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Daiwa Capital Raises Fositek Target Price to NT$2,910 on Strong Outlook
Electronic Technology · Electronic Components · economic_daily · 2026-11-04
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Following strong Q3 results and a surge in server-related revenue, Daiwa Capital has upgraded its EPS forecasts and target price for Fositek.
What Happened
Exceeding Market Expectations: Fositek reported record-high third-quarter revenue of NT$4.502 billion. Both gross and operating margins reached new peaks, driven by improved manufacturing processes and a more favorable product mix, outperforming market consensus.
Server Business Dominance: The company's product structure has shifted significantly, with server-related revenue rising from 56.4% in Q1 to 81.6% in Q3. This indicates that GPU and ASIC projects are scaling up, serving as the primary engine for future growth.
Earnings Forecast Upgrade: Daiwa Capital remains bullish on Fositek's long-term prospects beyond 2027. The firm has raised its EPS estimates for 2026-2028 by 9% to 29%, anticipating that gross margins will continue to expand alongside revenue growth.
Target Price Hike: Citing a positive revenue outlook, Daiwa Capital increased Fositek's target price from NT$2,615 to NT$2,910. The firm reiterated its 'Buy' rating, emphasizing the company's strengthening position within the server supply chain.