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報告_GS_穩懋3105_20261029

更新 2026-10-30

圖片清單(已驗證 2026-10-30)

ingest 時建立的「眼見為憑」圖片索引,是 lib/ 嵌圖的唯一真相來源;建立步驟見 ingest_steps.md Step 2.5。

檔名 size 分類 親眼所見內容
報告_GS_穩懋3105_20261029_001.png 18KB 真資料圖(因子評分) GS Factor Profile:3105.TWO 相對 Asia ex Japan 與 Greater China 電子元件覆蓋的成長、財務報酬、估值倍數(Multiple)、綜合百分位長條,Multiple 約 90-98 百分位
報告_GS_穩懋3105_20261029_002.png 32KB 真資料圖(股價) 3105.TWO 與加權指數 2025-10 至 2026-10 走勢;3m 絕對漲幅 67.2%、6m 8.1%、12m 440.0%
報告_GS_穩懋3105_20261029_003.png 52KB 真資料圖(產業) Exhibit 1:穩懋稼動率與毛利率(右軸)3Q23 至 4Q28E 走勢,稼動率 3Q26 前後升至約 75-78%,2028E 約 88-89%
報告_GS_穩懋3105_20261029_004.png 41KB 真資料圖(產業) Exhibit 2:2020-2028E 智慧機出貨 YoY 與 PA foundry 手機出貨 YoY 長條;2026E 智慧機 -10%、PA foundry +11%,2027E/2028E 為 +2%/+4%
報告_GS_穩懋3105_20261029_005.png 31KB 真資料圖(產業) Exhibit 3:2020-2028E 手機 PA 中 IDM 與代工占比堆疊圖,代工占比 21%、24%、35%、49%、56%、66%、74%、77%、83%
報告_GS_穩懋3105_20261029_006.png 60KB 真資料圖(產業) Exhibit 4:2001-2028E 穩懋+宏捷科合計資本支出(NT$mn,長條)與 YoY(折線),2021 高點逾 10,000,2026E-2028E 約 3,000-4,000
報告_GS_穩懋3105_20261029_007.png 119KB 真資料圖(產業) Exhibit 5:2017-2030E GaAs TAM 與代工 TAM(US$mn)及代工占比,9%→14%(2020)→11%(2022-23)→16%(2026E)→17%(2028E)→19%(2030E),含三段趨勢註記
報告_GS_穩懋3105_20261029_008.png 69KB 文字卡(評等歷史) 高盛對穩懋評等與目標價歷史(2023-2026)及加權指數,Sell 自 2024-12-02 起,近期目標價標示 124、142

報告_GS_穩懋3105_20261029

PDF 原檔:報告_GS_穩懋3105_20261029_original.pdf

原始內容

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Win Semiconductors Corp. (3105.TWO)

Earnings Review: New optical products ramping up but contribution remains limited; reiterate Sell

3105.TWO 12m Price Target: NT$162.00 Price: NT$540.00 Downside: 70.0%

Win Semi's 3Q26 core business (operating income) was 49/41% higher than GSe/BBG consensus, mainly driven by a more favorable product mix with higher contribution from the high margin infrastructure business (accounted for 39% of total revenue in 3Q26 vs. 34% in 2Q26), resulting in a 9.2ppt QoQ increase in 3Q26 GPM, and came in 6.9/6.1ppt above GSe/BBG consensus. Win Semi's OPEX increased to NT$775mn (vs. NT$743mn in 2Q26). NI was 67/110% higher than GSe/BBG consensus due to the high non-operating income of NT$698mn (account for 33% of total pretax income).

For 4Q26, the company expects revenue to increase by low single digit QoQ, and expects cellular to see QoQ decline due to weak season while the remaining businesses (including infrastructure/Wi-Fi/optical) will see flattish to small QoQ increase. For GM, the company guides the 4Q26 level to maintain at high-thirties %, which is much better than both our prior expectation and BBG consensus at 31.8/31.4%. Management indicated 3Q26 UTR to be higher at 75% (was 65% in 2Q26), and expect to maintain at similar level in 4Q26.

