JCET (600584)

Equity Research 24 August 2026 | 9:15AM HKT

JCET (600584.SS): Advanced packaging riding on AI trend; 2Q26 in line; Neutral

JCET’s 2Q26 revenue was up 12% YoY / 13% QoQ, largely in line with Bloomberg Allen Chang | consensus and 8% lower than our estimate, while GM was higher than our estimate Goldman Sachs (Asia) L.L.C. and Bloomberg consensus, which management attributes to (1) utilization rate Verena Jeng improvement driven by strong end demand, (2) disciplined cost control, and (3) | Goldman Sachs (Asia) L.L.C. product mix upgrade towards high-end AIDC products packaging and testing. 2Q26 opex ratio is in line with our estimate and higher than Bloomberg consensus, while it Yifan Hu | Goldman Sachs (Asia) L.L.C. still delivered YoY and QoQ improvement, and management expects to improve in 2H26E as new plants’ shipments ramp up. Overall, 2Q26 net income delivered strong growth at +107% YoY / +91% QoQ, largely in line with our estimate or 15% higher than Bloomberg consensus, reflecting that the company is benefiting from the rising AI infrastructure end demand. We remain positive on JCET’S growth ahead, supported by (1) rising importance of packaging in AI chips’ performance, (2) rising end demand supporting utilization rate improvement, (3) product mix upgrade towards high-value AI-related products (e.g. AI chip, memory, etc.), (4) advanced packaging capacity expansion. Maintain Neutral on fair valuation.

Exhibit 1: 2Q26 result snapshot 2Q26 2Q26 2Q26 (Rmb m) Actual GS Diff Con. Diff 1Q26 QoQ 2Q25 YoY Revenue 10,356 11,282 -8% 10,452 -1% 9,171 13% 9,270 12% Gross profit 1,624 1,696 -4% 1,550 5% 1,334 22% 1,327 22% Opering income 681 655 4% 606 12% 413 65% 427 59% Net income 554 578 -4% 480 15% 290 91% 267 107% Margins Gross margin 15.7% 15.0% 0.6ppts 14.2% 1.5ppts 14.5% 1.1ppts 14.3% 1.4ppts Operating margin 6.6% 5.8% 0.8ppts 5.8% 0.8ppts 4.5% 2.1ppts 4.6% 2ppts Net margin 5.4% 5.1% 0.2ppts 4.6% 0.8ppts 3.2% 2.2ppts 2.9% 2.5ppts

Source: Company data, Goldman Sachs Global Investment Research, Bloomberg

Earnings revision: We factor in JCET’s 2Q26 result and raise our 2027-30E net income by 11% / 9% / 13% / 9%, mainly on higher revenues and GMs. We revise down 2026E revenue by 3% to reflect the 2Q26 revenue miss, while raise our 2027-30E revenues by 5% / 4% / 5% / 4%, mainly on higher contribution from advanced packaging. Our 2026-30E GMs are raised by 0.8~1.5ppts, mainly on product mix upgrade towards advanced packaging, which carries a higher GM than other product lines. We raise our 2026-30E opex ratios, mainly on higher R&D expense to support the advanced packaging business growth. We raise our tax rates as JCET’s earnings scale up.

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Goldman Sachs JCET (600584.SS)

Exhibit 2: Earnings revision 2026E 2027E 2028E 2029E 2030E (Rmb mn) New Old Diff New Old Diff New Old Diff New Old Diff New Old Diff Revenue 45,404 46,802 -3% 56,374 53,869 5% 64,301 61,773 4% 72,909 69,700 5% 78,748 75,489 4% Gross profit 7,022 6,878 2% 9,078 7,873 15% 10,971 9,599 14% 12,755 11,235 14% 13,856 12,511 11% Operating income 2,973 2,834 5% 4,009 3,552 13% 5,447 4,892 11% 7,002 6,064 15% 7,957 7,136 11% Net income 2,603 2,596 0% 3,732 3,349 11% 5,081 4,648 9% 6,422 5,693 13% 7,272 6,690 9% Margins Gross margin 15.5% 14.7% 0.8ppts 16.1% 14.6% 1.5ppts 17.1% 15.5% 1.5ppts 17.5% 16.1% 1.4ppts 17.6% 16.6% 1ppts Operating margin 6.5% 6.1% 0.5ppts 7.1% 6.6% 0.5ppts 8.5% 7.9% 0.6ppts 9.6% 8.7% 0.9ppts 10.1% 9.5% 0.7ppts Net margin 5.7% 5.5% 0.2ppts 6.6% 6.2% 0.4ppts 7.9% 7.5% 0.4ppts 8.8% 8.2% 0.6ppts 9.2% 8.9% 0.4ppts

Source: Company data, Goldman Sachs Global Investment Research

Valuation: We continue to derive our 12M TP based on 2030E…