Shares Plunge Below NT$500 Mark
Passive components leader Yageo (2327) faced heavy selling pressure intraday on the 30th, with shares falling to NT$493 at one point, down 9.2%, dropping below the NT$500 integer threshold into the NT$400 range. Looking back at this month's trend, Yageo reached an intraday high of NT$686 on AI server demand and MLCC price-hike themes, and based on today's intraday low, has corrected nearly 30% in less than a month. The sharp pullback in Yageo shares has drawn market attention to the outlook for the passive components sector.
Strong Third-Quarter Earnings
On fundamentals, Yageo posted third-quarter consolidated revenue of NT$49.532 billion, up 49.7% year-on-year; net profit attributable to the parent was NT$11.981 billion, up 88.5% year-on-year, with earnings per share of NT$5.83. Gross margin reached 41% and operating margin was 29.5%, keeping profitability at a high level. For the first three quarters, revenue totaled NT$132.154 billion, up 36.3% year-on-year; net profit attributable to the parent was NT$29.4 billion, up 74.1% year-on-year, with EPS of NT$14.32. Notably, Yageo had just reported strong record third-quarter earnings, which the share price did not reflect, leaving investors divided on the outlook.
Strong AI Momentum, Capacity Fully Utilized
Artificial intelligence is the main driver of Yageo's operating growth, with AI-related revenue rising from about 16% in the second quarter to nearly 20% in the third quarter. The average book-to-bill ratio in the third quarter was close to 2, indicating continued strong order demand. Looking ahead, Yageo expects fourth-quarter capacity utilization to exceed 95%, and plans to expand capacity quarter by quarter, with some new capacity expected in the second quarter of 2027 and the rest coming online in the second half of 2027. It remains to be seen whether AI-related orders can continue to grow and how the new capacity rollout progresses.
Three Brokerages Call Buy, Market Views Divided
Despite the sharp correction in Yageo shares, three brokerages — Fubon, Wangshan, and Uni-President — all maintained buy ratings, with the highest target price at NT$835. However, target prices are brokerage forecasts and do not guarantee future share prices will reach those levels. Online investor views are polarized: some investors question whether operating growth was already priced in during the earlier rally and see further short-term correction pressure; others view the sell-off as excessive market pessimism, saying fundamentals have not weakened and this is a buying opportunity on dips. Investors should carefully assess their own risk tolerance, as brokerage forecasts are market information only and do not constitute investment advice or profit guarantees.