Foreign investment Nomura Securities pointed out in its latest report that although the fundamentals of domestic second-line crystalline foundry manufacturers are not bad, they are under the situation of investors' unwillingness to the development of non-AI markets, resulting in the decline of their stock prices. It was observed that the United Corporation had an urgent order that came earlier than in previous years, and there was a chance of stock prices rebounding upward as it entered the fourth quarter. Therefore, we continue to maintain the "buy" investment rating, with a target price of NT$50. Due to the rise of positive news, the stock price of Joint Electric Power once rose to 44.45 yuan per share on the 23rd, an increase of nearly 3%.
Nomura Securities' report pointed out that after the tax incident in the first half of the year, the inventory pressure in the second half of the year appeared, and the market generally has conservative expectations. However, compared with the non-recovery period in the past two years, the Telecommunications Corporation has experienced emergency orders that are usually early at this time, reflecting the low inventory level of the client. There are even cases where customers who have capacity configurations have begun to re-visit the tax inaccuracy gradually fade. This keeps the outlook for power utilization in the United States stable, and the price reduction will also reach 0~5% in 2026.
According to the expectations of the FTC's last quarter, the shipment of crystals in the third quarter will increase by 1%-3%, and the energy utilization rate will be about 75%. However, every 1% appreciation of NT$ is corresponding to a 1% reduction in operating collection, so the average selling price of US dollar prices remained stable, and the third quarter closing is expected to decline compared with the second quarter due to fluctuations in the exchange rate of NT$. However, with the exchange rate affecting gross profit margin, it is expected to keep up with the previous quarter. However, the report pointed out that even if it is difficult to make a decision on urgent orders at present, it is not ruled out that the market will be able to start a new wave of pull-out cycles from the first half of 2026, allowing crystalline foundry operators to feel the order recovery situation from the fourth quarter.