Electronic Manufacturing Services

Foxconn Industrial Internet announced on September 18 that it had repurchased 15.83 million shares through centralized bidding, accounting for 0.08% of total share capital. The actual repurchase amount was 1 billion yuan, with a repurchase price range of 59.91 yuan to 66.4 yuan per share. In the first half of 2026, Foxconn Industrial Internet achieved revenue of 557.861 billion yuan and net profit attributable to the parent company of 23.74 billion yuan.

Foxconn Industrial Internet announced that the company has completed its share buyback plan, repurchasing a total of 15.8334 million shares, accounting for 0.08% of total share capital, with an actual repurchase amount of 1 billion yuan and a repurchase price range of 59.91 yuan to 66.40 yuan per share. The company stated that the repurchased shares will be used to safeguard company value and shareholder interests, and it plans to sell them 12 months after disclosing the buyback results.

Yuanta Securities (Thailand) said in an analysis note after visiting the factory of Stars Microelectronics (Thailand), or SMT, that the recovery trend in its business has become clearer, with second-quarter 2026 results reflecting a rebound in revenue, capacity utilisation and margins, and it expects the third and fourth quarters of 2026 to improve significantly on the prior quarter. SMT currently has advance orders covering roughly 8 to 12 months of production and targets 2026 revenue of no less than 2.6 billion baht, while for 2027 it expects growth of more than 10%, or above 3 billion baht. Yuanta views current estimates as based on fairly conservative assumptions and sees upside if orders convert to revenue faster than expected, particularly in wafer dicing, where market supply is constrained. Yuanta sees the Optical business becoming SMT's new growth engine on the back of AI growth, since the Optical and OSAT segments benefit directly from AI infrastructure investment and carry higher margins than the traditional business. Revenue from SMT's AI-related customers is still at an early stage and accounts for less than 5% of total revenue, but has the chance to rise to at least 10% next year. Meanwhile, its collaboration with Lumentum, a major player in the global Optical supply chain, marks an important starting point covering joint investment and development work. Yuanta expects SMT revenue of 2.67 billion baht in 2026, rising to 3.11 billion baht in 2027, and forecasts normalised profit of 150 million baht in 2026, rising to 256 million baht in 2027, or growth of about 70% from the previous year. On 2027 valuation, the stock trades at a PER of about 19 times, still below peers trading at roughly 28 to 58 times. Yuanta maintains its Buy rating on SMT with a target price of 7.60 baht, based on a PER of 25 times, compared with the closing price on 15 September 2026 of 5.85 baht, implying upside of about 29.9%.

TE Connectivity plc announced that its board of directors declared a regular quarterly cash dividend of $0.78 per ordinary share. The dividend is payable on December 11, 2026, to shareholders of record at the close of business on November 20, 2026. TE Connectivity, based in Galway, Ireland, is a global industrial technology leader whose connectivity and sensor solutions serve next-generation transportation, energy networks, automated factories and data centers enabling artificial intelligence. The company employs more than 90,000 people, including 10,000 engineers, working with customers in approximately 130 countries.

Fabrinet shares have dropped about 22.3% since its last earnings report, underperforming the S&P 500. The company reported fourth-quarter fiscal 2026 non-GAAP earnings of $4.10 per share, up 54.7% year over year and beating the Zacks Consensus Estimate by 6.49%, while revenues rose 44.6% to $1.316 billion, beating consensus by 2.64%. Data center revenues totaled $669 million, up 68% year over year and 13% sequentially, becoming the largest category at 51% of sales, with data center interconnect exiting the quarter at an annualized revenue run rate above $1 billion. For the first quarter of fiscal 2027, Fabrinet expects revenues of $1.375-$1.425 billion, implying 43% year-over-year growth at the midpoint, and non-GAAP earnings of $4.10-$4.25 per share. Management estimates Building 10 at the Chonburi campus, on track for completion by early 2027, can add $3-$3.5 billion of revenue capacity, taking total capacity to roughly $8.5-$9.3 billion, with a path to $12.5-$14 billion of annual revenue capacity over the coming years.

