TECO (1504 TT, NT$72.40) - Acquisition of Malaysian engineering company strengthens MDC order book outlook

研报英文原文证据摘录

TECO (1504 TT, NT$72.40) - Acquisition of Malaysian engineering company strengthens MDC order book outlook

Taiwan Equity | Electrical Machinery

Company Snapshot

AIDC-related GM improves as product shipment weight increases

TECO has been deeply involved in the data center market for many years, focusing mainly

on Taiwan and Southeast Asia in recent years. In FY25, AIDC-related sales accounted for a

high single-digit percentage of the Power & Energy Business Group and are projected to

rise to 30% in FY26. In February 2026, the company secured hyperscale data center

projects in Malaysia and Thailand, covering power system integration and fiber optic

network engineering, with a total value of NT$2.5bn. It is expected that orders of similar

scale will continue to be secured each quarter, with sales gradually contributing from

2H26. Meanwhile, as the sales weight of Busway products increases, GM is expected to

rise by 1-2ppts. In the US market, the company is collaborating with Hon Hai to promote

MDC, which can shorten construction time by 30% and integrate electromechanical

systems with server equipment, providing a one-stop solution covering about 60-70% of

construction costs. However, due to bottlenecks in power acquisition and site selection,

related sales contribution is expected no earlier than 2H27, and this was not addressed in

the investor conference. Given the strong order intake for Southeast Asian data centers,

we raise our FY26 sales forecast by 3.1% to NT$69.85bn, with GM of 24.2% and EPS of

NT$2.96.

How are we different?

Our latest FY26 and FY27 EPS projections of NT$2.96 and NT$3.55 compare to the

Bloomberg consensus of NT$2.90 and NT$3.78, respectively.

Valuation, risks

TECO currently trades at 20-21x FY27F PE is 20-21x. Considering the recovery of its