Realtek Semiconductor Corp: Better-than-feared results and outlook

Research evidence excerpt

Realtek Semiconductor Corp: Better-than-feared results and outlook

Global Research

30 July 2026ab

Realtek Semiconductor Corp Equities

TaiwanBetter-than-feared results and outlook

Semiconductors

12-month rating Neutral

H2 sales holds up on price adjustment and stable demand

Realtek's Q2 sales were up 3% QoQ at NT$37.6bn, lower than consensus and UBSe of 12m price target NT$690.00

NT$38.0bn/39.7bn. Looking ahead, sales in H2 should stay rather resilient even with Prior : NT$525.00

consumer demand weakness across certain segments, considering 1) June product price

Price (30 Jul 2026) NT$697.00

hike to be factored into H2 sales, especially for products impacted by memory price

increase. 2) Stable demand from networking, automotive, and home appliances RIC: 2379.TW BBG: 2379 TT

categories. 3) Despite soft consumer end demand, Realtek's customers are still pre-

Trading data and key metrics

building inventory given tightening industry supply especially at backend and memory

52-wk range NT$900.00-445.00

YTD. We estimate Q3 sales to trend slightly higher and grow by 9% QoQ, better than

consensus of -3% QoQ, mainly thanks to price hike. Q4 sales could decline seasonally by Market cap. NT$357b/US$11.0b

7% QoQ. Realtek’s inventory level appears healthy, with DOI at 107 days in Q2 vs 105 Shares o/s 513m (ORD)

days in Q1. Free float 85%

Avg. daily volume ('000) 5,682

GM weaker in Q2 but should improve in H2 Avg. daily value (m) NT$3,897.1

Q2 GM was 47.0%, down 2.7ppts from Q1, as the company had to absorb component Common s/h equity (12/26E) NT$46.0b

cost increases (e.g. DRAM/OSAT tightness) during the quarter. Realtek started to P/BV (12/26E) 7.8x

negotiate pricing adjustment with customers in June on a case-by-case basis, Net debt to EBITDA (12/26E) NM