Tisco Securities has upgraded its investment weighting for the electronics sector to Overweight from Neutral, citing better-than-expected data center CAPEX spending in 2026, stronger second-half trends across all companies, and the sector's underperformance of 33% relative to the market in the recent period, which it believes has already priced in much of the market's remaining concerns. The research team raised its recommendation on DELTA to Buy with a fair value of 282 baht, after the market has already absorbed negative factors. Although raw material shortages, uncertainty over royalty fees, and the recent bond issuance by parent company Delta Taiwan remain pressures in the second half, the 37% decline in the share price is believed to have already reflected downside risks. Meanwhile, HANA was upgraded to Buy with its fair value raised to 61.50 baht, reflecting greater confidence after HANA passed all qualification requirements from end customers to generate AI revenue in the third quarter of 2026, with new HDI PCB expected to be a significant revenue driver in 2027. KCE retains its Hold rating with a fair value adjusted to 60.25 baht, as the share price has fully reflected its prospects, with humanoid robots and capacity expansion being the clearest supporting factors for 2028.

Yuanta Securities issued an analysis stating that SMT is clearly entering a turnaround phase, with second-quarter 2026 results recovering across revenue, capacity utilisation and margins. The company expects third-quarter to fourth-quarter 2026 results to improve significantly versus the prior quarter, supported by advance orders covering production for the next 8 to 12 months. The company guided 2026 revenue of not less than 2.6 billion baht and expects growth of more than 10% in 2027, or above the 3 billion baht level. The Optical and OSAT businesses are new growth engines that benefit directly from AI, with AI-related revenue still accounting for less than 5% of current revenue after starting production for 2 to 3 customers in the second half of 2026, with the opportunity to rise to at least 10% next year. On capacity expansion, capex may need to increase from the normal level of about 100 million baht per year to 450 to 500 million baht per year if it is to support revenue growth of more than 10% per year. The analyst maintained a 2026 normal profit forecast of 150 million baht, a turnaround from a loss of 146 million baht in 2025, rising to 256 million baht, or 70% year-on-year growth, in 2027, while maintaining a fair value of 7.60 baht per share at end-2027 based on a PER of 25 times and keeping a Buy recommendation. The stock currently trades at about 19 times 2027 PER, significantly below the sector's 28 to 58 times. The key risk is high dependence on a major customer.

Corning shares fell 12.7% on Monday after the glass and electronic component manufacturer disclosed an at-the-market equity distribution agreement with Goldman Sachs to sell up to $2 billion of its common stock. Baldwin Insurance Group rose 7.9% after announcing a definitive agreement to be taken private through a majority investment by Sequence Holdings and DFO Management in an all-cash deal valued at approximately $7.7 billion. Gartner gained 7.7% as it kicked off its IT Symposium/Xpo conference, highlighting major technology trends and emphasizing how agentic artificial intelligence and modern governance are reshaping public sector operations. Jabil dropped 5.1% after Goldman Sachs lowered its price target on the shares to $375, while Accenture rose 5.2% after Morgan Stanley raised its price target on the stock to $175.

Kitron ASA has initiated a share buyback program of up to 10,000 of its own shares for a total maximum amount of NOK 950,000. The buyback, which may run from this announcement until 18 September 2026, is intended to acquire shares used as part of the remuneration to the board members for the period from and including April 2026 to and including April 2027, as resolved by the annual general meeting on 24 April 2026. The Company has engaged Norne Securities AS to carry out the repurchases on Euronext Oslo Børs, under the authorisation granted by the annual general meeting held on 24 April 2026, which permits up to 4,374,050 shares to be purchased at a minimum of NOK 1 and a maximum of the prevailing market price per share on the day the offer is made, provided the maximum amount does not exceed NOK 200 per share. That authorisation is valid until the annual general meeting in 2027, however no later than 30 June 2027. Kitron does not hold any own shares in the Company as of the date of this announcement, and the program may be discontinued at any time or terminated before the threshold is reached.

