First Read: Kinsus Interconnect Technology "Positioning for the next leg of..."

研报英文原文证据摘录

First Read: Kinsus Interconnect Technology "Positioning for the next leg of..."

city to expand from 40mn units in 2025 to 65/80mn units From To % ch Cons.

in 2028/2029E, backed by its efforts to deepen customer relationships through strategic 12/26E 10.05 11.25 12 9.75

capital/equipment investments. We anticipate a favourable pricing environment to 12/27E 18.45 21.42 16 21.37

continue and raise our 2026/27/28 revenue forecasts by 4%/2%/8%, implying 12/28E 28.41 35.02 23 45.41

36%/34%/40% YoY growth.

Diana Chang

Analyst

Hybrid glass solution and continued supply tightness support margin upside

diana.chang@ubs.com

Our industry checks suggest that the hybrid T-glass/E-glass solution that replaces a +886-2-8722 7335

certain portion of T-glass with E-glass has been qualified for NVDA Vera CPU substrates,

Randy Abrams

which theoretically should come with lower material costs, in our view. We still

anticipate persistent T-glass shortages through at least 2027E to support further ABF randy.abrams@ubs.com

substrate pricing uplifts; and on top of that, reflecting a slightly more favourable cost +886-2-8722 7338

structure for upcoming key project, we raise our 2026/27/28E gross margin forecasts

from 25%/28%/30% to 26%/30%/32%.

Valuation: Lift price target to NT$780; maintain Buy

We lift 2026/2027/2028 EPS by 12%/16%/23% to reflect stronger order momentum

and better-than-expected pricing/margins; increase PT to NT$780 based on 23x 2028E

P/E, in line with Taiwan hardware components peers trading average at 23x and still

below substrate leading peers' target multiple (Unimicron target P/E at 30x). We remain

constructive on its earnings growth outlook as its business structure improves and view

Kinsus attractive given the recent pullback.