Chuantong's Profit to Rise Sequentially in the Second Half of the Year, Pursuing Both Traditional and New Businesses

Connector manufacturer Chuantong (2460-TW) announced that its June revenue was NT$4.06 billion, down 4.86% month-on-month but up 59.08% year-on-year. Its second-quarter revenue was NT$12.63 billion, up 11.8% quarter-on-quarter and 62.6% year-on-year. Its first-half revenue was NT$23.94 billion, up 62.5% year-on-year.

Chuantong explained that its June revenue was affected by the mid-year inventory count of clients and the group, which delayed some shipment schedules, causing a decline from the previous month. However, compared to the same period last year, it showed a significant increase, demonstrating a steady long-term upward trend in the group's transformation.

Looking ahead to the second half of the year, Chuantong stated that it will pursue both traditional and new businesses. The demand for China's new national standard semi-insulated connectors continues to rise. Additionally, in the special new copper material business, the global demand for green energy heavy electrical engineering and the pull of AI heat dissipation applications remains strong.

Furthermore, Taiwan Chuantong possesses the exclusive high-purity melting technology for producing top-tier specifications of 'ultra-low oxygen-free copper,' which can effectively eliminate electronic heat dissipation resistance. It has already sent samples to position itself in the AI supply chain, and high-margin copper material shipments are expected to rise sequentially in the second half of the year. Overall, the group's second-half profit capability is expected to rise sequentially.