PDF 原檔：報告_Daiwa_長廣7795_20260909_original.pdf
原始內容
Taiwan
Eternal Precision Mechanics (7795 TT)
Target price:
TWD720.00 (from TWD600.00)
Share price (9 Sep): TWD548.00 | Up/downside: +31.4%
Vacuum laminators: the next ABF bottleneck
- 3Q26 QTD revenue ahead on higher high-end equipment recognition
- Product mix and price hikes drive margins to new highs
- Reaffirming Buy (1) rating; lifting 12M TP to TWD720
What's new: Eternal Precision Mechanics (EPM) reported its August 2026 revenue after market hours on 9 September 2026.
What's the impact: August revenue beat expectations. EPM reported August 2026 revenue of TWD359.8m, up 95.7% MoM and 111.5% YoY. QTD revenue reached 88.4% of our previous 3Q26 forecast and 74.2% of the Bloomberg consensus. Given the faster-than-expected revenue recognition schedule and a sharp increase in recognised high-end equipment units, which should drive a more favourable product mix, we raise our 3Q26 revenue forecast by 33% to TWD972.7m, gross margin by 3.1ppts to 48.5%, and EPS by 92% to TWD1.86.
Vacuum laminators are emerging as the next ABF bottleneck. Despite a partial conversion of backlog into revenue in August, EPM's backlog continued to increase from TWD810m at end-July to TWD880m in early September. With lead times extending further to 36 months, vacuum laminators are emerging as the next bottleneck in the ABF capacity expansion cycle. Given the robust demand from ABF substrate makers, we see upside potential to EPM's capacity expansion plans. On margins, we expect continued product-mix improvement and the full realisation of price increases to lift gross margin by 6.6ppts/1.3ppts YoY to 53.2%/54.5% in 2027/28E, driving a 2026-28E EPS CAGR of 141%.
Moulding film adoption opens a new growth avenue. Traditional transfer and compression moulding typically use granular, powder, or liquidtype compounds for encapsulation. During our visit to SEMICON, Japanese material suppliers Nagase (8012 JP, JPY1,150.5, Outperform [2]; covered by Masayuki Nagano) and Resonac (4004 JP, JPY16,070, Outperform [2]; covered by Hidemitsu Umebayashi) noted growing customer interest in moulding films. These offer better filling performance, better warpage control and higher flowability. This makes them increasingly suitable for advanced packaging applications such as panel level packaging and component-embedded substrates. EPM supplies moulding-film laminators for both applications, with revenue contribution expected to begin in 2027.
What we recommend: We lift our 2026-28E EPS by 22-26% to reflect the full realisation of price increases and improving product mix. We reaffirm our Buy (1) rating and raise our 12-month TP to TWD720 (from TWD600) based on an unchanged target PER of 40x, applied to our 1-year forward EPS forecast. Key downside risk: slower-than-expected substrate capex growth.
How we differ: We likely conduct a more comprehensive analysis than others on ABF industry demand and moulding film development.
