Company Reports

Yageo reported 16.5% year-on-year revenue growth in the second quarter, while its gross margin rose 4.9 percentage points year on year to 26.4%. Management expects both revenue and margin to improve modestly quarter-on-quarter in the third quarter.

Taiwan-based Yageo is one of the leading suppliers of passive components. Passive components are widely used in all kinds of electronic applications; they are necessary to stabilize and control electric flow and to remove electromagnetic noise from circuits. Yageo’s main products are tantalum capacitors, chip resistors, and multilayer ceramic capacitors, in which the firm is ranked first, first, and third in global production volume, respectively.

After follow-up meetings held after the March-quarter results, we revisited our view on artificial intelligence data center demand and updated our earnings forecasts and fair value estimates for Murata Manufacturing, Samsung Electro-Mechanics, Yageo, Taiyo Yuden, and TDK.

Taiwan-based Yageo is one of the leading suppliers of passive components. Passive components are widely used in all kinds of electronic applications; they are necessary to stabilize and control electric flow and to remove electromagnetic noise from circuits. Yageo’s main products are tantalum capacitors, chip resistors, and multilayer ceramic capacitors, in which the firm is ranked first, first, and third in global production volume, respectively.

Yageo's revenue increased 6.1% sequentially in the March quarter, defying typical seasonal softness from the Lunar New Year holiday period. Management attributes the outperformance to robust demand from artificial intelligence infrastructure buildout.

Taiwan-based Yageo is one of the leading suppliers of passive components. Passive components are widely used in all kinds of electronic applications; they are necessary to stabilize and control electric flow and to remove electromagnetic noise from circuits. Yageo’s main products are tantalum capacitors, chip resistors, and multilayer ceramic capacitors, in which the firm is ranked first, first, and third in global production volume, respectively.

Yageo's December-quarter revenue increased by 8.7% sequentially, partly due to two months of contributions from the acquired Shibaura Electronics. Despite having fewer operating days due to the Chinese New Year, the firm expects revenue to rise slightly in the March quarter, indicating solid demand.

Taiwan-based Yageo is one of the leading suppliers of passive components. Passive components are widely used in all kinds of electronic applications; they are necessary to stabilize and control electric flow and to remove electromagnetic noise from circuits. Yageo’s main products are tantalum capacitors, chip resistors, and multilayer ceramic capacitors, in which the firm is ranked first, first, and third in global production volume, respectively.

Major passive component suppliers Murata Manufacturing, Samsung Electro-Mechanics, Yageo, TDK, and Kyocera all reported solid revenue growth in the September quarter, driven by computing demand. All of the Japanese suppliers raised their full-year guidance for fiscal 2025 (ending March 2026).

Taiwan-based Yageo is one of the leading suppliers of passive components. Passive components are widely used in all kinds of electronic applications; they are necessary to stabilize and control electric flow and to remove electromagnetic noise from circuits. Yageo’s main products are tantalum capacitors, chip resistors, and multilayer ceramic capacitors, in which the firm is ranked first, first, and third in global production volume, respectively.

Yageo is one of the leading suppliers of passive components based in Taiwan. Passive components are widely used in all kinds of electronic applications; they are necessary to stabilize and control electric flow and to remove electromagnetic noise from circuits. Yageo’s main products are tantalum capacitors, chip resistors, and multilayer ceramic capacitors, in which the firm is ranked first, first, and third in global production volume, respectively.

Yageo's sales in the June quarter grew 5.4% sequentially, and its operating margin improved to 21.5%, up from 20.8% in the March quarter, both of which are slightly ahead of guidance despite currency headwinds.

Yageo reported its March-quarter results with revenue up 3.7% sequentially, improving on guidance of flat revenue. Gross and operating margins improved 2.4 and 2.9 percentage points sequentially to 35.6% and 20.8%, respectively, in line with guidance.

Yageo is one of the leading suppliers of passive components in Taiwan. Passive components are widely used in all kinds of electronic applications; they are necessary to stabilize and control electric flow and to remove electromagnetic noise from circuits. Yageo’s main products are chip resistors and multilayer ceramic capacitors, or MLCCs, in which the firm is ranked first and third in global production volume, respectively.

Yageo's December-quarter sales declined 5.5% and gross margin declined 2.0 percentage points sequentially due to seasonality and were within the company's guidance. For the March quarter, the company expects sales to be flat and gross margin to improve 1.5%-3.0% sequentially.

Yageo is one of the leading suppliers of passive components in Taiwan. Passive components are widely used in all kinds of electronic applications; they are necessary to stabilize and control electric flow and to remove electromagnetic noise from circuits. Yageo’s main products are chip resistors and multilayer ceramic capacitors, or MLCCs, in which the firm is ranked first and third in global production volume, respectively.

Yageo's September-quarter results did not improve as we had expected from the previous quarter. Revenue of TWD 31.7 billion was up 1.0% sequentially, and operating margin of 20.9% was only marginally higher than 20.6% in the June quarter.

Yageo is one of the leading suppliers of passive components in Taiwan. Passive components are widely used in all kinds of electronic applications; they are necessary to stabilize and control electric flow and to remove electromagnetic noise from circuits. Yageo’s main products are chip resistors and multilayer ceramic capacitors, or MLCCs, in which the firm is ranked first and third in global production volume, respectively.

Over the past two days, four passive component suppliers reported their June quarter results. Compared with our expectations, Murata Manufacturing’s numbers were slightly lower, Samsung Electro-Mechanics’ were mainly in line, and TDK’s and Yageo’s were higher. Such divergence in earnings performance is mainly due to differences in product portfolios, but demand by end-product generally showed a similar trend. While industrial products remained sluggish and automobiles and smartphones are stagnating, demand for applications related to high-performance computing, such as servers and PCs, seem to be improving. While we maintain our earnings forecasts and fair value estimate of JPY 4,000 for Murata Manufacturing, we plan to review our earnings forecasts for Semco, TDK, and Yageo after meeting with each company in early August. Overall, we expect that margin expansion for passive component suppliers will continue to improve in the coming quarters, driven by the better capacity utilization and an improved product mix. However, the strengthening of the Japanese yen could be a risk factor for Japanese suppliers.

We upgrade Yageo’s Morningstar Uncertainty Rating to Medium from High, and with a lower discount rate, we revise our fair value estimate to TWD 800 per share from TWD 750. We believe that Yageo’s diversified product portfolio and customer mix have made the company much more resilient to economic fluctuations, but the market has not yet fully recognized this transformation.