More favorable competitive landscape and DRAM ASP outlook; lift PO to NT$660

Research evidence excerpt

More favorable competitive landscape and DRAM ASP outlook; lift PO to NT$660

iQprofile SM Nanya Technology

Key Income Statement Data (Dec) 2024A 2025A 2026E 2027E 2028E Company Sector

(NT$ Millions) Semiconductors

Sales 34,132 66,587 345,497 490,549 480,521

Gross Profit (421) 14,986 266,526 364,593 298,691

Sell General & Admin Expense (10,134) (9,741) (15,425) (18,909) (21,190) Company Description Operating Profit (10,555) 5,245 251,102 345,684 277,502

Net Interest & Other Income 3,998 2,639 3,306 2,101 1,939 Nanya Technology is an affiliate of Formosa Plastics Group.

Associates NA NA NA NA NA The firm manufactures and distributes DRAM chips.

Pretax Income (6,557) 7,884 254,408 347,785 279,441 Management focuses on non-PC applications such as

Tax (expense) / Benefit 1,474 (1,269) (59,105) (83,468) (67,066) consumer, mobile, server, autos, etc. Key customers are

Net Income (Adjusted) (5,083) 6,616 195,304 264,317 212,375

based in China and Taiwan. Samsung, SK Hynix and Micron

Average Fully Diluted Shares Outstanding 3,122 3,122 3,122 3,122 3,122

are major competitors.

Key Cash Flow Statement Data

Net Income (5,083) 6,616 195,304 264,317 212,375

Depreciation & Amortization 16,144 14,281 11,763 12,994 15,972 Investment Rationale Change in Working Capital (5,772) (1,973) 3,725 5,074 4,119

Deferred Taxation Charge NA NA NA NA NA Our Buy rating is based on the DRAM industry's supercycle,

Other Adjustments, Net (3,337) (355) (3,795) 0 0 which should warrant a high-margin profile for Nanya Tech

Cash Flow from Operations 1,952 18,568 206,997 282,385 232,466 even in the long term. Its 1Q26 results already reveal

Capital Expenditure (16,143) (13,446) (55,000) (70,000) (70,000) exceptionally strong revenue (NT$49bn, a few times higher