Company Reports

AirTAC is the second-largest pneumatic components maker in China, with 30% market share in 2025. We think the firm’s leadership position is underpinned by its reputable brand, established track record, comprehensive sales and service network, and strong operating efficiency.

AirTAC's second-quarter revenue rose 25% year over year on a constant-currency basis, while operating profit jumped 56% and operating margin expanded 4.5 percentage points to 35.1%.

AirTAC is the second-largest pneumatic components maker in China, with 30% market share in 2025. We think the firm’s leadership position is underpinned by its reputable brand, established track record, comprehensive sales and service network, and strong operating efficiency.

AirTAC's first-quarter revenue rose 24% year on year, with operating profit up 46% and operating margin expanding by 5 percentage points to 33.2%.

AirTAC's fourth-quarter revenue grew by 18% year on year, while operating profit increased by 32%.

AirTAC is the second-largest pneumatic components maker in China, with 30% market share in 2024. We think the firm’s leadership position is underpinned by its reputable brand, established track record, comprehensive sales and service network, and strong operating efficiency.

Airtac's third-quarter revenue grew by 12% year on year, while net profit increased by 21%.

AirTAC's revenue grew 6% year on year in the second quarter, a sequential slowdown from 12% in the first quarter, and its operating margin contracted by 90 basis points year on year to 30.5%.

AirTAC is the second-largest pneumatic components maker in China, with 30% market share in 2024. We think the firm’s leadership position is underpinned by its reputable brand, established track record, comprehensive sales and service network, and strong operating efficiency.

AirTAC's first-quarter revenue grew 12% year on year, but operating margin fell by 194 basis points to 28.1%.

Although AirTAC’s 2024 results align with our expectations, the company’s guidance for mid- to high-single-digit percentage sales growth in 2025 falls short of our midteens growth forecast. Given this softer guidance and the uncertain demand outlook amid China's macroeconomic and trade uncertainties, we have reduced our revenue and operating margin forecasts, resulting in a 7% decrease in our operating profit estimates for 2025-29. Accordingly, we cut our fair value estimate by 5% to TWD 880 per share and consider the shares fairly valued.

AirTAC is the second-largest pneumatic components maker in China, with 27% market share in 2023. We think the firm’s leadership position is underpinned by its reputable brand, established track record, comprehensive sales and service network, and strong operating efficiency.

We maintain our fair value estimate of TWD 930 per share for AirTAC and consider its shares fairly valued. While revenue in the third quarter declined by 2% year on year amid weak demand, the company outperformed major peers in China’s pneumatic market. In addition, its gross margin remained steady at 46.3% despite the negative impact of tariffs. We reduce our 2024 operating profit forecast by 5% to TWD 9.1 billion to account for the soft third-quarter results, but our forecasts beyond 2024 remain largely unchanged.

AirTAC is the second-largest pneumatic components maker in China, with 27% market share in 2023. We think the firm’s leadership position is underpinned by its reputable brand, established track record, comprehensive sales and service network, and strong operating efficiency.

AirTAC’s second-quarter result fell short of our expectations. While revenue grew 5% year on year, sales turned negative in June and remained soft in July. AirTAC still aims for high-single-digit percentage sales growth in 2024, with support from potential policy stimulus in China in the second half, but this has been lowered from original double-digit percentage growth guidance. We're not as optimistic as this would necessitate sales growth exceeding 10% year over year in the latter half, which seems unlikely given the continued significant decline in shipments to the battery and solar industries. As such, we reduce our revenue forecasts by 7% to TWD 31.3 billion for 2024 and by 3%-5% for 2025-28, leading to a 7% decline in our 2024 net income estimate and 3%-4% decline for 2025-28. Consequently, we reduce our fair value estimate by 3% to TWD 930. Given the current share price is slightly above our fair value estimate we recommend waiting for a more attractive entry point.

We transfer coverage of AirTAC and keep our narrow moat rating and fair value estimate of TWD 960 per share. We think AirTAC’s moat is underpinned by intangible assets, including a reputable brand, track record, as well as an extensive sales and service network. The shares are currently trading 21% above our fair value estimate. We think the growth prospect has been fully priced in and suggest that investors wait for better entry points.

AirTAC is the second-largest pneumatic components maker in China, with 27% market share in 2023. We think the firm’s leadership position is underpinned by its reputable brand, established track record, comprehensive sales and service network, and strong operating efficiency.

There is no major surprise in narrow-moat AirTAC’s 2023 results, with net profit up 16% year on year to TWD 6.97 billion. We raise our fair value estimate to TWD 960 from TWD 900 after rolling forward our estimates and incorporating the guidance given by management. We think the shares are fairly valued currently, with stronger sales of linear guide products in 2024 largely priced in. Our valuation for AirTAC implies a 2024 P/E ratio of about 23 times, versus its five-year historical trading range of around 17 times to 40 times.

AirTAC is the second-largest pneumatic components maker in China, with more than 20% market share in 2022. We think the firm’s leadership position is underpinned by its reputable brand, record, comprehensive sales network, and strong operating efficiency.

Narrow-moat AirTAC’s cumulative nine-month net profit of TWD 5.27 billion was up 13% year on year and in line with our expectation. We slightly raise our fair value estimate to TWD 900 from TWD 870 after considering a better sales growth outlook in 2024-25. However, we think the shares remain overvalued currently, with a positive demand outlook largely priced in. In our view, the market could be disappointed with the slower-than-expected sales growth for its linear guide products. Our valuation for AirTAC implies a 2024 P/E ratio of about 21 times, versus its five-year historical trading range of around 14 times to 40 times.