KGI Securities issued an analysis of KCE and HANA shares, seeing positive factors supporting both. For KCE, the research team noted that the company informed the Stock Exchange of Thailand on September 11, 2026 that it is negotiating to buy and sell products with a company in the United States, but no conclusion has been reached. It believes the US company is Tesla and the product under negotiation is PCBs for humanoid robots, or Tesla Optimus, for which Tesla has set a production capacity target of 1 million units per year, rising to 10 million units in the long term. The research team expects revenue from this project could be 0.3% to 1.3% of KCE's total revenue, under assumptions of production of 1 million units, PCB content of 150 to 200 US dollars per unit, and a KCE share of 1% to 3%, so this project has not yet been included in estimates. It also expects KCE's core business profit in the third quarter of 2026 to increase significantly both year on year and quarter on quarter, driven by a 10% selling price increase from July 1, 2026. It recommends holding KCE shares and has raised the end-2027 target price to 62.00 baht. For HANA, the research team expects indirect benefits from the adoption of AI after receiving orders related to cooling solutions, data transmission applications, and solid-state transformers. It expects core business profit in the third and fourth quarters of this year to grow strongly both year on year and quarter on quarter on the back of several drivers, including the start of a project with Phononic and a smaller share of losses from PMS. The research team raised its profit forecast by 6% to 11% and maintained its buy recommendation on HANA shares with an end-2027 target price of 63 baht.

Sanmina Corporation announced that Shanker Trivedi has been appointed to its board of directors, effective September 14, 2026. Trivedi brings more than 30 years of leadership experience in enterprise technology, data centers, cloud infrastructure, and go-to-market execution, having spent 2009 to 2026 at NVIDIA Corporation, most recently as Senior Vice President, Enterprise Business from April 2016 to April 2026. During his 17-year tenure at NVIDIA, he led worldwide sales for data center and professional visualization products and business development for industry verticals including manufacturing, healthcare, financial services, telecommunications, government, and education. He currently serves on the board of directors of Enphase Energy, Inc., and previously held senior leadership positions at Callidus Software, Sun Microsystems, IBM and ICL. Chairman and Chief Executive Officer Jure Sola said Trivedi's expertise across the AI and data center markets will be invaluable to driving long-term value for stakeholders.

TTM Technologies is ramping up its N+M technology family, having already delivered tens of millions of dollars of N+M products and expecting approximately $600 million of N+M business in the second half of 2026, with about one-third of that opportunity in the third quarter and two-thirds in the fourth quarter. The opportunity is supported by strong Data Center and Networking demand, where second-quarter sales surged 91% year over year as customers expanded AI data-center infrastructure, and TTM Technologies expects the end market to account for 49% of third-quarter sales as N+M enters volume production. N+M yields are running better than expected, and further yield improvements as production scales should support margin expansion in the third and fourth quarters. The Zacks Consensus Estimate projects revenue growth of 50.88% year over year in 2026, with earnings per share projected at $4.82 for 2026 and $6.90 for 2027, representing year-over-year growth of 95.9% and 43.2%, respectively. TTM Technologies faces competition in advanced electronics from Amphenol Corporation, which is strengthening its position through Wilder Technologies, and from Sanmina Corporation, which is expanding high-technology PCB capabilities for AI and aerospace-and-defense products.

RF Industries reported record quarterly revenue of $24 million in its fiscal Q3 2026 earnings call, with adjusted EBITDA margins reaching 11.1% and gross profit margin hitting 35.6%. Management expects Q4 sales to be roughly the same or above the record Q3 levels, supported by a backlog that currently stands at $19.8 million. The company's Direct Air Cooling business is projected to exceed $10 million in annual sales, serving as a primary growth engine for edge data center and AI infrastructure applications, while the small cell market began picking up momentum in Q3 and is expected to accelerate into fiscal 2027. Net debt improved through a $1.1 million increase in cash and a $400 thousand reduction in revolver borrowings, and inventory decreased to $13.2 million from $14.4 million sequentially. Management said carrier CapEx is projected to be largely flat but that RFI's growth is decoupled from headline spending due to increased share in densification and fiber projects.

