奇鋐(3017.TW)2Q26收入符合指引，过渡季度完成

Asia Vital Components (3017.TW) 2Q26 Revenue In Line with Guidance; Transition Quarter Cleared CITI’S TAKEAVC reported Jun-26 revenue of NT$17.6bn (+11% MoM/+66% YoY), bringing 2Q26 revenue to NT$49.1bn (flat QoQ/+66% YoY). 2Q26 revenuewas 3% below Citi/cons forecast but in line with guidance of 0-5% QoQ.The near-term shortfall reflects GPU platform transition headwinds as thecycle shifts toward Rubin generation. Looking ahead, margins upside isemerging from improving yield and the volume ramp of one of the ASICproject entering the mass production cycle. Within multiple ASICengagements expected to accelerate in 2H26E, we expect a strongerrevenue trajectory in 2H vs. 1H. Based on our supply chain checks, therecent revised up liquid cooling penetration in ASIC platforms couldbecome the upside catalyst and further support AVC’s growth into 2027E.Maintain Buy. Michael HungAC+886-2-8726-9092michael.hung@citi.com Laura (Chia Yi) Chen+886-2-8726-9090laura.cy.chen@citi.com © 2026 Citigroup Inc. No redistribution without Citigroup’s written permission.Source: Company Reports, Citi Research Asia Vital Components Valuation We value AVC using a PE-based approach that factors in earnings momentum and the expansion of its addressable market.Our TP of NT$3,450 is derived from applying a 25x PE multiple on 2027E EPS, which we believe is justified given the company’sentrenched positioned in the server thermal segment, rising contribution from liquid cooling, and the increasing value of thermalcontent per server as power density continues to climb. With these structural drivers still in place, we expect the multiple tohold at a premium relative to its historical averages. Risks This stock is High Risk based upon our quantitative model but assigning a High Risk rating is not supported by other qualitativefactors such as cold-plate leadership and deep CSP penetration, and so a High Risk rating has not been applied. Key downsiderisks to our investment thesis and target price include: 1) slower adoption pace for liquid cooling adoption; 2) heightened pricecompetition; 3) lower-than-expected share in liquid cooling components; and 4) emerging alternative cooling technologies. If you are visually impaired and would like to speak to a Citi representative regarding the detailsof the graphics in this document, please call USA 1-888-500-5008 (TTY: 711), from outside theUS +1-210-677-3788 Appendix A-1 ANALYST CERTIFICATION The research analysts primarily responsible for the preparation and content of this research report are either (i) designatedby “AC” in the author block or (ii) listed in bold alongside content which is attributable to that analyst. If multiple ACanalysts are designated in the author block, each analyst is certifying with respect to the entire research report other than(a) content attributable to another AC certifying analyst listed in bold alongside the content and (b) views expressed solelywith respect to a specific issuer which are attributable to another AC certifying analyst identified in the price charts orrating history tables for that issuer shown below. Each of these analysts certify, with respect to the sections of the reportfor which they are responsible: (1) that the views expressed therein accurately reflect their personal views about eachissuer and security referenced and were prepared in an independent manner, including with respect to Citigroup GlobalMarkets Inc. and its affiliates; and (2) no part of the research analyst's compensation was, is, or will be, directly orindirectly, related to the specific recommendations or views expressed by that research analyst in this report. IMPORTANT DISCLOSURES Citigroup Global Markets Inc. or its affiliates received compensation for products and services other than investment bankingservices from Asia Vital Components in the past 12 months.Citigroup Global Markets Inc. or its affiliates currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment-banking, securities-related: Asia Vital Components.Citigroup Global Markets Inc. or its affiliates currently has, or had within the past 12 months, the following as clients, and theservices provided were non-investment-banking, non-securities-related: Asia Vital Components. Analysts’ compensation is determined by Citi Research management and Citigroup’s senior management and is based uponactivities and services intended to benefit the investor clients of Citigroup Global Markets Inc. and its affiliates (the “Firm”).Compensation is not linked to specific transactions or recommendations. Like all Firm employees, analysts receivecompensation that is impacted by overall Firm profitability which includes investment banking, sales and trading, andprincipal trading revenues. One factor in equity research analyst compensation is arranging corporate access events betweeninstitutional clients and the management teams of covered companies. Typically, co