Asia Vital Components (3017) investor relations material

Executive summary

• Achieved record Q1 2026 revenue of TWD 49.038 billion, up 110% year-over-year, driven by explosive AI server demand and integration in thermal solutions.

• Net income attributable to parent company was TWD 7.916 billion, a 19.26% margin and 142.15% higher year-over-year.

• EPS for Q1 2026 reached TWD 20.17, a historical high, up from TWD 8.28 in Q1 2025.

• Thermal products accounted for 63.6% of Q1 revenue, with server and communication applications rising to 66.4% of total revenue.

• Company remains optimistic for full-year 2026, citing strong vertical integration and expanding AI-related opportunities.

Financial highlights

• Revenue grew 110% year-over-year to TWD 49.038 billion in Q1 2026.

• Gross margin reached 29.77% in Q1 2026, with gross profit of TWD 14.597 billion.

• EPS hit TWD 20.17, a new quarterly record.

• Capital expansion exceeded TWD 3.6 billion in Q1, supporting increased production.

• Free cash flow in Q1 2026 was TWD 10.017 billion, up 130.49% year-over-year.

Outlook and guidance

• Sequential growth expected throughout 2026, with significant new product launches and customer projects in the second half.

• Margins anticipated to improve further as server and networking segments expand.

• ASIC customer contribution projected to outgrow GPU customers by 2027.

• CapEx budget set at TWD 15 billion for 2026 and TWD 17 billion for 2027.

• Sustained growth in revenue and EPS is indicated by strong annual CAGRs and quarterly momentum.