Zhen Ding Technology Holding (4958) Q4 2025 earnings summary

Executive summary

• 2025 revenue reached NT$182.5bn, up 6.3% YoY, marking a record and ninth consecutive year as the world's largest PCB manufacturer.

• Gross and operating margins improved, driven by high-end AI applications and optimized product mix.

• Mobile Communications, Server/Optical, and IC Substrate segments all hit new revenue highs, with AI-related applications comprising nearly 70% of total revenue.

• Capacity expansion is underway, with ten new facilities in Huai'an and Thailand to meet strong customer demand for high-end AI products.

• Smart manufacturing and digital transformation initiatives are enhancing operational efficiency and profitability.

Financial highlights

• Gross profit rose 11.3% YoY to NT$36.1bn; gross margin increased by 0.9ppts to 19.8%.

• Operating profit grew 20.2% YoY to NT$13.9bn; operating margin up 0.9ppts to 7.6%.

• Net income declined 19.0% YoY to NT$10.6bn; net margin fell 1.8ppts to 5.8%.

• EPS was NT$6.91, down from NT$9.67 in 2024.

• Cash and cash equivalents decreased to NT$71.2bn from NT$79.8bn.

Outlook and guidance

• 2026 expected to begin a new high-growth cycle, with accelerated expansion and strong order visibility for high-end AI servers, optical communications, and IC substrates.

• Capex for 2026 projected to exceed NT$50bn, supporting phased capacity expansion.

• Revenue from AI-related applications anticipated to further increase, with several projects reaching critical technical milestones.