J.P. Morgan upgrades All Ring Tech to Overweight, driven by growth in advanced packaging dispensing and CoWoS expansion

Overview

This report is a company research and earnings review of All Ring Tech (6187.TW) by J.P. Morgan. After 1Q26 results, the report raised the rating to Overweight, arguing the company is not only a beneficiary of CoWoS expansion but will also enter a larger potential market in CPO optical-engine, SoIC and FAU mounting through its dispensing and AOI capabilities. J.P. Morgan expects 2025-2027 revenue and EPS compound growth of 50% and 61% respectively, with 2027E revenue reaching NT$12.1bn and adjusted EPS reaching NT$39.98.

Core views

The core view is that All Ring Tech's earnings power is being re-priced by multiple advanced packaging demand drivers. First, CoWoS and OSAT full-stack expansion is expected to continue through 2027, with CoWoS and FOCoS revenue expected to grow 44%/14% in 2026/2027. Second, rising share in dispensing equipment is viewed as a long-term trend, as the company is expected to gain share from international peers based on CoWoS project experience, customer relationships, and localization/customization capabilities. Third, SoIC, CPO OE and CPO FAU are expected to become new revenue contributors in 2027, with SoIC contributing a low single-digit share, CPO OE a high single-digit share, and CPO FAU several tens of percentage points of revenue share. Fourth, the report considers concerns that Rubin may remove the stiffener to be a misunderstanding, as All Ring Tech's thermal-cover die-attach equipment is used to mount the lid to the chip, not to mount the stiffener.

Analysis framework

The report combines upward revisions to earnings forecasts, segment-level revenue decomposition, valuation multiple repricing, and peer valuation comparison. On earnings, J.P. Morgan raised 2026E/2027E revenue, EBIT and EPS to reflect contributions from CoWoS-related, optical-engine dispensing/AOI and SoIC projects. On valuation, the target price uses 36x 2027E P/E, up from a previous 26x target multiple, citing stronger profitability and a re-rating of the advanced packaging equipment segment. On earnings review, the report notes 1Q26 EPS was NT$3.37, below the market consensus by 11%, mainly due to stock-based restriction expenses, while also raising 2Q26 revenue forecast by 20% to NT$2.0bn and EPS forecast to NT$6.0.

Methodology notes

• Valuation methodP/E target multiple method

  36x 2027E P/E target multiple

  The report derives a Jun-27 target price of NT$1,450 based on 36x 2027E P/E; the multiple is above the prior 26x, reflecting stronger profitability and a re-rating in the advanced packaging equipment segment.

• Earnings forecastingSegment-level revenue and EPS modeling

  Breakout modeling of CoWoS, CPO OE, SoIC, and CPO FAU

  The report incorporates more CoWoS-related revenue, optical-engine dispensing/AOI, and SoIC into the model, while maintaining a 2027 assumption of 100 CPO FAU mounting units shipped.

• Industry driversAdvanced packaging expansion-cycle analysis

  CoWoS and OSAT full-stack expansion

  The report believes that the CoWoS expansion cycle at foundries and OSATs will be longer and stronger, supporting continued growth for All Ring Tech in 2026-2027.

• Competitive landscapeEquipment localization and customization trend

  Rising share in dispensing equipment

  Localization and customization trends in advanced back-end equipment are viewed as key tailwinds for All Ring Tech to gain share from international competitors.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• All Ring Tech (6187.TW)

  Core coverage name, supplier of advanced packaging equipment and dispensing equipment

  Strengths

  Benefits from CoWoS expansion, CPO OE dispensing/AOI, SoIC and CPO FAU mounting equipment; has dispensing core technology, CoWoS project experience, customer relationships, and a localization/customization advantage.

  Weaknesses

  Current revenue remains highly dependent on CoWoS-related business, with CoWoS-related revenue accounting for about 90% in 2025; 1Q26 EPS was below consensus due to expense impacts.

  Comparison

  The peer valuation table shows All Ring Tech 2026E/2027E P/E of 45.4x/26.8x, with 2026E/2027E EPS growth of 52.3%/69.7%, and YTD stock performance up about 194%.

  Risks

  AI demand corrections, slower expansion or technology progression in advanced packaging, increased competition, and underperformance in new project qualification or shipment.

