Global Markets Research

Hiwin Technologies Corp 2049.TW 2049 TT 28 February 2024

EQUITY: ENGINEERING & CONSTRUCTION

4Q23 earnings fell short of expectations Rating

Remains Buy
Target price
Earnings growth upcycle to arrive in 2024F; maintain Buy Increased from TWD
279.00
TWD 342.00
Closing price
4Q23 EPS of TWD0.94 (-47% q-q/-28% y-y) was lower than expected 27 February 2024 TWD 254.50
4Q23 sales were at TWD5,758mn, -12% q-q/+3% y-y, while GM was at 26.3%, -6.9pp q-q/-
6.3pp y-y. The decline was mainly caused by a lower utilization rate (UTR), volume Implied upside +34.4%
discount, inventory write-off, and preparation for product warranty. 4Q23 operating profit of
TWD179mn (-64% y-y) was dragged down by a higher opex rate. Non-operating loss came Market Cap (USD mn) 2,849.3
in at TWD54mn. Management indicated the following: 1) the overall order visibility is now ADT (USD mn) 11.7

extended, and for some products it is more than 2 months vs 1-2 months a quarter ago;
UTR after Chinese New Year began to rise; 2) Outlook: management said 2H24E sales y-y Relative performance chart
growth should turn positive with full-year growth of double-digit %, thanks to a demand
recovery in the China market, particularly for semiconductor equipment, aerospace, heavy
equipment, factory automation, and NEV-related products. Whether 1Q24E sales y-y growth
will turn positive and when Europe demand will recover remain uncertain; 2024E quarterly
GM should not be as low as 4Q23, according to management.
Worst is behind; earnings growth upcycle should arrive in 2024/25F
4Q23 results missed, but we believe Hiwin’s operating profit y-y growth up-cycle should
arrive in 2Q24F after seven quarters of recession, supported by management’s
aforementioned comments. We also note: 1) global PMIs bottomed in late 2023, with US
ISM manufacturing PMI up from 46.7 in Nov-23 to 49.1 in Jan-24, Euro Zone PMI up from
43.1 in Oct-23 to 46.6 in Jan-24, and China Caixin manufacturing PMI up from 49.5 in Oct-
23 to 50.8 in Jan-24; 2) THK’s (6481 JP, Buy) positive outlook for 2H24E: the company’s Source: LSEG, Nomura
latest sales outlook indicated that its 2H24E sales will be JPY174bn, +18% y-y/+16% h-h.
As Hiwin’s quarterly sales are highly correlated with that of THK, we believe this implies an Research Analysts
increase in Hiwin’s sales momentum in 2024F (we expect Hiwin’s 1H24F/2H24F sales to
Taiwan Industrials
grow 4%/21% y-y). We believe Hiwin’s improved order visibility should be a favorable factor
Kenny Chen - NITB
for the company’s sales and ASP stabilization, and thus, for margin expansion in 2024/25F
[email protected]
vs 2023, leading to 52%/43% 2024/25F operating profit y-y growth (vs -52% in 2023). +886 2 21769978
Cut 2024/25F earnings estimates by 13%/9%; maintain Buy, TP hiked to TWD342
Our new TP of TWD342 (TWD279 earlier) is based on 27x 2025F EPS of TWD12.66 (vs
27x 2024F EPS previously). We roll over the valuation multiple to 2025F earnings as we
believe the earnings y-y growth upcycle usually lasts for 8-9 quarters given the historical
patterns. The stock is currently trading at 28x/20x 2024/25F EPS.

Year-end 31 Dec FY22 FY23F FY24F FY25F

Currency (TWD) Actual Old New Old New Old New
Revenue (mn) 29,315 24,773 24,633 27,762 27,319 33,959 33,700
Reported net profit (mn) 4,479 2,232 2,035 3,654 3,182 4,945 4,478
Normalised net profit (mn) 4,479 2,232 2,035 3,654 3,182 4,945 4,478
FD normalised EPS 12.66 6.31 5.75 10.33 9.00 13.98 12.66
FD norm. EPS growth (%) 22.2 -50.2 -54.6 63.7 56.4 35.3 40.7
FD normalised P/E (x) 20.1 – 44.3 – 28.3 – 20.1
EV/EBITDA (x) 11.6 – 18.1 – 13.9 – 10.8
Price/book (x) 2.6 – 2.6 – 2.4 – 2.2
Dividend yield (%) 2.1 – 2.2 – 1.0 – 1.6
ROE (%) 13.8 6.4 5.8 10.0 8.8 12.6 11.6
Net debt/equity (%) 2.0 2.0 3.2 1.8 3.9 net cash 2.3
Source: Company data, Nomura estimates
Production Complete: 2024-02-28 06:39 UTC

See Appendix A-1 for analyst certification, important disclosures and the status of non-US analysts.
Nomura | Hiwin Technologies Corp 28 February 2024

