联咏科技：月度销售略低于共识预期及指引

Yipin Cai, CFA+852 2123 2669yipin.cai@bernsteinsg.com Edward Hou, CFA+852 2123 2623edward.hou@bernsteinsg.com Price Target 370.00 TWD 3034.TT Novatek: Monthly sales tracking slightly behind consensus andguidance Novatek reported May sales at NT$9.4B, up 2% MoM and 9% YoY. April & May sales togetheradded up to ~NT$18.6B, equivalent to 67% of Novatek's 2Q26 guidance midpoint & closeto the low end of the historical range of 66%-74%. If June sales were to follow seasonality,2Q26 sales would be 1.5% below consensus and 1.8% below the guidance midpoint. FXlikely was a 90bps tailwind and the monthly sales would’ve been further behind without it. Novatek guided a stronger-than-expected 2Q26, with all three product lines guided torise QoQ, led by SoC on robust Edge AI demand and price hikes. DDIC also benefits frompull-forward demand. Margin was guided to be resilient as well, supported by a highercontribution from SoC in the revenue mix, which is expected to more than offset costheadwinds from memory, wafer, and packaging. While visibility for 2H26 remains limited,Novatek is confident in achieving positive full-year growth, underpinned by rising SoC ASPsdriven by higher KGD (Known Good Die, i.e. memory packaged in SoC) and upcoming newproduct launches. Structurally, Edge AI is emerging as a key growth driver, leveraging Novatek’s videoprocessing expertise to gain traction in overseas markets across surveillance, drones, andportable video devices. Meanwhile, the OLED growth runway should extend over the next1–2 years, primarily supported by continued share gains with major global smartphonecustomers (Apple and Samsung, we believe). The stock is now trading at 16.3x forward P/E year-to-date, higher than its historical averageof 13.4x, but over 5% dividend yield should limit the downside. We set our TP atNT$370at14x target P/E. MaintainMarket-Perform. INVESTMENT IMPLICATIONS We rate Novatek Market-Perform with price target of NT$370.00. BERNSTEIN TICKER TABLE I. REQUIRED DISCLOSURES References to "Bernstein" or the “Firm” in these disclosures relate to the following entities: Bernstein Institutional Services LLC(April 1, 2024 onwards), Sanford C. Bernstein & Co., LLC (pre April 1, 2024), Bernstein Autonomous LLP, BSG France S.A. (April 1,2024 onwards), Sanford C. Bernstein (Hong Kong) Limited盛博香港有限公司,Sanford C. Bernstein (Canada) Limited, SanfordC. Bernstein (India) Private Limited (SEBI registration no. INH000006378), Sanford C. Bernstein (Singapore) Private Limited,Sanford C. Bernstein Japan KK(サンフォード・C・バーンスタイン株式会社)and analysts employed by Société GénéraleAfrica Technologies & Services to produce Bernstein research under a Global Services Agreement in place between Bernsteinand Société Générale. Bernstein is part of a joint venture between Société Générale (SG) and AllianceBernstein, L.P. (AB). Unless specifically notedotherwise, for purposes of these disclosures, references to Bernstein’s “affiliates” relate to both SG and AB and their respectiveaffiliates. VALUATION METHODOLOGY Novatek Microelectronics Corp We set a NT$370 1-year price target using a P/E multiple of 14x against our forward Q5-Q8 EPS estimate of NT$26. RISKS Novatek Microelectronics Corp There are a number of upside/downside risks to our Novatek price target: (1) Slower or faster shipment growth in OLEDsmartphones (2) ASP & margin erosion or share loss in TDDI (3) Unexpected entry of competitors, particularly from China (4) Sloweror faster than expected progress in fingerprint sensor product RATINGS DEFINITIONS, BENCHMARKS AND DISTRIBUTION EQUITY RATINGS DEFINITIONS Bernstein brand The Bernstein brand rates stocks based on forecasts of relative performance for the next 12 months versus the S&P 500 forstocks listed on the U.S. and Canadian exchanges, versus the Bloomberg Europe Developed Markets Large and Mid Cap PriceReturn Index EUR (EDME) for stocks listed on the European exchanges and emerging markets exchanges outside of the AsiaPacific region, versus the Bloomberg Japan Large and Mid Cap Price Return Index USD (JPL) for stocks listed on the Japaneseexchanges, and versus the Bloomberg Asia ex-Japan Large and Mid Cap Price Return Index (ASIAX) for stocks listed on the Asian(ex-Japan) exchanges -unless otherwise specified. The Bernstein brand has three categories of ratings: •Outperform: Stock will outpace the market index by more than 15 pp•Market-Perform: Stock will perform in line with the market index to within +/-15 pp•Underperform: Stock will trail the performance of the market index by more than 15 pp Coverage Suspended: Coverage of a company under the Bernstein research brand has been suspended. Ratings and price targetsare suspended temporarily, are no longer current, and should therefore not be relied upon. Not Rated: A rating assigned when the stock cannot be accurately valued, or the performance of the company accuratelypredicted, at the present time. The covering analyst may continue to publish research r