半导体分销商：AI持续推动更强劲的前景

Daniel.YeCharlie Chan +886 2 2730-2863 Semi Distributors: Al Continuesto Drive a Stronger Outlook Equity AnalystCharlie.Chan@morganstanley.comMORGAN STANLEY ASIA LIMITED+ +886 2 2730-1725Daisy Dai, CFA Equity AnalysMORGAN STANLEY TAIWAN LIMITED+ guidance. Raise PT for WT in light of a stronger outlook. Equity AnalystTiffany.Yeh@m+886 2 7712-3032MORGAN STANLEY ASIA LIMITED+ WPG reportedstrong1QearningswithEPS12%aboveMSe ■WPG2Q mid-point guidance implies 12%Q/Q revenue growth and 17%Q/Q EPS growth.WPG management remains positive on the secular Al-driven demand. Ethan Jia Research AssociateEthan.Jia@morganstanley.com +852 3963-2287 WPG reported strong 1Q earnings: WPG reported its 1Q results.The1Q revenuewas NT$316.5bn,+24% Q/Q, +27% Y/Y, in line with MSe. Revenue was driven by AIinfra build-out and semiconductors demand, and expanded supply chain services(e.g., LaaS).1Q gross profit was NT$14.2bn, gross margin was 4.5%, +0.2ppt Q/Q and+0.8ppt Y/Y, 0.2ppt above our forecast.1Q operating profit was NT$8.5bn, withoperating margin at 2.7%, +0.5ppt Q/Q and +1.Oppt Y/Y, 0.2ppt above our estimate.1Q (diluted) EPS was NT$3.17, +95% Q/Q and +192% Y/Y,12% above our estimate.ROWC reached 15.2%, up from 11.5% in 4Q25. This follows the strong 1Q results ofWT Micro: Scale drives operating leverage $355bn, gross margin of 4.35%, operating margin of 2.58% and (non-diluted) EPS ofNTs3.86.The strong outlook is driven by continued global Al demand and capexguidance, and management expects continued strong demand from inference andedge Al. Other highlights from WPG 1Q earnings: By application type, compute,communication, consumer, industrial and auto accounted for 49%,15%, 8%,7% and7%, respectively, which shows strong growth for compute and moderate growth forindustrial and auto. By device type, memory and core component accounted for 45%and 23%, respectively. The reduction in the core component mix from 31% in 4Q25represents the company's drive to improve margins. Morgan Stanley does and seeks to do business withcompanies covered in Morgan Stanley Research. As a resultinvestors should be aware that the firm may have a conflict ofinterest that could affect the objectivity of Morgan StanleyResearch. Investors should consider Morgan StanleyResearch as only a single factor in making their investmentdecision The AI story lifts earnings for both WT and WPG: Based on the actual 1Q resultsfor WPG and strong guidance for 2Q forward,we raise our earnings estimates: · WT - EPS up 12%, 17% and 16% for 2026-28, respectively;WPG-EPSup32%for each2026-28. For analyst certification andother important disclosures,referto the Disclosure Section, located at the end of thisreport. Weraisepricetargets for WTfromNT$299toNT$349and forWPG fromNT$121to NT$160: We continue to use residual income valuation models; PT changesreflect our earnings estimate revisions. += Analysts employed by non-U.S. affiliates are not registeredwith FINRA, may not be associated persons of the memberand may not be subject to FINRA restrictions oncommunications witha subject company,public appearancesand trading securities held by a research analyst account. Morgan Stanley WT Micro: Estimate Revisions Summary expectations for the company's data center business to reflect a stronger outlook. WT Micro: Valuation Methodology earnings estimate revisions. Ourkey Rl assumptions are unchanged: cost of equity of12.6% (2.0% risk-free rate, 11.8% risk premium, 0.9 beta), cash dividend payout ratio of85%, intermediate growth rate of 10.0% and a long-term growth rate of 3.0%. We see continual value growth for semi Base case, residual income model. We assume a cost of equity of 12.6% (2% risk-free rate, distributors amid increasing supply chaincomplexity.WT Micro has expanded its business intothe fast-growing Al industry, especially data 11.8% risk premium, 0.9 beta), a medium-term growth rate of 10% and a long-term growthrate of 3%.NTS304.83 center-related component distribution. Weestimate that WT's data center segmentcould contribute 64% of the company'srevenue in 2028Our price target implies 14.2x our 2026 EPS estimate, above its 8.9x average one-year forward P/E since 2018, which we findjustified by improving demand and thecompany's continued progress in penetratingthe Al supply chain. Risk Reward ThemesSecular Growth:PositiveView descriptions of Risk Rewards Themes here NT$406.00 NT$349.00 BASE CASE14.2x2026e EPS NT$230.00 BEAR CASE9.4x2026eEPS BULL CASE 16.6x2026eEPS Strong AI ASIC growth in 2026: The Al semisindustry continues to thrive in 2026 and2027.WT Micro generates a revenue CAGRof 45%+ from 2025-28. Gross margin to beslightly diluted, to 3.3%+ in 2026, as a resultof unfavorableproduct mix. Stronger Al semi consumption withimproved gross margin: The Al semisindustry shows + 60% Y/Y growth in 2026.WT Micro generates a revenue CAGR of60%+ from 2025-28. Gross margin remainsat 4% despite growth in low-marginbusiness. Opex is lighter, giv