Key data on Hiwin Technologies Corp

Cashflow statement (TWDmn)
Year-end 31 Dec FY21 FY22 FY23F FY24F FY25F
Performance EBITDA 7,351 7,774 4,990 6,515 8,374
(%) 1M 3M 12M Change in working capital 836 -1,087 223 -2,081 -2,737
Absolute (TWD) 17.6 12.4 1.4 M cap (USDmn) 2,849.3 Other operating cashflow -26 -609 -616 -843 -1,288
Absolute (USD) 16.2 12.3 -1.4 Free float (%) 40.0 Cashflow from operations 8,160 6,078 4,597 3,590 4,349
Rel to Taiwan 12.3 1.8 -20.8 3-mth ADT (USDmn) 11.7 Capital expenditure -1,494 -1,605 -2,750 -3,000 -2,400
TAIEX Index
Free cashflow 6,667 4,472 1,847 590 1,949
Reduction in investments 494 -5 0 0 0
Income statement (TWDmn) Net acquisitions
Year-end 31 Dec FY21 FY22 FY23F FY24F FY25F Dec in other LT assets 149 988 -300 0 -1
Revenue 27,265 29,315 24,633 27,319 33,700 Inc in other LT liabilities 83 121 0 0 0
Cost of goods sold -17,450 -18,599 -16,978 -17,859 -21,729 Adjustments -1,618 -1,702 0 0 1
Gross profit 9,815 10,715 7,655 9,460 11,971 CF after investing acts 5,776 3,874 1,547 590 1,949
SG&A -4,701 -5,143 -5,004 -5,434 -6,206 Cash dividends -2,838 -1,921 -1,946 -916 -1,432
Employee share Equity issue 0 0 0 0 0
expense Debt issue 89 -1,409 300 0 700
Operating profit 5,115 5,572 2,651 4,026 5,765 Convertible debt issue
EBITDA 7,351 7,774 4,990 6,515 8,374 Others -198 1,481 0 0 0
Depreciation -2,236 -2,202 -2,339 -2,489 -2,609 CF from financial acts -2,946 -1,850 -1,646 -916 -732
Amortisation Net cashflow 2,829 2,025 -99 -325 1,217
EBIT 5,115 5,572 2,651 4,026 5,765 Beginning cash 2,604 5,433 7,458 7,359 7,033
Net interest expense -169 -187 -193 -192 -192 Ending cash 5,433 7,458 7,359 7,033 8,251
Associates & JCEs 42 80 56 82 90 Ending net debt 4,898 709 1,108 1,433 916
Other income -512 353 26 180 160
Balance sheet (TWDmn)
Earnings before tax 4,475 5,818 2,540 4,096 5,823
As at 31 Dec FY21 FY22 FY23F FY24F FY25F
Income tax -1,320 -1,506 -709 -1,073 -1,516
Cash & equivalents 5,433 7,458 7,359 7,033 8,251
Net profit after tax 3,155 4,312 1,832 3,022 4,308
Marketable securities 0 0 0 0 0
Minority interests 378 168 203 160 170
Accounts receivable 3,181 2,634 3,202 4,644 6,066
Other items
Inventories 8,323 8,938 8,828 9,465 11,516
Preferred dividends
Other current assets 1,616 1,289 1,289 1,289 1,289
Normalised NPAT 3,532 4,479 2,035 3,182 4,478
Total current assets 18,553 20,319 20,678 22,432 27,122
Extraordinary items 0 0 0 0 0
LT investments 671 677 677 677 677
Reported NPAT 3,532 4,479 2,035 3,182 4,478
Fixed assets 27,354 27,679 28,090 28,601 28,392
Dividends -2,838 -1,921 -1,946 -916 -1,432
Goodwill 0 0 0 0 0
Transfer to reserves 694 2,558 89 2,267 3,046
Other intangible assets
Valuations and ratios
Other LT assets 4,453 3,466 3,766 3,766 3,767
Reported P/E (x) 24.6 20.1 44.3 28.3 20.1
Total assets 51,032 52,140 53,210 55,475 59,956
Normalised P/E (x) 24.6 20.1 44.3 28.3 20.1
Short-term debt 4,953 1,857 1,657 1,657 1,657
FD normalised P/E (x) 24.6 20.1 44.3 28.3 20.1
Accounts payable 3,903 2,714 3,396 3,393 4,128
Dividend yield (%) 3.3 2.1 2.2 1.0 1.6
Other current liabilities 4,997 4,839 4,839 4,839 4,839
Price/cashflow (x) 10.6 14.8 19.6 25.1 20.7
Total current liabilities 13,853 9,410 9,892 9,889 10,625
Price/book (x) 2.9 2.6 2.6 2.4 2.2
Long-term debt 5,378 6,309 6,809 6,809 7,509
EV/EBITDA (x) 12.9 11.6 18.1 13.9 10.8
Convertible debt
EV/EBIT (x) 18.4 16.1 33.8 22.3 15.6
Other LT liabilities 1,334 1,455 1,455 1,455 1,455
Gross margin (%) 36.0 36.6 31.1 34.6 35.5
Total liabilities 20,565 17,175 18,156 18,154 19,589
EBITDA margin (%) 27.0 26.5 20.3 23.8 24.8
Minority interest 187 213 213 213 213
EBIT margin (%) 18.8 19.0 10.8 14.7 17.1
Preferred stock
Net margin (%) 13.0 15.3 8.3 11.6 13.3
Common stock 3,408 3,538 3,538 3,538 3,538
Effective tax rate (%) 29.5 25.9 27.9 26.2 26.0
Retained earnings 20,681 23,459 23,548 25,815 28,862
Dividend payout (%) 80.3 42.9 95.6 28.8 32.0
Proposed dividends
ROE (%) 12.2 13.8 5.8 8.8 11.6
Other equity and reserves 6,192 7,754 7,754 7,754 7,754
ROA (pretax %) 11.3 12.5 6.0 8.7 11.7
Total shareholders' equity 30,280 34,751 34,840 37,107 40,154
Growth (%)
Total equity & liabilities 51,032 52,140 53,210 55,475 59,956
Revenue 28.2 7.5 -16.0 10.9 23.4
Liquidity (x)
EBITDA 81.0 5.8 -35.8 30.6 28.5
Current ratio 1.34 2.16 2.09 2.27 2.55
Normalised EPS 83.0 22.2 -54.6 56.4 40.7
Interest cover 30.2 29.8 13.7 21.0 30.0
Normalised FDEPS 83.0 22.2 -54.6 56.4 40.7
Leverage
Source: Company data, Nomura estimates Net debt/EBITDA (x) 0.67 0.09 0.22 0.22 0.11
Net debt/equity (%) 16.2 2.0 3.2 3.9 2.3
Per share
Reported EPS (TWD) 10.36 12.66 5.75 9.00 12.66
Norm EPS (TWD) 10.36 12.66 5.75 9.00 12.66
FD norm EPS (TWD) 10.36 12.66 5.75 9.00 12.66
BVPS (TWD) 88.85 98.23 98.48 104.88 113.49
DPS (TWD) 8.33 5.43 5.50 2.59 4.05
Activity (days)
Days receivable 55.5 36.2 43.2 52.6 58.0
Days inventory 151.9 169.4 191.0 187.5 176.2
Days payable 74.1 64.9 65.7 69.6 63.2
Cash cycle 133.3 140.6 168.5 170.4 171.1
Source: Company data, Nomura estimates

2
Nomura | Hiwin Technologies Corp 28 February 2024

Company profile
Hiwin is primarily engaged in professional design/development and manufacturing of motion control components/products, such as ballscrews, linear
guides, industrial robots, rolling bearings and medical treatment equipment products.

Valuation Methodology
Our target price of TWD342 is based on 27x FY25F EPS of TWD12.66, which is at the low end of the 15-56x range since 2014. The benchmark
index for Hiwin is TAIEX.

Risks that may impede the achievement of the target price

Downside risks: 1) Hard landings in major countries such as the US and Euro Zone, which may significantly undermine consumer sentiment and
manufacturers’ utilization rates; 2) significant rebound of global CPI/PPI that may cause further interest rate hikes, which may lift the pressure of
enterprises’ refinancing activities, and thus postpone Capex; 3) TWD appreciation may lower some Hiwin products’ competitiveness compared with
Japanese peers.

ESG
Hiwin has introduced and adopted the concept of environmental protection into the decisive processes of innovation, manufacturing and service of
products, adoption of raw material, and abandonment of waste material.

