TCI Co Ltd (8436 TT, NT$118)- Continued profit improvement, growth momentum to last into FY27

Research evidence excerpt

TCI Co Ltd (8436 TT, NT$118)- Continued profit improvement, growth momentum to last into FY27

Taiwan Equity | Biotechnology &

Healthcare

Company Snapshot

Fubon Research TCI Co Ltd (8436 TT)

June 30, 2026

_ Continued profit improvement, growth momentum to last into FY27

Buy

Short-term operational impact; adjust target price to NT$136, 15% upside

Price Target price

1. 1Q26 profit exceeds expectations, expense optimization drives OpM improvement NT$118 NT$136

○Visit notes ○Initiating coverage 2. Slight profit growth expected in 2Q26 amid external disruptions

●Company update ●Earnings revision 3. Customer adoption in line with guidance, significant sales growth postponed to 2027

○Earnings preview ○Rating change

Shares out. (mn) 118

1Q26 profit exceeds expectations, expense optimization drives OpM improvement

Mkt cap (NT$mn) 13,890

Mkt cap (US$mn) 436 1Q26 sales reached NT$1.64bn, +3.4% YoY, -12.1% QoQ, slightly better than Fubon’s

FINI holding (%) 13.96 expectations. However, European orders were affected by the war, resulting in shipment

Local IM holding (%) 0.73 delays of about 3-4 weeks, which suppressed part of the sales recognition momentum.

Directors holding (%) 11.19 GM was 45.4%, +3.4ppts YoY, -1.3ppts QoQ. The annual increase was mainly due to

52-week high (NT$) 159.00

product mix optimization, while the quarterly decrease reflected changes in shipment

52-week low (NT$) 105.50

Day-trading % 12% structure and utilization rate. On the expense side, the company continued to implement

AI to improve departmental efficiency, leading to 1Q26 expenses of NT$456mn, -7% YoY,

ESG rating 7 Industry Rank 10/159 which raised OpM to 17.6%, +6.6ppts YoY. 1Q26 tax rate reached 20.4% as the company,

based on a conservative approach, did not include relevant R&D investment credits.