UMT (3491)

Equity Research 13 October 2026 | 1:55PM HKT

UMT (3491.TWO): LEO satellite to drive growth ahead; Sep rev +52% YoY while MoM decline on Aug pull-in; Buy

UMT delivered strong 3Q26E revenues growth of 74% YoY (or -7% MoM) to NT$843, Allen Chang | while below our estimates, we attribute it to order momentum and the transition Goldman Sachs (Asia) L.L.C. period of LEO satellite business towards the new platform. We remain positive and Verena Jeng expect to see a rising revenues contribution from the LEO satellites business, and | Goldman Sachs (Asia) L.L.C. growing dollar content on the new platform, supporting both YoY and QoQ growth in 4Q26E revenue, along with GM improvement. Meanwhile, the company continues to Ting Song | Goldman Sachs (Asia) L.L.C. work with multiple LEO satellite clients. We remain positive on UMT given (1) riding on the accelerating LEO satellite launches that enhance the satellite communication services and expand space applications, (2) increasing waveguide for LEO satellite dollar content given more bands are adopted per LEO satellite, and (3) waveguide end market expands from LEO satellite to AI data center for high-speed interconnection in scale up (report link). Maintain Buy.

UMT provides rectangular waveguides, which are conducting pipes with a rectangular cross-section used to guide the propagation of microwave or mmwave signals. Different shapes and combinations of waveguides can form various RF passive components, such as filter / diplexer, coupler, isolator, antenna, power amplifiers (PAs), etc. The company serves leading global LEO satellite operators, and its waveguides can be seen in LEO satellites / payloads (main), and gateways in ground stations.

Exhibit 1: UMT revenues to grow at 74% CAGR in 2026-28E with rising LEO satellite contribution

14,000 NT$m 93% Revenues to grow at +74% CAGR in 12, E with LEO Satellites to grow at +88% CAGR 10,000 91%

LEO Satellite - Starlink LEO Satellite - Amazon LEO Satellite - Others 4G/5G backhaul RF antenna Others

Source: Company data, Goldman Sachs Global Investment Research

3-month preview: The company’s Sep revenues were up 52% YoY, or -9% MoM to NT$292m, while 22% below our estimates, and we attribute it to the product pull-in

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during Aug, resulting in 3Q26 revenues up 74% YoY to NT$843m. With the gradual ramp up of clients’ new platform, we expect to see sequential MoM growth ahead, with Oct/ Nov revenues up 17%/ 19% MoM to NT$341m/ NT$406m, driven by a rising contribution from the LEO satellites.

Exhibit 2: We expect UMT Oct 2026 revenues to grow 49%/ 17% YoY/ MoM to NT$341m UMT monthly/ quarterly revenues Jul 2026 Aug 2026 Sep 2026 Oct 2026E Nov 2026E Dec 2026E 2Q26 3Q26 4Q26E Revenues (NT$m) ,531 YoY 82% 93% 52% 49% 42% 145% 76% 74% 83% MoM/QoQ -10% 40% -9% 17% 19% 93% -12% -7% 82% GS estimates (NT$m) Actual vs. GS -17% 3% -22% -7% -9%

Source: Company data, Goldman Sachs Global Investment Research

Earnings revision: We factor in UMT 3Q26 revenues and revise down earnings by 1%/ 1%/ 1% in 2026-28E mainly on lower revenues due to the momentum of product delivery, while we remain positive on the rising LEO satellite business exposure ahead.

Exhibit 3: Earnings revision 2026E 2027E 2028E NT$m Old New Diff % Old New Diff % Old New Diff % Revenues 4,430 4,296 -3% 9,327 9,179 -2% 13,116 12,967 -1% GP 2,627 2,569 -2% 6,041 5,974 -1% 8,625 8,557 -1% OP 1,450 1,429 -1% 3,657 3,628 -1% 5,293 5,263 -1% Net income 1,273 1,256 -1% 2,893 2,871 -1% 4,185 4,161 -1% Margins GM 59.3% 59.8% 64.8% 65.1% 65.8% 66.0% OPM 32.7% 33.3% 39.2% 39.5% 40.4% 40.6% NM 28.7% 29.2% 31.0% 31.3% 31.9% 32.1% Source: Company data, Goldman Sachs Global Investment Research

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