Yageo (2327.TW): 2Q26 Beat on Broad-Based Strength; Recalibrating TP as Sector Multiple Resets, Structural Thesis Intact

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Yageo (2327.TW): 2Q26 Beat on Broad-Based Strength; Recalibrating TP as Sector Multiple Resets, Structural Thesis Intact

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29 Jul 2026 12:38:28 ET │ 16 pages

Yageo (2327.TW)

2Q26 Beat on Broad-Based Strength; Recalibrating TP as Sector

Multiple Resets, Structural Thesis Intact

CITI'S TAKE

Yageo’s 2Q26 results beat across scale and margins, with AI revenue mix Buy

rising to 16% and BB ratio climbing to 2.2, underscoring accelerating

forward demand. Mgmt.’s 3Q26E guidance for moderate rev growth and Price (29 Jul 26 13:30) NT$507.00

further margin improvement, alongside commodity/specialty UTR set to Target price NT$1,450.00↓

reach 90%+, points to a tightening S/D backdrop, while rising customer

from NT$1,500.00interest in multi-year LTAs across AI, computing, and memory sectors

signals extending demand visibility. We raise our 2026E-28E EPS forecasts Expected share price 186.0%by 11%-13% and lift our ASP growth CAGR assumptions. That said, we return

adjust our TP to NT$1,450 (from NT$1,500), applying a 35x average 2027- Expected dividend yield 2.0%28E EPS (vs. 40x prior) to reflect the sector’s ongoing, deleveraging-driven

multiple compression, while maintaining our positive view and Buy rating. Expected total return 188.0%

Market Cap NT$1,050,233M

2Q26 results beat on scale and margins — Yageo’s reported 2Q26 net profit at US$32,441M

NT$9.4bn (+18% QoQ/+88% YoY) beat Citi/cons forecasts by 18%/3%, driven by

better scale, margin expansion, and opex control. GPM came in at 38.5% (+0.4ppt

QoQ/+2.9ppts YoY), below cons estimate as higher commodity shipments diluted

mix; however, we are starting to see early pricing pass-through flow into margins. AI

Price Performancerevenue mix rose to 16% (from c.14-15% in 1Q26), while the BB ratio climbed MoM to