Initiation of Coverage: All Ring Tech Share gainer in expanding advanced packaging TAM

研报英文原文证据摘录

Initiation of Coverage: All Ring Tech Share gainer in expanding advanced packaging TAM

optimistic about the

sustained capex cycle of advanced packaging in the next two to three years, underpinned by cloud AI

and the emerging CPO opportunity. Industry capex could rise further in 2028-29, driven by CoPoS,

SoIC and other technologies in Taiwan, the US and Southeast Asia. New technologies such as CoPoS

may lift All Ring's tool ASP >15%, on better capability and throughput. All Ring may expand share in

CoPoS through improved execution and TSMC's localization. We forecast All Ring's SEMI sales to

grow 78%/53%/70% in 2026/2027/28 and CPO to contribute 13%/23% of sales in 2027/2028.

EVIDENCE Accelerated capex guidance by industry leaders such as TSMC and ASE indicates strong equipment

demand for advanced packaging in 2026-27. TSMC noted the necessity to narrow the supply-

demand gap for CoWoS, with progress in next-generation CoPoS packaging technology. The tech

industry is also investing more resources to bring CPO into commercialisation in upcoming years.

WHAT´S PRICED IN? After a recent pullback, All Ring is trading at 21x 2027E PE, a discount to advanced packaging peers.

We believe the market underestimates new drivers such as CPO, CoPoS and SoIC. Regarding All

Ring's positioning in FAU coupling vs. Sungho, we believe All Ring has several competitive

advantages, including superior tool and software integration, relationships in the Taiwanese

ecosystem leading to CPO development, and high R&D intensity to respond to customer

requirements and drive hardware and productivity upgrades.

Upside/Downside rative of is image/chartt

Spectrum this r on of th

nar xplanati

the

to or an e

Plea se r efer eport f

Value drivers

SEMI sales growth CPO tool shipments GM

(2027E/2028E)