The company continues to highlight the progress with its AI-related business, with its new PD (photodiodes) products started to ramp up from 2H26, with more contribution expected in 2027 along with more PD capacity coming online. For the new LD (laser diodes) products, the company continues to work with multiple clients on multiple new solutions (including CW laser, EML solutions and VCSEL), but expects to see more contribution in 2028 due to the lengthy reliability tests (takes 6M+ per our estimates). The company reiterated that CAPEX this year is project driven, which will mainly focus on expanding InP and GaN capacity for the datacom optical and infrastructure business.

SELL

Chao Wang

+886(2)2730-4195 | kuan-chao.wang@gs.com Goldman Sachs (Asia) L.L.C., Taipei Branch

Allen Chang

+852-2978-2930 | allen.k.chang@gs.com Goldman Sachs (Asia) L.L.C.

Al Wang

+886(2)2730-4081 | al.wang@gs.com Goldman Sachs (Asia) L.L.C., Taipei Branch

Key Data _____________________________________

Market cap: NT$217.7bn / $6.7bn

Enterprise value: NT$220.8bn / $6.8bn

3m ADTV: NT$11.9bn / $372.9mn

Taiwan

Greater China Electronic Components M&A Rank: 3

Leases incl. in net debt & EV?: No

GS Forecast 12/25 __________ 12/26E 12/27E 12/28E
Revenue (NT$ mn) New 16,638.5 21,761.6 25,119.3 27,419.8
Revenue (NT$ mn) Old 16,638.5 21,320.0 24,016.0 25,863.5
EBITDA (NT$ mn) 4,708.4 6,888.3 7,020.2 7,886.5
EPS (NT$) New 4.00 11.05 6.73 8.37
EPS (NT$) Old 4.00 7.51 6.35 7.86
P/E (X) 25.9 48.9 80.2 64.5
P/B (X) 1.1 5.3 5.2 5.0
Dividend yield (%) 1.9 1.3 0.8 1.0
CROCI (%) 8.2 11.9 10.2 10.7
9/26 12/26E 3/27E 6/27E
EPS (NT$) 4.55 2.94 1.41 1.36

Source: Company data, Goldman Sachs Research estimates. See disclosures for details.

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to www.gs.com/research/hedge.html. Analysts employed by non-US affiliates are not registered/qualified as research

analysts with FINRA in the U.S.

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SELL

Win Semiconductors Corp. (3105.TWO) Rating since Dec 2, 2024

Ratios & Valuation __________________________________________

12/25 12/26E 12/27E 12/28E
P/E (X) 25.9 48.9 80.2 64.5
P/B (X) 1.1 5.3 5.2 5.0
FCF yield (%) 7.4 1.5 1.1 1.5
EV/EBITDAR (X) 10.6 33.7 33.1 29.2
EV/EBITDA (excl. leases) (X) 10.6 33.7 33.1 29.2
CROCI (%) 8.2 11.9 10.2 10.7
ROE (%) 4.3 11.1 6.5 7.9
Net debt/equity (%) 13.3 12.1 19.0 20.6
Net debt/equity (excl. leases) (%) 13.3 12.1 19.0 20.6
Interest cover (X) 1.0 6.2 6.0 6.6
Days inventory outst, sales 109.4 88.9 88.7 91.2
Receivable days 32.9 32.4 33.6 34.5
Days payable outstanding 39.9 43.2 41.8 43.3
DuPont ROE (%) 4.0 11.3 7.1 9.1
Turnover (X) 0.3 0.3 0.4 0.5
Leverage (X) 1.4 1.5 1.5 1.5
Gross cash invested (ex cash) (NT$) 61,343.0 63,080.6 67,644.6 70,795.7
Average capital employed (NT$) 48,929.8 46,932.9 46,908.0 47,197.6
BVPS (NT$) 98.00 101.87 104.22 107.15

