Semiconductors - Taiwan: Beneficiaries of further tightening S/D in power semis & testing interface

Research evidence excerpt

Semiconductors - Taiwan: Beneficiaries of further tightening S/D in power semis & testing interface

Exhibit 2: Summary of changes in PO and valuation

We lift P/E multiple applied for Silergy in this report

PO (local

currency) Valuation method

Company Ticker New Old New Old

Silergy 6415 TT 740 630 35x 2027E P/E 30x 2027E P/E

Source: BofA Global Research

BofA GLOBAL RESEARCH

Exhibit 3: Table of recommendation

Stocks mentioned with ratings in this report

BofA ticker Ticker Company name Price (LC) Rating

SLEGF 6415 TT Silergy NT$ 562 C-1-7

XWCLF 6515 TT WinWay NT$ 8700 C-1-7

Source: BofA Global Research, company data

Price objective basis & risk

Silergy Corp. (SLEGF)

We base our PO of NT$740 on 35x 2027E P/E (vs 52% EPS CAGR during 2026-28,

implying 0.7x PEG). The target multiple is toward the low-to-mid-end of the company's

historical trading range (10x-80x), and in our view is supported by a recovering operating

margin of 27% and ROE of 20% in 2027-28E.

Upside risks to our PO are:

1) Better-than-expected end-market demand, driven by stronger-than-expected recovery

in macro activities

2) Smaller-than-expected pricing pressure with less competition from global analog

leaders and Chinese domestic peers

3) Faster-than-expected market share gain in power management under the

semiconductor localization theme in China, especially for Communication and Industrial

business.

Downside risks to our PO are:

1) Stagnant market share especially in China semiconductor universe, given fiercer-than-

expected competition from Chinese domestic power management peers

2) Weaker-than-expected end demand to dampen the firm's revenue growth, especially

given its roughly 40% exposure to consumer market

3) Lack of bundle solution such as RF and signal chain to penetrate further into mobile