3
Nomura | Hiwin Technologies Corp 28 February 2024

Financial analysis and forecasts

Fig. 1: 4Q23 results comparison

Nomura
TWDmn 4Q23 Diff% Consensus Diff(%) 3Q23 q-q (%) 4Q22 y-y (%)
estimates

Total sales 5,758 5,898 -2% 5,951 -3% 6,558 -12% 5,592 3%
Gross profit 1,516 1,898 -20% 1,905 -20% 2,182 -31% 1,823 -17%
Operating profit 179 660 -73% 708 -75% 944 -81% 500 -64%
Pretax profit 286 647 -56% 704 -59% 793 -64% 580 -51%
Net profit 333 530 -37% 557 -40% 631 -47% 459 -28%
EPS (TWD) 0.94 1.50 -37% 1.57 -40% 1.78 -47% 1.30 -28%
(pp) (pp) (pp) (pp)
Gross margin (%) 26.3 32.2 (5.8) 32.0 (5.7) 33.3 (6.9) 32.6 (6.3)
Operating margin (%) 3.1 11.2 (8.1) 11.9 (8.8) 14.4 (11.3) 8.9 (5.8)
Pretax margin (%) 5.0 11.0 (6.0) 11.8 (6.9) 12.1 (7.1) 10.4 (5.4)
Net margin (%) 5.8 9.0 (3.2) 9.4 (3.6) 9.6 (3.8) 8.2 (2.4)

Source: Company data, Bloomberg Finance L.P. consensus forecasts, Nomura estimates

Fig. 2: Earnings forecast revision

New forecasts Previous forecasts Change (%)

TWDmn 2024F 2025F 2024F 2025F 2024F 2025F

Sales 27,319 33,700 27,762 33,959 -2% -1%

Gross profit 9,460 11,971 9,685 12,142 -2% -1%
Operating profit 4,026 5,765 4,653 6,396 -13% -10%
Pre-tax profit 4,096 5,823 4,723 6,454 -13% -10%
Net profit 3,182 4,478 3,654 4,945 -13% -9%
EPS (TWD) 9.00 12.66 10.33 13.98 -13% -9%
Margins (%)
Gross margin 34.6 35.5 34.9 35.8 (0.3) (0.2)
Operating margin 14.7 17.1 16.8 18.8 (2.0) (1.7)
Pretax margin 15.0 17.3 17.0 19.0 (2.0) (1.7)
Net margin 11.6 13.3 13.2 14.6 (1.5) (1.3)

Source: Company data, Nomura estimates

Fig. 3: Hiwin: Quarterly sales mix

TWDmn 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23
Ballscrew 784 1,055 1,009 1,104 1,183 1,384 1,612 1,561 1,536 1,893 1,699 1,183 1,098 1,251 1,246 1,094
Linear guide 2,292 3,710 3,860 4,106 3,818 4,535 4,927 4,173 5,040 5,205 5,092 3,402 3,693 4,279 4,394 3,627
Industrial robot 207 508 626 523 404 575 509 398 509 605 578 560 417 461 393 461
Others 331 356 378 418 586 555 482 563 481 532 552 447 526 592 525 576

As % of total sales
Ballscrew 22% 19% 17% 18% 20% 20% 21% 23% 20% 23% 21% 21% 19% 19% 19% 19%
Linear guide 63% 66% 66% 67% 64% 64% 65% 62% 67% 63% 64% 61% 64% 65% 67% 63%
Industrial robot 6% 9% 11% 9% 7% 8% 7% 6% 7% 7% 7% 10% 7% 7% 6% 8%
Others 9% 6% 6% 7% 10% 8% 6% 8% 6% 6% 7% 8% 9% 9% 8% 10%

y-y
Ballscrew -11% 10% 11% 37% 51% 31% 60% 41% 30% 37% 5% -24% -29% -34% -27% -8%
Linear guide -34% -15% 17% 60% 67% 22% 28% 2% 32% 15% 3% -18% -27% -18% -14% 7%
Industrial robot -7% 21% 36% 77% 95% 13% -19% -24% 26% 5% 14% 41% -18% -24% -32% -18%
Others -30% -2% -8% 17% 77% 56% 27% 35% -18% -4% 14% -21% 9% 11% -5% 29%

q-q
Ballscrew -2% 35% -4% 9% 7% 17% 16% -3% -2% 23% -10% -30% -7% 14% 0% -12%
Linear guide -10% 62% 4% 6% -7% 19% 9% -15% 21% 3% -2% -33% 9% 16% 3% -17%
Industrial robot -30% 145% 23% -16% -23% 42% -11% -22% 28% 19% -4% -3% -26% 11% -15% 17%
Others -7% 7% 6% 11% 40% -5% -13% 17% -15% 11% 4% -19% 18% 13% -11% 10%

TWDmn 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23
Taiwan 361 338 294 369 479 634 678 536 681 576 475 336 287 263 328 288
Asia 1,771 3,996 4,170 4,306 3,715 4,582 4,819 4,218 4,767 5,435 5,228 3,299 3,096 4,279 4,197 3,685
Europe 1,193 1,013 1,116 1,169 1,438 1,551 1,657 1,540 1,740 1,812 1,743 1,510 1,950 1,712 1,705 1,439
America 289 281 294 308 359 282 377 402 378 412 475 447 401 329 328 345

As % of total sales
Taiwan 10% 6% 5% 6% 8% 9% 9% 8% 9% 7% 6% 6% 5% 4% 5% 5%
Asia 49% 71% 71% 70% 62% 65% 64% 63% 63% 66% 66% 59% 54% 65% 64% 64%
Europe 33% 18% 19% 19% 24% 22% 22% 23% 23% 22% 22% 27% 34% 26% 26% 25%
America 8% 5% 5% 5% 6% 4% 5% 6% 5% 5% 6% 8% 7% 5% 5% 6%

y-y
Taiwan -35% -8% -17% 15% 33% 88% 131% 45% 42% -9% -30% -37% -58% -54% -31% -14%
Asia -31% 1% 31% 85% 110% 15% 16% -2% 28% 19% 8% -22% -35% -21% -20% 12%
Europe -24% -31% -12% 12% 21% 53% 48% 32% 21% 17% 5% -2% 12% -6% -2% -5%
America -18% -8% 16% -4% 24% 0% 28% 31% 5% 46% 26% 11% 6% -20% -31% -23%

q-q
Taiwan 13% -7% -13% 26% 30% 32% 7% -21% 27% -15% -18% -29% -15% -8% 25% -12%
Asia -24% 126% 4% 3% -14% 23% 5% -12% 13% 14% -4% -37% -6% 38% -2% -12%
Europe 14% -15% 10% 5% 23% 8% 7% -7% 13% 4% -4% -13% 29% -12% 0% -16%
America -10% -3% 4% 5% 17% -22% 34% 7% -6% 9% 15% -6% -10% -18% 0% 5%

