J.P. Morgan Taiwan FTM 9 Jun 26 Simplo Technology Co Ltd; Scientech; Nan Ya Plastics Corp and More

研报英文原文证据摘录

J.P. Morgan Taiwan FTM 9 Jun 26 Simplo Technology Co Ltd; Scientech; Nan Ya Plastics Corp and More

Asia Pacific Equity Research

Taiwan First to Market 09 June 2026

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Simplo Technology Co Ltd (William Yang) (6121 TT, OW)

Better drone demand outlook with improving GM, while NB business weakness largely factored in

Despite NB demand uncertainties, we keep our earnings estimates and PT largely unchanged. We think the company’s

improving margins, in addition to a stronger outlook for drones, will likely mitigate the impact from NB weakness. The

company’s product mix will continue to enhance towards more higher margin products, such as commercial NB, drone and

server BBU (from subsidiary, AES-KY), which should drive continued margin increase in the coming years. In addition, our

industry checks suggest that the demand from drones is much better than we had anticipated in our model. The strong cash

flow should also help the company maintain its high cash dividend payout ratio, in our view (~6% cash dividend yield). Maintain

OW.

Scientech (Jimmy Huang) (3583 TT, OW)

Raise earnings and PT on stronger equipment; OW

Scientech’s equipment business prospects for 2027-28 have strengthened further vs. our expectations when we upgraded the

stock to OW in early April (note), driven by a strong, extended semiconductor capex cycle (TSMC mid-May note). We project

Scientech to grow revenue and EPS by 24% and 49% CAGR over 2026-28, driven mainly by the equipment manufacturing

business. Our 2027/28E EPS are both 14% above consensus. Key catalysts for the stock include capex increases from key

foundry and OSAT customers, as well as its continued earnings growth. Maintain OW and raise Dec-26 PT to NT$1,100, based

on 29x 2H27E-1H28E P/E.