Kuo-Tung to Raise NT$1.2 Billion in Largest Water Resources Fundraising Case of the Year

Kuo-Tung (8936-TW), a water resources integrator, plans to issue two convertible bonds (CB) to raise a total of NT$1.2 billion. This case, reported to the Financial Supervisory Commission (FSC) on today (22nd), is the largest fundraising case in the water resources sector this year, with Tai Xin Securities as the lead underwriter.

Simultaneously, Kuo-Tung will venture into power pipeline engineering, investing in the establishment of a company producing high-density polyethylene (HDPE) pipe materials, planning four production lines expected to commence production in the fourth quarter. Analysts anticipate that this will contribute to Kuo-Tung's operations next year.

The four HDPE pipe production lines currently planned by Kuo-Tung have application ranges including cooling and drainage pipes for thermal power plants, intake and drainage pipes for seawater desalination plants, acid-alkali resistant chemical pipelines for mining and technology industries, water supply pipes and user connection pipes, sewage and drainage pipes, reclaimed water pipes, simple water supply and agricultural water pipes, gas pipes, power protection pipes, and telecommunications optical fiber protection pipes.

Kuo-Tung currently has outstanding orders exceeding NT$20 billion, with analysts expecting a year-on-year increase of approximately 20% in annual revenue for 2026.

In addition to actively bidding for the Chiayi and Northern Kaohsiung seawater desalination plant, Chiayi County Treatment Expansion, and Hsinchu Qiya Reclaimed Water Plant projects this year, Kuo-Tung also plans to enter the Taipower "345kV Hsin-Da to Nankang cable line" pipeline engineering project.

Kuo-Tung's first-quarter revenue for 2026 was NT$1.715 billion, with a gross margin of 22.58%, net profit after tax of NT$246 million, earnings per share of NT$0.99, and first-half revenue of NT$3.318 billion, up 20.06% year-on-year.