Q3 Profit Beats Expectations
台燿 (6274) saw operational growth benefiting from warming AI server and ASIC demand. Institutional analysts noted that 台燿 posted a Q3 gross margin of 36.9% and operating margin of 31%, both beating market consensus of 31.8% and 25.9%, with net profit of 38.6億元 beating market estimates by 15%, reflecting an improved high-end product mix and continued profitability gains.
Rising High-End Material Penetration
Looking into Q4, analysts expect high-end products to begin raising prices. Although intensifying price competition in mid- to low-end products may lower the M7／M8 revenue share, a higher high-end material weighting remains favorable to product mix, with Q4 earnings momentum expected to continue. AI servers have become the core medium- to long-term growth driver for 台燿, with the AI server material M7／M8 share continuing to rise, while the Networking business also benefits from switch upgrades, driving higher high-end product penetration.
Expanding ASIC Customer Base and Certification Progress
Analysts noted that 台燿 has added several large ASIC customers, some of which have entered sampling and certification stages, with US T3 servers continuing to ship and T4 expected to secure stable board material supply in 2027年; 800G switch customers are accelerating certification, and 1.6T demand is expected to expand rapidly in 2027年. With expanding high-speed transmission demand, the product mix is expected to keep improving.
Earnings Estimates and Target Price Raised
Analysts further noted that 台燿 has secured long-term orders with very high customer demand visibility, and its PTFE company also has an opportunity to enter Hybrid solutions, building on 5 to 6 years of R&D groundwork while continuing to invest in new areas. On earnings estimates, analysts forecast 2026年 revenue of 628.09億元 with EPS of 24.16元, 2027年 revenue of 1042.42億元 with EPS of 47.79元, and 2028年 EPS further challenging 71.93元. The 2027 profit forecast was raised by 34%, and based on 2027 estimated EPS, the target price was raised from 1900元 to 2070元, maintaining an "Overweight" rating. Compared with the report's reference share price of 1390元, the potential upside is large. However, weaker-than-expected customer demand and faster-than-expected competitor progress remain operational risks.