Goldman Sachs
2026-06-12
Compal (2324.TW): Ongoing revenue mix diversification; global capacity ramping up to support AI servers; Neutral
Report Summary
Goldman Sachs maintains a Neutral rating on Compal (2324.TW), raising its target price to NT$39.5 from NT$34.7 based on 13.6x 2027E P/E. May revenue was flat MoM but 9% above estimate, with PC shipments reaching 2mn units (+11% MoM). Non-PC revenue mix increased to 35% in 1Q26 (vs 30% in 1Q25), driven by wireless communication and AI servers. A new US plant is expected to begin production at end of 2Q26. 2026-28E revenues were revised up 9%/13%/9% on higher AI server contribution.
Key Takeaways
- Non-PC revenue mix rose to 35% in 1Q26, up from 30% a year ago, signaling meaningful diversification beyond traditional PC assembly.
- AI server revenue is the key growth driver, prompting 9-13% upward revisions to 2026-28E revenue forecasts.
- Gross margins face headwinds as AI server business carries lower margins than consumer electronics, creating a mix dilution effect.
- New US manufacturing plant commencing production at end of 2Q26 positions Compal to serve AI server demand with geographic diversification.
- Despite revenue upgrades and a raised target price, the Neutral rating reflects capped upside from rising memory/CPU costs and the company's continued heavy reliance on consumer electronics.
Topics Covered
AI Server Manufacturing
Revenue Mix Diversification
PC Shipment Trends
Global Capacity Expansion
Gross Margin Pressure
US Plant Production Ramp
Wireless Communication Growth
Companies Mentioned
Compal Electronics (2324.TW)
Chenbro
Pegatron
Dell
Quanta
Wiwynn
Gigabyte
Asus
Inventec
Auras
King Slide
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