Asia Vital Components: Reiterate Buy: 1Q26 highest margins; QoQ sales/profit growth; lift PO to NT$3,650

研报英文原文证据摘录

Asia Vital Components: Reiterate Buy: 1Q26 highest margins; QoQ sales/profit growth; lift PO to NT$3,650

etains their view that ASIC will be the key growth driver with more product launches. Research Analyst

Merrill Lynch (Taiwan)

Reiterate Buy; lift PO to NT$3,650; top pick in cooling +886robert.cheng@bofa.com2 2376 3731

We trim 2026E EPS by 5% but lift 2027-28E EPS by 2-3%, mainly to reflect 1Q26 Katherine Zhu >>

results, higher GM/OPM forecasts, but also the higher tax rate and minority interest in Research Analyst Merrill Lynch (Hong Kong)

2026-28. We lift our PO to NT$3,650 from NT$3,540 with the valuation methodology +852 3508 3374

unchanged at 27x 2027E EPS. We like its leading position in thermal/cooling as the total kexin.zhu@bofa.com

thermal/mechanical solution provider to benefit from robust GPU/ASIC server demand and CindyResearchLo Analyst>>

rising liquid cooling adoption. We reiterate Buy as our top pick in thermal/cooling sub- Merrill Lynch (Taiwan)

+886 2 23-763-723

sector with a broad product/project base and solid sales/margin growth. cindy.lo3@bofa.com

Estimates (Dec) (NT$) 2024A 2025A 2026E 2027E 2028E

Net Income (Adjusted - mn) 8,172 19,186 36,814 52,751 64,631

EPS 21.21 49.17 94.34 135.19 165.63 Stock Data

EPS Change (YoY) 50.4% 131.8% 91.9% 43.3% 22.5%

Dividend / Share 7.00 18.00 28.30 40.56 49.69 Price 2,555 TWD

Free Cash Flow / Share 13.22 82.39 41.92 91.97 143.49 Price Objective 3,650 TWD

Valuation (Dec) Date Established 14-May-2026

P/E 120.46x 51.96x 27.08x 18.90x 15.43x

Investment Opinion C-1-7

Dividend Yield 0.274% 0.705% 1.11% 1.59% 1.94%

EV / EBITDA* 72.90x 31.44x 16.43x 11.51x 9.24x 52-Week Range 593.44 TWD-3,010

Free Cash Flow Yield* 0.508% 3.21% 1.63% 3.58% 5.59% TWD

* For full definitions of iQmethod SM measures, see page 8.