Source: Company data, Nomura research

4
Nomura | Hiwin Technologies Corp 28 February 2024

Fig. 4: Global manufacturing PMI trends Fig. 5: Manufacturing PMI: Difference

between new order and inventory

Source: ISM, Bloomberg Finance L.P., Nomura research

Source: ISM, Bloomberg Finance L.P., Nomura research

Fig. 6: THK: Guidance

Item 1H23 2H23 1H24E 2H24E

Sales (JPYbn) 186 166 169 196
h-h -10% -10% 2% 16%
y-y -1% -20% -9% 18%
OP profit (JPYbn) 16 7 6 21
h-h 22% -56% -14% 235%
y-y -21% -47% -62% 187%
OPM 8.9% 4.3% 3.7% 10.6%
Source: Company data, Nomura research

Fig. 7: THK: Quarterly order trends Fig. 8: THK: Quarterly order trends by end-
application

Source: Company data, Nomura research

Source: Company data, Nomura research

5
Nomura | Hiwin Technologies Corp 28 February 2024

Fig. 9: Quarterly sales comparison

Source: Company data, Nomura research

Valuation
Our new TP of TWD342 is based on 27x 2025F EPS of TWD342 (vs 27x 2024F EPS
previously; historical average of 30x since 2014, with a range of 15-56x). We note that
Hiwin’s share price tends to bottom out after seeing y-y sales growth turns positive in the
past four cycles, and we believe starting from Nov-23, the pattern will be repeated. We
believe our assigned P/E of 27x 2025F EPS is justified as the company’s forward-looking
P/E has rerated to above 30x in the past earnings y-y growth upcycles.

Fig. 10: Hiwin: Monthly sales growth y-y vs share price

Source: Company data, Nomura research

6
Nomura | Hiwin Technologies Corp 28 February 2024

Fig. 11: Hiwin: Market cap vs op profit Fig. 12: Hiwin: Market cap vs op profit y-y
growth

Source: Company data, Nomura estimates

Source: Company data, Nomura estimates

Fig. 13: Hiwin: 12M forward-looking P/E Fig. 14: Hiwin: 12M forward-looking P/B

Source: Company data, Nomura estimates Source: Company data, Nomura estimates

Fig. 15: Peer comparison

Code Company Price Nomura Mkt cap P/E (x) P/B (x) ROE (%) EPS growth (%) Yield (%)

27-Feb Rating US$m FY23F FY24F FY25F FY23F FY24F FY25F FY23F FY24F FY25F FY23F FY24F FY25F FY23F

Automation
2049 TT Hiwin 254.5 Buy 2,849 44.3 28.3 20.1 2.6 2.4 2.2 5.8 8.8 11.6 (54.6) 56.4 40.7 2.2
1590 TT Airtac 1,100 Buy 6,869 31.6 26.1 21.6 5.2 4.7 4.2 17.1 18.8 20.5 15.8 20.9 21.2 1.4
6273 JP SMC 90,260 Buy 40,256 34.1 27.3 23.4 3.2 2.9 2.7 9.7 11.2 11.9 (23.2) 25.0 16.5 1.0
6481 JP THK 3,296 Buy 2,830 22.0 21.4 13.0 1.1 1.1 1.0 5.3 5.2 8.1 (13.1) 2.7 64.0 1.4
6954 JP Fanuc 4,375 Buy 29,259 33.7 31.7 24.3 2.6 2.5 2.5 7.7 8.0 10.3 (27.3) 6.2 30.7 1.8
6506 JP Yaskawa 6,180 Buy 10,955 33.6 31.1 25.1 4.3 3.9 3.5 13.2 13.1 14.8 (7.1) 7.9 24.3 1.0
Average 31.0 27.5 21.5 3.3 3.0 2.8 10.6 11.3 13.1 (11.0) 12.5 31.3 1.3

Source: Company data, Nomura estimates

7
Nomura | Hiwin Technologies Corp 28 February 2024

Appendix A-1
Analyst Certification
I, Kenny Chen, hereby certify (1) that the views expressed in this Research report accurately reflect my personal views about
any or all of the subject securities or issuers referred to in this Research report, (2) no part of my compensation was, is or will be
directly or indirectly related to the specific recommendations or views expressed in this Research report and (3) no part of my
compensation is tied to any specific investment banking transactions performed by Nomura Securities International, Inc.,
Nomura International plc or any other Nomura Group company.

Issuer Specific Regulatory Disclosures

The terms "Nomura" and "Nomura Group" used herein refer to Nomura Holdings, Inc. and its affiliates and subsidiaries, including Nomura
Securities International, Inc. ('NSI') and Instinet, LLC ('ILLC'), U. S. registered broker dealers and members of SIPC.

Materially mentioned issuers

Issuer Ticker Price Price date Stock rating Sector rating Disclosures
Hiwin Technologies Corp 2049 TT TWD 254.50 27-Feb-2024 Buy N/A
THK 6481 JP JPY 3,280 27-Feb-2024 Buy N/A A1,A3,A4,A5,A6,A11

A1 The Nomura Group has received compensation for non-investment banking products or services from the subject company in the past 12
months.
A3 The Nomura Group has had a non-securities related services client relationship with the subject company during the past 12 months.
A4 The Nomura Group has had an investment banking services client relationship with the subject company during the past 12 months.
A5 The Nomura Group has received compensation for investment banking services from the subject company in the past 12 months.
A6 The Nomura Group expects to receive or intends to seek compensation for investment banking services from the subject company in the
next three months.
A11 The Nomura Group beneficially owns 1% or more of a class of common equity securities of the subject company.

Hiwin Technologies Corp (2049 TT) TWD 254.50 (27-Feb-2024) Buy (Sector rating: N/A)
Rating and target price chart (three year history)
Date Rating Target price Closing price
13-Nov-23 279.00 211.00
10-Aug-23 280.00 201.50
11-May-23 312.00 232.00
28-Feb-23 Buy 251.00
28-Feb-23 309.00 251.00
21-Nov-22 Neutral 180.50
21-Nov-22 189.00 180.50
17-Jun-22 Suspended 239.31
28-Feb-22 319.00 261.56
10-Dec-21 361.00 288.75
05-Nov-21 415.00 314.46
05-Aug-21 465.00 329.30
03-Mar-21 525.00 403.23

For explanation of ratings refer to the stock rating keys located after chart(s)

Valuation Methodology Our target price of TWD342 is based on 27x FY25F EPS of TWD12.66, which is at the low end of the
15-56x range since 2014. The benchmark index for Hiwin is TAIEX.
Risks that may impede the achievement of the target price Downside risks: 1) Hard landings in major countries such as the
US and Euro Zone, which may significantly undermine consumer sentiment and manufacturers’ utilization rates; 2) significant
rebound of global CPI/PPI that may cause further interest rate hikes, which may lift the pressure of enterprises’ refinancing
activities, and thus postpone Capex; 3) TWD appreciation may lower some Hiwin products’ competitiveness compared with
Japanese peers.

