Chung Hsin Electric & Machinery (1513 TT, NT$157) - Potential for growth by entering semiconductor supply, expanding into overseas markets

Research evidence excerpt

Chung Hsin Electric & Machinery (1513 TT, NT$157) - Potential for growth by entering semiconductor supply, expanding into overseas markets

AI/IDC data center construction demand, the amount of orders on hand increased to

Source: CMoney

NT$43.1bn, with order visibility extending to 2030, indicating high certainty for future

What's changed business growth. To meet rising order demand, the company will introduce automated

New Old %

welding and AI quotation systems in 2026, which is expected to boost capacity by 15-

Rating Buy Buy

20%. In terms of capex, plans have been significantly raised from the original NT$600mnTarget price 180 180 0

EPS forecast 8.65 8.83 -2 to NT$1.5-2bn, mainly for GIS equipment upgrade testing, investment in related

Target PE 20.8 20.4 enterprises (expanding the private market), and AI system and equipment construction,

each accounting for about one-third, demonstrating the company's active strengthening

Financial summary Year-end: Dec 31

NT$mn FY25 FY26F FY27F of technical capabilities and market expansion. In addition, the company continues to

Net sales 27,449 29,510 32,243 invest in new products and business development, including permanent magnet

YoY growth (%) 7.2 7.5 9.3 centrifugal chillers and container-type hydrogen energy solutions, expanding its energy

Op profit 4,977 5,302 5,889

applications. Leveraging its technical advantage in power generation systems and HVACYoY growth (%) 9.7 6.5 11.1

Net profit 3,988 4,333 4,820 integration, CHEM has already engaged with industry partners for modular data center

YoY growth (%) 10.1 8.6 11.2 collaboration, currently under review.

EPS (NT$) 8.07 8.65 9.58

DPS (NT$) 6.0 6.5 7.3

PE (x) 19.5 18.1 16.4 Potential for growth by entering semiconductor supply, expanding into overseas markets