Zhongtai Securities: Maintains "Buy" rating for Pingtung Holdings, AI business progressing smoothly

According to a research report by Zhongtai Securities, Pegatron Holdings' performance for the first half of 2026 met expectations, with smooth progress in its AI business. In the first half of 2026, the company achieved revenues of 17.217 billion yuan, a year-on-year increase of 5.14%, and a net profit attributable to the parent company of 1.284 billion yuan, a year-on-year increase of 4.11%. During the first half of the year, the AI business saw significant growth, although foreign exchange losses had a negative impact on profits. The company continues to invest heavily in research and development to explore new products and expand production, further positioning itself in the AI computing power and optical module sectors. In May 2026, the company won a new industrial land bid in Shenzhen and has obtained board approval to invest 10 billion yuan to establish a third industrial park in Shenzhen, focusing on high-end AI substrates and flexible printed circuit board manufacturing projects, thereby laying a foundation for future growth through continued expansion. Considering the pressures on consumer electronics this year, along with the company's advantages and capacity reserves in the AI field, the forecast for net profit attributable to the parent company for 2026/2027/2028 has been adjusted to 5.395 billion / 8.774 billion / 12.745 billion yuan, respectively, with a price-to-earnings (P/E) ratio of 41.5/25.5/17.6 times based on the closing price on August 11, 2026, maintaining a "Buy" rating.