Record Earnings, Profit Up Nearly 90% YoY
Passive component maker Yageo (2327) held an earnings call on the 29th and reported Q3 results, with consolidated revenue of 495.32億元, up 11.4% QoQ and 49.7% YoY, a quarterly record high. Net profit after tax was 119.81億元, up 27.2% QoQ and 88.5% YoY, with EPS of 5.83, up 88.4% YoY. Gross margin reached 41%, up 2.5 percentage points QoQ and 4.8 percentage points YoY. For the first three quarters, consolidated revenue reached 1321.54億元, up 36.3% YoY, with net profit after tax of 294億元 and EPS of 14.32.
Stock Plunges Below 500 Despite Positive Results
Despite the strong earnings report, the stock faced heavy selling pressure on the 30th. Yageo closed at 543 on the 29th, opened at 520 today before continued selling, falling to 493 intraday and breaking below the 500整数关卡. At 11時19分 the shares traded at 497.5, down 45.5, or 8.38%. The broader market also fell sharply that day, with Yageo and other electronics heavyweights under pressure, as the market reaction after the earnings call remained cautious.
Strong AI Demand, Book-to-Bill Near 2
The company said revenue growth was mainly driven by strong AI-related demand, with stable increases in both standard and specialty product demand, while all end applications maintained moderate growth. The Q3 book-to-bill ratio was close to 2, with capacity utilization for both standard and specialty products near 95%, indicating sustained strong order demand. Local analysts noted Q3 gross margin of 41% beat market expectations of 39% to 40%, with distributor inventory levels low and pull-in demand from downstream customers remaining healthy.
Analysts Maintain Buy, Focus on Q4 Outlook
Despite weak share price performance, analysts maintained a Buy rating on Yageo with a target price of 812. Looking to Q4, analysts estimate revenue of 526億元, up 6.3% QoQ and 46.3% YoY, with gross margin further improving to 41.9% and quarterly EPS estimated at 6.35. For 2027, the company plans a 10% to 15% capacity increase while keeping utilization at 85% to 90%. Analysts also cautioned investors to watch risks including weaker-than-expected end-demand recovery and intensifying price competition, with subsequent share price and operating performance still to be observed.