Tong Yang (1319 TT, NT$86.50) - AM business to resume growth in 2H26, benefiting from tariff reductions

Research evidence excerpt

Tong Yang (1319 TT, NT$86.50) - AM business to resume growth in 2H26, benefiting from tariff reductions

Taiwan Equity | Automotive Industry

Company Snapshot

Fubon Research Tong Yang (1319 TT)

May 28, 2026

_ AM business to resume growth in 2H26, benefiting from tariff

reductions Buy

Price Target price

NT$86.50 NT$105 Upgrade to Buy, target price of NT$105, 21% upside

○Visit notes ○Initiating coverage 1. Due to customers adjusting their inventories, 1Q26 profit declines YoY

●Company update ○Earnings revision 2. AM business expected to resume growth starting from 2H26 as US import tariff on

○Earnings preview ●Rating change

auto parts reduced to 15%

Shares out. (mn) 592

3. China OE business projected to stay flat in FY26 due to continued increase in NEV

Mkt cap (NT$mn) 51,160

Mkt cap (US$mn) 1,627 penetration rate

FINI holding (%) 7.37

Local IM holding (%) 8.03 1Q26 EPS of NT$1.62, down 34.8% YoY

Directors holding (%) 18.38

Impacted by customer inventory adjustments, Tong Yang's 1Q26 sales came in at

52-week high (NT$) 129.39

52-week low (NT$) 73.60 NT$5.63bn, down 22.8% YoY and 13.5% QoQ. In terms of GM, affected by lower UTR and

Day-trading % 10% changes in the product mix, GM declined from 33.7% in 4Q25 to 32.5%. Regarding

profitability, net profit was NT$956mn, down 34.8% YoY and 21.9% QoQ, with EPS of

ESG rating 5 Industry Rank 14/43 NT$1.62 (vs. the previous forecast of NT$1.33).

AM business expected to resume growth starting from 2H26 as US import tariff on auto

parts reduced to 15%

For the AM business, starting from 2Q25, the tariff on auto parts between Taiwan and the

US increased to 27.5%, causing customers to adopt a wait-and-see attitude and thus

weakening the pull-in momentum. From January to April 2026, the AM business sales

reached NT$5.89bn, down 22.0% YoY.