Andes (6533 TT, NT$219) - Customer mix gradually upgraded

Research evidence excerpt

Andes (6533 TT, NT$219) - Customer mix gradually upgraded

n in 1H26.

What’s changed

Overall, we forecast FY26/FY27 revenue of NT$1.8bn (+20% YoY)/NT$2.1bn (+20% YoY),

New Old %

Rating Neutral Neutral OPEX of NT$1.9bn (-2% YoY)/NT$2.0bn (+5% YoY), and EPS of -NT$0.42/NT$4.68,

Target price (NT$) 250 210 24 respectively.

Sales per share forecast (NT$) 41.78* 34.93** 20

Target PS (x) 6 6 Customer mix gradually upgraded

Note: *new FY27 forecast; **old FY26 forecast

We see strong customer project momentum, and Andes’ customer mix is gradually upgraded

Financial summary Year-end: Dec 31 to mega cap clients. Industry wise, the demand for edge AI, such as CPU and NPU, remains

NT$mn FY25 FY26F FY27F strong. To enable more AI functionality, the RISC-V penetration rate gets higher as

Net sales 1,478 1,770 2,118

YoY growth (%) 7.0 19.7 19.7 customers choose to migrate either the entire chip or additional bus to RISC-V. By region,

Op. profit -420 -94 162 CSPs in the US region, the mega cap clients, are under discussion with Andes, and we

YoY growth (%) 0.0 0.0 0.0 expect more results to come in place in 2H26. For startups, the small cap clients, the

Net profit -415 -21 237

demand declined slightly since the mega cap clients are developing overlapping products.YoY growth (%) -22,036.6 -- --

EPS (NT$) -8.20 -0.42 4.68 In China, demand remains strong, and the mega cap clients are also interested in Andes’

DPS (NT$) 0.0 0.0 0.0 AX45 series. As such, we see that Andes’ customer mix is gradually being upgraded.

PE (x) -26.8 -528.7 46.9

PB (x) 2.5 1.9 2.1

How are we different?Div. yield (%) 0.0 0.0 0.0

ROE (%) -8.9 -0.4 4.5 Our FY26 and FY27 EPS forecasts of -NT$0.42 and NT$4.68 compare to the market

Source: CMoney, Fubon Research consensus of NT$0.94 and NT$6.37, respectively.

Rita Tung