ELAN (2458 TT, NT$146.5) - AI-related revenue weight rises to teens; exploring optics

Research evidence excerpt

ELAN (2458 TT, NT$146.5) - AI-related revenue weight rises to teens; exploring optics

gle’s Googlebook, and

Source: CMoney Microsoft’s new Surface Laptops for business–will accelerate the adoption of Haptic

Touchpad, Copilot Key/Fingerprint readers, and touchscreen with stylus solutions,

What’s changed

ultimately supporting YoY revenue growth in 2H26. New Old %

Rating Neutral Neutral

Target price (NT$) 160 136 18 AI-related revenue weight reaches teens; accelerating drone growth, exploring optics

EPS forecast (NT$) 9.34 9.14 2 Elan’s AI-related revenue reached 10% from March, with applications spanning drones,

Target PE (x) 17.1 14.9

automotive (ADAS), and smart transportation. The management specifically highlighted its

Financial summary Year-end: Dec 31 ambitious drone application strategy, targeting huge demand for military and commercial

NT$mn FY25 FY26F FY27F drones within the non-China supply chain. By partnering with Thunder Tiger to provide

Net sales 12,326 13,087 14,226

camera module and GCS solutions, Elan is transitioning from a sole ISP chip provider to aYoY growth (%) -2.9 6.2 8.7

Op. profit 2,982 3,225 3,690 module and solution provider. The shipment of camera modules and AI boxes, beginning in

YoY growth (%) -2.7 8.1 14.4 June, indicates a more than 10x increase in content value for drones. Furthermore, Elan

Net profit 2,442 2,797 3,138

announced a strategic investment in PETA Optronics, which focuses on PIC and high-speed

YoY growth (%) -10.7 14.5 12.2

EPS (NT$) 8.53 9.34 10.33 optical transmission, with products targeting Pluggable Optics, NPO, and CPO. Elan holds

DPS (NT$) 7.1 7.5 8.3 a 15-16% stake and will participate in the development of EIC, especially in TIA and Laser