Technology - Asia-Pacific (H): CCL industry: continue to see positives from S/D and pricing outlook

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Technology - Asia-Pacific (H): CCL industry: continue to see positives from S/D and pricing outlook

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Technology - Asia-Pacific (H)

CCL industry: continue to see positives

from S/D and pricing outlook

Price Objective Change

Raise PO on EMC, TUC and Shengyi 13 May 2026

We raise PO on EMC, TUC and Shengyi in this report, anticipating a lengthening under- Equity

supply situation in high-end CCL (M7-grade and above), which also bodes well for the Asia-Pacific

pricing environment into 2H26 and onwards along with the inflationary costs from Technology

upstream raw materials. Mike Yang >>

Research Analyst

EMC: expects an even stronger 2Q26 outlook Merrill+886 2Lynch2376 (Taiwan)3729

EMC’s April revenue came in at NT$13.9bn (+16% MoM, +94% YoY), equivalent to 36% mike.c.yang@bofa.com

of our previous 2Q26 revenue estimate. We could attribute the revenue strength to

further price hikes across all business segments for CCL (copper clad laminate), which

S/D – supply/demandleads us to 1) expect 27% revenue QoQ growth in 2Q26; and 2) raise 2026-28E EPS by

9-10%. As such, we lift our PO to NT$6,100 (from NT$5,600), based on the same 34x

2H27-1H28E P/E. We reiterate our Buy rating on EMC, given its leading position in the

high-end CCL space, with structural demand boosts from AI (artificial intelligence)

server-related applications. Exhibit 1: Summary of PO changes

We raise POs on two stocks in this report

TUC: benefits from extended under-supply PO (local

On TUC (Taiwan Union), we make no changes to our earnings estimates but roll over the currency)

valuation period to 2Q27-1Q28E (from 2027E), considering an extended under-supply Company Ticker New Old

situation in high-end CCL. Correspondingly, we raise our PO to NT$1,900 (from 610

EMC 2383 TT 5600