Rome Wasn‘t Built in a Day; Lift Price Target to NT$15,000

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M

Idea

August 7, 2026 03:14 PM GMT

Morgan Stanley Taiwan Limited+

King Slide Works Co. Ltd. | Asia Pacific

Derrick Yang

Equity Analyst

Rome Wasn't Built in a Day; Lift

Price Target to NT$15,000

Vivi Huang

Research Associate

Morgan Stanley Asia Limited+

Andy Meng, CFA

What’s Changed

Equity Analyst

King Slide Works Co. Ltd. (2059.TW)

From

To

Price Target

NT$10,000.00

NT$15,000.00

Management indicates that its industry position and GM profile

have been achieved gradually and should be sustained. We raise

our 2027 EPS estimate 53% and continue to apply a target P/E

of 30x, implying a PEG of 0.4. Stay OW.

Is the revenue growth momentum sustainable? Yes: King Slide posted solid

monthly sales of NT$6,407mn (+44% MoM/+356% YoY) in July. To put this into

perspective, this monthly run rate was 3.3x vs. that in March 2026 (NT$1,918mn,

+9% MoM/+39% YoY). Though management did not provide numerical guidance on

the call, it indicates that it is seeing broad-based strong customer demand with good

King Slide Works Co. Ltd. (2059.TW, 2059 TT)

Greater China Technology Hardware | Taiwan

Stock Rating

Industry View

Price target

Up/downside to price target (%)

Shr price, close (Aug 7, 2026)

52-Week Range

Overweight

In-Line

NT$15,000.00

35

NT$11,110.00

NT$11,110.002,790.00

95

NT$1,058,751

NT$1,035,048

NT$3,535

environments. Because of its comprehensive patent portfolio and solid execution,

Sh out, dil, curr (mn)

Mkt cap, curr (mn)

EV, curr (mn)

Avg daily trading value (mn)

King Slide should remain the go-to supplier in most relevant projects. Therefore, we

Fiscal Year Ending

12/25 12/26e 12/27e 12/28e

now expect revenue to step up further in 3Q26, to NT$19,555mn (+81% QoQ/+348%

EPS (NT$)**

Prior EPS (NT$)**

EPS (NT$)§

Revenue, net (NT$ mn)

EBITDA (NT$ mn)

ModelWare net inc (NT

$ mn)

P/E

RNOA (%)

ROE (%)

EV/EBITDA

Div yld (%)

FCF yld ratio (%)**

Leverage (EOP) (%)

103.23

100.25

17,501

12,449

9,837

order visibility across a wide range of applications in both data center and enterprise

YoY).

What's the margin outlook? Confident: The 87.4% GM (+9.7ppt QoQ) for 2Q26

was remarkable.…