• CoWoS/FOCoS advanced packaging equipment chain

  One of the main growth drivers

  Strengths

  The foundry and OSAT full-stack expansion cycle is expected to continue through 2027, supporting All Ring Tech's revenue growth.

  Weaknesses

  If advanced packaging capex pace slows, the high share of related revenue can amplify cyclical volatility.

  Comparison

  The report expects CoWoS and FOCoS revenue to grow 44%/14% in 2026/2027, with shares of 86% and 65%, respectively.

  Risks

  AI chip demand pullback, delayed customer expansion, and changes in packaging roadmaps.

• CPO, OE, FAU and SoIC-related equipment opportunities

  Source of new projects and medium-to-long-term TAM expansion

  Strengths

  The company has won CPO OE projects and could be an exclusive dispensing-supplier for OE attachment to substrates; SoIC dispensing equipment may hold leading share; FAU equipment has a clear 2027 shipment assumption.

  Weaknesses

  Some projects still depend on certification, ramp-up pace, and customer adoption progression.

  Comparison

  The report estimates SoIC contributes a low single-digit revenue share in 2027, CPO OE a high single-digit share, and CPO FAU several tens of percentage points.

  Risks

  Progress of CPO FAU AOI qualification, slower-than-expected SoIC capacity expansion, and competitive entrants.

Key data

• Rating changeUpgraded from Neutral to OverweightThe report explicitly states an upgrade to OW.
• Target priceNT$1,450Jun-27 target price, based on 36x 2027E P/E.
• Reference priceNT$1,070All Ring Tech price in the peer valuation table.
• 2025-2027E revenue/EPS CAGR50% / 61%Core growth forecast in the report summary.
• 2027E revenue forecastNT$12.1bnRaised 31% from the prior forecast.
• 2026E / 2027E EPSNT$23.55 / NT$39.98Corresponding to 2026E/2027E EPS upgrades of 18.4%/49.2%.
• 1Q26 EPSNT$3.3711% below consensus, mainly due to stock-commitment expense impact.
• 2Q26 revenue and EPS forecastNT$2.0bn / NT$6.02Q26 revenue forecast was raised 20%.
• 2027 CPO FAU assumption100 unitsIn scenario analysis, shipment of 100 units would contribute about NT$5.0 EPS.
• 2027E ROE43.4%2027E ROE disclosed in the financial summary table.

Impact & implications

The investment implication for All Ring Tech is positive: if CoWoS expansion remains in place and CPO and SoIC projects materialize, the company’s revenue mix will shift from benefiting mostly from CoWoS alone to multiple advanced packaging equipment platforms, with both earnings growth and valuation multiples likely supported. For the supply chain, localization, customization, and increasing complexity of dispensing processes in advanced packaging are favorable to domestic equipment vendors with customer validation and project experience. For investors, near term one should separate the 1Q26 expense noise from medium-term order/project expansion trends, while monitoring whether AI demand, advanced packaging capacity expansion and competitive changes undermine the high-growth assumptions.

Risks

• AI demand is revised down, leading to advanced packaging equipment demand below expectations.
• A slowdown in advanced packaging capacity expansion or technology progression, affecting orders for CoWoS, SoIC and CPO-related equipment.
• Increased competition, especially as international equipment vendors or other local suppliers battle for share in dispensing, AOI, and mounting equipment.
• CPO FAU AOI qualification, SoIC project rollout, or OE dispensing mass-production progress underperforms expectations.
• Company revenue remains highly dependent on CoWoS-related business, so if a single demand chain slows, there is downside revision risk to earnings forecasts.

What to watch

• Whether CoWoS and OSAT full-stack expansion continues through 2027 as expected.
• Whether the 2027 assumption of 100 shipped CPO FAU mounting units is realized.
• Progress of FAU AOI qualification status.
• Whether SoIC 10k and 20-30k capacity expansions in 2026/2027 are implemented.
• Customer rollout, ASP, and revenue mix changes in CPO OE dispensing and AOI projects.
• Whether 2Q26 revenue of NT$2.0bn and EPS of NT$6.0 are met.
• Whether the market misunderstanding around Rubin stiffener dissipates and valuation re-rates after the stock pullback.