Growth & Margins (%) ______________________________________

12/25 12/26E 12/27E 12/28E
Total revenue growth (4.7) 30.8 15.4 9.2
EBITDA growth (13.8) 46.3 1.9 12.3
EPS growth 120.5 176.6 (39.1) 24.3
DPS growth NM 259.1 (39.1) 24.3
EBIT margin 4.3 17.7 14.8 14.8
EBITDA margin 28.3 31.7 27.9 28.8
Net income margin 10.2 21.5 11.4 12.9

Price Performance __________________________________________

Source: FactSet. Price as of 28 Oct 2026 close.

Income Statement (NT$ mn) ________________________________

12/25 12/26E 12/27E 12/28E
Total revenue 16,638.5 21,761.6 25,119.3 27,419.8
Cost of goods sold (12,612.4) (14,670.0) (17,142.0) (18,584.3)
SG&A (1,711.1) (1,879.3) (2,195.2) (2,303.1)
R&D (1,600.3) (1,361.3) (2,075.9)
-- -- (2,467.8) --
Other operating inc./(exp.) EBITDA -- 4,708.4 6,888.3 7,020.2 7,886.5
Depreciation & amortization (3,993.7) (3,037.3) (3,314.1) (3,821.9)
EBIT 714.7 3,851.0 3,706.1 4,064.6
Net interest inc./(exp.) (546.0) (417.3) (400.2) (473.6)
Income/(loss) from associates 0.0 300.8 (500.0) --
Pre-tax profit 1,386.9 5,296.7 3,206.1 4,064.6
Provision for taxes (297.1) (947.7) (688.1) (864.7)
Minority interest 604.0 335.8 337.0 349.1 --
Preferred dividends Net inc. (pre-exceptionals) -- -- -- 3,549.0
Post-tax exceptionals 1,693.8 -- 4,684.8 -- 2,854.9 -- --
Net inc. (post-exceptionals) 1,693.8 4,684.8 2,854.9 3,549.0
EPS (basic, pre-except) (NT$) 4.00 11.05 6.73 8.37
EPS (diluted, pre-except) (NT$) 4.00 11.05 6.73 8.37
EPS (basic, post-except) (NT$) 4.00 11.05 6.73 8.37
EPS (diluted, post-except) (NT$) 4.00 11.05 6.73 8.37
DPS (NT$) 2.00 7.18 4.38 5.44
Div. payout ratio (%)
Balance Sheet (NT$ mn) 50.1 65.0 65.0 ______ 65.0
Cash & cash equivalents 12/25 7,066.9 12/26E 7,670.5 12/27E 5,082.9 12/28E 4,646.7
Accounts receivable 1,713.9 2,146.3 2,477.5 2,704.4
Inventory 4,978.5 5,626.9 6,575.0 7,128.2 797.6
Other current assets 797.6 14,556.9 797.6 797.6
Total current assets 16,241.3 14,933.0 15,276.9
Net PP&E 19,671.9 19,421.6 19,094.6 18,359.7 (195.6)
Net intangibles 65.5 21,091.0 (21.5) 21,391.8 (108.6) 20,891.8 20,891.8
Total investments Other long-term assets 5,343.4 5,343.4 5,343.4
Total assets 60,728.7 5,343.4 62,376.5 60,154.2 59,676.2
Accounts payable 1,661.9 1,808.6 2,113.4 2,291.2
Short-term debt Short-term lease liabilities 330.7 330.7 330.7 -- 330.7 --
Other current liabilities -- 3,872.5 -- 6,069.8 4,880.4 5,331.5
Total current liabilities 5,865.1 8,209.1 7,324.4 7,953.4
Long-term debt 12,328.2 12,328.2 12,328.2 12,328.2
Long-term lease liabilities Other long-term liabilities -- -- -- -- 544.5
liabilities 544.5 544.5
Total long-term Total liabilities 544.5 12,872.7 12,872.7 21,081.8 12,872.7 20,197.2 12,872.7 20,826.2
Preferred shares 18,737.9 -- -- 43,184.9 -- 44,184.1 -- 45,426.3
Total common equity Minority interest 41,545.3 445.6 (1,890.2) (4,227.2) (6,576.3)
Total liabilities & 62,376.5 60,154.2 59,676.2
equity Net debt, adjusted 60,728.7
7,576.0 8,012.2
Cash Flow (NT$ mn) 5,592.0 12/25 4,988.4 12/26E 12/27E __________ 12/28E
Net income D&A add-back 1,693.8 4,684.8 3,037.3 (335.8) 2,854.9 3,549.0
Minority interest add-back Net (inc)/dec working 3,993.7 (604.0) 3,314.1 (337.0) 3,821.9 (349.1)
capital Other operating cash flow 207.1 (337.6) (934.1) (974.6) (602.3)
Cash flow from operations 500.0 --
4,953.0 (300.8)
6,151.5 5,357.5 6,419.5
Capital expenditures Acquisitions (1,691.4) -- (2,700.0) -- (2,900.0) -- (3,000.0) -- --
Divestitures 6,292.1 -- --
Others 511.6 --
Cash flow from investing 5,112.3 -- (2,700.0) -- (3,000.0)
Repayment of lease liabilities -- (2,900.0) --
Dividends paid (common & pref) (423.9) -- (847.9) -- (3,045.1) (1,855.7)
Inc/(dec) in debt Other financing cash 791.3 (8,785.0) -- (2,000.0) -- --
flows Cash flow from (2,847.9) (2,000.0) (2,000.0) (3,855.7)
financing Total cash flow (8,417.6) 1,647.6 (5,045.1) (436.2)
603.6 (2,587.6)
Free cash flow 3,451.5 3,419.5
3,261.6
2,457.5

