CHT Security (7765) Q2 2026 earnings summary

Executive summary

• H1 2026 revenue reached NT$1,182m, up 21% year-over-year; net profit after tax was NT$251m, up 13% year-over-year; EPS was NT$6.16, up 2% year-over-year.

• All three business lines grew, with recurring revenue up 8.7% and overseas revenue up 233% year-over-year.

• Gross margin remained stable at 46%, with operating margin at 22–25% for the six-month period.

• The company’s financial statements received an unqualified review opinion from PwC.

Financial highlights

• Q2 2026 revenue was NT$584m, up 26% year-over-year; H1 2026 revenue was NT$1,182m, up 21% year-over-year.

• H1 2026 net profit after tax was NT$251m, up 13% year-over-year; EPS was NT$6.16.

• Gross margin for H1 2026 was 46%, operating margin 22–25%, and net profit margin 21%.

• Free cash flow for H1 2026 was NT$117m.

• Cash and cash equivalents at June 30, 2026: NT$1,876m.

Outlook and guidance

• Management expects double-digit growth for 2026, driven by AI cybersecurity demand and steady recurring revenue.

• Q3–Q4 orders on hand are approximately NT$600–700m.

• The company expects no material impact from newly adopted or upcoming IFRS standards.

• Management continues to monitor climate change and regulatory impacts in accounting estimates.

• New proprietary AI cybersecurity products and overseas expansion are expected to support future growth.