Elan Microelectronics: Spec upgrades and AI initiatives support growth

研报英文原文证据摘录

Elan Microelectronics: Spec upgrades and AI initiatives support growth

eve Elan is a good proxy

for the NB replacement cycle and agentic AI PC entering 2027-28E and can deliver content growth in

ASP for its touch segment via migration to higher-end products such as larger size and haptic

touchpad, fingerprint sensor, and touch screen IC. Diversification into edge AI applications,

leveraging its expertise in HMI and sensing, could be a new growth driver from 2027, reducing its

reliance on the PC/NB cycle. We expect 2026 EPS of NT$9.42, up 11% YoY, with growth to accelerate

in 2027/28E with EPS of NT$11.76/13.79 as NB demand recovers and AI product sales ramp up.

EVIDENCE Elan is well positioned to maintain its HMI market share on its robust R&D for new features and cost-

effective solutions, when increasing its value-add through new product offerings. Its revenue was

broadly stable during 2023-25 but its GM expanded by 3.6ppt to 48.6% in 2025. This was due to

new product launches such as larger size touchpads, SLOC touch IC, and a more favourable mix. It

has been developing haptic touchpads for several years and recently penetrated into Microsoft's

Surface laptop with broadening adoption by other leading brands expected in the coming quarters.

WHAT´S PRICED IN? The market generally associates Elan with NB demand given its roughly 90% sales exposure to that

segment, but we think investors could be overlooking the potential ASP uplift benefits coming from

HMI spec upgrades and new opportunities in the edge AI businesses. The stock is trading at 14x 12-

month fwd consensus EPS versus its historical 7-20x, below peer average. We believe the current

share price does not fully reflect the improving earnings profile and potential AI opportunities.Please

Upside/Downside