GlobalWafers Co., Ltd Bull expectations need to be reset lower; non-consensus Neutral on lower EPS and less attractive valuation

Research evidence excerpt

J P M O R G A N

Asia Pacific Equity Research

05 August 2026

GlobalWafers Co., Ltd

Bull expectations need to be reset lower; nonconsensus Neutral on lower EPS and less attractive

valuation

Neutral

6488.TWO, 6488 TT

Price (05 Aug 26):NT$872.00

▲Price Target (Jun-27):NT$800.00

Prior (Jun-27):NT$555.00

GlobalWafers (GWC)’s 2Q26 core results were a miss on muted GM and elevated

Opex. Its 3Q26 revenue guidance and GM commentary appear to have missed

recent elevated sell-side estimates, which we attribute to limited ASP increases but

growing depreciation costs. GWC confirmed that the old LTA prices cannot be

amended and that the LTAs will cover most of its 12” shipments in 2H26-1H27. We

now model GWC’s 12” shipment ASP to grow by 10% and 25% YoY in 2027 and

2028, respectively. We set our 2026E, 27E and 28E EPS at NT$19.3, NT$20.3 and

NT$41.2. We think the bull camp’s estimates of NT$40-50 and NT$70-80 EPS for

2027 and 28 will be revised down by >20%, likely suppressing share price

momentum. We stick with our non-consensus Neutral rating and raise our Jun-27

PT to NT$800 (3.0x 2028E P/B), as we see a fair risk-reward and expect the stock

to be range-bound at this level. We see sequential, solid operating profit growth in

2027 and 2028 (after four consecutive years of declines over 2023-26), but the

valuation is not attractive (43x 2027E P/E or 21x 2028E P/E). We believe the Street

will prioritize positioning in key AI winners or stocks with stronger 2H26

fundamentals and more attractive valuations. In our view, when expectations for

the stock reset to a more realistic level (not yet happening) and there is greater

clarity on new LTA pricing, there could be a more attractive entry point for a

fundamental recovery, as Fab WFE pull-in should increase silicon wafer starts and

wafer vendors should improve profitability on new LTAs.

Technology

Jimmy Huang AC

(886-2) 2725-9865

J.P. Morgan Securities (Taiwan) Limited

Gokul Hariharan

(852) 2800-8564

J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

Morgan Broking (Hong Kong) Limited

Key Changes (FYE Dec)

Revenue - 26E (NT$ mn)

Revenue - 27E (NT$ mn)

Gross margin - 26E

Gross margin - 27E

Adj. EPS growth - 26E

Adj.…