8
Nomura | Hiwin Technologies Corp 28 February 2024

THK (6481 JP) JPY 3,280 (27-Feb-2024) Buy (Sector rating: N/A)
Rating and target price chart (three year history)
Date Rating Target price Closing price
21-Feb-24 3,700 3,121
11-Nov-23 3,100 2,769.5
10-Aug-23 3,000 2,717.5
06-Jun-23 3,500 3,097
24-Feb-23 Buy 2,957.0
24-Feb-23 3,450 2,957.0
28-Nov-22 2,610 2,732.0
13-Sep-22 2,800 2,800.0
30-May-22 Neutral 2,768.0
30-May-22 3,060 2,768.0
26-Nov-21 3,500 2,647.0
19-Aug-21 4,000 2,484.0
14-May-21 5,000 3,535

For explanation of ratings refer to the stock rating keys located after chart(s)

Valuation Methodology We obtain our target price of ¥3,700 by multiplying our 25/12 EPS forecast of ¥252.9 by a target P/E of
around 14–15x. We reference the peak P/E levels seen during previous periods of earnings recovery as well as the current
market P/E, as the company's earnings and share price show a strong correlation with the machinery demand cycle. We also
note that the automotive & transportation equipment segment generates low margins and earnings tend to be swayed by
automobile output, raw material prices, and demand in Europe and the Americas.
Risks that may impede the achievement of the target price The linear guide industry to which the company belongs is
exposed to capex in client industries. THK derives a substantial 35% of its sales from electronics companies, so profits would be
hit hard if capex were to fall sharply at semiconductor manufacturers and other electronics manufacturers. In such an event, the
share price could undershoot our target.

Important Disclosures
Online availability of research and conflict-of-interest disclosures
Nomura Group research is available on www.nomuranow.com/research, Bloomberg, Capital IQ, Factset, LSEG.
Important disclosures may be read at http://go.nomuranow.com/research/m/Disclosures or requested from Nomura Securities International, Inc.
If you have any difficulties with the website, please email [email protected] for help.

The analysts responsible for preparing this report have received compensation based upon various factors including the firm's total revenues, a
portion of which is generated by Investment Banking activities. Unless otherwise noted, the non-US analysts listed at the front of this report are
not registered/qualified as research analysts under FINRA rules, may not be associated persons of NSI, and may not be subject to FINRA Rule
2241 restrictions on communications with covered companies, public appearances, and trading securities held by a research analyst account.

Nomura Global Financial Products Inc. (NGFP) Nomura Derivative Products Inc. (NDP) and Nomura International plc. (NIplc) are registered with
the Commodities Futures Trading Commission and the National Futures Association (NFA) as swap dealers. NGFP, NDPI, and NIplc are
generally engaged in the trading of swaps and other derivative products, any of which may be the subject of this report.

Distribution of ratings (Nomura Group)

The distribution of all ratings published by Nomura Group Global Equity Research is as follows:
53% have been assigned a Buy rating which, for purposes of mandatory disclosures, are classified as a Buy rating; 40% of companies with this
rating are investment banking clients of the Nomura Group*. 0% of companies (which are admitted to trading on a regulated market in the EEA)
with this rating were supplied material services** by the Nomura Group.
42% have been assigned a Neutral rating which, for purposes of mandatory disclosures, is classified as a Hold rating; 58% of companies with
this rating are investment banking clients of the Nomura Group*. 0% of companies (which are admitted to trading on a regulated market in the
EEA) with this rating were supplied material services by the Nomura Group
5% have been assigned a Reduce rating which, for purposes of mandatory disclosures, are classified as a Sell rating; 2% of companies with this
rating are investment banking clients of the Nomura Group*. 0% of companies (which are admitted to trading on a regulated market in the EEA)
with this rating were supplied material services by the Nomura Group.
As at 31 December 2023.
*The Nomura Group as defined in the Disclaimer section at the end of this report.
** As defined by the EU Market Abuse Regulation

Definition of Nomura Group's equity research rating system and sectors

The rating system is a relative system, indicating expected performance against a specific benchmark identified for each individual stock,
subject to limited management discretion. An analyst’s target price is an assessment of the current intrinsic fair value of the stock based on an
appropriate valuation methodology determined by the analyst. Valuation methodologies include, but are not limited to, discounted cash flow
analysis, expected return on equity and multiple analysis. Analysts may also indicate expected absolute upside/downside relative to the stated
target price, defined as (target price - current price)/current price.

STOCKS
A rating of 'Buy', indicates that the analyst expects the stock to outperform the Benchmark over the next 12 months. A rating of 'Neutral',
indicates that the analyst expects the stock to perform in line with the Benchmark over the next 12 months. A rating of 'Reduce', indicates that
the analyst expects the stock to underperform the Benchmark over the next 12 months. A rating of 'Suspended', indicates that the rating, target
price and estimates have been suspended temporarily to comply with applicable regulations and/or firm policies. Securities and/or companies
that are labelled as 'Not rated' or shown as 'No rating' are not in regular research coverage. Investors should not expect continuing or
additional information from Nomura relating to such securities and/or companies. Benchmarks are as follows: United States/Europe/Asia ex-
Japan: please see valuation methodologies for explanations of relevant benchmarks for stocks, which can be accessed at:
http://go.nomuranow.com/research/m/Disclosures; Global Emerging Markets (ex-Asia): MSCI Emerging Markets ex-Asia, unless otherwise
stated in the valuation methodology; Japan: Russell/Nomura Large Cap.
9
Nomura | Hiwin Technologies Corp 28 February 2024

SECTORS
A 'Bullish' stance, indicates that the analyst expects the sector to outperform the Benchmark during the next 12 months. A 'Neutral' stance,
indicates that the analyst expects the sector to perform in line with the Benchmark during the next 12 months. A 'Bearish' stance, indicates that
the analyst expects the sector to underperform the Benchmark during the next 12 months. Sectors that are labelled as 'Not rated' or shown as
'N/A' are not assigned ratings. Benchmarks are as follows: United States: S&P 500; Europe: Dow Jones STOXX 600; Global Emerging
Markets (ex-Asia): MSCI Emerging Markets ex-Asia. Japan/Asia ex-Japan: Sector ratings are not assigned.

