GUC (3443 TT, NT$5,285) - Rallying on CPU hype

Research evidence excerpt

GUC (3443 TT, NT$5,285) - Rallying on CPU hype

forecasts,

respectively. Even though the supply chain number is a big surprise, we think the mega CPU

Source: CMoney trend is much more important to GUC’s future growth. In FY27, the ratio of CPU to TPU is

around 1:2. In FY28, our checks suggest that the downstream vendor is discussing with

What’s changed

customers on the architecture of 1:1. Moreover, our checks suggest that the upstream New Old %

Rating Buy Buy customer is considering standalone CPU racks, which might make the CPU count higher

Target price (NT$) 8000 6000 33 than the TPU count in the future. This is not an impulsive move as Intel already commented

EPS forecast (NT$) 200.53 150.98 33 that the ratio could be 4:1 under the agentic AI era. In sum, we think GUC is well positioned

Target PE (x) 40 40

in this mega trend.

Financial summary Year-end: Dec 31 Automotive projects ready to shine

NT$mn FY25 FY26F FY27F

To our surprise, our checks suggest that the automotive project from Horizon is ready to

Net sales 34,141 65,133 205,716

YoY growth (%) 36.3 90.8 215.8 contribute turnkey revenue, which is earlier than expected. Even though it is a China

Op. profit 4,350 8,289 29,408 customer, this is not considered sensitive, and the capacity procurement has progressed

YoY growth (%) 14.4 90.6 254.8

smoothly since automotive applications are seen as potential key growth drivers in the

Net profit 3,770 7,621 26,883

YoY growth (%) 9.2 102.2 252.7 future. In our previous report, we thought the projects involved only 500k units, but our

EPS (NT$) 28.13 56.85 200.53 recent checks suggest the volume is beyond our previous expectations. The chip will not

DPS (NT$) 20.0 14.0 14.0 only be shipped to China’s automotive brands but also to European brands, which makes