More upside ahead; move to Top Pick

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M

Idea

August 6, 2026 05:32 PM GMT

AP Memory Technology Corp | Asia Pacific

Morgan Stanley Taiwan Limited+

Daniel Yen, CFA

Equity Analyst

More upside ahead; move to

Top Pick

Charlie Chan

Equity Analyst

Morgan Stanley Asia Limited+

Daisy Dai, CFA

What’s Changed

Equity Analyst

AP Memory Technology Corp (6531.TW)

From

To

Price Target

NT$1,555.00

NT$1,666.00

Ethan Jia

Top Pick Added

2337.TW

6531.TW

Research Associate

AlphaSignals Earnings Reaction

Strengthens our thesis

Modest upside

Modest revision higher

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

AP Memory Technology Corp (6531.TW, 6531 TT)

We raise EPS estimates 3% for 2027 and 7% for 2028 and lift

our price target to NT$1,666. This reflects a 2Q beat and a

strong outlook across all business segments.

Remain OW and move to Top Pick: We remain confident in S-SiCap, which is in

structural supply shortage (link), and VHM opportunities helped by edge AI (link).

Our new price target implies 2027e P/E of 47x and 2028e P/E of 26x; the 2028e P/

E is roughly in line with the historical average since 2020.

2Q26 earnings beat: See Results recap .

Business update and outlook:

• IoTRAM: 2Q revenue was NT$1.69bn, helped by stronger demand from

display customers. Management expects strong demand momentum, as

some customers shift from commodity memory to IoTRAM due to elevated

pricing. IoTRAM pricing was also increased in view of rising costs.

• S-SiCap: 2Q revenue was NT$640mn, as multiple cases have entered mass

production. IPD is entering an unprecedented rapid mass production ramp

supporting new embedded-in-substrate application for AI/HPC, with demand

visibility into 2028. IPC production is set to resume in 4Q after potential

Top Pick

Greater China Technology Semiconductors | Taiwan

Stock Rating

Industry View

Price target

Up/downside to price target (%)

Shr price, close (Aug 6, 2026)

52-Week Range

Mkt cap, curr (mn)

Avg daily trading value (mn)

Overweight

Attractive

NT$1,666.00

85

NT$900.00

NT$1,305.00-275.50

NT$145,641

NT$2,877

Fiscal Year Ending

…