Jiazhe stock rebounds as analysts set price targets above NT$2,000

Shares of connector manufacturer Jiazhe (3533) experienced a notable rebound, recovering from a significant price correction that occurred on August 13th following the company's investor conference. The positive momentum is largely attributed to optimistic analyst ratings, with price targets consistently set above NT$2,000.

Market sentiment appears to favor Jiazhe's operational prospects, further bolstering the stock. The company's Quick Disconnect (QD) product officially commenced mass production in July, initially accounting for approximately 1% of monthly revenue. Jiazhe is actively expanding its production capacity, with projections suggesting that QD revenue contribution could rise to 2% to 3% in the second half of the year.

Addressing industry-wide component shortages, Jiazhe has observed clients implementing memory downgrades and reducing memory capacity in their product designs. Customers are also prioritizing components with longer lead times. Jiazhe's own product lead times range from four to six weeks, allowing clients to adjust their orders accordingly. These strategic adjustments are expected to positively impact production volume next year.