PDF 原檔：報告_Daiwa_建準2421_20261103_original.pdf
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| 檔名 | size | 分類 | 親眼所見內容 |
|---|---|---|---|
報告_Daiwa_建準2421_20261103_001.png |
25KB | 真資料圖 | Share price performance：2025/11–2026/11 建準股價（藍線，左軸 TWD 120–190）與相對大盤指數（金線，右軸 %）；股價 2025 末約 190 高點，2026 年 8 月約 120 低點，11 月回落至約 138 |
報告_Daiwa_建準2421_20261103_002.png |
52KB | 真資料圖 | Sunon: product mix：2019–2028E 營收組合堆疊長條（IT&OE、Telecom & Server、Industrial Medical Equipment、Home Application、Distribution、Automobile、LED lighting）；Telecom & Server 由 2019 年 26% 升至 2025 年 58%、2026E 61%、2027E 65%、2028E 69%；IT&OE 由 37% 降至 2028E 10% |
報告_Daiwa_建準2421_20261103_003.png |
31KB | 真資料圖 | Sunon: 1-year forward PER：2020/11–2026/11 股價（深藍線）與 5x／10x／15x／20x／25x 本益比帶；股價近期落在約 10x 至 15x 之間 |
原始內容
Sunonwealth Electric Machine Industry (2421 TT)
Target price: TWD265.00 (from TWD236.00)
Shareprice(3Nov):TWD138.00 | Up/downside:+92.0%
3Q26 results preview: ongoing gross margin expansion
- Rising liquid cooling and EC fans revenue mix in 2027E vs. 2026
- Likely upward revision in EPS forecasts in the near term
- Reaffirming our Buy (1) call; raising 12M TP to TWD265
What's new: We provide a 3Q26 results preview on Sunon, which plans to release its 3Q26 results on 6 November. We reaffirm our Buy (1) call as we expect the 4Q26 and 2027 outlook for its telecom, servers, industrial and auto segments to remain intact with both gross and operating margin set to expand. We now forecast a net profit CAGR of 28.2% over 2026-28E from 21.2% previously (see our flash, 28 August).
What's the impact: 3Q26 results preview. Sunon's 3Q26 revenue of TWD6,143m (+13.4% QoQ and +24.5% YoY), a record-high level, accounted for 97.2% and 102.2%, respectively, of our previous (TWD6,319m, +16.6% QoQ and +28.1% YoY) and the Bloomberg consensus estimates for 3Q26 revenue. We forecast its 3Q26 gross margin to be 32.8% (vs. 31.3% in 2Q26 and 31.3% in 3Q25), slightly higher than the Bloomberg consensus estimate of 31.9%. We forecast an operating profit of TWD1,115m (+33.3% QoQ and +45.0% YoY), 3.0% higher than the Bloomberg consensus estimate of TWD1,082m and an operating margin of 18.1% (vs. 15.4% in 2Q26 and 15.6% in 3Q25). Overall, we forecast a net profit of TWD901m (+30.5% QoQ, +29.7% YoY), 1.9% higher than the consensus estimate of TWD884m. We forecast 4Q26 revenue to grow 7.5% QoQ, and 1Q27 revenue to grow 1.4% QoQ considering its ASIC and GPU projects.
Rising liquid cooling revenue and EC fan exposure in 2027E underpin its gross margin expansion. We expect Sunon's cold plate products (ie, enterprise and GPU clients), pump and CDU to be the key revenue drivers with certification also underway for CSP clients. We expect revenue from EC fans to reach 10% in 2027E for the industrial segment. We revise up our 2026-28E EPS by 1-13%, mainly on higher revenue, gross margin and operating margin assumptions.
What we recommend: We reaffirm our Buy (1) call and raise our 12M TP to TWD265 (from TWD236), still based on a target PER of 18x vs. its past5-year PER range of 6-25x, on the 2027E EPS, given solid earnings visibility from intact demand in the server, telecom, industrial and auto segments. We believe its dividend yield of 5.6-9.2% over 2026-28E will offer downside support for its share price. Downside risks: worse-thanexpected gross-margin expansion and AI server development progress.
How we differ: We are one of only two overseas brokers covering the stock. Our 2026-28E EPS are 4-12% above the Bloomberg consensus, likely due to our more aggressive revenue, gross margin and operating margin estimates.