Target Price
A Target Price, if discussed, indicates the analyst’s forecast for the share price with a 12-month time horizon, reflecting in part the analyst's
estimates for the company's earnings. The achievement of any target price may be impeded by general market and macroeconomic trends, and
by other risks related to the company or the market, and may not occur if the company's earnings differ from estimates.

Disclaimers
This publication contains material that has been prepared by the Nomura Group entity identified on page 1 and, if applicable, with the
contributions of one or more Nomura Group entities whose employees and their respective affiliations are specified on page 1 or identified
elsewhere in this publication. The term "Nomura Group" used herein refers to Nomura Holdings, Inc. and its affiliates and subsidiaries including:
(a) Nomura Securities Co., Ltd. ('NSC') Tokyo, Japan, (b) Nomura Financial Products Europe GmbH (‘NFPE’), Germany, (c) Nomura
International plc ('NIplc'), UK, (d) Nomura Securities International, Inc. ('NSI'), New York, US, (e) Nomura International (Hong Kong) Ltd.
(‘NIHK’), Hong Kong, (f) Nomura Financial Investment (Korea) Co., Ltd. (‘NFIK’), Korea (Information on Nomura analysts registered with the
Korea Financial Investment Association ('KOFIA') can be found on the KOFIA Intranet at http://dis.kofia.or.kr, (g) Nomura Singapore Ltd. (‘NSL’),
Singapore (Registration number 197201440E, regulated by the Monetary Authority of Singapore) (h) Nomura Australia Ltd. (‘NAL’), Australia
(ABN 48 003 032 513), regulated by the Australian Securities and Investment Commission ('ASIC') and holder of an Australian financial services
licence number 246412, (i) Nomura Securities Malaysia Sdn. Bhd. (‘NSM’), Malaysia, (j) NIHK, Taipei Branch (‘NITB’), Taiwan, (k) Nomura
Financial Advisory and Securities (India) Private Limited (‘NFASL’), Mumbai, India (Registered Address: Ceejay House, Level 11, Plot F,
Shivsagar Estate, Dr. Annie Besant Road, Worli, Mumbai- 400 018, India; Tel: 91 22 4037 4037, Fax: 91 22 4037 4111; CIN No:
U74140MH2007PTC169116, SEBI Registration No. for Stock Broking activities : INZ000255633; SEBI Registration No. for Merchant Banking :
INM000011419; SEBI Registration No. for Research: INH000001014 - Compliance Officer: Ms. Pratiksha Tondwalkar, 91 22 40374904,
grievance email: [email protected]. FOR REPORTS WITH RESPECT TO INDIAN PUBLIC COMPANIES OR AUTHORED BY
INDIA-BASED NFASL RESEARCH ANALYSTS: (I) INVESTMENT IN SECURITIES MARKETS IS SUBJECT TO MARKET RISKS. READ ALL
THE RELATED DOCUMENTS CAREFULLY BEFORE INVESTING. (II) REGISTRATION GRANTED BY SEBI, AND CERTIFICATION FROM
NISM IN NO WAY GUARANTEE PERFORMANCE OF THE INTERMEDIARY OR PROVIDE ANY ASSURANCE OF RETURNS TO
INVESTORS. (l) Nomura Fiduciary Research & Consulting Co., Ltd. ('NFRC') Tokyo, Japan. ‘CNS Thailand’ next to an analyst’s name on the
front page of a research report indicates that the analyst is employed by Capital Nomura Securities Public Company Limited (‘CNS’) to provide
research assistance services to NSL under an agreement between CNS and NSL. ‘NSFSPL’ next to an employee’s name on the front page of a
research report indicates that the individual is employed by Nomura Structured Finance Services Private Limited to provide assistance to certain
Nomura entities under inter-company agreements. 'Verdhana' next to an individual's name on the front page of a research report indicates that
the individual is employed by PT Verdhana Sekuritas Indonesia ('Verdhana') to provide research assistance to NIHK under a research
partnership agreement and neither Verdhana nor such individual is licensed outside of Indonesia. For the avoidance of doubt and for the
purpose of disclosure, Nomura Orient International Securities Co., Ltd (“NOI”), a joint venture amongst Nomura Group, Orient International
(Holding) Co., Ltd and Shanghai Huangpu Investment Holding (Group) Co., Ltd is excluded from the definition of Nomura Group. An individual
name printed next to NOI on the front page of a research report indicates that individual is employed by NOI to provide research assistance to
NIHK under a research partnership agreement and neither NOI or such individual is licensed outside of Mainland China, PRC.
THIS MATERIAL IS: (I) FOR YOUR PRIVATE INFORMATION, AND WE ARE NOT SOLICITING ANY ACTION BASED UPON IT; (II) NOT TO
BE CONSTRUED AS AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITIES IN ANY JURISDICTION WHERE
SUCH OFFER OR SOLICITATION WOULD BE ILLEGAL; AND (III) OTHER THAN DISCLOSURES RELATING TO THE NOMURA GROUP,
BASED UPON INFORMATION FROM SOURCES THAT WE CONSIDER RELIABLE, BUT HAS NOT BEEN INDEPENDENTLY VERIFIED BY
NOMURA GROUP.
Other than disclosures relating to the Nomura Group, the Nomura Group does not warrant, represent or undertake, express or implied, that the
document is fair, accurate, complete, correct, reliable or fit for any particular purpose or merchantable, and to the maximum extent permissible
by law and/or regulation, does not accept liability (in negligence or otherwise, and in whole or in part) for any act (or decision not to act) resulting
from use of this document and related data. To the maximum extent permissible by law and/or regulation, all warranties and other assurances
by the Nomura Group are hereby excluded and the Nomura Group shall have no liability (in negligence or otherwise, and in whole or in part) for
any loss howsoever arising from the use, misuse, or distribution of this material or the information contained in this material or otherwise arising
in connection therewith.
Opinions or estimates expressed are current opinions as of the original publication date appearing on this material and the information, including
the opinions and estimates contained herein, are subject to change without notice. The Nomura Group, however, expressly disclaims any
obligation, and therefore is under no duty, to update or revise this document. Any comments or statements made herein are those of the
author(s) and may differ from views held by other parties within Nomura Group. Clients should consider whether any advice or recommendation
in this report is suitable for their particular circumstances and, if appropriate, seek professional advice, including tax advice. The Nomura Group
does not provide tax advice.
The Nomura Group, and/or its officers, directors, employees and affiliates, may, to the extent permitted by applicable law and/or regulation, deal
as principal, agent, or otherwise, or have long or short positions in, or buy or sell, the securities, commodities or instruments, or options or other
derivative instruments based thereon, of issuers or securities mentioned herein. The Nomura Group companies may also act as market maker
or liquidity provider (within the meaning of applicable regulations in the UK) in the financial instruments of the issuer. Where the activity of
market maker is carried out in accordance with the definition given to it by specific laws and regulations of the US or other jurisdictions, this will
be separately disclosed within the specific issuer disclosures.
This document may contain information obtained from third parties, including, but not limited to, ratings from credit ratings agencies such as
Standard & Poor’s. The Nomura Group hereby expressly disclaims all representations, warranties or undertakings of originality, fairness,
accuracy, completeness, correctness, merchantability or fitness for a particular purpose with respect to any of the information obtained from
third parties contained in this material or otherwise arising in connection therewith, and shall not be liable (in negligence or otherwise, and in
whole or in part) for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses,
legal fees, or losses (including lost income or profits and opportunity costs) in connection with any use or misuse of any of the information
obtained from third parties contained in this material or otherwise arising in connection therewith. Reproduction and distribution of third-party
content in any form is prohibited except with the prior written permission of the related third-party. Third-party content providers do not, express
or implied, guarantee the fairness, accuracy, completeness, correctness, timeliness or availability of any information, including ratings, and are
not in any way responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use
or misuse of such content. Third-party content providers give no express or implied warranties, including, but not limited to, any warranties of
merchantability or fitness for a particular purpose or use. Third-party content providers shall not be liable (in negligence or otherwise, and in
whole or in part) for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses,
legal fees, or losses (including lost income or profits and opportunity costs) in connection with any use or misuse of their content, including
ratings. Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase hold or sell securities. They do
not address the suitability of securities or the suitability of securities for investment purposes, and should not be relied on as investment advice.
Any MSCI sourced information in this document is the exclusive property of MSCI Inc. (‘MSCI’). Without prior written permission of MSCI, this
information and any other MSCI intellectual property may not be duplicated, reproduced, re-disseminated, redistributed or used, in whole or in
part, for any purpose whatsoever, including creating any financial products and any indices. This information is provided on an "as is" basis. The
user assumes the entire risk of any use made of this information. MSCI, its affiliates and any third party involved in, or related to, computing or
compiling the information hereby expressly disclaim all representations, warranties or undertakings of originality, fairness, accuracy,
completeness, correctness, merchantability or fitness for a particular purpose with respect to any of this material or the information contained in
this material or otherwise arising in connection therewith. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any
third party involved in, or related to, computing or compiling the information have any liability (in negligence or otherwise, and in whole or in part)
for any damages of any kind. MSCI and the MSCI indexes are services marks of MSCI and its affiliates.
The intellectual property rights and any other rights, in Russell/Nomura Japan Equity Index belong to Nomura Fiduciary Research & Consulting
Co., Ltd. ("NFRC") and Frank Russell Company ("Russell"). NFRC and Russell do not guarantee fairness, accuracy, completeness, correctness,
10
Nomura | Hiwin Technologies Corp 28 February 2024

