Nan Pao (4766 TT, NT$367.00) - Accelerated advancement in semiconductor adhesive business

Research evidence excerpt

Nan Pao (4766 TT, NT$367.00) - Accelerated advancement in semiconductor adhesive business

g

long-term GM improvement

Advanced Pao Trusval Technology acquired Nan Pao’s existing customer Tape Pro in

Source: CMoney

March this year, leveraging its mature production lines to quickly obtain initial testing and

What's changed mass production capabilities, shortening the plant construction lead time by about two

New Old %

years. Through business integration, Nan Pao began supplying UV debonding adhesive

Rating Buy Buy

raw materials to the production line in the same month, which Advanced Pao TrusvalTarget price 437 400 9

EPS forecast 24.33 23.47 4 Technology then processes into wafer grinding and dicing tapes. Currently, mature

Target PE 18 17 process products are under testing, and with existing capacity fully loaded, the company is

working overtime to meet demand. Advanced Pao Trusval Technology’s joint R&D with

Financial summary Year-end: Dec 31

NT$mn FY25 FY26F FY27F major semiconductor packaging companies is progressing smoothly, benefiting from

Net sales 23,200 23,898 25,849 customers’ active development and testing needs. As certification accelerates and future

YoY growth (%) 0.9 3.0 8.2 orders ramp up, Advanced Pao Trusval Technology is preparing for capacity expansion,

Op profit 3,816 3,917 4,464

with new production lines to be used for advanced process testing and certification. It isYoY growth (%) 6.2 2.6 14.0

Net profit 2,442 2,934 3,193 estimated that this year, semiconductor adhesive sales will account for about 1~2%, with

YoY growth (%) -9.0 20.2 8.8 future exponential growth expected. Additionally, GM for UV debonding adhesives is

EPS (NT$) 20.25 24.33 26.47

above average, supporting GM improvement and product mix optimization.

DPS (NT$) 18.0 21.7 23.6