9 September 2026
4
Daiwa
5
3
→
2
1
Buy
Stacy Lin
Stacy Lin (886) 2 8758 6252 stacy.lin@daiwacm-cathay.com.tw
Forecast revisions (%)
| Year to 31 Dec | 26E | 27E | 28E |
|---|---|---|---|
| Revenue change | 4.5 | (3.7) | (0.9) |
| Net profit change | 21.2 | 22.9 | 25.7 |
| Core EPS (FD) change | 21.6 | 23.2 | 26.0 |
Source: Daiwa forecasts
Share price performance
| 12-month range | 195.00-666.00 |
|---|---|
| Market cap (USDbn) | 1.37 |
| 3m avg daily turnover (USDm) | 16.95 |
| Shares outstanding (m) | 79 |
| Major shareholder | Eternal Materials Co Ltd (61.7%) |
Financial summary (TWD)
| Year to 31 Dec | 26E | 27E | 28E |
|---|---|---|---|
| Revenue (m) | 3,067 | 8,812 | 11,724 |
| Operating profit (m) | 785 | 3,280 | 4,553 |
| Net profit (m) | 406 | 1,707 | 2,365 |
| Core EPS (fully-diluted) | 5.151 | 21.654 | 30.006 |
| EPS change (%) | 65.9 | 320.4 | 38.6 |
| Daiwa vs Cons. EPS (%) | 15.0 | 29.1 | 31.8 |
| PER (x) | 106.4 | 25.3 | 18.3 |
| Dividend yield (%) | 0.7 | 2.8 | 3.8 |
| DPS | 3.6 | 15.2 | 21.0 |
| PBR (x) | 13.6 | 9.5 | 7.6 |
| EV/EBITDA (x) | 48.5 | 12.5 | 9.1 |
| ROE (%) | 17.1 | 44.2 | 46.2 |
Source: FactSet, Daiwa forecasts
Eternal: 3Q26 Daiwa vs. Bloomberg estimates
| (TWDm) | New forecast | QoQ | YoY | Previous forecast | Difference | Bloomberg consensus | Difference |
|---|---|---|---|---|---|---|---|
| Revenue | 973 | 105.9% | 144.4% | 615 | 58.1% | 732 | 32.9% |
| Gross profit | 472 | 130.0% | 192.2% | 279 | 68.9% | 338 | 39.6% |
| Operating profit | 280 | 200.7% | 365.3% | 146 | 91.7% | 180 | 55.8% |
| Profit before tax | 281 | 183.2% | 343.6% | 147 | 91.5% | 178 | 58.1% |
| Net profit | 146 | 176.4% | 384.7% | 76 | 91.5% | 95 | 54.1% |
| Basic EPS (TWD) | 1.86 | 177.1% | 331.8% | 0.97 | 92.0% | 1.14 | 62.9% |
| Margin | |||||||
| Gross margin | 48.5% | 5.1pp | 7.9pp | 45.4% | 3.1pp | 46.2% | 2.3pp |
| Operating margin | 28.8% | 9.1pp | 13.7pp | 23.8% | 5.0pp | 24.6% | 4.2pp |
| Pre tax margin | 28.9% | 7.9pp | 13.0pp | 23.9% | 5.0pp | 24.3% | 4.6pp |
| Net margin | 15.0% | 3.8pp | 7.5pp | 12.4% | 2.6pp | 13.0% | 2.1pp |
Source: Company, Bloomberg, Daiwa forecasts
Eternal: quarterly and annual P&L statements
| (TWDm) | 2026E | 2026E | 2026E | 2026E | 2027E | 2027E | 2027E | 2027E | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|---|---|---|
| (TWDm) | 1Q | 2Q | 3QE | 4QE | 1QE | 2QE | 3QE | 4QE | 2026E | 2027E | 2028E |
| Net sales | 418 | 472 | 973 | 1,204 | 1,870 | 2,105 | 2,345 | 2,492 | 3,067 | 8,812 | 11,724 |
| Gross profit | 165 | 205 | 472 | 587 | 985 | 1,117 | 1,257 | 1,329 | 1,428 | 4,689 | 6,390 |
| Operating costs | 119 | 112 | 191 | 221 | 308 | 338 | 370 | 393 | 643 | 1,409 | 1,837 |
| Operating profit | 46 | 93 | 280 | 365 | 677 | 779 | 887 | 936 | 785 | 3,280 | 4,553 |
| Pre-tax profit | 46 | 99 | 281 | 367 | 679 | 780 | 889 | 935 | 794 | 3,283 | 4,549 |
| Net profit | 16 | 53 | 146 | 191 | 353 | 406 | 462 | 486 | 406 | 1,707 | 2,365 |
