BizLink (3665) investor relations material

Executive summary

• The quarter featured a transition to next-generation products, early-stage infrastructure ramps, and varying recovery across segments, resulting in temporary margin pressure and operational inefficiencies.

• Achieved total sales of NT$20.86B in 1Q26, with net profit of NT$2.27B and EPS of NT$11.66.

• AI infrastructure cycles are becoming more overlapping and complex, with deployments coexisting across multiple generations and architectures.

• The business remains balanced between long-cycle infrastructure growth (HPC, capital equipment) and stable cash-generating segments (industrial, automotive, electrical appliances).

• Investments in operational readiness and capacity expansion are ongoing to support future scaling and complex customer requirements.

Financial highlights

• Margins were weaker than expected due to product mix transitions, early-stage ramp inefficiencies, and overlapping platform generations.

• 1Q26 gross margin improved to 28.77%, up from 26.70% in 4Q25, and operating margin rose to 14.90% in 1Q26.

• Net profit for 1Q26 was NT$2.27B, with EPS of NT$11.66.

• Legacy solutions are declining as expected, while next-generation programs are in early ramp, impacting utilization and operating leverage.

• Operating profit remained strong, reflecting OpEx discipline despite ongoing investments.

Outlook and guidance

• The company expects continued variability in quarterly results due to ongoing platform transitions and early-stage ramps.

• Long-term operating leverage is anticipated to improve as volumes scale and architectures mature.

• Business mix increasingly reflects higher infrastructure content and system-level complexity.

• AI infrastructure growth is seen as cumulative and content-driven, with persistent increases in infrastructure complexity and content.

• The industry is in the early stages of a broader infrastructure scaling cycle, with significant long-term opportunities.