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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 | - | - | 3.3 |
| Net profit change | 1.0 | 5.3 | 12.9 |
| Core EPS (FD) change | 1.0 | 5.4 | 12.9 |
Source: Daiwa forecasts
Share price performance
| 12-month range | 120.50-188.48 |
|---|---|
| Market cap (USDbn) | 1.16 |
| 3m avg daily turnover (USDm) | 16.96 |
| Shares outstanding (m) | 273 |
| Major shareholder | Hung family (33.0%) |
Financial summary (TWD)
| Year to 31 Dec | 26E | 27E | 28E |
|---|---|---|---|
| Revenue (m) | 23,186 | 27,364 | 32,295 |
| Operating profit (m) | 3,872 | 5,117 | 6,427 |
| Net profit (m) | 3,166 | 4,187 | 5,200 |
| Core EPS (fully-diluted) | 11.153 | 14.628 | 18.170 |
| EPS change (%) | 40.7 | 31.2 | 24.2 |
| Daiwa vs Cons. EPS (%) | 4.0 | 9.9 | 12.4 |
| PER (x) | 12.4 | 9.4 | 7.6 |
| Dividend yield (%) | 5.6 | 7.4 | 9.2 |
| DPS | 7.7 | 10.2 | 12.7 |
| PBR (x) | 3.7 | 3.1 | 2.6 |
| EV/EBITDA (x) | 8.1 | 6.0 | 4.7 |
| ROE (%) | 32.7 | 36.5 | 38.2 |
Source: FactSet, Daiwa forecasts
Sunon: revenue and earnings forecast revisions
| (TWDm) | 2026E - New | 2026E - Previous | 2026E - Change | 2027E - New | 2027E - Previous | 2027E - Change | 2028E - New | 2028E - Previous | 2028E - Change |
|---|---|---|---|---|---|---|---|---|---|
| Sales | 23,186 | 23,186 | 0.0% | 27,364 | 27,364 | 0.0% | 32,295 | 31,278 | 3.3% |
| Gross profit | 7,489 | 7,420 | 0.9% | 9,304 | 9,030 | 3.0% | 11,303 | 10,384 | 8.8% |
| Gross margin | 32.3% | 32.0% | 0.3pp | 34.0% | 33.0% | 1pp | 35.0% | 33.2% | 1.8pp |
| Operating profit | 3,872 | 3,803 | 1.8% | 5,117 | 4,843 | 5.6% | 6,427 | 5,661 | 13.5% |
| Operating margin | 16.7% | 16.4% | 0.3pp | 18.7% | 17.7% | 1pp | 19.9% | 18.1% | 1.8pp |
| Net profit | 3,166 | 3,136 | 1.0% | 4,187 | 3,975 | 5.3% | 5,200 | 4,608 | 12.9% |
| Net margin | 13.7% | 13.5% | 0.1pp | 15.3% | 14.5% | 0.8pp | 16.1% | 14.7% | 1.4pp |
| Fully diluted EPS (TWD) | 11.15 | 11.04 | 1.0% | 14.63 | 13.88 | 5.4% | 18.17 | 16.09 | 12.9% |
Source: Daiwa forecasts
Sunon: 3Q26 results preview
| (TWDm) | Daiwa's 3Q26 forecast | Our previous forecast | Differ | Bloomberg consensus | Differ |
|---|---|---|---|---|---|
| Revenue | 6,143 | 6,319 | -2.8% | 6,357 | -3.4% |
| Gross profit | 2,015 | 2,041 | -1.3% | 2,028 | -0.6% |
| Operating profit | 1,115 | 1,141 | -2.3% | 1,082 | 3.0% |
| Profit before tax | 1,162 | 1,218 | -4.6% | 1,133 | 2.6% |
| Net profit | 901 | 950 | -5.2% | 884 | 1.9% |
| EPS | 3.15 | 3.33 | -5.5% | 3.10 | 1.7% |
| Margin | |||||
| Gross margin | 32.8% | 32.3% | 0.5pp | 31.9% | 0.9pp |
| Operating margin | 18.1% | 18.1% | 0.1pp | 17.0% | 1.1pp |
| Pre-tax margin | 18.9% | 19.3% | -0.4pp | 17.8% | 1.1pp |
| Net margin | 14.7% | 15.0% | -0.4pp | 13.9% | 0.8pp |
Source: Company, Bloomberg, Daiwa forecasts
Sunon: quarterly and annual P&L
| (TWDm) | 2026E - 1Q26 | 2026E - 2Q26 | 2026E - 3Q26E | 2026E - 4Q26E | 2027E - 1Q27E | 2027E - 2Q27E | 2027E - 3Q27E | 2027E - 4Q27E | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 5,019 | 5,419 | 6,143 | 6,606 | 6,700 | 6,800 | 6,900 | 6,964 | 23,186 | 27,364 | 32,295 |
