Kinik Co (1560 TT, NT$668) - No reason for pessimism

研报英文原文证据摘录

Kinik Co (1560 TT, NT$668) - No reason for pessimism

Taiwan Equity | Semiconductor

Company Snapshot

How are we different?

Our latest FY26 and FY27 EPS forecasts of NT$12.32 and NT$17.12 compare to the Bloomberg

consensus of NT$12.8 and NT$17, respectively.

Valuation, risks

Based on the company’s guidance, we believe investors are already focused on the

company’s longer-term outlook. As stated in our previous report, we believe Kinik has

long-term investment value, mainly because 1) Kinik’s diamond disk market share among

major customers will remain at the 70–80% level; 2) the company has become an

important localized consumables partner; and 3) diamond disks are patented consumable

products. In addition, the company is gradually expanding its customer base, including the

US IDMs and local Chinese customers, which is expected to drive diamond disk capacity

expansion at a CAGR of 20% in the future. Overall, we maintain Buy on Kinik and raise

our target price to NT$800, based on 47x FY27F net EPS of NT$17.12. Kinik’s one-year

forward PE range over the past five years has been 15–50x, and this valuation is at the

upper end of the range. Meanwhile, based on our fundamental long-term outlook model,

we project the company’s EPS will grow at a 33% CAGR to exceed NT$20 in FY28. Given

the high visibility of the outlook, Fubon believes this valuation is not expensive.

Figure 1: Kinik long-term model forecast

Source: Fubon Research

Figure 2: Quarterly EPS review Unit: NT$mn

1Q26 QoQ YoY Fubon Diff Consensus Diff

Net sales 2,293 5.6% 29.4% 2,239 2.4% 2,233 2.7%

Gross profit 803 8.1% 46.6% 795 1.0% 770 4.2%

Op profit 444 32.1% 57.9% 437 1.7% 428 3.8%

Pre-tax profit 532 -9.9% 68.7% 452 17.7% 466 14.2%

Net profit 436 -9.0% 52.7% 370 17.9% 382 14.2%