Heavy Electrical Equipment Makers Report Record Q2 Revenues, Boosted by AIDC Construction Demand

(Taipei, July 13, Central News Agency reporter Chung Jung-feng) Major heavy electrical equipment manufacturers have released their June revenue figures. Hwasum Electric reported consolidated revenue of NT$1.729 billion for the month, up 17.1% month-on-month but down 25.8% year-on-year. Its Q2 consolidated revenue reached NT$5.455 billion, a 14.7% increase quarter-on-quarter, marking the second-highest for the same period in history. Cumulative H1 revenue totaled NT$10.212 billion, down 2.7% year-on-year.

Teco Electric & Machinery reported June revenue of NT$3.109 billion, up 1.95% MoM and down 10.6% YoY, the second-highest for the same month. Its Q2 revenue reached NT$9.562 billion, up 7.9% YoY, setting a new record for the period. H1 revenue totaled NT$21.121 billion, up 10.27% YoY, also a record high.

Looking ahead, Hwasum stated that its order visibility extends to 2029, with AIDC-related orders exceeding NT$20 billion. It expects AIDC-related revenue to account for over 15% of total revenue in 2024.

Hwasum anticipates stronger performance in the second half of 2024 compared to the first half, driven by continued demand from U.S. infrastructure projects and AIDC shipments. The company projects full-year revenue growth, with three key growth drivers: semiconductor fab expansions, AIDC construction, Taipower’s grid resilience program, and overseas power infrastructure exports.

Teco highlighted five growth drivers for 2024: Taipower’s power infrastructure projects, energy transition initiatives, AIDC applications, North American exports, and turnkey engineering projects in transportation and public infrastructure. The company aims for double-digit percentage growth in both revenue and profit, potentially reaching record highs.

For the North American AIDC infrastructure market, Teco forecasts a 30% growth in the U.S. market in 2024. North American AIDC-related orders account for approximately 30% of Teco’s total order book.

Yalei Electric reported June revenue of NT$1.177 billion, up 47.2% MoM and 39.7% YoY, a record high for the period. H1 revenue reached NT$5.375 billion, up 16% YoY, also a record. Q2 revenue was NT$2.835 billion, the highest for the same quarter.

Yalei noted that its order visibility extends to 2029. It expects strong demand from semiconductor fab expansions in 2024 and anticipates better performance in the second half. The company aims for growth compared to 2025. AI-driven industrial applications are fueling demand for heavy electrical equipment, with future business opportunities in power grid construction, semiconductor chip plant expansions, and AI factory and AIDC facility builds.

China Electric Engineering (CEE) reported June revenue of NT$2.833 billion, up 18.45% MoM and 8.3% YoY, a record high for the period and the second-highest monthly figure. Q2 revenue reached NT$7.533 billion, a quarterly record. H1 revenue totaled NT$14.023 billion, up 3.5% YoY, also a record high.

CEE forecasts double-digit revenue growth for 2024, driven by AI computing demand and green energy transition. Its high-voltage gas-insulated switchgear (GIS) has been certified by a major semiconductor wafer manufacturer and will begin shipments to domestic new facilities in Q4. Additionally, CEE will enter AI data center EPC and construction projects in 2024. (Editor: Pan Yi-ching) 1150713