| EPS (TWD) | 0.21 | 0.67 | 1.86 | 2.42 | 4.48 | 5.15 | 5.86 | 6.17 | 5.15 | 21.65 | 30.01 |
| Operating Ratios | 6.6% | 1.3% | |||||||||
| Gross margin | 39.4% | 43.4% | 48.5% | 48.7% | 52.7% | 53.1% | 53.6% | 53.3% | 46.6% | 53.2% | 54.5% |
| Operating margin | 11.0% | 19.7% | 28.8% | 30.3% | 36.2% | 37.0% | 37.8% | 37.6% | 25.6% | 37.2% | 38.8% |
| Pre-tax margin | 11.1% | 21.0% | 28.9% | 30.5% | 36.3% | 37.1% | 37.9% | 37.5% | 25.9% | 37.3% | 38.8% |
| Net margin | 3.9% | 11.2% | 15.0% | 15.8% | 18.9% | 19.3% | 19.7% | 19.5% | 13.2% | 19.4% | 20.2% |
| YoY (%) | |||||||||||
| Net revenue | -17% | 32% | 144% | 90% | 348% | 345% | 141% | 107% | 62% | 187% | 33% |
| Gross profit | -24% | 19% | 192% | 95% | 499% | 444% | 166% | 127% | 68% | 228% | 36% |
| Operating income | -61% | 7% | 365% | 155% | 1375% | 735% | 216% | 156% | 92% | 318% | 39% |
| Net income | -74% | 10% | 385% | 142% | 2092% | 666% | 216% | 155% | 85% | 320% | 39% |
| QoQ (%) | |||||||||||
| Net revenue | -34% | 13% | 106% | 24% | 55% | 13% | 11% | 6% | |||
| Gross profit | -45% | 25% | 130% | 24% | 68% | 13% | 13% | 6% | |||
| Operating income | -68% | 103% | 201% | 30% | 85% | 15% | 14% | 6% | |||
| Net income | -80% | 229% | 176% | 30% | 85% | 15% | 14% | 5% |
Source: Company, Daiwa forecasts
Eternal: revenue and earnings forecast revisions
| 2026E | 2026E | 2026E | 2027E | 2027E | 2027E | |
|---|---|---|---|---|---|---|
| (TWDm) | Previous | New | Consensus | Previous | New | Consensus |
| Revenue | 2,936 | 3,067 | 2,836 | 9,151 | 8,812 | 7,314 |
| Diff (%) | 4.5% | 8.1% | -3.7% | 20.5% | ||
| Gross margin (%) | 44.7% | 46.6% | 45.4% | 50.2% | 53.2% | 50.5% |
| Operating Profit | 649 | 785 | 657 | 2,671 | 3,280 | 2,440 |
| Operating margin | 22.1% | 25.6% | 23.2% | 29.2% | 37.2% | 33.4% |
| Net Profit | 335 | 406 | 351 | 1,389 | 1,707 | 1,330 |
| EPS | 4.24 | 5.15 | 4.48 | 17.58 | 21.65 | 16.77 |
| Diff (%) | 21.5% | 15.1% | 23.2% | 29.1% |
Source: Daiwa estimates and forecasts
Eternal Precision Mechanics (7795 TT): 9 September 2026
Daiwa
Financial summary
Key assumptions
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| JP plant avg. monthly capacity (units) | n.a. | n.a. | 18 | 18 | 18 | 19 | 24 | 28 |
| CH plant avg. monthly capacity (units) | n.a. | n.a. | 4 | 4 | 4 | 4 | 5 | 5 |
| Annual total shipment (units) | n.a. | n.a. | 150 | 134 | 99 | 185 | 347 | 392 |
Profit and loss (TWDm)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Low/Mid End Laminator | n.a. | n.a. | 1,074 | 833 | 609 | 1,024 | 1,395 | 1,316 |
| High End Laminator | n.a. | n.a. | 873 | 1,092 | 875 | 1,550 | 6,887 | 9,832 |
| Other Revenue | n.a. | n.a. | 414 | 309 | 414 | 493 | 531 | 576 |
| Total Revenue | n.a. | n.a. | 2,361 | 2,234 | 1,898 | 3,067 | 8,812 | 11,724 |
| Other income | n.a. | n.a. | 0 | 0 | 0 | 0 | 0 | 0 |
| COGS | n.a. | n.a. | (1,303) | (1,238) | (1,048) | (1,639) | (4,124) | (5,334) |
| SG&A | n.a. | n.a. | (478) | (408) | (423) | (622) | (1,787) | (2,455) |