RF Industries reported record fiscal third-quarter revenue of $24 million, up 21% from the prior-year period and 16% sequentially, as higher-value integrated systems and custom cabling offerings drove growth and profitability. Gross profit rose 27% year over year to $8.5 million, while gross margin expanded 160 basis points to 35.6% from 34.0%, according to Chief Financial Officer Peter Yin, and the company said it has exceeded its 30% gross-margin objective in six of the past seven quarters. Operating income increased to $1.8 million from $720,000 a year earlier, GAAP net income was $1.4 million, or $0.12 per diluted share, and adjusted EBITDA rose about 71% to $2.7 million, with adjusted EBITDA margin reaching 11.1% and topping the company's long-stated 10% target. Third-quarter bookings were $22.5 million, a book-to-bill ratio of approximately 0.94x, and backlog stood at $18.6 million as of July 31 before rising to $19.8 million as of the call date, while cash rose to $4.5 million and revolver borrowings declined to $5.7 million from $6.1 million at the end of the second quarter. Chief Executive Officer Rob Dawson said the company expects fiscal fourth-quarter sales to be roughly equal to or above the third-quarter level, with momentum in small-cell products and direct air-cooling, and management expects direct air-cooling sales to exceed $10 million as it pursues opportunities in edge data centers, AI infrastructure, aerospace and defense, and other diversified markets.

Kimball Electronics reported fourth-quarter net sales of $371.6 million, a 5% sequential increase, and issued fiscal 2027 guidance calling for net sales of $1.535 billion to $1.56 billion, a 7% to 9% increase over fiscal 2026. That guidance splits into 3% to 5% organic growth and roughly $60 million in sales from the newly acquired Helvoet Polymer Technologies business, with Medical expected to grow at a strong single-digit to modest double-digit pace and supply upward of a third of total sales. The outlook follows a full fiscal year in which net sales fell 4% to $1.431 billion, with automotive, still the largest vertical at 46% of quarterly sales, down 7% for the year. Cash generation was the bright spot: $42.4 million in quarterly operating cash flow, a tenth straight positive quarter, total debt down to $116.6 million, the lowest in more than four years, and Cash Conversion Days of 82, the best in 17 quarters. Adjusted operating income margin was 4.9% for the quarter versus 5.2% a year earlier, adjusted diluted earnings per share swung to a loss of $0.01 from positive $0.34, and fiscal 2027 margin guidance of 4.4% to 4.7% is flat to lower than fiscal 2026's 4.6% even as capital expenditures are planned at $50 million to $60 million.

Sanmina Corporation generated $702 million in cash from operations in the first nine months of fiscal 2026, up from $421.6 million a year earlier, while free cash flow rose to $457.8 million from $341.4 million. The growth is driven by strong demand in the AI infrastructure vertical, with third-quarter revenues in communications networks and cloud and AI infrastructure reaching $2.15 billion, a 173.2% increase. Sanmina has secured additional orders for next-generation accelerated-compute products from hyperscale and OEM customers, and the integration of ZT Systems strengthens this opportunity. However, ongoing investments in production capacity could impact near-term free cash flow, and the company faces risks from tariffs, trade policy, and customer concentration. Sanmina shares have surged 67.6% compared with the industry's growth of 43.4%, and the stock trades at 14.86 times forward earnings, lower than the industry. Earnings estimates for fiscal 2026 and 2027 have risen over the past 60 days, and Sanmina holds a Zacks Rank #1 (Strong Buy).