Source: Company data, Goldman Sachs Research estimates.

e92c7a75ab8b4efbba794e6b187208c8

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Upward revision to PA foundry TAM reflecting foundry continue to gain share despite weak smartphone shipment

We have revised up our 2026/27/28E PA foundry TAM by 5/4/2% to

US$1.3bn/1.5bn/1.6bn despite smartphone shipment remaining weak (GSe now at -10%/+2%/+2% in 2026/27/28, was -10%/+3%/+1% previously, see here) as the smartphone market remains exposed to the rising memory cost environment (see here). The upward revision is based on our expectation that PA foundry house will continue to gain share in the smartphone PA segment as newer smartphone projects from design houses are being allocated to foundries due to the higher production costs and increasing design complexity of the PA. This will benefit Win Semi in the mid to long term (Win Semi's revenue from cellular business already saw 28% YoY YTD). We now expect the market TAM to deliver an 8% CAGR over 2026-30E, and we expect foundries' cellular PA shipments to increase by 11% in 2026 (Exhibit 2), outperforming our 2026 smartphone shipment estimates of -10% YoY due to the higher than expected PA foundry penetration (Exhibit 5).

Win Semi delivered 3Q26 revenue that is better than the company's guidance (actual QoQ at 31% vs. guidance of low-teens QoQ), with the cellular business in peak season. Management expects this momentum to slow down in 4Q26 and guided revenue to see QoQ decline in the cellular business. We now expect Win Semi's PA foundry revenue to grow 31% YoY in 2026 (was 28% previously), outpacing the overall PA foundry TAM growth of 22% YoY, as the company continues to focus on mid-to-high-end and premium smartphone models (iOS camp accounts for 30-40% of the company's cellular business per our estimate), which are relatively more resilient to rising memory costs. Moreover, we expect Win Semi's PA foundry market share to decline from 74% in 2020 to 57% in 2026, and further lower to ~50% by 2030, but its revenue will continue to expand further due to the growing foundry TAM.