| Other op.expenses | n.a. | n.a. | (31) | (12) | (18) | (22) | 378 | 619 |
| Operating profit | n.a. | n.a. | 558 | 564 | 409 | 785 | 3,280 | 4,553 |
| Net-interest inc./(exp.) | n.a. | n.a. | (15) | (10) | (9) | (8) | (12) | (20) |
| Assoc/forex/extraord./others | n.a. | n.a. | 7 | 6 | 16 | 17 | 15 | 16 |
| Pre-tax profit | n.a. | n.a. | 550 | 560 | 416 | 794 | 3,283 | 4,549 |
| Tax | n.a. | n.a. | (254) | (261) | (196) | (388) | (1,576) | (2,183) |
| Min. int./pref. div./others | n.a. | n.a. | 0 | 0 | 0 | 0 | 0 | 0 |
| Net profit (reported) | n.a. | n.a. | 296 | 299 | 220 | 406 | 1,707 | 2,365 |
| Net profit (adjusted) | n.a. | n.a. | 296 | 299 | 220 | 406 | 1,707 | 2,365 |
| EPS (reported)(TWD) | n.a. | n.a. | 5.664 | 4.218 | 3.106 | 5.151 | 21.654 | 30.006 |
| EPS (adjusted)(TWD) | n.a. | n.a. | 5.664 | 4.218 | 3.106 | 5.151 | 21.654 | 30.006 |
| EPS (adjusted fully-diluted)(TWD) | n.a. | n.a. | 5.664 | 4.218 | 3.106 | 5.151 | 21.654 | 30.006 |
| DPS (TWD) | n.a. | n.a. | 2.500 | 3.000 | 2.150 | 3.609 | 15.158 | 21.004 |
| EBIT | n.a. | n.a. | 558 | 564 | 409 | 785 | 3,280 | 4,553 |
| EBITDA | n.a. | n.a. | 633 | 639 | 483 | 861 | 3,390 | 4,673 |
Cash flow (TWDm)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Profit before tax | n.a. | n.a. | 550 | 560 | 416 | 794 | 3,283 | 4,549 |
| Depreciation and amortisation | n.a. | n.a. | 76 | 76 | 74 | 76 | 110 | 120 |
| Tax paid | n.a. | n.a. | (254) | (261) | (196) | (388) | (1,576) | (2,183) |
| Change in working capital | n.a. | n.a. | (2,279) | 494 | (163) | (1,637) | (1,598) | (730) |
| Other operational CF items | n.a. | n.a. | 2,536 | (286) | (224) | 496 | (39) | 0 |
| Cash flow from operations | n.a. | n.a. | 628 | 583 | (93) | (659) | 180 | 1,755 |
| Capex | n.a. | n.a. | (30) | (10) | (36) | (81) | (760) | (600) |
| Net (acquisitions)/disposals | n.a. | n.a. | 0 | 0 | 0 | 0 | 0 | 0 |
| Other investing CF items | n.a. | n.a. | 135 | 0 | (0) | 4 | 0 | 0 |
| Cash flow from investing | n.a. | n.a. | 105 | (10) | (36) | (77) | (760) | (600) |
| Change in debt | n.a. | n.a. | (154) | (447) | (183) | (207) | 585 | 545 |
| Net share issues/(repurchases) | n.a. | n.a. | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends paid | n.a. | n.a. | (180) | (154) | (212) | (169) | (284) | (1,195) |
| Other financing CF items | n.a. | n.a. | 516 | (57) | (62) | 1,559 | 143 | 0 |
| Cash flow from financing | n.a. | n.a. | 182 | (658) | (457) | 1,183 | 444 | (650) |
| Forex effect/others | n.a. | n.a. | (124) | (57) | 0 | (34) | (34) | (35) |
| Change in cash | n.a. | n.a. | 791 | (142) | (586) | 413 | (171) | 471 |
| Free cash flow | n.a. | n.a. | 598 | 573 | (129) | (740) | (580) | 1,155 |
Source: FactSet, Daiwa forecasts
Eternal Precision Mechanics (7795 TT): 9 September 2026
Daiwa
Financial summary continued …
Balance sheet (TWDm)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Cash & short-term investment | n.a. | n.a. | 1,860 | 1,718 | 1,132 | 1,545 | 1,374 | 1,844 |
