Zhen Ding Technology Holding (4958) Q1 2026 earnings summary

Executive summary

• 1Q26 revenue reached a record high for the same period, driven by strong growth in high-end AI-related products, especially in Server/Optical and IC Substrate segments.

• Server/Optical revenue more than doubled year-over-year, and IC Substrate revenue increased by over 60% year-over-year, together accounting for nearly 20% of total revenue.

• Gross margin and operating margin set record highs for the first quarter, reflecting a favorable product mix shift toward high-end AI applications.

Financial highlights

• 1Q26 revenue: NT$40,728 million, up 1.6% year-over-year.

• Gross profit: NT$8,812 million, up 49.7% year-over-year; gross margin: 21.6%, up 6.9 percentage points.

• Operating profit: NT$2,503 million, up 137.1% year-over-year; operating margin: 6.1%, up 3.5 percentage points.

• Net income: NT$2,047 million, up 99.7% year-over-year; net margin: 5.0%, up 2.4 percentage points.

• EPS: NT$1.33, compared to NT$0.66 in 1Q25.

• Cash inflow from operations: NT$10,949 million; cash and equivalents: NT$82,480 million.

Outlook and guidance

• Full-year Server/Optical revenue expected to more than double, with IC Substrate revenue targeted to grow by over 70%.

• Customers' next-generation AI platforms entering mass production from 2Q26, driving sequential growth.

• Capital expenditure plan for 2026 increased from NT$50 billion+ to NT$80 billion+ to accelerate high-end production capacity.