LINE Pay Taiwan Limited 1Q26 results below on weaker gross margin

研报英文原文证据摘录

LINE Pay Taiwan Limited 1Q26 results below on weaker gross margin

J P M O R G A N Asia Pacific Equity Research

12 May 2026

LINE Pay Taiwan Limited Overweight

7722.TW, 7722 TT

1Q26 results below on weaker gross margin Price (12 May 26):NT$271.00

Price Target (Dec-26):NT$441.00

LPTW reported 1Q26 results that tracked below our full-year expectations due Asia Financials

ACmainly to lower-than-expected gross profits dragged on by higher EPI client Amanda Chang

acquistion/registration costs. We retain our OW rating, as we continue to expect (886-2) 2725-9861

earnings momentum to improve in 2H26 on an increasing EPI contribution and amanda.chang@jpmorgan.com

lower associated costs, along with an undemanding valuation. J.P. Morgan Securities (Taiwan) Limited

Jemmy S Huang AC

(886-2) 2725-9870• 1Q26 attributable profits declined 17% YoY on weaker gross profits. 1Q26

attributable profits were down 17% YoY, dragged on mainly by moderating jemmy.s.huang@jpmorgan.com

revenue momentum and lower gross profits. Operating expenses were better J.P.MorganMorganSecuritiesSecurities(Asia(Taiwan)Pacific) Limited/Limited/ J.P.J.P.

than our expectations, declining 17% YoY, as the one-off EPI buildout Morgan Broking (Hong Kong) Limited

expenses in FY25 were largely eliminated. Katherine Lei

• Revenue growth moderated on a slowdown in Financial Marketing (852)katherine.lei@jpmorgan.com2800-8552

Cooperation business. 1Q26 revenue increased 16% YoY, J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

representing 22% of our FY26 forecast, due mainly to weaker growth in the Morgan Broking (Hong Kong) Limited

Financial Marketing Cooperation segment on a high base last year, while the

MDR business remained relatively resilient. Given that GMV (gross