Mega Holdings 1Q26 results slightly ahead on decent earnings at non-banking operations

研报英文原文证据摘录

Mega Holdings 1Q26 results slightly ahead on decent earnings at non-banking operations

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

27 May 2026

Mega Holdings Underweight

2886.TW, 2886 TT

1Q26 results slightly ahead on decent earnings at non- Price (27 May 26):NT$39.45

banking operations Price Target (Dec-26):NT$35.30

Mega’s 1Q26 results came in slightly ahead of our expectations, supported by Asia Financials

ACdecent earnings performance at non-banking operations. We retain our UW rating, Jemmy S Huang

as we expect its earnings momentum to continue lagging and its share price to (886-2) 2725-9870

underperform peers in the coming months. jemmy.s.huang@jpmorgan.com

J.P. Morgan Securities (Taiwan) Limited/ J.P.

• Group 1Q26 profits of NT$9.4bn were up 17% YoY and implied an MorganMorgan SecuritiesBroking (Hong(AsiaKong)Pacific)LimitedLimited/ J.P.

annualized ROE of 9.5%; more than 400%/50% profit growth at Mega Sec/ Amanda Chang

Mega Bills & Chung Kuo Insurance were the key drivers, partially offset by a (886-2) 2725-9861

2% profit decline at Mega Bank, dragged on by sluggish revenue momentum amanda.chang@jpmorgan.com

and higher effective tax rates. J.P. Morgan Securities (Taiwan) Limited

• What was negative: QoQ margin contraction and deteriorating operating Katherine(852) 2800-8552Lei

efficiency. Reported NIM was up 8bps QoQ, but adjusted NIM (including katherine.lei@jpmorgan.com

swaps revenues) contracted 4bps QoQ due to a more than 40% decline in swaps J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

revenues, which management attributed to a narrowing USD-TWD interest Morgan Broking (Hong Kong) Limited

rate differential following more Fed rate cuts in FY25 and reduced hedging

flows from life insurers; management guided both swaps revenues and total