Brokerage Maintains Buy, Raises Target Price to 236元
Benefiting from increased AI and automotive demand, the local brokerage is optimistic on quartz component maker 晶技 (3042) for Q3 and Q4 operations, noting that 800G and 1.6T optical transceiver modules and switches are driving demand for high-frequency components, while 晶技 is also actively expanding capacity, with AI revenue share expected to keep rising, and the overall outlook remains positive. It maintains a Buy rating and slightly raises the target price to 236元, based on 2027 estimated EPS of 8.44元 and 28x P/E.
Q3 Revenue at 42億元, Q4 Seen at 40億元
The brokerage notes 晶技 Q3 revenue reached 42億元, up 13% QoQ and 20% YoY, with estimated EPS revised up to 2.07元, mainly as AI and automotive revenue this quarter beat prior estimates, with revenue shares of 16% and 29% respectively. Looking to Q4, the brokerage estimates revenue will reach 40億元, up 20% YoY, with EPS revised up to 1.86元, mainly on a 10% upward revision to automotive revenue to 35% YoY growth, with AI applications estimated at a 16% share, up 75% YoY.
1.6T Drives High-Frequency Components, Photo Die Capacity Expansion
The brokerage analyzes that optical transceiver modules in the 800G generation mainly use 156.25MHz products, while the 1.6T generation requires 312.5MHz quartz components with photolithography process. For switches, older-generation switches below 25.6T mainly use 156.25MHz quartz components, while mainstream 51.2T AI switches and next-generation 102.4T switches upgrade to 312.5MHz quartz oscillators. To meet growing high-speed transmission demand, 晶技 plans to expand Photo die capacity from the current 800萬顆 per month to 2400萬顆 per month by mid-2027, and to 4000萬顆 by end-2028.
2027 EPS Estimated at 8.44元, AI Share to Surpass Mobile
The brokerage estimates 晶技 this-year revenue revised up 5% with EPS revised up to 6.86元, on 3% and 8% upward revisions for AI and automotive respectively. 2027 revenue is revised up to 165億元 with EPS revised up to 8.44元, mainly on upward revisions for AI and automotive, while mobile is revised down 2%. On valuation, the brokerage is positive that 晶技 2027 AI revenue share could reach 23%, up over 60% YoY, surpassing the 19% mobile share and above the AI shares in 2025 and 2026. Referring to 10x to 50x P/E for optical-communication plus handset-component peers, it maintains a Buy rating. Investors should judge independently, evaluate prudently and bear investment risks.