Summary of Conference Call Transcript Industry and Companies Involved - **Industry**: Taiwan PCB & Laminates - **Companies**: Unimicron (3037.TW) and NYPCB (8046.TW) Key Points and Arguments Unimicron's 4Q25 Results - **Revenue**: NT$34,691 million, an increase of 18% YoY and 2% QoQ [3] - **Gross Profit**: NT$5,472 million, up 61% YoY and 20% QoQ [3] - **Operating Profit**: NT$2,366 million, a significant increase of 248% YoY and 54% QoQ [3] - **Net Income**: NT$3,535 million, a dramatic rise of 6204% YoY and 61% QoQ [3] - **Earnings Per Share (EPS)**: NT$2.31, reflecting a 6204% increase YoY [3] - **Gross Margin (GM)**: 15.8%, up 4.2 percentage points YoY [3] - **Operating Margin (OM)**: 6.8%, an increase of 4.5 percentage points YoY [3] - **Tax Rate**: 5.7%, significantly lower than previous periods [3] NYPCB's 4Q25 Results - **Valuation**: Target price set at NT$450, based on a DCF model [5] - **WACC**: Calculated at 12.8% [5] - **Historical P/E Multiples**: NYPCB traded at 15-20x P/E during previous upcycles, indicating a high valuation during favorable market conditions [5] Market Sentiment and Future Outlook - **Analyst Meeting**: Unimicron's upcoming analyst meeting is expected to be bullish regarding long-term demand and pricing environment, justifying an increase in 2026 capex from NT$25.4 billion to NT$34 billion [1] - **Profit-Taking Risk**: Given the positive sentiment already priced into the stock, there is a risk of profit-taking by investors post-meeting [1] Risks Identified - **For NYPCB**: 1. Weaker-than-expected demand for ABF from key customers [6] 2. Seasonality weakness in the BT business and less-than-expected price hikes [6] 3. Severe T glass shortages causing production bottlenecks [6] - **For Unimicron**: 1. Weaker-than-expected HDI business [8] 2. Significant increase in ABF supply in the industry [8] 3. Margin pressure from depreciation due to higher capex investments [8] Additional Important Information - **OPEX Rate**: Increased due to higher employee bonuses or R&D for future product launches [1] - **Market Focus**: Investors are expected to focus on Unimicron's long-term demand outlook and pricing environment during the analyst meeting [1]