Ta Chen Stainless Pipe Co Ltd (2027 TT, NT$39.70) - Optimistic business outlook

Research evidence excerpt

Ta Chen Stainless Pipe Co Ltd (2027 TT, NT$39.70) - Optimistic business outlook

Taiwan Equity | Steel Industry

Company Snapshot

Fubon Research Ta Chen Stainless Pipe Co Ltd (2027 TT)

May 13, 2026

_ Optimistic business outlook

Buy

Positive industry development, retain Buy, raise target price to NT$49, 23% upside

Price Target price

NT$39.70 NT$49 1. 1Q26 profit beat as GM outperforms

●Visit notes ○Initiating coverage 2. Raise FY26 profit forecast on robust market demand, continued raw material price

○Company update ○Earnings revision uptrend

○Earnings preview ○Rating change

3. 3Q26 sales growth to accelerate on intact industry upturn

Shares out. (mn) 2,584

Mkt cap (NT$mn) 102,600

Mkt cap (US$mn) 3,251 1Q26 profit beat as GM outperforms

FINI holding (%) 14.05 Ta Chen’s 1Q26 sales reached NT$31.17bn, up 27.5% QoQ and 19.5% YoY, slightly better

Local IM holding (%) 7.94 than expected. Given a low base in 4Q25 due to seasonal downturn, 1Q26 sales grew

Directors holding (%) 4.39

QoQ. International nickel prices and US Midwest aluminum prices rose 17% and 16%

52-week high (NT$) 42.30

52-week low (NT$) 32.20 QoQ in 1Q26, respectively. As a result, the company raised its product prices. 1Q26 sales

Day-trading % 27% grew YoY on: 1) 7% YoY growth in aluminum coil shipment; 2) YoY growths of 11% and

63% in international nickel prices and US Midwest aluminum prices, respectively, which

ESG rating 7 Industry Rank 1/49 significantly boosted ASP and offset the impact of 10% decline in stainless steel

shipment. As its operations benefited from continued price hikes, GM reached 27.3%,

above expectations. Although it recognized US$18mn in non-op hedging losses due to

rising raw material prices, net profit still hit NT$2.92bn, up 57.5% QoQ and 88.1% YoY,