報告_UBS_譜瑞4966_20260914

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First Read

Parade Technologies

2026 Taiwan Summit: Near-term outlook impacted by softer NB demand

Q326 revenue tracking toward lower-end of guidance

Parade attended our 2026 Taiwan Summit on Sep 14th. August sales of NT$1,327 mn was down 2% and flat YoY. QTD sales only reached 57% of UBSe and Street estimates, and Parade now expects its Q326 sales could come in at the lower-end of its US$139153 mn guidance range, likely due to softer NB demand. Parade's GM declined by 0.1 pp QoQ to 40.2% in Q226 on OSAT price hike, as the Taiwanese OSATs have allocated more capacity to AI-related products. Parade noted it has been adding new OSAT partners in Korea, China, and Malaysia, while also adjusting its ASPs in Q326. It noted its Q326F GM should come in within its 40-44% guidance range, but we believe the GM expansion will be more moderate given the cost headwinds. Q326F OPEX guidance is reiterated at US$33-36 mn with full year OPEX growth to be within 5% YoY, and effective tax rate for 2026F is guided to remain slightly above 10%. It has not provided a specific outlook for Q426 but acknowledge the challenging outlook for the laptop market. This is consistent with our recent checks within the NB display supply chain.

ASIC for CPU chipset to tape out soon for H227 mass production

Parade highlighted its deep expertise in high-speed connectivity and proprietary IP , which enables it to deliver customized ASIC-like solutions to its customers. While its initial focus was display applications, it is now expanding into CPU chipset. It is on-track to tape out two chipsets for its CPU customer, targeting different PCIe channel configurations. Comparing with its peers solution on 28nm node, Parade believes its product developed on 12 nm node offers superior power efficiency. Parade noted the CPU chipsets are on track for mass production by H227, although we believe ASMedia's solution will start to ramp from mid-2027 and will split the market share with Parade.

Exploring additional growth drivers for 2027

Parade also highlighted its ongoing effort to diversify away from traditional NB display IC business with several initiatives expected to contribute growth from 2027F. It sees good revenue opportunity for integrated touch solutions (TED/TTED), especially after the potential adoption of touch display by its standard-plus customer. For ACC cables, it will supply redriver with switch function, which should be a new growth engine in 2027F as it believes copper and optical will co-exist in the next several years. Its USB4 retimer also has good market share at non-Intel platform and management expects the penetration to exceed 50% in 2027 vs 40%+ in 2026. Parade also noted its automotive business should see strong sales growth in 2027, although we estimate overall contribution for this segment remains at low-single-digit % of total revenue.

Valuation: Rate NEUTRAL with NT$610 PT

We have a NEUTRAL rating on Parade with NT$610 PT, based on 14.5x forward PE.

Source: Company accounts, LSEG Eikon, UBS estimates. Metrics marked as (UBS) have had analyst adjustments applied. Valuations: based on an average share price that year, (E): based on a share price of NT$ 537.00 on 14-Sep-2026 22:00:32 CST

Jerry Su

Analyst jerry.su@ubs.com +886-28-722 7306

Annie Chen

Associate Analyst annie.chen@ubs.com +886-2-8722 7281

Forecast returns

Company Description

Founded in 2005, Parade is a mixed-signal IC fabless design house headquartered in San Jose, CA, specialising in high-speed interface and display solutions used in PCs, servers, consumer electronics and display panels. Parade's display solutions (55% of 2024 revenue) include embedded display port timing controllers (eDP TCON), source drivers and touch controllers. Parade's high-speed interface solutions (45% of 2025 revenue) include signal conditioners for USB, PCIe, SATA, etc, as well as protocol converters and USB controllers.

Valuation Method and Risk Statement

Our price target for Parade is based on target PE multiple.

Fabless integrated circuit (IC) design houses face a variety of uncertainties, including rapidly changing technology, end-market demand, competition, employee turnover and foundry wafer costs. They are also vulnerable to legal disputes over IP rights.

For Parade, we believe key risks include: 1) Demand dynamics in PCs/notebooks, TVs, servers, etc., as any pickup or slowdown in these end-markets would directly impact Parade's growth and new product rollouts. 2) The length of the qualification cycle or pace of adoption by clients could be a key upside/downside risk to our thesis. 3) Potential new entrants in Apple's IT display timing controllers could be a downside risk to our growth estimates. 4) Fiercer price competition by global and Asian peers may pose downside risk to our growth and GM forecasts. 5) Foundry and assembly cost changes could present upside/downside risks to our GM estimates.

Quantitative Research Review

UBS Global Research publishes a quantitative assessment of its analysts' responses to certain questions about the likelihood of an occurrence of a number of short term factors in a product known as the 'Quantitative Research Review'. The views for this month can be found below. Views contained in this assessment on a particular stock reflect only the views on those short term factors which are a different timeframe to the 12-month timeframe reflected in any equity rating set out in this note. For previous responses please make reference to (i) previous UBS Global Research reports; and (ii) where no applicable research report was published that month, the Quantitative Research Review which can be found at https://neo.ubs.com/quantitative, or contact your UBS sales representative for access to the report or the Quantitative Research Team on ubs-quant-answers@ubs.com. A consolidated report which contains all responses is also available and again you should contact your UBS sales representative for details and pricing or the Quantitative Research Team on the email above.

Parade Technologies

Required Disclosures

This document has been prepared by UBS Securities Pte. Ltd., Taipei Branch, an affiliate of UBS AG. UBS AG, its subsidiaries, branches and affiliates, including former Credit Suisse AG and its subsidiaries, branches and affiliates are referred to herein as "UBS".

For information on the ways in which UBS manages conflicts and maintains independence of its UBS Global Research product; historical performance information; certain additional disclosures concerning UBS Global Research recommendations; and terms and conditions for certain third party data used in research report, please visit https://www.ubs.com/disclosures. Unless otherwise indicated, information and data in this report are based on company disclosures including but not limited to annual, interim, quarterly reports and other company announcements. The figures contained in performance charts refer to the past; past performance is not a reliable indicator of future results. Additional information will be made available upon request. UBS Securities Co. Limited is licensed to conduct securities investment consultancy businesses by the China Securities Regulatory Commission. UBS acts or may act as principal in the debt securities (or in related derivatives) that may be the subject of this report. This recommendation was finalized on: 14 September 2026 02:25 PM GMT. UBS has designated certain UBS Global Research department members as Derivatives Research Analysts where those department members publish research principally on the analysis of the price or market for a derivative, and provide information reasonably sufficient upon which to base a decision to enter into a derivatives transaction. Where Derivatives Research Analysts co-author research reports with Equity Research Analysts or Economists, the Derivatives Research Analyst is responsible for the derivatives investment views, forecasts, and/or recommendations. Quantitative Research Review: UBS Global Research publishes a quantitative assessment of its analysts' responses to certain questions about the likelihood of an occurrence of a number of short term factors in a product known as the 'Quantitative Research Review'. Views contained in this assessment on a particular stock reflect only the views on those short term factors which are a different timeframe to the 12-month timeframe reflected in any equity rating set out in this note. For the latest responses, please see the Quantitative Research Review Addendum at the back of this report, where applicable. For previous responses please make reference to (i) previous UBS Global Research reports; and (ii) where no applicable research report was published that month, the Quantitative Research Review which can be found at https:// neo.ubs.com/quantitative, or contact your UBS sales representative for access to the report or the Quantitative Research Team on ubsquant-answers@ubs.com. A consolidated report which contains all responses is also available and again you should contact your UBS sales representative for details and pricing or the Quantitative Research team on the email above.