| Inventory | n.a. | n.a. | 1,022 | 634 | 566 | 1,789 | 2,668 | 3,019 |
| Accounts receivable | n.a. | n.a. | 446 | 452 | 460 | 1,118 | 2,315 | 2,925 |
| Other current assets | n.a. | n.a. | 146 | 76 | 110 | 78 | 78 | 78 |
| Total current assets | n.a. | n.a. | 3,474 | 2,881 | 2,268 | 4,530 | 6,434 | 7,866 |
| Fixed assets | n.a. | n.a. | 390 | 322 | 314 | 361 | 1,050 | 1,530 |
| Goodwill & intangibles | n.a. | n.a. | 0 | 0 | 0 | 0 | 0 | 0 |
| Other non-current assets | n.a. | n.a. | 0 | 0 | 0 | 0 | 0 | 0 |
| Total assets | n.a. | n.a. | 3,863 | 3,203 | 2,582 | 4,890 | 7,484 | 9,395 |
| Short-term debt | n.a. | n.a. | 258 | 456 | 284 | 77 | 662 | 1,207 |
| Accounts payable | n.a. | n.a. | 221 | 146 | 148 | 540 | 1,018 | 1,249 |
| Other current liabilities | n.a. | n.a. | 896 | 699 | 268 | 778 | 921 | 921 |
| Total current liabilities | n.a. | n.a. | 1,376 | 1,301 | 700 | 1,395 | 2,601 | 3,377 |
| Long-term debt | n.a. | n.a. | 671 | 0 | 0 | 0 | 0 | 0 |
| Other non-current liabilities | n.a. | n.a. | 316 | 295 | 293 | 327 | 327 | 327 |
| Total liabilities | n.a. | n.a. | 2,363 | 1,596 | 993 | 1,723 | 2,928 | 3,704 |
| Share capital | n.a. | n.a. | 616 | 708 | 708 | 788 | 788 | 788 |
| Reserves/R.E./others | n.a. | n.a. | 885 | 899 | 881 | 2,379 | 3,767 | 4,903 |
| Shareholders' equity | n.a. | n.a. | 1,500 | 1,607 | 1,589 | 3,167 | 4,556 | 5,691 |
| Minority interests | n.a. | n.a. | 0 | 0 | 0 | 0 | 0 | 0 |
| Total equity & liabilities | n.a. | n.a. | 3,863 | 3,203 | 2,582 | 4,890 | 7,484 | 9,395 |
| EV | n.a. | n.a. | 42,267 | 41,936 | 42,350 | 41,731 | 42,487 | 42,561 |
| Net debt/(cash) | n.a. | n.a. | (931) | (1,262) | (848) | (1,468) | (712) | (637) |
| BVPS (TWD) | n.a. | n.a. | 24.374 | 22.690 | 22.436 | 40.181 | 57.790 | 72.198 |
Key ratios (%)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Sales (YoY) | n.a. | n.a. | n.a. | (5.4) | (15.0) | 61.6 | 187.3 | 33.0 |
| EBITDA (YoY) | n.a. | n.a. | n.a. | 0.9 | (24.4) | 78.2 | 293.7 | 37.9 |
| Operating profit (YoY) | n.a. | n.a. | n.a. | 1.1 | (27.5) | 92.0 | 317.9 | 38.8 |
| Net profit (YoY) | n.a. | n.a. | n.a. | 1.1 | (26.4) | 84.6 | 320.4 | 38.6 |
| Core EPS (fully-diluted) (YoY) | n.a. | n.a. | n.a. | (25.5) | (26.4) | 65.9 | 320.4 | 38.6 |
| Gross-profit margin | n.a. | n.a. | 44.8 | 44.6 | 44.8 | 46.6 | 53.2 | 54.5 |
| EBITDA margin | n.a. | n.a. | 26.8 | 28.6 | 25.5 | 28.1 | 38.5 | 39.9 |
| Operating-profit margin | n.a. | n.a. | 23.6 | 25.2 | 21.5 | 25.6 | 37.2 | 38.8 |
| Net profit margin | n.a. | n.a. | 12.5 | 13.4 | 11.6 | 13.2 | 19.4 | 20.2 |
| ROAE | n.a. | n.a. | 25.0 | 19.2 | 13.8 | 17.1 | 44.2 | 46.2 |
| ROAA | n.a. | n.a. | 8.1 | 8.5 | 7.6 | 10.9 | 27.6 | 28.0 |
| ROCE | n.a. | n.a. | 22.9 | 25.1 | 20.8 | 30.7 | 77.5 | 75.2 |
| ROIC | n.a. | n.a. | 52.6 | 65.8 | 39.9 | 32.9 | 61.5 | 53.2 |
| Net debt to equity | n.a. | n.a. | net cash | net cash | net cash | net cash | net cash | net cash |