Methode Electronics reported fiscal first-quarter 2027 net sales of $265.4 million, up 10.4% from $240.5 million a year earlier, driven by higher Industrial segment volumes and mix, including organic data-center growth and higher lighting volumes. However, the company posted a $3.9 million operating loss versus $1.1 million of operating income in the prior-year quarter, as selling and administrative expenses rose 25.4% to $45.9 million. Methode also announced new non-data-center program awards representing approximately $75 million of peak annual revenue and $400 million of lifetime revenue, which are company-reported metrics and not guaranteed. The Industrial segment sales increased 27.0% to $156.8 million, while Automotive operating loss narrowed to $11.7 million from $12.5 million. The company maintained its fiscal 2027 guidance of $1.025 billion to $1.075 billion in sales and $72 million to $82 million in adjusted EBITDA, despite adjusted EBITDA falling to $13.7 million from $15.7 million in the quarter. Methode also extended the maturity of certain revolving loans to October 29, 2028, and reduced aggregate commitments to $375 million.

Fabrinet is experiencing accelerating demand for high-speed optical connectivity as hyperscalers expand AI and cloud data-center infrastructure, with data-center revenues surging 68% year over year to $669 million in the fourth quarter of fiscal 2026, accounting for 51% of total revenues. The company's DCI business has an annualized revenue run rate exceeding $1 billion, and it has delivered 12 consecutive quarters of record revenues. Fabrinet is expanding manufacturing capacity, with Building 10 in Chonburi expected to add roughly $3-$3.5 billion in revenue capacity, potentially lifting total capacity to $8.5-$9.3 billion. However, it faces tough competition from Lumentum Holdings, whose systems revenues jumped 123% year over year to $357 million, and Applied Optoelectronics, which saw data-center revenues surge 140.4% to $107.7 million. Fabrinet shares have plunged 10.5% year to date, underperforming the sector's 18.2% growth, and trade at a forward P/E of 21.14X. The Zacks Consensus Estimate for Fabrinet's earnings is $4.19 per share, suggesting 43.49% growth, and the stock holds a Zacks Rank #2 (Buy).

Flex Ltd. has agreed to acquire EPC Power for $4.4 billion, a major bet on the power needs of AI infrastructure, with the deal expected to close in the fourth quarter of calendar 2026. EPC Power, which develops power conversion hardware and software for data centers and grids, will become part of Flex's CPI segment, which Flex plans to spin off as an independent publicly traded company in the first quarter of calendar 2027. EPC Power has deployed more than 15 GW across 62 countries and expects U.S. manufacturing capacity to exceed 30 GW by 2027. The acquisition is expected to generate approximately $800 million in revenue in calendar 2026, with about 40% organic revenue growth in 2027 and EBITDA margin expanding to approximately 30% in 2027. Flex's rivals are also making moves: Sanmina reported revenues of $3.46 billion, up 69.7% year over year in the fiscal third quarter, and Vertiv agreed to acquire UtilityInnovation Group for about $1.45 billion in cash plus up to $1.15 billion in performance-based payments. Flex shares have gained 94.9% in the past year, and the Zacks Consensus Estimate for fiscal 2027 earnings has been revised upward over the past 60 days.

Karrie International Holdings Limited announced that the first batch of NVIDIA Vera Rubin platform products has been delivered progressively and entered mass production, which, together with rising ASIC-related server shipments, is expected to drive fourth-quarter results to a new record high. The company, a global server mechanical engineering solutions provider listed in Hong Kong, has launched products supporting the Vera Rubin NVL72 and Rubin NVL8 platforms, extending its portfolio from server-level to rack-scale solutions. In its first-quarter business update, the company reported approximately 63% year-on-year revenue growth in its Server Chassis — General and AI segment, driven by increased shipments of ASIC and other AI server products. As current-generation ASIC products near the end of their life cycle, the company has prepared next-generation models to ensure a smooth transition. Karrie International expects Vera Rubin platform products and its ASIC server business to be the primary growth drivers in the fourth quarter, supporting the Group in reaching a new operational high.

