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Fositek Hits Record Profits; Daiwa Raises Target Price to NT$2,910
Electronic Technology · Electronic Components · economic_daily · 2026-11-04
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Fositek's Q3 earnings exceeded expectations, driven by a surge in server business, prompting Daiwa to upgrade its EPS forecasts and target price.
What Happened
Record-Breaking Financials: Fositek reported record-high Q3 revenue of NT$4.5 billion and a gross margin of 38%. The company's earnings per share reached NT$18.11, outperforming market expectations due to improved manufacturing processes and a favorable product mix.
Server Business Expansion: The company's product mix has shifted significantly, with server revenue rising to 81.6% of total revenue in Q3, up from 56.4% in Q1. The ramp-up of GPU and ASIC projects has solidified the server segment as the primary driver of growth.
Technological Edge: Daiwa Capital highlights Fositek's competitive advantage in liquid cooling and quick-connector upgrades. The firm expects even stronger revenue growth in 2027, supported by expanding margins as the company capitalizes on high-performance computing infrastructure demand.
Target Price Upgrade: Reflecting an optimistic outlook on revenue, Daiwa has raised its 2026-2028 EPS estimates by 9% to 29%. Consequently, the target price has been increased to NT$2,910 with a reiterated 'Buy' rating, underscoring confidence in the company's long-term earnings potential.