Sercomm Corp (5388 TT, NT$83.40) - 2Q26 sales exceed expectations

Research evidence excerpt

Sercomm Corp (5388 TT, NT$83.40) - 2Q26 sales exceed expectations

Taiwan Equity | Technology

Company Snapshot

Fubon Research Sercomm Corp (5388 TT)

July 8, 2026

_ 2Q26 sales exceed expectations

Buy

Maintain Buy, adjust target price to NT$106, 27% upside

Price Target price

NT$83.40 NT$106 1. 2Q26 sales exceed expectations

○Visit notes ○Initiating coverage 2. FY26 growth momentum stems from upgrades in enterprise, home networking

●Company update ●Earnings revision equipment.

○Earnings preview ○Rating change

3. Memory cost successfully passed on.

Shares out. (mn) 304

Mkt cap (NT$mn) 25,380

Mkt cap (US$mn) 790 2Q26 sales exceed expectations

FINI holding (%) 19.48 Sercomm posted June sales of NT$7.27bn, up 12% MoM and 71% YoY, and 2Q26 sales of

Local IM holding (%) 0.05 NT$20.6bn, up 24% QoQ and 69% YoY, exceeding expectations. This was mainly

Directors holding (%) 4.59

attributed to mass shipment of fiber products and 5G FWA to North American telecom

52-week high (NT$) 107.11

52-week low (NT$) 72.70 operators this year, which we expect to be the segment with the largest growth. We

Day-trading % 29% estimate GM of 13.4% and revise up our EPS forecast to NT$2.1.

ESG rating 7 Industry Rank 15/90 FY26 growth momentum stems from upgrades in enterprise, home networking equipment

FY26 growth momentum will come from: 1) upgrades in enterprise and home broadband

equipment: The rise of AI applications has led to a surge in data volume, driving the need

for infrastructure upgrades. 2026 will be a year of large-scale adoption of Wi-Fi 7

technology, DOCSIS 4.0 and 10G PON upgrades, and continued ramp-up in 5G FWA

demand, boosting the sales of North American telecom operators; 2) it has started

shipping Distributed Access Architecture (DAA) equipment for decentralized central