| Gross profit | 1,589 | 1,693 | 2,015 | 2,192 | 2,191 | 2,230 | 2,277 | 2,606 | 7,489 | 9,304 | 11,303 |
| Operating profit | 788 | 836 | 1115 | 1133 | 1191 | 1190 | 1257 | 1479 | 3,872 | 5,117 | 6,427 |
| Pre-tax profit | 805 | 912 | 1162 | 1210 | 1263 | 1263 | 1329 | 1551 | 4,089 | 5,407 | 6,716 |
| Net profit | 649 | 690 | 901 | 927 | 1023 | 960 | 1037 | 1167 | 3,166 | 4,187 | 5,200 |
| Basic EPS (TWD) | 2.36 | 2.41 | 3.15 | 3.24 | 3.58 | 3.36 | 3.63 | 4.08 | 11.16 | 14.64 | 18.18 |
| Margin | |||||||||||
| Gross margin | 31.7% | 31.3% | 32.8% | 33.2% | 32.7% | 32.8% | 33.0% | 37.4% | 32.3% | 34.0% | 35.0% |
| Operating margin | 15.7% | 15.4% | 18.1% | 17.2% | 17.8% | 17.5% | 18.2% | 21.2% | 16.7% | 18.7% | 19.9% |
| Pre-tax margin | 16.0% | 16.8% | 18.9% | 18.3% | 18.9% | 18.6% | 19.3% | 22.3% | 17.6% | 19.8% | 20.8% |
| Net margin | 12.9% | 12.7% | 14.7% | 14.0% | 15.3% | 14.1% | 15.0% | 16.8% | 13.7% | 15.3% | 16.1% |
| YoY | |||||||||||
| Revenue | 20.6% | 16.2% | 24.5% | 34.3% | 33.5% | 25.5% | 12.3% | 5.4% | 24.1% | 18.0% | 18.0% |
| Gross profit | 30.5% | 18.9% | 30.3% | 35.8% | 37.9% | 31.7% | 13.0% | 18.9% | 29.1% | 24.2% | 21.5% |
| Operating profit | 52.9% | 16.9% | 45.0% | 39.9% | 51.1% | 42.4% | 12.8% | 30.5% | 37.8% | 32.2% | 25.6% |
| Pre-tax profit | 38.7% | 76.5% | 29.4% | 51.0% | 57.0% | 38.4% | 14.4% | 28.2% | 46.2% | 32.2% | 24.2% |
| Net profit | 37.5% | 84.5% | 29.7% | 48.3% | 57.7% | 39.1% | 15.2% | 25.9% | 46.2% | 32.2% | 24.2% |
| QoQ | |||||||||||
| Revenue | 2.1% | 8.0% | 13.4% | 7.5% | 1.4% | 1.5% | 1.5% | 0.9% | |||
| Gross profit | -1.5% | 6.5% | 19.0% | 8.8% | 0.0% | 1.8% | 2.1% | 14.4% | |||
| Operating profit | -2.7% | 6.1% | 33.3% | 1.6% | 5.1% | 0.0% | 5.6% | 17.6% | |||
| Pre-tax profit | 0.4% | 13.4% | 27.3% | 4.2% | 4.4% | 0.0% | 5.3% | 16.7% | |||
| Net profit | 3.8% | 6.3% | 30.5% | 2.9% | 10.4% | -6.2% | 8.0% | 12.5% |
Source: Company, Daiwa forecasts
Sunon: product mix
Sunon: 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 |
|---|---|---|---|---|---|---|---|---|
| Automotive revenue YoY growth (%) | 6.1 | 59.5 | 9.1 | 31.1 | 2.8 | 20.0 | 10.0 | 5.0 |
| IT&OE revenue YoY growth (%) | 2.3 | (26.8) | (16.8) | (10.7) | 13.8 | 15.0 | 0.0 | 0.0 |
| Telecom & server revenue YoY growth (%) | 6.5 | 16.2 | 21.4 | 43.5 | 40.4 | 30.0 | 25.0 | 25.0 |
Profit and loss (TWDm)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Telecom & Server revenue | 3,838 | 4,458 | 5,411 | 7,765 | 10,901 | 14,172 | 17,714 | 22,143 |
| Industrial & Medical equipment & Automobile revenue | 2,645 | 3,178 | 2,686 | 2,910 | 3,400 | 4,167 | 4,802 | 5,304 |
| Other Revenue | 7,079 | 6,427 | 4,817 | 3,948 | 4,377 | 4,848 | 4,848 | 4,848 |
| Total Revenue | 13,562 | 14,063 | 12,915 | 14,624 | 18,678 | 23,186 | 27,364 | 32,295 |
| Other income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| COGS | (11,026) | (10,892) | (9,313) | (10,467) | (12,876) | (15,697) | (18,060) | (20,992) |