reliability, usefulness, marketability, merchantability or fitness of the Index, and do not account for business activities or services that any index
user and/or its affiliates undertakes with the use of the Index.
Investors should consider this document as only a single factor in making their investment decision and, as such, the report should not be
viewed as identifying or suggesting all risks, direct or indirect, that may be associated with any investment decision. Nomura Group produces a
number of different types of research product including, among others, fundamental analysis and quantitative analysis; recommendations
contained in one type of research product may differ from recommendations contained in other types of research product, whether as a result of
differing time horizons, methodologies or otherwise. The Nomura Group publishes research product in a number of different ways including the
posting of product on the Nomura Group portals and/or distribution directly to clients. Different groups of clients may receive different products
and services from the research department depending on their individual requirements.
Figures presented herein may refer to past performance or simulations based on past performance which are not reliable indicators of future or
likely performance. Where the information contains an expectation, projection or indication of future performance and business prospects, such
forecasts may not be a reliable indicator of future or likely performance. Moreover, simulations are based on models and simplifying
assumptions which may oversimplify and not reflect the future distribution of returns. Any figure, strategy or index created and published for
illustrative purposes within this document is not intended for “use” as a “benchmark” as defined by the European Benchmark Regulation.
Certain securities are subject to fluctuations in exchange rates that could have an adverse effect on the value or price of, or income derived
from, the investment.
With respect to Fixed Income Research: Recommendations fall into two categories: tactical, which typically last up to three months; or strategic,
which typically last from 6-12 months. However, trade recommendations may be reviewed at any time as circumstances change. ‘Stop loss’
levels for trades are also provided; which, if hit, closes the trade recommendation automatically. Prices and yields shown in recommendations
are taken at the time of submission for publication and are based on either indicative Bloomberg, LSEG or Nomura prices and yields at that
time. The prices and yields shown are not necessarily those at which the trade recommendation can be implemented.
The securities described herein may not have been registered under the US Securities Act of 1933 (the ‘1933 Act’), and, in such case, may not
be offered or sold in the US or to US persons unless they have been registered under the 1933 Act, or except in compliance with an exemption
from the registration requirements of the 1933 Act. Unless governing law permits otherwise, any transaction should be executed via a Nomura
entity in your home jurisdiction.
This document has been approved for distribution in the UK as investment research by NIplc. NIplc is authorised by the Prudential Regulation
Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. NIplc is a member of the London Stock
Exchange. This document does not constitute a personal recommendation within the meaning of applicable regulations in the UK, or take into
account the particular investment objectives, financial situations, or needs of individual investors. This document is intended only for investors
who are 'eligible counterparties' or 'professional clients' for the purposes of applicable regulations in the UK, and may not, therefore, be
redistributed to persons who are 'retail clients' for such purposes.
This document has been approved for distribution in the European Economic Area as investment research by Nomura Financial Products
Europe GmbH (“NFPE”). NFPE is a company organized as a limited liability company under German law registered in the Commercial Register
of the Court of Frankfurt/Main under HRB 110223. NFPE is authorized and regulated by the German Federal Financial Supervisory Authority
(BaFin).
This document has been approved by NIHK, which is regulated by the Hong Kong Securities and Futures Commission, for distribution in Hong
Kong by NIHK. This document is intended only for investors who are 'professional investors' for the purposes of applicable regulations in Hong
Kong and may not, therefore, be redistributed to persons who are not 'professional investors' for such purposes.
This document has been approved for distribution in Australia by NAL, which is authorized and regulated in Australia by the ASIC.
This document has also been approved for distribution in Malaysia by NSM.
In Singapore, this document has been distributed by NSL, an exempt financial adviser as defined under the Financial Advisers Act (Chapter
110), among other things, and regulated by the Monetary Authority of Singapore. NSL may distribute this document produced by its foreign
affiliates pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the recipient of this document is not
an accredited, expert or institutional investor as defined by the Securities and Futures Act (Chapter 289), NSL accepts legal responsibility for the
contents of this document in respect of such recipient only to the extent required by law. Recipients of this document in Singapore should
contact NSL in respect of matters arising from, or in connection with, this document. THIS DOCUMENT IS INTENDED FOR GENERAL
CIRCULATION. IT DOES NOT TAKE INTO ACCOUNT THE SPECIFIC INVESTMENT OBJECTIVES, FINANCIAL SITUATION OR
PARTICULAR NEEDS OF ANY PARTICULAR PERSON. RECIPIENTS SHOULD TAKE INTO ACCOUNT THEIR SPECIFIC INVESTMENT
