YAGEO Corporation (2327 TT) (Buy) - Enjoying stronger pricing power in this upcycle

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YAGEO Corporation (2327 TT) (Buy) - Enjoying stronger pricing power in this upcycle

Global Markets Research

YAGEO Corporation 2327.TW 2327 TT 1 July 2026

EQUITY: TECHNOLOGY

RatingEnjoying stronger pricing power in this upcycle Remains Buy

Target priceThe upcycle is still in the early stage and could last longer Increased from TWD 1,350.00than the previous cycle; maintain Buy TWD 415.00

Action: Maintain Buy; lift TP to TWD1,350, implying ~18% upside Closing1 July 2026price TWD 1,140.00

We raise 2026F/27F/28F EPS from TWD18.7/24.4/29.2 to TWD20.9/33.2/45.0 due to a likely

structural passive component industry shortage and an accelerated capacitor price hike. We think Implied upside +18.4%

the current strong AI demand for high-cap MLCC at Murata (6981 JP, Buy) and SEMCO (009150

KS, Buy) is crowding out allocation to non-AI applications, and demand overflows could benefit Market Cap (USD mn) 74,122.5

Greater China passive makers such as Yageo whose current portfolios are skewed towards the ADT (USD mn) 995.6

‘low-end’ and boost their pricing power. Specifically for Yageo, we believe it could leverage a

broader product lineup for bundle sales of tantalum capacitors and R-chips (of which it is the world’s Relative performance chart

largest manufacturer, according to Yageo) with MLCCs, at a more favorable pricing to monetize the

structural uptrend. As such, we raise our TP to TWD1,350 (from TWD415), based on 30x 2028F

EPS of TWD45.0 (previously 19x 2H26-1H27F EPS of TWD21.8), with the target multiple at the

higher end of Yageo’s historical trading band (8-40x) to discount the AI-driven business rally and a

more favorable pricing environment. The stock currently trades at 34x 2027F EPS.

A more sound upcycle that could last longer than the previous one (2017-18)