We continue to expect Taiwan PA foundry players to see modest recovery in 2026 CAPEX. However, we do not view this as an indication of a recovery in demand for the overall PA foundry industry. Win Semi maintained its 2026 CAPEX guidance of NT$2-3bn, with the majority of spending allocated to the new InP and GaN capacity rather than GaAs capacity expansion. We continue to believe GaAs capacity remains sufficient as we estimate Win Semi's quarterly utilization rate could reach at most 85% throughout 2026-28E (Exhibit 1), suggesting no meaningful need for additional GaAs capacity expansion.

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Exhibit 1: Win Semi's GM to be driven by utilization rate and product mix

Exhibit 2: We expect cellular PA foundry shipments to increase 11%/4%/4% in 2026/27/28E

Source: Company data, Goldman Sachs Global Investment Research

Exhibit 3: China cellular PA market share - Foundry continues to outgrow IDM

Source: Company data, Goldman Sachs Global Investment Research

Exhibit 4: We believe Taiwan PA foundries' CAPEX will gradually improve starting from 2026

Source: Company data, Goldman Sachs Global Investment Research

Source: Company data, Goldman Sachs Global Investment Research

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Exhibit 5: We believe the foundry penetration rate will grow to 16%/17%/17% in 2026/27/28E

Source: Company data, Goldman Sachs Global Investment Research

Exhibit 6: Win Semi 3Q26 result vs. GSe/consensus

Win Semi (3105.TWO) - P&L (NT$mn) 3Q26 - Actual 3Q26 - GS est. 3Q26 - Diff (%) QoQ - 2Q26 QoQ YoY - 3Q25 YoY Bloomberg consensus - Consensus Bloomberg consensus - %
Revenue 5,859 5,781 1% 5,257 11% 4,488 31% 5,871 0%
Gross profits 2,191 1,766 24% 1,485 48% 1,205 82% 1,835 19%
Operating profits 1,416 950 49% 742 91% 386 267% 1,008 41%
Pre-tax income 2,114 950 122% 1,188 78% 897 136% 1,082 95%
Net profit 1,930 1,159 67% 977 %86 1,070 80% 918 110%
EPS, NT$ 4.55 2.73 66% 2.30 97% 2.53 %08 2.27 101%
Gross margin (%) 37.4% 30.5% 6.9ppt 28.2% 9.2ppt 26.9% 10.5ppt 31.3% 6.1ppt
EBIT margin (%) 24.2% 16.4% 7.7ppt 14.1% 10.1ppt 8.6% 15.6ppt 17.2% 7.0ppt
Net margin (%) 32.9% 20.0% 12.9ppt 18.6% 14.4ppt 23.9% 9.1ppt 15.6% 17.3ppt

Source: Company data, Goldman Sachs Global Investment Research, Bloomberg

Investment view

The company has started to see increasing contribution from the new PD product in 3Q26 but the contribution remains very limited (overall optical business only saw high single digit QoQ in 3Q26), while the company expects PD product revenue to further ramp up in 2027 along with more PD capacity coming online. This is tracking more slowly than our expectation, and we now expect the datacom optical business to account for only a mid-single-digit of 2026E revenue (was expecting high-single-digit previously). Meanwhile, progress in new high end LD products (including CW lasers, EML solutions and VCSEL) remains broadly the same since last earning call, with the company is still at verification stage and expect more meaningful contribution in 2028E. As such, we believe Win Semi's revenue remains highly exposed to the potential weakness in smartphone demand, as we estimate smartphone related business (including cellular, WiFi, and optical) will account for 50%+ of total revenue in 2026E. The contribution e92c7a75ab8b4efbba794e6b187208c8

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from datacom optical through 2026-27E could not reach scale, and it remains highly uncertain whether optical companies will outsource LD products to Win Semi in 2028E. As a result, we believe Win Semi's stock price remains too elevated (trading at over 50x 2027E P/E based on GSe/BBG consensus) with limited contribution from the datacom optical business.

