J.P. Morgan Taiwan FTM 28 May 26 Grand Process Technology; Mega Holdings and More

Research evidence excerpt

J.P. Morgan Taiwan FTM 28 May 26 Grand Process Technology; Mega Holdings and More

Asia Pacific Equity Research

Taiwan First to Market 28 May 2026

Top Stories

Grand Process Technology (Jimmy Huang) (3131 TT, OW)

Raise PT to NT$4,400; key beneficiary of strong, extended semi capex cycle; OW

We update our GPTC model and raise our Dec-26 PT to NT$4,400, based on a 33x 2H27E-1H28E P/E. GPTC’s share price

has been flat over the past month and underperformed the Taiex by 12%. While GPTC’s stock is up 120% YTD, the gain has

lagged many peers’. We expect GPTC to begin outperforming from here, with catalysts being: (1) improved execution that

eases investor concerns; (2) an announcement of securing new capacity; and (3) a better-than-expected 2028 demand

outlook. We expect GPTC to grow revenue and operating profit by 38% and 51% CAGRs, respectively, in 2025-28, driven by a

strong, extended semiconductor capex cycle. Maintain OW. See our 1Q26 investor meeting First Take here.

Mega Holdings (Jemmy S Huang) (2886 TT, UW)

1Q26 results slightly ahead on decent earnings at non-banking operations

Mega’s 1Q26 results came in slightly ahead of our expectations, supported by decent earnings performance at non-banking

operations. We retain our UW rating, as we expect its earnings momentum to continue lagging and its share price to

underperform peers in the coming months.