Aerospace Industrial Development Corp (2634 TT, NT$61.20)- Consensus in drone industry accelerating

Research evidence excerpt

Aerospace Industrial Development Corp (2634 TT, NT$61.20)- Consensus in drone industry accelerating

rade domestic fighter

weapon systems and maintain and service indigenous aircraft. If the basic trainer project

Source: CMoney

is established, its capacity is estimated to reach 60-70% of the advanced trainer project,

What's changed which will provide subsequent growth momentum for AIDC's military business.

New Old %

Rating Buy Buy

AIDC to benefit significantly once drone budget approved

Target price 75 60 25

Recently, consensus has gradually been reached across political parties regarding the

BVPS forecast 21 20 5

future development of the drone industry. Although there are still differences in budget

Target PB (x) 3.6 3.0

allocation methods and leading agencies, it is expected that after inter-party negotiations,

Financial summary Year-end: Dec 31 a domestic drone industry development plan and blueprint will be proposed. As one of the

NT$mn FY25 FY26F FY27F

main technology sources and manufacturers in Taiwan’s drone industry, AIDC is expectedNet sales 35,452 36,494 39,256

YoY growth (%) -9.9 2.9 7.6 to secure relevant drone tenders from the Ministry of National Defense or assist other

Op profit 1,168 1,771 2,317 winning manufacturers in mass-producing drones. In terms of countermeasure systems,

YoY growth (%) -47.3 51.6 30.8

AIDC is actively developing soft-kill and hard-kill products, with new products expected to

Net profit 733 1,626 2,022

YoY growth (%) -66.2 121.8 24.4 be launched starting 2H26. Drones will become one of the main growth momentum

EPS (NT$) 0.78 1.73 2.15 drivers for AIDC's future performance.

DPS (NT$) 0.8 1.2 1.4

PE (x) 78.5 35.4 28.5

We forecast FY26 EPS of NT$1.73, up 121.8% YoY

PB (x) 3.2 3.1 2.9