We maintain our conservative view on Win Semi's stock performance, given (1) the contribution from datacom optical products (e.g., PDs and LDs) remains limited in near-term, with the higher margin LD products potentially seeing more contribution in 2028E, (2) the company's exposure in cellular business remains high (30%+), and the smartphone market continue to be impacted by high memory cost; and (3) given the slow technology upgrade speed in the GaAs foundry market, we believe competitors such as AWSC could catch up with the technology and is better positioned to gain share given their lower cost structures and more competitive pricing.

Maintain Sell, with a new 12-m TP of NT$162 (from NT$142).

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Exhibit 8: P&L table

NT$mD 1Q26 2Q26 3Q26 4Q26E 1Q27E 2Q27E 3Q27E 4Q27E 1Q28E 2Q28E 3Q28E 4Q28E 2025 2026E 2027E 2028E 2029E
Revenue 4,590 5,257 5,859 6,055 5,920 6,175 6,658 6,366 6,276 6,728 7,340 7,075 16,639 21,762 25,119 27,420 28,974
Gross profit 1,209 1,485 2,191 2,207 1,881 1,959 2,158 1,979 1,959 2,169 2,425 2,283 4,026 7,092 7,977 8,835 9,527
Operating expense (778) (743) (775) (945) (995) (1,050) (1,132) (1,095) (1,092) (1,164) (1,263) (1.252) (3,311) (3,241) (4,271) (4,771) (5,128)
Operating income 431 742 1,416 1,262 886 910 1,026 884 867 1,005 1,163 1,031 715 3,851 3,706 4,065 4,399
Pretax income 532 1,188 2,114 1,462 636 660 1,026 884 867 1,005 1,163 1,031 1,387 5,297 3,206 4,065 4,399
Taxes expense (83) (284) (288) (292) (127) (158) (226) (177) (173) (241) (244) (206) (296) (948) (688) (865) (935)
Net income 533 977 1,930 1,244 598 577 894 786 787 844 1,012 907 1,695 4,685 2,855 3,549 3,826
EPS, NT$ 1.26 2.30 4.55 2.94 1.41 1.36 2.11 1.85 1.86 1.99 2.39 2.14 4.00 11.05 6.73 8.37 9.02
As % of sales
Gross margin 26.3% 28.2% 37.4% 36.4% 31.8% 31.7% 32.4% 31.1% 31.2% 32.2% 33.0% 32.3% 24.2% 32.6% 31.8% 32.2% 32.9%
Operating expense ratio 16.9% 14.1% 13.2% 15.6% 16.8% 17.0% 17.0% 17.2% 17.4% 17.3% 17.2% 17.7% 19.9% 14.9% 17.0% 17.4% 17.7%
Operating margin 9.4% 14.1% 24.2% 20.8% 15.0% 14.7% 15.4% 13.9% 13.8% 14.9% 15.8% 14.6% 4.3% 17.7% 14.8% 14.8% 15.2%
QoQ growth (%)
Revenue -4.3% 14.5% 11.4% 3.4% -2.2% 4.3% 7.8% -4.4% -1.4% 7.2% 9.1% -3.6%
Gross profit -20.7% 22.8% 47.6% 0.7% -14.8% 4.2% 10.1% -8.3% -1.0% 10.7% 11.8% -5.9%
Operating income -35.2% 72.1% 90.8% -10.8% -29.8% 2.6% 12.8% -13.8% -2.0% 15.9% 15.7% -11.4%
Net income -48.2% 83.2% 97.5% -35.5% -51.9% -3.4% 54.8% -12.1% 0.1% 7.2% 20.0% -10.4%
YoY growth (%)
Revenue 28.4% 39.1% 30.5% 26.3% 29.0% 17.5% 13.6% 5.1% 6.0% 9.0% 10.2% 11.1% %9- 31% 15% %6 6%
Gross profit 102.1% 112.7% 81.8% 44.8% 55.6% 32.0% -1.5% -10.3% 4.1% 10.7% 12.4% 15.3% 0% 76% 12% 11% 8%
Operating income NA NA 267.1% 89.9% 105.7% 22.6% -27.5% -29.9% -2.2% 10.5% 13.3% 16.5% %9- 439% -4% 10% 8%
Net income 3166.5% NA 80.3% 21.0% 12.1% -40.9% NA -36.9% 31.5% 46.1% 13.2% 15.4% 121% 176% 39% 24% 8%

