Pou Chen Corp (9904 TT, NT$25.65) - Footwear OEM business bottoms out, China channel rebounds

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Pou Chen Corp (9904 TT, NT$25.65) - Footwear OEM business bottoms out, China channel rebounds

Taiwan Equity | Sports & Leisure

Company Snapshot

Fubon Research Pou Chen Corp (9904 TT)

May 26, 2026

_ Footwear OEM business bottoms out, China channel rebounds

Buy

Maintain Buy, target price of NT$30, 17% upside

Price Target price

NT$25.65 NT$30 1. Trim FY26 earnings forecasts on lower-than-expected 1Q26 EPS of NT$0.76

●Visit notes ○Initiating coverage 2. Footwear OEM business to grow QoQ in 2Q26, HoH in 2H26

●Company update ●Earnings revision 3. 1Q26 SSS of YY Sports, channel business in China turns positive on effective

○Earnings preview ○Rating change

inventory, discount control, with steady GM growth

Shares out. (mn) 2,947

Mkt cap (NT$mn) 75,590

Mkt cap (US$mn) 2,402 Trim FY26 earnings forecasts on lower-than-expected 1Q26 EPS of NT$0.76

FINI holding (%) 33.02 Pou Chen’s 1Q26 net EPS was NT$0.76, below expectations. Sales reached NT$63.09bn,

Local IM holding (%) 9.09 down 5.9% YoY, with GM of 22.1%, and OpM 3.2%, both down 1.2ppts YoY. In addition,

Directors holding (%) 7.67

non-op gain was below expectations due to lower profit contribution from Nan Shan Life,

52-week high (NT$) 33.35

52-week low (NT$) 25.60 resulting in net EPS of NT$0.76. However, due to the impact of IFRS 17 adoption by Nan

Day-trading % 14% Shan Life, 1Q25 results were restated and 1Q26 profit showed a significant YoY increase

compared to the 1Q25 EPS of NT$0.04.

ESG rating 7 Industry Rank 1/27

Footwear OEM business to grow QoQ in 2Q26, HoH in 2H26

1Q26 footwear shipment was 56.9mn pairs, down 8.1% YoY, and ASP was US$20.52, up

2.4% YoY. GM of 14.8% and OpM of 2.0% were down 2.9 and 3.7ppts YoY, respectively,

mainly due to lower sales scale, uneven capacity allocation, tariff sharing, and learning