Davicom (2478-TW) maintained an order-to-shipment ratio above 1 entering Q4 2026, driven by sustained AI-related demand despite delays in consumer-grade product orders, the company reported on November 12, 2026. The company stated that AI demand remains robust while consumer specifications face demand delays or reductions. AI-related products are estimated to account for 15% of total revenue in 2026, up from 8% in 2025, while consumer electronics represent approximately 20% of revenue under application-based classification. The order-to-shipment ratio, calculated as order value divided by shipment value, indicates incoming orders exceed outgoing shipments when above 1.
Davicom Reports October Revenue Growth Narrowing to 22% YoY
Davicom recorded revenue of 569 million yuan in October, down 3.64% month-over-month and up 22% year-over-year, marking the smallest annual growth rate since June. Cumulative revenue for the first 10 months of 2026 increased 23.39% YoY, but the annual growth rate narrowed consecutively from 43.63% in August to 29.82% in September and 22% in October. The company's demand observation shows bifurcation between product categories, with AI-related segments maintaining strength while consumer-grade specifications experience delays and reductions.
Inventory-to-Sales Ratio Declines from 1.56x to 1.19x in Nine Months
The inventory-to-sales ratio dropped from 1.56 times in February 2026 to 1.19 times in September 2026, according to data from the UAnalyze Industry Database. The inventory-to-sales ratio is calculated as inventory divided by the most recent three months' revenue, with lower values indicating less inventory relative to sales. Absolute inventory levels continued to increase during this period, but revenue growth outpaced inventory accumulation, preventing shipment delays from inventory buildup. Inventory as a percentage of total assets in Q3 2026 increased by less than two percentage points compared to the same period in 2025. Property, plant, and equipment accounted for 38% of total assets in Q3 2026, close to 39% in Q2 2026, indicating no significant asset structure changes from capacity expansion.
Capacity Utilization Holds at 85-90% Amid Manpower Constraints
Davicom reported capacity utilization rates ranging from 85% to 90% across different product lines, with some production lines facing manpower shortages. Lead times for standard resistors remain at 8 to 12 weeks, and the order-to-shipment ratio stays above 1, both indicators of tight supply conditions. The company's capacity utilization of 85-90% and order-to-shipment ratio above 1 reflect supply constraints that have not yet eased despite the narrowing revenue growth rate observed in recent months.
FAQ
What is Davicom's order-to-shipment ratio in Q4 2026?
Davicom's order-to-shipment ratio remained above 1 in Q4 2026, meaning the value of incoming orders exceeded the value of outgoing shipments during this period.
How did Davicom's inventory-to-sales ratio change in 2026?
Davicom's inventory-to-sales ratio declined from 1.56 times in February 2026 to 1.19 times in September 2026, indicating inventory levels decreased relative to sales as revenue growth outpaced inventory accumulation.
What percentage of Davicom's revenue comes from AI-related products?
AI-related products are estimated to account for 15% of Davicom's total revenue in 2026, up from 8% in 2025, according to company statements reported on November 12, 2026.
