Strong momentum to persist into 2H26F: Structural growth catalysts intact and Chroma appears to be making more progress in SLT; maintain Buy

Research evidence excerpt

Strong momentum to persist into 2H26F: Structural growth catalysts intact and Chroma appears to be making more progress in SLT; maintain Buy

Global Markets Research

Chroma ATE Inc. 2360.TW 2360 TT 30 July 2026

EQUITY: TECHNOLOGY

RatingStrong momentum to persist into 2H26F Remains Buy

Target priceStructural growth catalysts intact and Chroma appears to Remains TWD 2,845.00

be making more progress in SLT; maintain Buy

Closing price TWD 1,910.00 30 July 2026Maintain Buy and TP of TWD2,845, implying ~49% upside

Chroma’s 2Q26 GM of 60.5% was below both our/ Bloomberg consensus estimates, Implied upside +49.0%which it attributes to input cost inflation and mix changes. Management views the higher

costs as a short-term hiccup and sees GM sustaining within a stable and relatively high Market Cap (USD mn) 24,994.5

range. We fine-tune our 2026-28F GM assumptions, with 2027-28F earnings estimates ADT (USD mn) 210.8

largely unchanged, but increase 2026F operating profit by 2% to factor in more robust

revenue for the Automatic Testing System (ATS) segment in 2H26F. We maintain our Buy

rating and TP of TWD2,845 for Chroma, based on an unchanged 38x average 2027-28F Relative performance chart

EPS of TWD75. The stock currently trades at 29x 2027F basic EPS of TWD65.8.

A more diversified SLT client portfolio could support 2H26F strength

Chroma expects its Semi/Photonic business to grow h-h in 2H26E, driven by AI/HPC/ASIC system-

level test (SLT) and photonic test demands in optical communication and CPO. As flagged in our

initiationreport, we expect Chroma to benefit from broader SLT adoption and believe it has secured

new SLT opportunities with Google’s (GOOGL US, Not rated) Axion CPU and AMD’s (AMD US,