Nanya Technology: profit up 56-fold, but revenue growth decelerated from 684% to 612%

In its Q3 2026 report, Nanya Technology posted revenue of TWD 133.6 bn (+611.7% YoY), EBITDA of TWD 112.5 bn and net profit of TWD 87.6 bn (+5505.1%). The company holds a net cash position of TWD 271.5 bn, while the EBITDA margin reached 84.2% versus 25.2% a year earlier. Our conclusion: rather attractive – on the portal's model, the upside of the share to fair value is +24%. Our view: the share is rather attractive at the current price; upside on the portal model +24%.

Our view: is there upside

Our view in numbers

Key takeaways

— Revenue grew 611.7% YoY, but the pace decelerated from 684.2% a quarter earlier

— EBITDA margin rose to 84.2% from 25.2% a year earlier

— Net profit rose 56-fold to TWD 87.6 bn

— Net cash position reached TWD 271.5 bn

— Operating cash flow of TWD 97.4 bn covered capital expenditures of TWD 20.8 bn

— On the portal's model, the share trades at a 24% discount to fair value

Key figures, TWD bn

Revenue grew 611.7% YoY, but the pace decelerated from 684.2% a quarter earlier

Revenue in Q3 2026 was TWD 133.6 bn, up 611.7% from a year earlier. That is a very high rate, but it is below Q2, when growth was 684.2%. The deceleration may reflect a high base effect: a year ago revenue was only TWD 18.8 bn.

The main contribution to growth appears to have come from a recovery in memory demand, but the facts do not break this down by product or region, so we do not specify the cause. Importantly, the absolute revenue level has risen for three consecutive quarters: TWD 49.1 bn in Q1, TWD 82.5 bn in Q2 and TWD 133.6 bn in Q3.

Slower growth does not mean weakness: the company is still growing revenue more than sevenfold year on year. For an investor, however, it is a signal that peak growth rates may be behind us, and further dynamics will depend on the sustainability of demand.

EBITDA margin rose to 84.2% from 25.2% a year earlier

EBITDA in Q3 2026 was TWD 112.5 bn, and the EBITDA margin reached 84.2% versus 25.2% a year earlier. Such margin growth is explained by operating leverage: revenue grew 7.1-fold, while operating costs likely remained relatively stable.

Operating profit was TWD 106.9 bn, close to EBITDA, meaning depreciation is small relative to the scale of the business. Almost all EBITDA converts into operating profit, and the company carries no significant non-cash charges.

Such a high margin is an anomaly for semiconductor manufacturing, and its sustainability will depend on memory prices. If prices decline, the margin could quickly return to more normal levels, as it was a year ago.

Net profit rose 56-fold to TWD 87.6 bn

Net profit in Q3 2026 was TWD 87.6 bn, up 5505.1% from TWD 1.6 bn a year earlier. The net margin reached 65.6% versus 8.3% a year earlier.

Profit growth almost entirely mirrors EBITDA growth, indicating no large one-off items below the operating line. Interest expenses are likely small given the net cash position, while the tax burden is not disclosed in the facts.

A profit of TWD 87.6 bn is a level the company has not shown before. For an investor, it matters that the profit is backed by cash flow rather than accounting adjustments.

Net cash position reached TWD 271.5 bn

As of 30 September 2026, the company's net cash position was TWD 271.5 bn. This means cash and equivalents exceed debt, and the company has no net debt. A year earlier, on 30 June 2025, the net cash position was TWD 19.1 bn, so it grew by TWD 252.4 bn over the year.

The net debt to EBITDA ratio for the trailing twelve months is -1.01, reflecting the net cash position. We cannot compare this with the past, as the facts do not provide an earlier value, but the absolute level indicates high financial stability.

Such a liquidity cushion allows the company to fund capital expenditures and pay dividends without raising debt. However, the cash position itself does not generate profit, and the question is how the company will use it.

Operating cash flow of TWD 97.4 bn covered capital expenditures of TWD 20.8 bn

Operating cash flow in Q3 2026 was TWD 97.4 bn, while capital expenditures were TWD 20.8 bn. Free cash flow therefore exceeds TWD 76 bn, fully covering investment needs.

Capital expenditures rose compared with previous quarters: TWD 2.8 bn in Q1, TWD 4.0 bn in Q2 and TWD 20.8 bn in Q3. This may indicate production expansion, but the facts provide no details. Even with the capex increase, the company retains a large buffer of free funds.

Over the trailing twelve months, operating cash flow was TWD 200.3 bn, confirming the sustainability of cash generation. Such a flow allows the company to fund dividends and maintain its net cash position.

On the portal's model, the share trades at a 24% discount to fair value

On the portal's model, which compares EBITDA growth with a target multiple and market capitalisation, the upside of the share to fair value is +24%. This is our own estimate, not a market consensus.

The current EV/EBITDA multiple for the trailing twelve months is 4.91, and P/E is 7.77. We cannot compare these with three-year averages, as the facts do not provide historical values. In absolute terms, however, the multiples look low for a company with such a margin and net cash flow.

Return on equity (ROE) is 31.9%, confirming high business efficiency. The 24% discount may reflect market concerns about the sustainability of memory prices, but our model shows upside.

Valuation on the latest reported figures

Bottom line

The report's strength was not only record profit of TWD 87.6 bn but also its cash backing: operating cash flow of TWD 97.4 bn covered capex of TWD 20.8 bn. However, revenue growth decelerated from 684.2% to 611.7%, and the sustainability of the 84.2% margin depends on memory prices. The net cash position of TWD 271.5 bn provides a margin of safety but does not guarantee profit preservation. On the portal's model, the upside of the share is +24%, which outweighs concerns about deceleration. Our conclusion: rather attractive – upside of +24% on the portal's model. Our view: the share is rather attractive at the current price; upside on the portal model +24%.