Taiwan ABF Eternal Precision visit Order lead time extends to 2031, customers offering premium to secure supply

Equity Research 16 September 2026 | 2:21PM CST

Taiwan ABF: Eternal Precision visit: Order lead time extends to 2031, customers offering premium to secure supply; Buy NYPCB and Kinsus

We held a meeting with Eternal Precision’s (7795.TW, Not Covered) management. Chao Wang | kuan- The company is a leading global ABF vacuum laminator equipment supplier with Goldman Sachs (Asia) L.L.C., Taipei ~95% market share in the mid-to-high end market. Key takeaways include: Branch

Daiki Takayama (1) Management mentioned that its order lead time extends to 2031 (increased from | 2028/29 previously), with new orders mainly coming from the most high-end ABF Goldman Sachs Japan Co., Ltd.

vacuum laminators (90-ton 3-stage laminators), as major ABF customers continue to Allen Chang | expand capacity to support next generation ABF substrates. Goldman Sachs (Asia) L.L.C.

(2) The company is also seeing some customers (mainly China ABF customers) Al Wang | proactively offering to pay a premium to shorten lead time and secure equipment Goldman Sachs (Asia) L.L.C., Taipei Branch supply, a trend that was not observed during the previous upcycle in 2020-22. While the company will take these offers into consideration, it remains focused on prioritizing major customers, with equipment allocated first to customers with larger scale and longer-standing relationships, as well as those with secured ABF film supply.

(3) The company will begin shipping the new ABF vacuum laminators for EMIB-T substrates in 1H27, initially to Japanese ABF customers. Management mentioned that the shipment allocation will depend on customers’ yield of this new packaging technology, with Japanese customers currently demonstrating leading yields among the limited number of suppliers.

(4) For glass core substrate, the company is uncertain about the timing of commercialization and indicated that it is unlikely to take place in 2027/28. The pricing for the new glass core substrate laminators is expected to be higher than current high-end laminators, due to the additional inspection equipment required.

(5) Management mentioned that contract liabilities (customer typically make a prepayment of 10-30% of the total order value) is a leading indicator of revenue. August revenue reached its second historical high at NT$360mn with +91% MoM and +101% YoY (Exhibit 1). Despite the strong revenue growth, contract liabilities only declined slightly in August, implying continuation of a solid order intake trend. Management also mentioned that contract liabilities have continued to increase and stand at ~NT$800mn now.

(6) The company expects its product mix to shift toward the high-end in 2H26, which should be higher than 2025 level (high-end laminators accounted for 59% of total 2025 revenue). Management mentioned that equipment shipment in 2H26 are

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mainly for major customers’ new capacity expansion scheduled for late 2026 or 2027, mainly comprising of high-end equipment. Management expects revenue in 1H26 and 2H26 could be at a 3 to 7 ratio (implying 50%+ YoY revenue growth in 2026E).

(7) To meet with the strong demand, the company will expand capacity to reach 396 units/year by mid-2027 (50% increase from current level of 264 units/year). The company will expand Japan capacity from 18 units/month to 28 units/month by mid 2027, mainly for mid-to-high end products, while China capacity will increase from 4 units/month to 5 units/month by early 2027, with production shift from low-to-mid end. Furthermore, a new Japan plant with capacity of 350 units/year is expected to be ready in 2029, which will replace the existing plants in Japan (total capacity will reach 410 units/year), but…