Zhengdao Defies Market Slump, Rises Against Heavy Sell-Off and Reclaims 200-Day Moving Average

Zhengdao (1506-TW), a member of the Taiseng Steel (2027-TW) Group, is poised for stronger operations this year, supported by stable performance in its metal processing business and the system cabinet division turning profitable. On Friday, despite a broader market plunge of nearly 3,000 points, Zhengdao逆势 rose 2.7% and reclaimed its 200-day moving average.

Zhengdao reported June revenue of NT$118 million, the highest monthly figure in over seven years, representing an 11% month-on-month increase and a 20% year-on-year growth. Its first-half revenue reached NT$616 million, up 12.3% year-on-year.

Looking ahead, Zhengdao stated that its metal processing business is expected to generate higher revenue than last year, driven by the completion and mass production of new product models at its Taiwan plant, with sustained profitability anticipated. The Malaysia plant is also contributing to revenue and profit, benefiting from order shifts from mainland China, as some customers have moved production to Southeast Asia.

Regarding the system cabinet business, Zhengdao reported initial success, with average monthly revenue increasing from approximately NT$10 million in 2024 to an expected NT$16 million in 2025. The division is approaching break-even and aims to turn profitable in 2026, targeting modest earnings.

Zhengdao plans to further expand its system cabinet business into the B2B market, actively targeting design firms, distributors, construction and contracting companies, hotels, hospitals, and corporate interior projects. The company expects to deliver strong results from these efforts next year.