OBJECTIVES, FINANCIAL SITUATION OR PARTICULAR NEEDS BEFORE MAKING A COMMITMENT TO PURCHASE ANY SECURITIES,
INCLUDING SEEKING ADVICE FROM AN INDEPENDENT FINANCIAL ADVISER REGARDING THE SUITABILITY OF THE INVESTMENT,
UNDER A SEPARATE ENGAGEMENT, AS THE RECIPIENT DEEMS FIT.
Unless prohibited by the provisions of Regulation S of the 1933 Act, this material is distributed in the US, by NSI, a US-registered broker-dealer,
which accepts responsibility for its contents in accordance with the provisions of Rule 15a-6, under the US Securities Exchange Act of 1934.
The entity that prepared this document permits its separately operated affiliates within the Nomura Group to make copies of such documents
available to their clients.
This document has not been approved for distribution to persons other than ‘Authorised Persons’, ‘Exempt Persons’ or ‘Institutions’ (as defined
by the Capital Markets Authority) in the Kingdom of Saudi Arabia (‘Saudi Arabia’) or a ’Market Counterparty’ or a 'Professional Client' (as defined
by the Dubai Financial Services Authority) in the United Arab Emirates (‘UAE’) or a ‘Market Counterparty’ or a ‘Business Customer’ (as defined
by the Qatar Financial Centre Regulatory Authority) in the State of Qatar (‘Qatar’) by Nomura Saudi Arabia, NIplc or any other member of the
Nomura Group, as the case may be. Neither this document nor any copy thereof may be taken or transmitted or distributed, directly or indirectly,
by any person other than those authorised to do so into Saudi Arabia or in the UAE or in Qatar or to any person other than ‘Authorised Persons’,
‘Exempt Persons’ or ‘Institutions’ located in Saudi Arabia or a ’Market Counterparty’ or a 'Professional Client' in the UAE or a ‘Market
Counterparty’ or a ‘Business Customer’ in Qatar. Any failure to comply with these restrictions may constitute a violation of the laws of the UAE
or Saudi Arabia or Qatar.
For report with reference of TAIWAN public companies or authored by Taiwan based research analyst:
THIS DOCUMENT IS SOLELY FOR REFERENCE ONLY. You should independently evaluate the investment risks and are solely responsible
for your investment decisions. NO PORTION OF THE REPORT MAY BE REPRODUCED OR QUOTED BY THE PRESS OR ANY OTHER
PERSON WITHOUT WRITTEN AUTHORIZATION FROM NOMURA GROUP. Pursuant to Operational Regulations Governing Securities Firms
Recommending Trades in Securities to Customers and/or other applicable laws or regulations in Taiwan, you are prohibited to provide the
reports to others (including but not limited to related parties, affiliated companies and any other third parties) or engage in any activities in
connection with the reports which may involve conflicts of interests. INFORMATION ON SECURITIES / INSTRUMENTS NOT EXECUTABLE
BY NOMURA INTERNATIONAL (HONG KONG) LTD., TAIPEI BRANCH IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT BE
CONSTRUED AS A RECOMMENDATION OR A SOLICITATION TO TRADE IN SUCH SECURITIES / INSTRUMENTS.
This material may not be distributed in Indonesia or passed on within the territory of the Republic of Indonesia or to persons who are Indonesian
citizens (wherever they are domiciled or located) or entities of or residents in Indonesia in a manner which constitutes a public offering under the
laws of the Republic of Indonesia. The securities mentioned in this document may not be offered or sold in Indonesia or to persons who are
citizens of Indonesia (wherever they are domiciled or located) or entities of or residents in Indonesia in a manner which constitutes a public
offering under the laws of the Republic of Indonesia.
This document is prepared by Nomura Group or its subsidiary or affiliate (collectively, “Offshore Issuers”) that is not licensed in the People’s
Republic of China (“PRC”, excluding Hong Kong, Macau and Taiwan, for the purpose of this document) to provide securities research and this
research report is not approved or intended to be circulated in the PRC. The A-share related analysis (if any) is not produced for any persons
located or incorporated in the PRC. The recipients should not rely on any information contained in the research report in making investment
decisions and Offshore Issuers take no responsibility in this regard.
NO PART OF THIS MATERIAL MAY BE (I) COPIED, PHOTOCOPIED, REPRODUCED OR DUPLICATED IN ANY FORM, BY ANY MEANS;
OR (II) REDISSEMINATED, REPUBLISHED OR REDISTRIBUTED WITHOUT THE PRIOR WRITTEN CONSENT OF A MEMBER OF THE
NOMURA GROUP. If this document has been distributed by electronic transmission, such as e-mail, then such transmission cannot be
guaranteed to be secure or error-free as information could be intercepted, corrupted, lost, destroyed, arrive late or incomplete, or contain
viruses. The sender therefore does not accept liability (in negligence or otherwise, and in whole or in part) for any errors or omissions in the
contents of this document, which may arise as a result of electronic transmission. If verification is required, please request a hard-copy version.

The Nomura Group manages conflicts with respect to the production of research through its compliance policies and procedures (including, but
not limited to, Conflicts of Interest, Chinese Wall and Confidentiality policies) as well as through the maintenance of Chinese Walls and
employee training.
Additional information regarding the methodologies or models used in the production of any investment recommendations contained
within this document is available upon request by contacting the Research Analysts of Nomura listed on the front page. Disclosures

11
Nomura | Hiwin Technologies Corp 28 February 2024

information is available upon request and disclosure information is available at the Nomura Disclosure web page:
http://go.nomuranow.com/research/m/Disclosures
Copyright © 2024 Nomura International (Hong Kong) Ltd. All rights reserved.

12