ASIA CEMENT (1102) Q2 2026 earnings summary

Executive summary

• Consolidated revenue for 1H26 declined 7% year-over-year to NT$32,660 million, reflecting ongoing weakness in cement demand, especially in China and Taiwan.

• Net income surged 57% year-over-year to NT$7,030 million, driven by strong equity and investment income despite lower operating profit.

• Diversified investments, including equity stakes in Far Eastern New Century and U-Ming Marine, provided significant support to earnings.

Financial highlights

• Operating profit for 1H26 dropped 31% year-over-year to NT$2,895 million, with gross margin narrowing to 13.6% from 16.3%.

• Non-operating profit rose sharply, up 219% year-over-year, mainly from gains on financial assets and equity income.

• EPS for 1H26 was NT$2.01, up 66% year-over-year.

• Free cash flow for 1H26 was NT$687 million, down from NT$3,791 million in 1H25.

Outlook and guidance

• China cement demand is expected to decline 7–9% for full-year 2026, with 1H26 demand down 10% year-over-year.

• Taiwan cement demand remains weak, with 1H26 down 15% year-over-year; near-term outlook is cautious due to credit controls and higher construction costs.

• Market stabilization in Taiwan is supported by marginal policy easing and steady self-use housing demand.