Flex Ltd. has agreed to acquire EPC Power for $4.4 billion, subject to customary adjustments, to expand its data center power portfolio. EPC Power provides intelligent power conversion solutions, including grid-forming technology, with over 15 GW deployed across 62 countries and U.S. manufacturing capacity expected to exceed 30 GW in 2027. The acquisition will add capabilities for next-generation 800V data center architectures, complementing Flex's existing power, cooling, and compute portfolio. EPC Power is expected to generate approximately $800 million in 2026 revenue, with organic growth of about 40% in 2027 and EBITDA margin expanding to roughly 30%. The deal is expected to close in the fourth quarter of 2026, and EPC Power will join Flex's Cloud and Power Infrastructure segment, which Flex plans to spin off into an independent public company in the first quarter of 2027. Flex will finance the acquisition through a combination of debt and equity.

Asian equities were positioned for a higher open Monday, while oil prices advanced as renewed fighting between the United States and Iran raised concerns about shipping disruptions and inflation. Futures indicated gains for Japanese and South Korean stocks, while Australian contracts were little changed. Brent crude rose about 0.5% after Iran said it had targeted three tankers traveling through the Strait of Hormuz without authorization, along with several U.S.-linked vessels. The attacks indicated that the six-month conflict involving Iran, the United States and Israel remained far from resolution. Investors are now turning to Friday’s U.S. consumer-price report after stronger-than-expected employment data increased expectations that the Fed could raise rates at its Sept. 16 meeting. In currency markets, the yen traded near 156 to the dollar after strengthening 2.4% last week. China announced plans to inject 300 billion yuan, or about $44.7 billion, in special-bond proceeds into major banks and insurers. Hon Hai Precision Industry reported a 52% increase in monthly sales as demand for AI infrastructure remained strong.

Taiwan's major electronics contract manufacturer, Foxconn (Hon Hai Precision Industry), said on the 5th that its third-quarter results are expected to beat market forecasts, supported by solid artificial intelligence (AI) related demand. In the second-quarter results announced last month, net profit rose 35% year-on-year, surpassing analyst expectations, driven by robust AI-related demand. In a statement, the company explained that in the third quarter, AI demand is expected to continue expanding, and information and communication technology (ICT) products are entering the busy season in the second half of the year, so performance will gradually gain momentum. Furthermore, the current outlook for the third quarter has improved compared to the previous month, and overall performance is expected to beat market expectations. Meanwhile, the company also noted the need to monitor the impact of unstable global political and economic conditions, but did not provide specific numerical forecasts. According to the company, revenue last month rose 51.98% year-on-year to NT$921.8 billion (US$29.15 billion), a record high for August, and exceeded NT$900 billion for the second consecutive month.

Hon Hai Precision Industry, a key server assembly partner for Nvidia, reported NT$921.8 billion ($29.1 billion) in revenue for August, marking a 52% year-over-year increase and its second-best monthly sales ever, driven by accelerating AI momentum. The Taiwan-based company, also known as Foxconn, said its consolidated sales for the first eight months of the year reached NT$6.5 trillion, up about 40% year over year. August's figure trailed only July's NT$946.51 billion, which saw a 54% rise. The company noted that its cloud and networking division experienced sizable growth amid accelerating AI demand, as did its electronics component and computing product divisions. Hon Hai, which also assembles iPhones for Apple, reported strong growth in its smart consumer electronics division due to higher prices and client restocking ahead of new product launches. Looking ahead, Hon Hai says the third quarter is a peak season for the information and communications technology industry, and analysts on average expect the company to report a 37% rise in sales for the quarter, according to Bloomberg.

