2327.TW
T3Yageo Corporation
Key Reported Metrics, Reratings Triggers & ResultsGross Profit reflects Yageo's pricing power, product mix, and cost management in a competitive industry. An improving gross profit signals effective navigation
| Key reported metrics | Rerating thresholds | ||||
|---|---|---|---|---|---|
| Metric | Last period | Why it matters | What's needed for rerating | Rerating context | Earnings date |
| Gross Profit | 31.2% | Gross Profit reflects Yageo's pricing power, product mix, and cost management in a competitive industry. An improving gross profit signals effective navigation of raw material price increases and favorable demand for high-margin products. | A gross profit margin consistently above 37.5%, ideally reaching the 38-40% range, demonstrating continued strength in product mix (AI, automotive), pricing power (recent capacitor hike), and operational efficiency, surpassing its already improved recent performance. Yageo's 4Q25 gross profit margin was 37.3%, and its trailing twelve months gross margin was 36.85%. This would represent a clear improvement over these recent highs and signal a closing of the gap with top-tier peers like Murata Manufacturing (TTM gross margin of 42.3%). | A gross profit margin consistently above 37.5% would signal Yageo's ability to capitalize on high-growth AI and automotive markets with premium components and effective cost control. This would validate the bullish investment thesis, enhance valuation multiples, and strengthen its competitive position against peers, driving further investor confidence and stock rerating. | |
| Total Revenue | 22.7% | Total Revenue indicates overall demand for Yageo's passive electronic components, especially with the strong momentum from AI-related applications. Investors will watch for continued top-line growth to validate the bullish thesis. | Total Revenue year-over-year growth of at least 25-30% for Q2 2026, resulting in reported revenue exceeding NT$43 billion, surpassing both the previous quarter's 22.7% growth and the high end of analyst consensus estimates (NT$42.88 billion). | Achieving this revenue growth demonstrates Yageo's ability to capitalize on robust demand for passive electronic components, particularly from AI-driven applications. This validates the core bullish investment thesis, signals strong market share gains, and supports a higher valuation by confirming sustained top-line expansion and competitive strength in a growing market. | |
| Net Income | 44.7% | Net Income is a key indicator of Yageo's overall profitability and operational efficiency. Strong net income growth demonstrates the company's ability to translate revenue growth into shareholder value, crucial for investor confidence. | Net Income growth exceeding 45% year-over-year, demonstrating continued momentum from AI-driven demand, and achieving a Net Profit Margin of 28% or higher, aligning with recent analyst fair value revisions. | Hitting these thresholds signals Yageo's strong execution in capitalizing on AI-driven demand and improving operational efficiency. This would validate the bullish investment thesis, enhance investor confidence in sustainable profitability, and justify a higher valuation multiple. | |