Source: Company data, Goldman Sachs Global Investment Research

Investment Thesis and TP & risks

Win Semi is a key GaAs-based semi foundry player with c.49% global market share as of 2025. We believe the company's market share could decline given its much higher-than-peer product pricing in the demand downtrend. We also expect the

Earnings revisions

We raise our 2026E revenue by 2% after factor in 3Q26 results and raise our 2027/28E revenue by 5/6% to factor in higher infrastructure and optical business contribution. We revise up our 2026/27/28E GM estimates by 3.8/2.1/1.6ppt as we expect more margin expansion driven by higher UTR and the higher contribution from high margin infrastructure business. Overall, we revised up our 2026/27/28E EPS estimates by 47/6/7%.

Also, we introduce our 2029E earnings estimates with this report.

Exhibit 7: Earnings revisions table

Win Semi P&L (NT$ mn) 2026E New 2026E Old Diff. 2027E New 2027E Old Diff. 2028E New 2028E Old Diff. 2029E New
Sales 21,762 21,320 2% 25,119 24,016 5% 27,420 25,864 6% 28,974
Gross Profit 7,092 6,148 15% 7,977 7,133 12% 8,835 7,930 11% 9,527
EBIT 3,851 2,924 32% 3,706 3,141 18% 4,065 3,430 19% 4,399
Net Income 4,685 3,184 47% 2,855 2,694 6% 3,549 3,331 7% 3,826
EPS (NTS) 11.05 7.51 47% 6.73 6.35 6% 8.37 7.86 7% 9.02
Ratio analysis
Gross margin 32.6% 28.8% 3.8pp 31.8% 29.7% 2.1pp 32.2% 30.7% 1.6pp 32.9%
EBIT margin 17.7% 13.7% 4.0pp 14.8% 13.1% 1.7pp 14.8% 13.3% 1.6pp 15.2%
Net margin 21.5% 14.9% 6.6pp 11.4% 11.2% 0.1pp 12.9% 12.9% 0.1pp 13.2%

Source: Goldman Sachs Global Investment Research

Valuation

We maintain our Sell rating, and revise up our TP from NT$142 to NT$162, based on the same target PE of 24x (1x STDV lower than the industry upcycle average valuation), factoring in our earnings revisions and, consistent with our group coverage practices, roll over our valuation period from 4Q26-3Q27 to 2027E.

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company to be impacted by the slow PA foundry market growth outlook given weak end-market demand and high inventory levels. This is despite some longer-term demand drivers (China PA in-sourcing trend, WiFi 6E/7 upgrading trend, new smartphone/AR VR optical products, automotive LiDAR opportunity, satellite communication market opportunity, stronger 5G BTS deployment in EU/US market, datacom optical opportunity etc.), which should increase its revenue/GM in the long term. However, we believe Win Semi's market share loss will continue to weigh on its long-term growth opportunity. We are Sell-rated given the ongoing PA foundry industry downcycle, along with our cautious view on the company's market share outlook. Win Semi is now trading above its average downcycle P/E multiple. Key upside risks are (1) easing competition in the China PA foundry market, (2) faster-than-expected progress on 5G/WiFi 7 upgrade trend, and (3) faster-than-expected growth from LEO/AI-related business.

Our 12-month target price of NT$162 is based on 24x 2027E EPS, which is 1x STDV lower than the industry upcycle average valuation since 2016. Key upside risks are (1) easing competition in the China PA foundry market, (2) faster-than-expected progress on 5G/WiFi 7 upgrade trend, and (3) faster-than-expected growth from LEO/AI-related business.

e92c7a75ab8b4efbba794e6b187208c8

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