Win Semi Touches Down in Q1; Shares Attractive Amid Broader Product Portfolio; FVE TWD 258 Unchanged

We stand by our fair value estimate on Win Semiconductors of TWD 258, corresponding to 2024 adjusted 31 times P/E. The effects of our more cautious forecasts up to 2026 are offset by lower 2023 capital expenditure and newly introduced 2027 estimates that factor in a full-year ramped-up contribution from the Kaohsiung cluster. The stock is enticing to us as we view the market could be too pessimistic on Win Semi’s delay in expanding capacity at the cluster. We think it is a good time to buy the stock to benefit from smartphone recovery from the second quarter, slightly higher visibility in satellite applications, and incremental value captured by newly released filters.