Foxconn Technology, formally known as Hon Hai Precision Industry, expects its third-quarter performance to exceed market expectations, driven by robust demand for AI-related products and a seasonal pickup in information and communication technology products. The company, one of the world's largest producers of AI servers and a key supplier to Nvidia, said its visibility for the quarter had improved from the previous month, though it does not provide numerical forecasts. This upbeat outlook follows a second-quarter net profit that rose 35% year over year, beating analyst expectations, and August revenue of T$921.8 billion ($29.15 billion), up 51.98% from a year earlier, marking its strongest August on record and the second consecutive month above T$900 billion. Foxconn cautioned that investors should monitor the impact of an uncertain global political and economic environment, highlighting risks from its extensive global manufacturing footprint and exposure to trade policies and geopolitical tensions. Foxconn shares closed 3.4% higher on Friday, outperforming the broader Taiwan market, which gained 1.5%.

EPC Power Corp., a leading North American designer and manufacturer of high-performance power conversion solutions for data centers, utility-scale energy storage, and microgrids, has entered into a definitive agreement to be acquired by Flex for $4.4 billion. The transaction, expected to close in the fourth quarter of 2026, is subject to customary closing conditions, including regulatory approvals. Upon closing, EPC Power will become a business within Flex's Cloud and Power Infrastructure segment, building on their existing collaboration. EPC Power's technology, including its Agile Grid Forming technology and next-generation 800-volt data center power architectures, aims to address power availability challenges for AI infrastructure and grid stability. The company's CEO, Jim Fusaro, highlighted the expansion of domestic manufacturing and the support of Goldman Sachs Alternatives and Cleanhill Partners, who will sell their stakes in the deal.

EPC Power Corp., a North American designer and manufacturer of power conversion solutions for data centers, utility-scale energy storage, and microgrids, has entered into a definitive agreement to be acquired by Flex for $4.4 billion. The transaction, expected to close in the fourth quarter of 2026, is subject to customary closing conditions and regulatory approvals. Upon closing, EPC Power will become part of Flex's Cloud and Power Infrastructure segment, which Flex plans to spin off. EPC Power's technology, including its Agile Grid Forming technology and 800-volt data center power architectures, aims to address power availability challenges for AI infrastructure and grid stability. The company's CEO, Jim Fusaro, highlighted the expansion of domestic manufacturing nearly tenfold during its partnership with Goldman Sachs Alternatives and Cleanhill Partners, which will sell their stake in the deal.

Flex has entered into a definitive agreement to acquire EPC Power at a value of $4.4 billion, subject to customary adjustments, with the transaction expected to close in the fourth quarter of calendar 2026. EPC Power, founded in 2010 and headquartered in California, provides intelligent power conversion solutions for data center and grid applications, including grid-forming technology and capabilities for next-generation 800V data center power architectures. The acquisition is expected to enhance the growth and EBITDA margin profile of Flex's Cloud and Power Infrastructure segment, which Flex plans to separate into an independent publicly traded company in the first calendar quarter of 2027. EPC Power is expected to generate approximately $800 million of revenue in calendar 2026, with organic revenue growth of approximately 40% expected in 2027, and EBITDA margin expected to expand to approximately 30% in 2027. Flex plans to fund the transaction with a combination of debt and equity, with committed financing provided by Citi and Bank of America.

TTM Technologies is making its initial strategic entry into Europe through planned acquisitions of Swiss Technology Group AG in Switzerland and ILFA GmbH in Germany, adding specialized capabilities and geographic reach that could support long-term revenue growth. The acquisitions are expected to contribute less than 5% of incremental sales but be moderately accretive on an adjusted EBITDA basis. TTM's approximately $4.4 billion 2026 revenue outlook excludes any contribution from the pending acquisitions, leaving room for potential upside as the deals close and are integrated. Meanwhile, Zacks Consensus Estimate projects 2027 revenues at $5.46 billion, above the 2026 outlook. Shares of TTM have surged 67.5% year to date, and the company currently sports a Zacks Rank #1 (Strong Buy).

