Pegatron Corp Earnings visibility remains challenged amid smartphone headwinds; N

研报英文原文证据摘录

Pegatron Corp Earnings visibility remains challenged amid smartphone headwinds; N

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

14 May 2026

Correction (first published 13 May 2026) (See disclosures for details)

Pegatron Corp Neutral

4938.TW, 4938 TT

Earnings visibility remains challenged amid smartphone Price (13 May 26):NT$81.80

headwinds, Neutral Price Target (Jun-27):NT$78.00

Key takeaways from Pegatron’s 1Q26 earnings included: 1) 1Q26 earnings miss Technology - Hardware

ACon weaker-than-expected consumer-related end demand and higher non-OP loss; Albert Hung

2) Sequential 2Q26 revenue growth across segments, with strength mainly in (886-2) 2725-9875

servers; 3) stable EV revenue momentum with a stronger pick up in 4Q due to new albert.hung@jpmchase.com

project wins; 4) management targets HSD server revenue contribution this year J.P.MorganMorganSecuritiesSecurities(Asia(Taiwan)Pacific) Limited/Limited/ J.P.J.P.

(vs. LSD % last year), but we believe profitability is likely to remain in the red; 5) Morgan Broking (Hong Kong) Limited

mixed 2026 growth outlook as double-digit smartphone shipment declines offset Anthony Leng

growth in other segments; and 6) reiterated full-year capex at US$300-350mn (886-2) 2725-9240

mainly to support server capacity expansion. Pegatron stock has underperformed anthony.leng@jpmorgan.com

J.P. Morgan Securities (Taiwan) Limited

Taiex by 24% YTD due to its lackluster earnings outlook. As the company remains

in the early stages of its business transformation and sees smartphone headwinds, Gokul Hariharan

(852) 2800-8564

we expect the stock's underperformance to continue in the next six months. We trim gokul.hariharan@jpmorgan.com

our 2026/27 earnings estimates by 18%/3%, introduce 2028 estimates, and extend J.P.