Lotes: Material Cost Remains a Near-Term Overhang

Goldman Sachs maintains a Neutral rating on Lotes with a revised target price of NT$1,790, citing near-term margin pressure from rising material costs despite strength in its server business.

Key Takeaways

• 1.Raw material price hikes, specifically a 30% increase in plastics, are expected to weigh on gross margins through the first half of 2026.
• 2.Management remains positive on the server business with AMD Venice CPU launch in 2H26 expected to drive higher ASP and 15% HoH shipment growth.
• 3.Lotes faces increasing competitive pressure in the server socket market as TE Connectivity re-enters for the AMD Venice platform.

Table of Contents

• NEUTRAL
• Key Data
• GS Forecast
• GS Factor Profile
• Ratios & Valuation
• Growth & Margins (%)
• Income Statement (NT$ mn)
• Balance Sheet (NT$ mn)
• Cash Flow (NT$ mn)
• Investment view
• Earnings revisions and valuation
• Earnings revisions
• Valuation
• Disclosure Appendix
• Price target and rating history chart(s)
• Target price history table(s)
• Regulatory disclosures

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