| SG&A | (1,258) | (1,268) | (1,272) | (1,587) | (1,910) | (2,272) | (2,627) | (3,068) |
| Other op.expenses | (814) | (781) | (799) | (893) | (1,082) | (1,345) | (1,560) | (1,809) |
| Operating profit | 464 | 1,122 | 1,530 | 1,677 | 2,809 | 3,872 | 5,117 | 6,427 |
| Net-interest inc./(exp.) | (14) | (30) | 49 | 95 | 71 | 97 | 90 | 90 |
| Assoc/forex/extraord./others | 136 | 334 | 172 | 210 | (83) | 120 | 200 | 200 |
| Pre-tax profit | 585 | 1,426 | 1,752 | 1,982 | 2,797 | 4,089 | 5,407 | 6,716 |
| Tax | (156) | (337) | (418) | (490) | (631) | (923) | (1,220) | (1,516) |
| Min. int./pref. div./others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net profit (reported) | 429 | 1,089 | 1,334 | 1,492 | 2,165 | 3,166 | 4,187 | 5,200 |
| Net profit (adjusted) | 429 | 1,089 | 1,334 | 1,492 | 2,165 | 3,166 | 4,187 | 5,200 |
| EPS (reported)(TWD) | 1.711 | 4.340 | 5.163 | 5.457 | 7.937 | 11.163 | 14.637 | 18.181 |
| EPS (adjusted)(TWD) | 1.711 | 4.340 | 5.163 | 5.457 | 7.937 | 11.163 | 14.637 | 18.181 |
| EPS (adjusted fully-diluted)(TWD) | 1.711 | 4.327 | 5.074 | 5.448 | 7.924 | 11.153 | 14.628 | 18.170 |
| DPS (TWD) | 1.200 | 2.600 | 3.500 | 3.687 | 5.442 | 7.735 | 10.228 | 12.705 |
| EBIT | 464 | 1,122 | 1,530 | 1,677 | 2,809 | 3,872 | 5,117 | 6,427 |
| EBITDA | 981 | 1,635 | 2,065 | 2,171 | 3,359 | 4,213 | 5,534 | 6,905 |
Cash flow (TWDm)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Profit before tax | 585 | 1,426 | 1,752 | 1,982 | 2,797 | 4,089 | 5,407 | 6,716 |
| Depreciation and amortisation | 517 | 513 | 534 | 495 | 550 | 341 | 417 | 478 |
| Tax paid | (156) | (337) | (418) | (490) | (631) | (923) | (1,220) | (1,516) |
| Change in working capital | (874) | 292 | 387 | (465) | (254) | (955) | (620) | (1,044) |
| Other operational CF items | 118 | 264 | (81) | 160 | 836 | (92) | (90) | (90) |
| Cash flow from operations | 191 | 2,158 | 2,175 | 1,682 | 3,297 | 2,460 | 3,894 | 4,546 |
| Capex | (444) | (394) | (298) | (513) | (953) | (1,500) | (1,000) | (1,000) |
| Net (acquisitions)/disposals | 178 | 0 | (14) | (2) | (29) | (29) | (29) | (29) |
| Other investing CF items | (215) | (44) | (43) | (229) | (132) | 0 | 0 | 0 |
| Cash flow from investing | (480) | (438) | (354) | (745) | (1,114) | (1,529) | (1,029) | (1,029) |
| Change in debt | 1,279 | (662) | (830) | 470 | (458) | 117 | 0 | 0 |
| Net share issues/(repurchases) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends paid | (602) | (301) | (652) | (957) | (1,012) | (1,499) | (2,194) | (2,901) |
| Other financing CF items | (91) | (226) | 1,274 | 77 | (49) | 0 | 0 | 0 |
| Cash flow from financing | 585 | (1,189) | (208) | (410) | (1,519) | (1,382) | (2,194) | (2,901) |
| Forex effect/others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in cash | 296 | 531 | 1,612 | 527 | 664 | (452) | 670 | 615 |
| Free cash flow | (253) | 1,764 | 1,877 | 1,169 | 2,344 | 960 | 2,894 | 3,546 |
