Taiwan Telcos Raise PTs on higher earnings expectations; reiterate OW on FET

研报英文原文证据摘录

Taiwan Telcos Raise PTs on higher earnings expectations; reiterate OW on FET

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

15 July 2026

Taiwan Telcos

Raise PTs on higher earnings expectations; reiterate

OW on FET

We are updating our estimates and price targets for FET and CHT post-6M26 ASEAN TMT

ACtrading update. We expect the Taiwan telcos to sustain mid-single-digit or slightly Ranjan Sharma, CFA

higher mobile revenue growth through the remainder of FY26 and into FY27. (65) 6882-1303

Beyond mobile, ICT continues to be an important earnings growth driver as CHT ranjan.x.sharma@jpmorgan.com

is delivering above-expectation growth from AI, IDC, cloud, and cybersecurity Sigrid Qiu AC

projects, while FET’s strong contract value signed underpins a robust project (65) 6882-1454

pipeline that positions ICT as a durable earnings compounder. We are raising our sigrid.qiu@jpmorgan.com

J.P. Morgan Securities Singapore Private Limited

FY26/27 revenue forecasts by 2% for FET and 4% for CHT, with FET seeing a

more meaningful 5-6% EBIT upgrade on moderating marketing costs, translating

into a 6% increase in bottom-line and DPS estimates. We are rolling forward our

price targets to June 2027: NT$120 for FET (maintain Overweight) and NT$147

for CHT (maintain Neutral). FET remains our preferred pick in the Taiwan telcos

space, given its superior revenue growth trajectory and stronger ICT momentum.

• Taiwan telcos’ mobile revenue continues to grow at a steady single digit

rate, as all players benefit from a healthy industry competitive dynamic.

Continued expansion of the 5G subscriber base will remain the growth driver

for mobile revenue growth as the telcos push to migrate 4G users to 5G plans,

thus increasing ARPU. As the telcos no longer compete on pricing, telcos are