Zhen Ding Technology Holding (4958) Q2 2026 earnings summary

Executive summary

• 1H26 revenue reached NT$89,159 million, up 13.9% year-over-year, setting a record high for the period, driven by strong demand for high-end AI applications and an upgraded product mix.

• Gross margin improved to 22.4% and operating margin to 7.0% in 1H26, reflecting increased profitability from high-value-added products.

• Revenue from Servers/Optical Modules/IC Substrates more than doubled year-over-year, now accounting for 21.6% of total revenue.

• The company is investing heavily in capacity expansion, with NT$80 billion in planned capital expenditures for 2026 and ongoing investments through 2028.

• Application for a main board listing on the Hong Kong Stock Exchange was submitted on July 2, 2026.

Financial highlights

• 2Q26 revenue was NT$48,431 million, up 26.8% year-over-year; net income rose 168.6% to NT$3,727 million.

• 1H26 net income increased 139.3% year-over-year to NT$5,774 million; EPS rose to NT$3.55 from NT$1.30.

• Gross profit for 1H26 was NT$19,998 million, up 55.1% year-over-year; operating profit rose 80.0% to NT$6,265 million.

• R&D expenses increased 50.7% to NT$7,794 million in 1H26.

• Cash and cash equivalents stood at NT$97,098 million, up 30.9% year-over-year.

Outlook and guidance

• AI infrastructure buildout is expected to drive a long-term growth cycle for high-end PCBs, with revenue from Servers/Optical Modules targeted to more than double for the full year.

• Medium- to long-term growth is anticipated as AI demand expands into edge applications and robotics, increasing PCB content and complexity.

• New capacity from 13 plants under construction and 16 in planning will come online in phases from 2026 to 2030.