Airtac International Group (1590.TW): Upward revision on 2026 revenue and OPM guidance, with upcycle to sustain 2-3 years this time; reiterate Buy

研报英文原文证据摘录

Airtac International Group (1590.TW): Upward revision on 2026 revenue and OPM guidance, with upcycle to sustain 2-3 years this time; reiterate Buy

Goldman Sachs Airtac International Group (1590.TW)

company has maintained a stable pricing strategy within the China market (account

90%+ of total revenue), thus we expect GM to slightly decline to 48.7% (-1.0ppt QoQ

and +2.7ppt YoY). We continue to see the company’s effort in improving internal

efficiency, which could partially offset the risk from rising material cost.

We maintain our conservative though optimistic view on the pneumatic industry

outlook. As we continue to see downside risk on weak consumer electronics shipments

(smartphone etc.) and expect raw material cost pressure to persist over the coming

quarters. We expect the company to continue to gain share in the China pneumatic

market as it shifts towards higher-quality pneumatic products (see here) along with the

company’s stable pricing strategy.

Exhibit 1: We see AirTAC’s China pneumatic market share

continuing to expand in the long term

Source: Company data, Goldman Sachs Global Investment Research

Investment view

We reiterate our Buy rating on AirTAC and remain positive on the company’s comment

on (1) the upcycle this time could sustain longer at 2-3 years and (2) upward revision to

its 2026 revenue and OPM guidance, as management continues to expect the company

to outperform the pneumatic industry. Within its largest segment, electronics (account

for 27% of 2Q26 revenue), the company now expects 20% YoY growth in 2026 (was 10%

YoY previously), supported by a better smartphone demand (account for 25-30% of

electronics revenue) in 2H26. However, we remain cautious on the segment given

ongoing weakness in consumer electronics demand (smartphone etc.).