Yuanchung Securities: rating Buy on Tongfu Microelectronics, AMD receives large order from Meta, company benefits indirectly

Yuanta Securities research report pointed out that Meta and AMD announced a cooperation to deploy a total of 6,000 megawatts of AMD chips. It is expected to bring AMD revenue of over 100 billion US dollars in the next few years. Tongfu Microelectronics, as AMD's core packaging and testing manufacturer, is expected to benefit greatly from the increase in business scale of major customers, with a 5% increase in profit forecast for 2027. In terms of amount, it is estimated that the total order amount will exceed 100 billion US dollars. This cooperation is advantageous for Tongfu Microelectronics, as Tongfu Microelectronics is AMD's core packaging and testing factory, with AMD holding 15% stakes in its factories in Penang and Suzhou. Therefore, the company is expected to see a significant increase in revenue, which will have a positive long-term impact. In addition, through private placement, the company will seize the strategic opportunities in AI and domestic substitution, further expanding its influence in the packaging and testing field, with a positive long-term impact. The current stock price corresponds to a PE ratio of 40 times and 26 times for 2026 and 2027, respectively, and is rated as "buy".