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 | 1,912 | 2,457 | 4,031 | 4,678 | 5,256 | 4,854 | 5,648 | 6,386 |
| Inventory | 2,763 | 2,863 | 2,052 | 2,181 | 2,424 | 3,113 | 3,491 | 4,110 |
| Accounts receivable | 3,546 | 3,555 | 3,180 | 4,247 | 5,413 | 6,491 | 7,652 | 9,036 |
| Other current assets | 169 | 150 | 313 | 332 | 100 | 100 | 100 | 100 |
| Total current assets | 8,391 | 9,026 | 9,576 | 11,438 | 13,193 | 14,559 | 16,891 | 19,632 |
| Fixed assets | 2,059 | 2,273 | 2,171 | 2,461 | 3,054 | 4,213 | 4,796 | 5,318 |
| Goodwill & intangibles | 24 | 27 | 24 | 53 | 63 | 63 | 63 | 63 |
| Other non-current assets | 1,043 | 866 | 843 | 1,046 | 1,117 | 1,117 | 1,117 | 1,117 |
| Total assets | 11,517 | 12,192 | 12,615 | 14,998 | 17,427 | 19,951 | 22,867 | 26,129 |
| Short-term debt | 1,985 | 1,408 | 640 | 1,050 | 586 | 703 | 703 | 703 |
| Accounts payable | 3,986 | 4,530 | 3,846 | 4,759 | 6,174 | 6,986 | 7,905 | 8,865 |
| Other current liabilities | 268 | 385 | 235 | 273 | 429 | 429 | 429 | 429 |
| Total current liabilities | 6,239 | 6,323 | 4,721 | 6,082 | 7,189 | 8,118 | 9,037 | 9,996 |
| Long-term debt | 524 | 287 | 213 | 478 | 613 | 613 | 613 | 613 |
| Other non-current liabilities | 387 | 380 | 462 | 517 | 738 | 738 | 738 | 738 |
| Total liabilities | 7,151 | 6,989 | 5,396 | 7,078 | 8,539 | 9,468 | 10,387 | 11,347 |
| Share capital | 2,509 | 2,509 | 2,734 | 2,734 | 2,734 | 2,837 | 2,837 | 2,837 |
| Reserves/R.E./others | 1,857 | 2,693 | 4,484 | 5,186 | 6,153 | 7,647 | 9,643 | 11,946 |
| Shareholders' equity | 4,367 | 5,202 | 7,219 | 7,920 | 8,887 | 10,483 | 12,480 | 14,783 |
| Minority interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total equity & liabilities | 11,517 | 12,192 | 12,615 | 14,998 | 17,427 | 19,951 | 22,867 | 26,129 |
| EV | 38,332 | 36,972 | 34,558 | 34,585 | 33,677 | 34,196 | 33,403 | 32,665 |
| Net debt/(cash) | 597 | (763) | (3,178) | (3,150) | (4,058) | (3,539) | (4,333) | (5,071) |
| BVPS (TWD) | 17.402 | 20.733 | 26.399 | 28.859 | 32.265 | 36.958 | 43.996 | 52.116 |
Key ratios (%)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Sales (YoY) | 6.1 | 3.7 | (8.2) | 13.2 | 27.7 | 24.1 | 18.0 | 18.0 |
| EBITDA (YoY) | (37.3) | 66.6 | 26.3 | 5.2 | 54.7 | 25.4 | 31.4 | 24.8 |
| Operating profit (YoY) | (58.4) | 142.0 | 36.4 | 9.6 | 67.5 | 37.8 | 32.2 | 25.6 |
| Net profit (YoY) | (49.6) | 153.7 | 22.5 | 11.9 | 45.1 | 46.2 | 32.2 | 24.2 |
| Core EPS (fully-diluted) (YoY) | (49.6) | 153.0 | 17.3 | 7.4 | 45.5 | 40.7 | 31.2 | 24.2 |
| Gross-profit margin | 18.7 | 22.5 | 27.9 | 28.4 | 31.1 | 32.3 | 34.0 | 35.0 |
| EBITDA margin | 7.2 | 11.6 | 16.0 | 14.8 | 18.0 | 18.2 | 20.2 | 21.4 |
| Operating-profit margin | 3.4 | 8.0 | 11.8 | 11.5 | 15.0 | 16.7 | 18.7 | 19.9 |
| Net profit margin | 3.2 | 7.7 | 10.3 | 10.2 | 11.6 | 13.7 | 15.3 | 16.1 |
| ROAE | 9.6 | 22.8 | 21.5 | 19.7 | 25.8 | 32.7 | 36.5 | 38.2 |
| ROAA | 3.9 | 9.2 | 10.8 | 10.8 | 13.4 | 16.9 | 19.6 | 21.2 |
| ROCE | 7.3 | 16.3 | 20.4 | 19.1 | 28.8 | 35.4 | 40.0 | 43.0 |
| ROIC | 7.4 | 18.2 | 27.5 | 28.7 | 45.3 | 50.9 | 52.5 | 55.7 |