Methode Electronics reported a 10.4% increase in first-quarter fiscal 2027 sales, driven by industrial-segment momentum in data center power distribution and off-road lighting, while management reaffirmed its full-year outlook and detailed further operational restructuring efforts. Net sales totaled $265.4 million, with gross profit rising to $47.7 million from $43.5 million, though the company posted an adjusted net loss of $7.7 million, or $0.22 per diluted share, unchanged from a year earlier. Industrial sales jumped 27% to $156.8 million, with operating income up 19% to $31.6 million, while automotive sales slipped 0.4% to $105.7 million and interface sales fell 73% to $2.9 million following the DataMate divestiture. Management highlighted Mexico restructuring, where facilities posted more than 500 basis points of margin improvement, and new awards representing $75 million in peak annual revenue and about $400 million in lifetime revenue, mostly for hybrid vehicle applications with new automotive customers. The company reaffirmed fiscal 2027 guidance for net sales of $1.025 billion to $1.075 billion and adjusted EBITDA of $72 million to $82 million, and reduced total debt to $310.5 million from $325 million at fiscal year-end.

Asia Plus Securities recommends a "Buy" on Hana Microelectronics Public Company Limited (HANA), setting a 2027 target price of 52 baht, expecting 2027 normal profit to grow 49% YoY, the strongest in the sector, while the stock remains a laggard. Currently, HANA trades at a 2027 PER of around 28 times, compared with KCE and DELTA at 44 times and 62 times, respectively. The research house expects HANA's 2027 profit to be bright, driven by AI/data center trends boosting demand for electronic components, as well as growth in HANA's EMS and OSAT businesses. Additionally, new projects starting in 2026, such as producing cooling modules for a new customer (Phononic) and high-density PCBA, will contribute significant revenue next year. The restructuring of IC production lines in China toward higher-margin products and increased capacity utilization in South Korea will also help improve overall margins. As for profit trends in the second half of 2026, they are expected to improve compared with the first half of this year on an HoH basis and versus the same period last year on a YoY basis, as the third quarter is typically the high season for the electronics industry, coupled with the benefit of a recovering electronics cycle, which is expected to drive full-year 2026 net profit growth of around 18% YoY.

Asia Plus Securities stated that HANA has three main business segments: electronics manufacturing services (EMS), semiconductor assembly and testing (OSAT), and RFID label production. Net profit in 2025 declined at an average annual rate of 32% to 670 million baht, but began to recover in the second quarter of 2026 with net profit growing 838% year-on-year. It is expected that second-half profit will improve both quarter-on-quarter and year-on-year, supported by seasonal sales and the recovery of the electronics cycle. As a result, net profit in 2026 is expected to grow about 18%, and in 2027 to grow as much as 49%, driven by AI and data center trends, as well as new projects such as producing cooling modules for Phononic and high-density PCBA. The research department sets a 2027 target price of 52 baht, based on a PER of 32.7 times. It recommends "Buy" because profit growth is expected to be the strongest in the group and the stock price is still lagging, trading at a 2027 PER of only 28 times, compared with KCE at 44 times and DELTA at 62 times.

The tort liability dispute between ST Wingtech and its subsidiary Yucheng Holdings on one side, and Nexperia Holdings and other defendants on the other, has reached a new stage. The court has ordered the sealing, seizure, and freezing of assets worth 2.139 billion yuan belonging to Nexperia Limited and ITEC Limited. ST Wingtech received the civil ruling from the Dongguan Intermediate People's Court of Guangdong Province on August 28. Based on the property preservation application, the court froze equity held by Nexperia Limited in multiple Nexperia semiconductor subsidiaries in China, as well as equity held by ITEC Limited in ITEC Technology Wuxi Limited, with the freeze lasting until 2029. The plaintiffs allege that the defendants unlawfully executed or assisted in executing discriminatory restrictive measures by the Dutch side, causing massive losses, and are seeking joint compensation tentatively calculated at 8 billion yuan. ST Wingtech said the case has not yet gone to trial and the impact on profits remains uncertain, but it will continue to exhaust all legal means to restore full control over Nexperia. On August 31, ST Wingtech shares closed at 19.12 yuan, down 3.39 percent.