SBU is catching up to the rising trend of DBU

研报英文原文证据摘录

SBU is catching up to the rising trend of DBU

Global Markets Research

Kinik Company 1560.TW 1560 TT 14 July 2026

EQUITY: TECHNOLOGY

SBU is catching up to the rising trend of DBU RatingRemains Buy

Kinik’s reclaim/test wafer business likely benefiting from Target price

Increased from TWD 900.00rising customer demand alongside the semi wafer industry TWD 840.00

Closing price

Maintain Buy and raise TP to TWD900, implying 33% upside 14 July 2026 TWD 675.00

In our initiation report of May 2026, we highlighted two secular growth drivers for Kinik –

its chemical mechanical polishing (CMP) pad conditioner (DBU) business, and the Implied upside +33.3%

reclaim/test/carrier wafer business (SBU). We believe the market recognizes that Kinik is

a major CMP pad conditioner supplier to a leading foundry company, but it is not yet fully Market Cap (USD mn) 3,123.9

aware of the potential upside driven by SBU. On the back of our positive outlook for a ADT (USD mn) 43.7

semi wafer industry recovery since May (report 1 , report 2 , report 3 ), we expect the

reclaim/test/carrier wafer industry to also benefit from customer demand growth. We Relative performance chart

maintain our Buy rating and raise 2026-28F earnings forecasts by 5-11%, with a higher

TP of TWD900 (vs TWD840 previously), based on 40x 2028F EPS of TWD22.5 (vs 40x

2028F EPS of TWD21 previously). The stock is trading at 30x 2028F EPS.

SBU: benefiting from rising demand from customers, including Micron

Our estimates build in further improvement in Kinik’s SBU product mix for 2Q26F, mainly

because Kinik supplies carrier wafers for Micron’s HBM, which has recorded persistent

increase in volumes. Given better specs, we estimate that Kinik’s SBU GPM could rise

meaningfully sequentially from 30% levels in 1Q26.