| Net debt to equity | 13.7 | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
| Effective tax rate | 26.7 | 23.6 | 23.8 | 24.7 | 22.6 | 22.6 | 22.6 | 22.6 |
| Accounts receivable (days) | 92.9 | 92.1 | 95.2 | 92.7 | 94.4 | 93.7 | 94.3 | 94.3 |
| Current ratio (x) | 1.3 | 1.4 | 2.0 | 1.9 | 1.8 | 1.8 | 1.9 | 2.0 |
| Net interest cover (x) | 32.6 | 37.6 | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
| Net dividend payout | 70.1 | 59.9 | 67.8 | 67.6 | 68.6 | 69.3 | 69.9 | 69.9 |
| Free cash flow yield | n.a. | 4.7 | 5.0 | 3.1 | 6.2 | 2.5 | 7.7 | 9.4 |
Source: FactSet, Daiwa forecasts
Company profile
Founded in 1980 and listed on Taiwan's main board in 2000, Sunonwealth Electric Machine Industry (Sunon) is one of the top-4 fan and motor providers in the world, along with Delta Electronics, Nidec and ebm-papst. Its major clients are Apple, Dell, Lenovo, Bosch, Siemens and Tesla. Its applications include IT & OE, telecoms & servers, industrial & medical equipment, home applications, distribution, autos and LED lighting.
ESG analysis
ESG risks
| Risks | Risks | Management | Analystcomments |
|---|---|---|---|
| G | Executive/board quality | 2 | The CEO and chairperson of Sunonwealth are the same individual; Sunonwealth's board is led by the Hung family. We see no issues with the company's board. We view the chairman leading the R&D team as a sign of the company's continuing focus on developing new products to achieve a long-term competitive advantage. |
| G | Capital management | 2 | Sunonwealth's dividend payout ratio was 83-88% in 2015-18, but it decreased to 60-69% during 2022-25 due to its capacity expansion plans. |
| G | Related party & transaction | 2 | Revenue generated from related-party transactions was less than 1% of total revenue during 2023-25. |
| E | Materialssourcing& efficiency | 1 | Sunonwealth's sourcing of raw materials has been relatively stable (including IC, copper, plastic, aluminium and steel), and we also note that Sunonwealth abides by RoHS regulations and relevant international standards (ISO14001, IECQQC080000, ISO9001) for itsmaterial sourcing activities. With the ongoing ESG trend, its clients may move towards a more energy-efficient production cycle, which will likely benefit Sunonwealth's energy-efficient products. |
| E | Productdesign& lifecycle management | 2 | Sunonwealth has improved its product designs to stronger but lighter form factors. Besides, we have observed more green projects utilising Sunonwealth's capabilities. Thus, we believe Sunonwealth has strong product design and lifecycle management capabilities to address the ongoing changing business environment. |
| S | Productquality& safety | 2 | Sunonwealth has its own Quality Strategy Centre to evaluate quality issues. With international standards in place, we believe Sunonwealth has taken relevant measures to address product quality and safety issues. |
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: 8 May 2026
Source: Daiwa, Company