Hon. Precision Capacity upgrades, robust demand, on-track CPO and new TAMs long-term; OW

研报英文原文证据摘录

Hon. Precision Capacity upgrades, robust demand, on-track CPO and new TAMs long-term; OW

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

12 May 2026

Hon. Precision Overweight

7769.TW, 7769 TT

Capacity upgrades, robust demand, on-track CPO and Price (12 May 26):NT$6,870.00

new TAMs long-term; OW ▲Price Target (Jun-27):NT$8,000.00 Prior (Jun-27):NT$6,700.00

Hon held its earnings call today. It outlined the capacity upgrade trajectory for

2026-28, backed by under-fulfilled customer demand and likely supporting Technology

upward revisions to Street earnings estimates. Hon reported on-track progress for Jimmy Huang AC

both existing and new CPO switch projects, as well as a robust 2H26 project (886-2) 2725-9865

pipeline spanning across FT/SLT and GPUs/ASICs. Hon also highlighted that its jimmy.huang@jpmorgan.com

J.P. Morgan Securities (Taiwan) Limited

core thermal and handler technologies are driving continuous project wins and

Jerry Tsai ACengagements and could unlock new TAMs over the long term. We maintain our

(886-2) 2725-9867

OW rating and raise our Jun-27 PT to NT$8,000 (38x 2027E P/E). We believe the jerry.tsai@jpmorgan.com

stock remains under-owned by a broad base of investors, which could serve as a J.P. Morgan Securities (Taiwan) Limited

key driver of future share price appreciation. Josie Yu

(886-2) 2725-9877

• Capacity upgrades in 2026-28. We believe Hon is ramping up capacity to josie.yu@jpmorgan.com

deliver a revenue CAGR of 50%+, in line with our thesis. Hon indicated that J.P. Morgan Securities (Taiwan) Limited

its newly acquired factory could increase the floor space by 20-30%. It will take Gokul Hariharan

one quarter to set up the factory for its own equipment assembly, while cold (852) 2800-8564

plate production could commence imminently.