | (500) | (500) | (500) |
| Change in debt | 644 | 77 | (521) | (10) | (10) | 0 | 0 | 0 |
| Net share issues/(repurchases) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends paid | (19) | (272) | (242) | (377) | (548) | (720) | (2,203) | (3,714) |
| Other financing CF items | 650 | (19) | 1,833 | (35) | (45) | 0 | 0 | 0 |
| Cash flow from financing | 1,275 | (214) | 1,071 | (422) | (603) | (720) | (2,203) | (3,714) |
| Forex effect/others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in cash | 1,609 | 1,985 | 2,107 | 324 | 1,005 | 2,834 | 4,896 | 5,989 |
| Free cash flow | 280 | 2,131 | 949 | 713 | 1,881 | 3,554 | 7,099 | 9,703 |
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 | 1,854 | 3,841 | 5,898 | 6,336 | 7,446 | 10,280 | 15,176 | 21,165 |
| Inventory | 1,111 | 943 | 999 | 2,902 | 3,606 | 5,142 | 6,633 | 8,843 |
| Accounts receivable | 1,375 | 452 | 1,462 | 2,166 | 2,300 | 3,914 | 5,684 | 7,915 |
| Other current assets | 49 | 36 | 105 | 260 | 143 | 143 | 143 | 143 |
| Total current assets | 4,390 | 5,272 | 8,464 | 11,664 | 13,494 | 19,478 | 27,636 | 38,065 |
| Fixed assets | 324 | 312 | 359 | 758 | 817 | 992 | 1,073 | 1,060 |
| Goodwill & intangibles | 13 | 12 | 15 | 18 | 17 | 17 | 17 | 17 |
| Other non-current assets | 113 | 107 | 92 | 318 | 351 | 351 | 351 | 351 |
| Total assets | 4,840 | 5,704 | 8,930 | 12,758 | 14,678 | 20,838 | 29,077 | 39,493 |
| Short-term debt | 369 | 703 | 440 | 430 | 420 | 420 | 420 | 420 |
| Accounts payable | 1,502 | 1,865 | 3,224 | 5,811 | 5,911 | 8,405 | 11,439 | 15,384 |
| Other current liabilities | 129 | 133 | 166 | 291 | 503 | 228 | 228 | 228 |
| Total current liabilities | 1,999 | 2,701 | 3,830 | 6,533 | 6,833 | 9,053 | 12,088 | 16,032 |
| Long-term debt | 515 | 258 | 22 | 22 | 22 | 22 | 22 | 22 |
| Other non-current liabilities | 256 | 359 | 483 | 657 | 629 | 629 | 629 | 629 |
| Total liabilities | 2,770 | 3,318 | 4,335 | 7,212 | 7,485 | 9,705 | 12,739 | 16,684 |
| Share capital | 605 | 605 | 686 | 686 | 686 | 686 | 686 | 686 |
| Reserves/R.E./others | 1,466 | 1,781 | 3,910 | 4,861 | 6,507 | 10,447 | 15,652 | 22,123 |
| Shareholders' equity | 2,070 | 2,386 | 4,595 | 5,546 | 7,193 | 11,132 | 16,338 | 22,809 |
| Minority interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total equity & liabilities | 4,840 | 5,704 | 8,930 | 12,758 | 14,678 | 20,838 | 29,077 | 39,493 |
| EV | 147,135 | 145,226 | 142,669 | 142,222 | 141,103 | 138,269 | 133,372 | 127,384 |
| Net debt/(cash) | (971) | (2,880) | (5,437) | (5,884) | (7,003) | (9,837) | (14,734) | (20,722) |
| BVPS (TWD) | 36.079 | 39.467 | 74.534 | 80.906 | 104.919 | 162.358 | 238.271 | 332.651 |
Key ratios (%)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Sales (YoY) | 125.8 | (0.1) | 12.6 | 45.1 | 51.6 | 40.3 | 59.2 | 32.8 |
| EBITDA (YoY) | 158.0 | 6.1 | 8.0 | 57.1 | 71.0 | 108.7 | 66.7 | 36.8 |
| Operating profit (YoY) | 179.5 | (4.2) | 13.7 | 36.0 | 110.8 | 108.4 | 74.5 | 38.0 |
| Net profit (YoY) | 153.3 | 5.8 | 11.3 | 95.5 | 73.2 | 107.3 | 68.6 | 37.4 |
| Core EPS (fully-diluted) (YoY) | 48.7 | 0.4 | 9.3 | 75.8 | 73.2 | 107.4 | 68.6 | 37.4 |
