Taiwan Union Technology was founded in 1974 and is headquartered in Zhubei, Taiwan. It produces and distributes copper clad laminates, prepregs and mass laminates. These products are primarily used in printed circuit boards, mobile phone boards, base station backplanes, communication boards, servers and automotive boards. The company markets its products both domestically and internationally.

Taiwan Union Technology has reported strong Q2 25 results, with revenue rising to 6.8bn Taiwan dollars, up 18.9% y/y. EBIT and net income also performed well, reflecting improved demand and operational execution. Continued investments in innovation and high-margin segments supported performance and sustained profitability. The company officially opened its Thailand manufacturing facility in May 2025, with significant capital expenditure to strengthen its Southeast Asian footprint.

Positive long-term outlook

Taiwan Union Technology posted modest performance over FY 21-24, achieving a revenue CAGR of 3.0%, reaching TWD 23.1bn in FY 24, driven by expansion in overseas markets and increased investment in R&D to support innovation. EBIT registered a CAGR of 11.9%, reaching TWD 3.3bn, with margins improving from 11.3% to 14.4%.

Over FY 21-24, the company increased its cash and cash equivalent from TWD 4.7bn to TWD 6.3bn. In addition, gearing improved from 33.8% to 30.8%.

In comparison, Alchip Technologies, Limited, Inc., a local peer, reported a revenue CAGR of 70.8% over FY 21-24, reaching TWD 52.0bn in FY 24. EBIT grew at CAGR of 52.6% to TWD 6.5bn, with margin contracting from 17.5% to 12.5%.

Looking ahead, consensus estimated EBIT to rise at a CAGR of 36.5% to TWD 8.5bn with margins expanding from 14.4% to 19.9% over FY 24-27, with a  net profit CAGR of 32.6% to TWD 6.1bn. Meanwhile, for Alchip, analysts estimate a fairly similar EBIT CAGR of 35.8%, with a slightly lower net profit CAGR of 28.6%.

Robust stock returns

Over the past 12 months, the company's stock delivered strong returns of approximately 133.8%. In comparison, Alchip’s stock delivered lower returns of around 49.3% over the same period. In addition, the company reported DPS of TWD 6.5, with a 3.8% rate of return in FY 24.

Taiwan Union Technology is currently trading at a P/E of 31.6x, based on the FY 25 estimated EPS of TWD 11.9, which is higher than its 3-year historical average of 23.7x but lower than Alchip’s P/E of 55.8x. The company is currently trading at an EV/EBIT multiple of 23.0x, based on FY 25 estimated EBIT of TWD 4.4bn, which is higher than its 3-year historical average of 13.5x but lower than Alchip (51.7x).

Taiwan Union Technology is liked by nine analysts, with each having 'Buy' ratings for an average target price of TWD 372.0. However, the stock has already reached its target, only a near-term correction in the stock's price could create a buy opportunity for investors.

Overall, Taiwan Union Technology shows strong financial performance and promising growth prospects, supported by innovation and strategic investments. Despite its current high valuation, any near-term price correction could offer a favorable entry point for investors seeking long-term gains. However, the company faces strategic risks including US-China trade tensions, low-carbon transition, investment security, resource constraints and political instability, impacting supply chain, competitiveness and long-term planning.