Advantech "Durable growth takes hold" (Buy) Chen

研报英文原文证据摘录

Advantech "Durable growth takes hold" (Buy) Chen

Global Research

17 July 2026ab

Advantech Equities

TaiwanDurable growth takes hold

Electric Components & Equipment

12-month rating Buy

Q226 revenue beat, expect strong earnings results

Advantech reported much stronger-than-expected Q226 revenue, which we think 12m price target NT$628.00

should lead to a strong earnings beat for the quarter. Besides, OPM could beat Prior : NT$522.00

expectation, driven by successful pass-through of higher input costs to customers and

Price (16 Jul 2026) NT$530.00

positive operating leverage. At the upcoming analyst meeting on August 5, we expect

management to talk positively about its project design-wins although book-to-billings RIC: 2395.TW BBG: 2395 TT

(BB) ratio is unlikely to reach another record high as Advantech accelerated deliveries

Trading data and key metrics

through worker overtime and improved memory sourcing. We raise our 2026/27E

52-wk range NT$546.00-273.50

earnings growth estimates to 55%/23% YoY and lift our price target to NT$628 from

NT$522. Our 2026/27E estimates are 22-29% above consensus. Buy maintained. Market cap. NT$457b/US$14.2b

Shares o/s 863m (ORD)

Sustained strong order momentum Free float 53%

Advantech reported Q226 revenue growth of 46.5%, beating UBS/consensus estimates Avg. daily volume ('000) 4,145

by 24%/21%. We attribute the strong performance to a combination of 10-15% price Avg. daily value (m) NT$1,930.9

increases (mainly reflecting higher memory costs), sufficient supply of key components Common s/h equity (12/26E) NT$61.7b

(mainly memory), and strong order momentum. Advantech has increased production P/BV (12/26E) 7.4x

through overtime operations in Taiwan and mainland China, capacity expansion in Net debt to EBITDA (12/26E) NM