台湾 PCB 与覆铜板 -2025 年第四季度业绩受产品转型影响，毛利率不及预期；但即将到来的涨价与 AI -ASIC需求放量，维持买入评级-Taiwan PCB Laminates 4Q25 results GM miss on product transition impact however upcoming price hike and AI ASIC ramp Buy

Summary of Conference Call Notes Industry Overview - The conference call discusses the Taiwan PCB (Printed Circuit Board) and Laminates industry, focusing on two companies: EMC (Elite Material Co., Ltd.) and TUC (TUC). Key Points 1. Financial Performance - EMC's 4Q25 Results: - Sales decreased by 1% QoQ, with infrastructure sales down 4% QoQ due to the AI ASIC transition period - Gross Margin (GM) recorded at 28.6%, down 1.5 percentage points QoQ, missing forecasts by 1.1 and 1.4 percentage points [2][13] - TUC's 4Q25 Results: - Sales increased by 13% QoQ, driven by networking products, but GM fell to 22.1%, down 1.7 percentage points QoQ, missing forecasts by 3.5 and 2.2 percentage points [9][21] 2. Future Outlook - EMC's 1Q26 Guidance: - Expected sales growth of 25-30% QoQ, with GM projected at around 30% +/- 1.5% - Negotiations for a price hike of at least 10% for M6 and above effective in 2Q26, expected to boost infrastructure sales mix to 80% in 2026 [3][12] - TUC's 1Q26 Forecast: - Anticipated sales growth of 4% QoQ, with GM projected at 24.0% - AI ASIC demand expected to rebound from 2Q26 [10][22] 3. Capital Expenditure Plans - EMC's 2026 Capex: - Increased to NT$15-23 billion from NT$15 billion for capacity expansion in Taiwan and China, with total laminate capacity expected to reach 6.15 million sheets/month by end-2026 [4][12] - TUC's 2026 Capex: - Announced capex of approximately NT$10 billion, significantly up from NT$2 billion in 2025, aimed at expanding capacity in China and Thailand [11][22] 4. Earnings Revisions - EMC's Earnings Forecast: - 2026/27E earnings raised by 37% and 53% respectively, with target price lifted to NT$3,000 from NT$2,100 [12][19] - TUC's Earnings Forecast: - 2026/27E earnings increased by 7% and 9% respectively, with target price raised to NT$660 from NT$600 [12][22] 5. Market Sentiment - Both companies maintain a "Buy" rating due to favorable trends in the CCL (Copper Clad Laminate) sector and expected demand from AI server markets [1][12] 6. Additional Insights - EMC's operational efficiency through stringent OPEX controls helped offset revenue declines [2] - TUC's low-loss CCL sales mix was recorded at 70% in 4Q25, indicating a stable demand for high-quality products [9] This summary encapsulates the essential financial metrics, future outlooks, capital expenditure plans, and market sentiments regarding the Taiwan PCB and Laminates industry, specifically focusing on EMC and TUC.