| Gross-profit margin | 23.8 | 23.3 | 23.3 | 22.3 | 26.3 | 35.9 | 38.0 | 39.0 |
| EBITDA margin | 18.1 | 19.3 | 18.5 | 20.0 | 22.6 | 33.5 | 35.1 | 36.2 |
| Operating-profit margin | 16.1 | 15.5 | 15.6 | 14.6 | 20.3 | 30.2 | 33.1 | 34.4 |
| Net profit margin | 10.6 | 11.3 | 11.1 | 15.0 | 17.1 | 25.3 | 26.8 | 27.7 |
| ROAE | 36.1 | 25.3 | 18.0 | 24.2 | 33.4 | 48.1 | 54.1 | 52.1 |
| ROAA | 13.9 | 10.7 | 8.6 | 11.3 | 15.5 | 24.8 | 29.8 | 29.8 |
| ROCE | 39.6 | 24.6 | 21.0 | 21.7 | 37.0 | 54.8 | 64.8 | 63.3 |
| ROIC | 56.2 | n.a | n.a. | n.a. | n.a. | n.a | n.a | n.a |
| Net debt to equity | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
| Effective tax rate | 31.3 | 32.4 | 31.1 | 17.9 | 16.5 | 20.5 | 20.5 | 20.5 |
| Accounts receivable (days) | 65.8 | 66.5 | 61.9 | 80.9 | 65.7 | 65.1 | 63.1 | 67.4 |
| Current ratio (x) | 2.2 | 2.0 | 2.2 | 1.8 | 2.0 | 2.2 | 2.3 | 2.4 |
| Net interest cover (x) | 91.5 | 50.1 | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
| Net dividend payout | 39.7 | 42.9 | 60.0 | 44.7 | 33.9 | 50.0 | 50.0 | 50.0 |
| Free cash flow yield | 0.2 | 1.4 | 0.6 | 0.5 | 1.3 | 2.4 | 4.8 | 6.6 |
Source: FactSet, Daiwa forecasts
Company profile
Fositek is a provider of foldable phone hinges, foldable laptop/tablet hinges, AR/VR glasses hinges, ultra-thin laptop hinges and keyboard hinges, as well as hinges for medical instruments and automobile applications. Its major clients include Huawei and Motorola.
ESG analysis
ESG risks
| Risks | Management | Analystcomments | |
|---|---|---|---|
| G | Executive/board quality | 1 | The CEO and chairperson of Fositek are not the same individual, and we see no issue with its board quality. Besides, we note that the chairperson has 24 years of experience in this industry and took over the role of chairman at Fositek in 2014, which is a positive sign from a governance perspective. |
| G | Capital management | 2 | Fositek's dividend payout ratio was 40-60% over 2022-25, due likely to its capacity expansion plans. |
| G | Related party & transaction | 2 | Revenue generated from related-party transactions (mainly for AVC and SZFSD) was 0-16% of total revenue during 2022-25, and we found no suspicious activity. |
| E | Supplychain management | 1 | Fositek maintains smooth communication channels with its suppliers and executes its business operations effectively. In response to ESG issues, Fositek actively implements supply chain management, striving to optimise the overall environment through product design, raw-material procurement, manufacturing, transportation, packaging and recycling processes. It integrates upstream and downstream suppliers to establish a green supply chain. For example, Fositek has required its suppliers to sign environmental protection agreements since 2021, committing to comply with hazardous substance control regulations. |
| G | Datasecurity | 2 | To protect company information and customer data, Fositek has passed the IEC/ISO 27001 information security management system certification and will continue to enhance execution in various management areas. |
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: 7 May 2026
Source: Daiwa, Company