| Effective tax rate | n.a. | n.a. | 46.3 | 46.6 | 47.1 | 48.9 | 48.0 | 48.0 |
| Accounts receivable (days) | n.a. | n.a. | n.a. | 73.4 | 87.7 | 93.9 | 71.1 | 81.6 |
| Current ratio (x) | n.a. | n.a. | 2.5 | 2.2 | 3.2 | 3.2 | 2.5 | 2.3 |
| Net interest cover (x) | n.a. | n.a. | 35.9 | 47.9 | 46.5 | 100.3 | 277.0 | 228.4 |
| Net dividend payout | n.a. | n.a. | 44.0 | 63.8 | 69.1 | 70.0 | 70.0 | 70.0 |
| Free cash flow yield | n.a. | n.a. | 1.4 | 1.3 | n.a. | n.a. | n.a. | 2.7 |
Source: FactSet, Daiwa forecasts
Company profile
Eternal was established in 2022 through the spin-off of Eternal Material's equipment division and its subsequent merger with Nikko-Materials, a wholly owned Japanese subsidiary. The company was listed in January 2026 and is the global leader in IC substrate vacuum laminators, serving all major substrate manufacturers worldwide.
Eternal Precision Mechanics (7795 TT): 9 September 2026
Daiwa
Eternal Precision Mechanics (7795 TT): 9 September 2026
ESG analysis
ESG risks
| Risks | Management | Analyst comments | |
|---|---|---|---|
| G | Executive/board quality | 1 | Eternal demonstrates a solid corporate governance structure supported by a balanced and diversified board composition. The company's board consists of 7 members, including 3 independent directors, with backgrounds spanning industry operations, finance, accounting, legal, and academia, enabling comprehensive oversight across business and governance functions. |
| Capital management | 2 | Eternal adopts a prudent capital management strategy, supported by a stable shareholder structure and disciplined financial policy. The company is majority-owned by Eternal Materials (over 60% stake), providing long-term strategic backing and financial stability. | |
| S | Related party & transaction | 1 | Eternal discloses related-party transactions transparently and enforces strict governance procedures to manage potential conflicts of interest. Board members are required to recuse themselves from discussions and voting on matters involving personal or affiliated interests, such as asset acquisitions, patent licensing, and remuneration decisions. |
| Product quality & safety | 1 | Eternal maintains strict product quality control, covering design, manufacturing, and delivery processes. The company emphasizes equipment reliability and performance stability, supported by long-term client relationships and low defect risks, ensuring high customer satisfaction and consistent product safety standards. | |
| E | Product design & lifecycle management | 2 | Eternal focuses on enhancing product durability and energy efficiency through continuous R&D innovation. Its equipment design emphasizes precision, extended lifecycle and reduced material waste, aligning product development with resource efficiency and long-term environmental sustainability goals. |
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: 26 Jun 2026
Source: Daiwa, Company
Daiwa