香港市场反馈——平衡增长能见度与供应紧张

Summarizing HK marketing feedbackWe conducted marketing in Hong Kong(HK) during May 18-21 and met with around 30 EquityTaiwanTechnology investors during the trip. Below, we summarize our key takeaways/feedback. #1– identifying AMD & server CPU beneficiariesAt ahigh level, we received questions from several investors regarding beneficiaries of Mike Yang>>Research AnalystMerrill Lynch (Taiwan)+886 2 2376 3729mike.c.yang@bofa.com 1) the AMD server supply chain; and 2) (see report)a strengthening demand outlook inserver CPU. In response, we highlighted Aspeed (server controller), MPI (probe card, withpotential share gains amid demand overflow), TUC, and substrate names, includingUnimicron, NYPCB and Kinsus, given their relatively higher exposure. Haas Liu>>Research AnalystMerrill Lynch (Taiwan)+886 2 2376 3727haas.liu@bofa.com #2– questions on valuation vs earnings growthDuring discussions on testing interface names (MPI, WinWay), we sensed some concerns Cathy Hsu>>Research AnalystMerrill Lynch (Taiwan)+886 2 2376 3726cathy.hsu3@bofa.com regarding valuation, given the strong share price performance and re-rating over thepast few years. However, we would like to remind investors of the companies’visibilityin meeting or beating earnings estimates over the following quarters/years, which couldcontinue to catalyze share prices along with valuation base rollover (even without anyfurther valuation multiple re-rating). ASIC–application specific integratedcircuit #3– pecking order within hardware substrate/PCB/CCL CPU - central processing unit Onthe hardware side, one of the FAQs we received was regarding preferences amongthe subsectors–ABF substrate, PCB and CCL. In a nutshell, we feel more constructiveon substrate and CCL names, given more prolonged supply tightness (or shortages) inABF substrate and high-end CCL. On the PCB side, we see greater headwinds from amore fragmented competitive landscape and the impact of CPO adoption. NYPCB - Nan Ya PCB PCB–Printed Circuit Board TUC - Taiwan Union #4– queries on supply shortage dynamicsFurther onthe supply shortage situation, investors we met were interested in ABF–Ajinomoto build-up film understanding which subsectors are facing more severe supply constraints. In response,we flagged incremental supply tightness in testing interface and power semis, givenlengthier lead times for product delivery. CCL–copper clad laminate FAQs - frequently asked questions CPO–co-packaged optics #5– some interest in the PC fabless supply chain Weobserved some investor interest in PC fabless names, including ASMedia and Parade.We believe our conservatism was largely accepted, although investors asked for ourpreference between the two. In short, we remain relatively more constructive onASMedia vs Parade, as we believe it will only be from 2H27 (at earliest) that the latterenters the supply chain of the AMD-camp (ASIC-like) business. This research report provides general information only. No part of this report may be usedorreproduced or quoted in any manner whatsoever in Taiwan by the press or otherpersons without the express written consent of BofA Securities.>> Employed by a non-US affiliate of BofAS and is not registered/qualified as a research analyst under the FINRA rules.Refer to "Other Important Disclosures" for information on certain BofA Securities entities that take responsibility for the information herein in particular jurisdictions.BofA Securities does and seeks to do business with issuers covered in its research reports. As a result, investors should be aware that the firm may have a conflict ofinterest that could affect the objectivity of this report. Investors should consider thisreport as only a single factor in making their investment decision.Refer to important disclosures on page 3 to 5. Special Disclosures Information on securities which are listed on the exchanges where ML Securities(Taiwan) Limited is not permitted to trade or solicit trades for clients is forinformational purposes only and is not a recommendation or a solicitation to tradesuch securities. ML Securities (Taiwan) Limited will not execute transactions for noraccept orders from clients to trade such securities. Foreign investment in Taiwansecurities is regulated and restricted. Currently, foreign investment in Taiwansecurities is permitted by investment through: (1) global depository receipts, (2)convertible bonds, (3) mutual funds issued offshore of Taiwan, and (4) a specialforeign institutional investors (FINIs) and foreign individual investors (FIDIs)program supervised by the Taiwan SFB whereunder FINIs/FIDIs may apply forinvestment ID to invest in Taiwan securities by registration with Taiwan StockExchange. FINIs will additionally need consent from the foreign exchange authority,ie, the Central Bank of China. In addition to the limitations above, various industry-specific percentage-based limitations on foreign ownership of Taiwan companies(and in some cases prohibitions)