TAIWAN FIRST TO MARKET

研报英文原文证据摘录

TAIWAN FIRST TO MARKET

Asia Pacific Equity Research

Taiwan First to Market 26 June 2026

Top Stories

Init | Accton (Albert Hung) (2345 TT, OW, PT NT$3,600.00)

Riding AI-driven networking upgrade and unlocking new TAM in server racks; initiate at OW

We initiate coverage of Accton at OW with a Jun-27 price target of NT$3,600, based on ~26x 12M forward EPS (around the

high end of the historical valuation range, supported by stronger earnings growth outlook amid an accelerating networking

upgrade cycle). Accton stock trades around the high end of its historical valuation range, reflecting its strong earnings outlook,

high ROE, and expanding TAM. We expect Accton to deliver a ~50% earnings CAGR over 2025–28, driven by rapid 800G/1.6T

switch upgrades, share gains in Meta’s ToR, and a resumption of AWS ASIC momentum. TAM expansion into server racks and

optical adjacency offers further upside optionality. Our 2026/27 EPS estimates are 12%/6% above consensus estimates. Key

downside risks include potential share loss in AWS AI ASIC modules, slower-than-expected 800G/1.6T adoption, and

intensifying competition from Nvidia and OEMs in Ethernet switches.

| Taiwan Financials (Jemmy S Huang)

Who can deliver more than 50% DPS growth in FY26?

A favorable macro backdrop and equity market conditions have led to decent upside in operating performance for Taiwan

financials across banking, insurance, and securities operations. While the sector may continue to underperform the TAIEX,

consensus EPS/DPS upgrades and our expectation of a sustainable 4-5% dividend yield should support further valuation

upside. We upgrade Fubon and Cathay to OW; our top picks are KGI, Sinopac, and Fubon, where we see superior DPS

growth/yields for FY26E and more reasonable valuations.

Power industry (Albert Hung)