Dynapack International (3211.TWO): 2Q26 Temporary Mix Headwind Before BBU Reacceleration

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Dynapack International (3211.TWO): 2Q26 Temporary Mix Headwind Before BBU Reacceleration

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19 Jul 2026 17:25:35 ET │ 11 pages

Dynapack International (3211.TWO)

2Q26 Temporary Mix Headwind Before BBU Reacceleration

CITI'S TAKE

Buy Dynapack reported weaker 2Q26 results with EPS of NT$1.35, below both

our/BBG estimates. We believe the earnings miss was largely driven by an Price (17 Jul 26 15:00) NT$385.50

unfavorable sales mix, as IT products accounted for a higher proportion of Target price NT$800.00

sales during the quarter while certain BBU shipments were delayed into Expected share price return 107.5%

3Q, weighing on GPM. We view this as a timing issue rather than a Expected dividend yield 3.1%

weakening in the underlying fundamentals. Looking ahead, we expect 2Q Expected total return 110.6%

to mark the last negative, with BBU shipments accelerating in 3Q to drive

Market Cap NT$59,485M stronger revenue growth and a meaningful recovery in margins. We remain

US$1,862M constructive on Dynapack’s medium- to long-term outlook, supported by

structural AI power demand, increasing BBU penetration, higher power

product migration and expanding customer qualifications, all of which

should continue to improve both earnings growth and profitability over Angela HsuAC

the coming years. Any share price pullback would appear as an enhanced +886-2-8726-9083

buying opportunity to us. angela.hc.hsu@citi.com

2Q26 earnings missed on temporary product mix headwinds — Dynapack

reported 2Q26 sales of NT$3.5bn (+7% y/y), broadly in-line with our estimates,

while EPS came in at NT$1.35, missing both our (NT$2.37)/BBG (NT$2.90)

estimates. 2Q OPM of 6.5% was below the expectation. We attribute the earnings

miss primarily to two temporary factors 1) higher IT product sales, diluting overall