J.P. Morgan Taiwan FTM 13 May 26 ASMedia Technology Inc.; ASUSTek Computer; Hon. Precision; Inventec; Jentech Precision Industrial Co. and More

Research evidence excerpt

J.P. Morgan Taiwan FTM 13 May 26 ASMedia Technology Inc.; ASUSTek Computer; Hon. Precision; Inventec; Jentech Precision Industrial Co. and More

Gokul Hariharan AC Asia Pacific Equity Research

(852) 2800-8564 13 May 2026 J P M O R G A N

gokul.hariharan@jpmorgan.com

believe the stock remains under-owned by a broad base of investors, which could serve as a key driver of future share price

appreciation.

Inventec (Albert Hung) (2356 TT, N)

Strong general server upcycle, AI visibility lags peers; N

Key takeaways from Inventec’s 1Q26 earnings call were: (1) in-line 1Q26 OPM, while bottom-line results beat on top-line

upside; (2) a sequential 2Q26 revenue growth outlook, driven by servers with flattish NB; (3) management guided 30–50%

server segment revenue growth this year, supported by strengthening general server signals and <50% AI server growth; (4) a

mixed margin outlook, with better mix (higher server %) partially offset by higher rack contribution and capacity expansion; and

(5) reiterated US$1bn capex to support production expansion across China, Taiwan, Mexico, Veitnam, US, and Czech. We

believe Inventec continues to lag peers in AI server progress, and its smaller operating scale likely leaves it at a competitive

disadvantage in AI server rack projects. The stock has underperformed the Taiex by 32% YTD and we expect continued

underperformance over the next six months. We nudge up our 2026/27 earnings estimates by 10% respectively to reflect a

stronger general server upcycle, but maintain our Neutral rating with a Dec-26 PT of NT$46 (based on 14x 12-month forward P/

E, around mid-cycle valuation).

Jentech Precision Industrial Co. (William Yang) (3653 TT, OW)

1Q26 results in-line; revise down 2Q26 estimates on potential Rubin lid design change