Yageo to Hold Earnings Call on July 29 – Five Key Points Market is Watching

Passive components giant Yageo (2327-TW) is scheduled to hold its earnings call this Wednesday (29th). As the sector’s stock prices have recently undergone sharp corrections, with Yageo’s share price nearly halved from its peak, investors expect not only Q2 earnings and business outlook but also discussions on AI demand, product lead times and pricing trends, and capacity utilization to be key highlights of the call.

Chairman Jerry Chen previously stated at the shareholder meeting that 'the second half will be extremely busy' based on customer demand, especially for high-end AI-related products. The company anticipates continued increases in capacity utilization rates, expecting general products to rise above 80% and specialty products to exceed 90%. Whether this outlook changes will be a key point of observation during the earnings call.

Institutional investors are also focusing on lead times and the potential for continued price increases for Yageo’s MLCCs and tantalum capacitors in the second half. Meanwhile, with Japanese and Korean passive component giants currently facing supply shortages, market attention is growing on whether Yageo can capture design-win opportunities in non-AI segments such as automotive and consumer electronics.

Yageo reported Q2 revenue of NT$44.456 billion, a record high for any single quarter, up 16.5% quarter-on-quarter and 35.7% year-on-year. The company expects gross and operating margins to improve as well. A recent report from a U.S. foreign brokerage estimates Yageo’s target price at NT$2,075 under the most optimistic scenario, maintaining an 'Outperform' rating.