Zhen Ding Technology Holding (4958) Q1 2026 earnings summary

Executive summary

• 1Q26 revenue reached NT$40,728 million, up 1.6% year-over-year, driven by strong growth in high-end AI-related products, especially in Server/Optical and IC Substrate segments.

• Net profit for Q1 2026 was NT$2,047 million, a 99.7% increase from Q1 2025.

• Gross margin set a record high for the first quarter, improving to 22% from 15% year-over-year, reflecting a favorable product mix shift toward high-end AI applications.

• Comprehensive income reached NT$7,672 million, reflecting strong operational and investment performance.

Financial highlights

• 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.

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

• Cash and cash equivalents: NT$82,480 million as of March 31, 2026.

• Total assets: NT$298,403 million; total equity: NT$174,725 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.

• NT$61,842 million in contracted capital expenditures for ongoing expansion.