Taiwan Cement Corp (1101 TT, NT$24.20) - Lukewarm cross-strait cement demand but European low-carbon initiatives, new energy drive growth

Research evidence excerpt

Taiwan Cement Corp (1101 TT, NT$24.20) - Lukewarm cross-strait cement demand but European low-carbon initiatives, new energy drive growth

Taiwan Equity | Cement

Company Snapshot

recently received an EU core safety protection technology patent, and its future plans

include expanding into the European energy storage and charging market. Overall, TCC

China’s cement market share continues to decrease, and once its new energy business

turns profitable, it will inject new growth momentum. Also, it is planning an IPO in the

European market, which is currently under review. We believe this will favor its valuation

as the European market is relatively mature in ESG and energy transition, and should help

TCC break out of the traditional low PE cement stock framework. With optimized capital

structure, it will also accelerate expansion of new businesses such as energy storage,

charging, and low-carbon materials, supporting its long-term growth momentum.

How are we different?

We project FY26-27 net EPS of NT$1.01 and NT$1.32, compared to the Bloomberg

consensus of NT$1.23 and NT$1.66, respectively.

Valuation, risks

TCC has recently traded at 10-40x PE and 0.8-1.5x PB, and currently trades at 23.9x

FY26F PE and 0.8x FY26F PB. Considering the company’s long-term deployment in power

and energy businesses, which is favorable for its operations and valuation, we maintain

Buy and target price of NT$27.5, implying 27.2x FY26F PE and 0.9x FY26F PB. The main

risks to our recommendation include its power business performance falling short of

market expectations, higher-than-expected losses from new energy, and downward

revisions in cross-strait cement market conditions.

Figure 1: Quarterly EPS review Unit: NT$mn

1Q26 QoQ YoY Fubon Diff Consensus Diff