KINSUS (3189 TT, NT$503.00) - nVidia’s CPU substrate as major growth driver in FY27

Research evidence excerpt

KINSUS (3189 TT, NT$503.00) - nVidia’s CPU substrate as major growth driver in FY27

216% YoY.

What’s changed

New Old %

Rating Buy Buy nVidia’s CPU substrate as major growth driver in FY27

Target price (NT$) 620 420 48 We expect the ABF growth drivers to shift from graphics cards to AI servers in FY27.

EPS forecast (NT$) 17.18 13 32 Kinsus is aggressively positioning itself for the nVidia Vera Rubin transition, which

Target PE (x) 36 31

utilizes HBM4 and high-layer count designs. We project Kinsus’ allocation in

Financial summary Year-end: Dec 31 nVidia’s Vera Rubin CPU to exceed 50% in FY27, which will be one of Kinsus’ main

NT$mn FY25 FY26F FY27F drivers in FY27. We currently forecast nVidia’s CPU revenue to account for 15~20%

Net sales 39,351 51,088 65,510

of Kinsus FY27 revenue. As material shortages ease, we expect potential upside forYoY growth (%) 28.9% 29.8% 28.2%

Op. profit 2,670 6,503 11,297 Kinsus’ allocation. As for BT substrates, we expect the strength in DRAM and

YoY growth (%) 143.7% 143.6% 73.7% NAND memory to offset continued weakness in smartphones. Kinsus’ monthly

Net profit 1,596 4,848 9,048

ABF capacity is expected to grow from 40mn units currently to 80mn by FY29,

YoY growth (%) 3164% 204% 87%

EPS (NT$) 3.51 9.33 17.18 including 50mn units/month in FY27, 65mn units/month in FY28, and 80mn

DPS (NT$) 1.75 5.60 10.31 units/month in FY29. The focus is on building new, dedicated high-end facilities

PE (x) 143.3 53.9 29.3 to ensure the precision and yield required for 30+ layer substrates, rather than

PB (x) 7.0 5.5 5.1

Div. yield (%) 0.3 1.1 2.0 retrofitting older plants. Driven by T-glass shortages and rising ABF demand, the

ROE (%) 6.7 9.8 15.3 ABF price hike is expected to accelerate from 3~5% in 1H26 to high single digit in