All Ring Tech: Accumulate All Ring on strong revenue momentum and attractive risk reward; OW

Research evidence excerpt

All Ring Tech: Accumulate All Ring on strong revenue momentum and attractive risk reward; OW

.98 46.30 15.8% Adj. EBIT - 26E (NT$ mn) 2,684 2,794 4.1%

builds. We raise our 2Q26 and 3Q26 revenue forecasts by 11% and 23% to Adj. EBIT - 27E (NT$ mn) 4,679 5,422 15.9%

NT$2.2bn and NT$2.7bn, 12-13% above consensus. All Ring’s monthly

revenue for Apr and May rose 15% and 19% MoM, respectively, and we project Quarterly Forecasts (FYE Dec)

June rev to grow by 23% MoM. Given CoWoS accounted for 90% of All Ring’s Adj. EPS (NT$)

revenue in 2025, we think CoWoS and FOCoS capacity builds will drive All 2025A 2026E 2027E

Ring’s revenue momentum to outpace that of other local equipment peers with Q1 3.57 3.37A 8.00

Q2 4.16 5.18 10.21

agency business exposure. We think this positive dynamic is currently being Q3 4.37 8.33 13.82

overlooked by the market. Q4 3.36 7.58 14.27

FY 15.46 24.49 46.30

• CPO - awaiting sentiment recovery in late 3Q26. We do not expect

Corning’s GlassBridge solution to disrupt current and upcoming “mass Style Exposure

production” CPO projects in 2026-27, given the differences in SiPh platforms

and supply chains. The recent correction in All Ring’s stock on June 29 appears

unwarranted, in our view. We maintain our 2027 CPO revenue contribution

assumption at NT$2.6bn (19% of corp rev, including NT$1.7bn from FAU-

related equipment and NT$0.9bn from OE-related equipment). We take a

prudent approach and continue to model All Ring to recognize revenue of 100

units of FAU optical coupling equipment. We have flagged that CPO

equipment throughput has room to improve (note), and we believe this

rationale also applies to All Ring’s equipment offering. Although faster

throughput could lead to lower shipment units, prices could increase on

increasing BOM cost (i.e.