Hot Stock: Indium Phosphide Material Export Easing Boosts Shipment Demand, Quinext Surges 18% Weekly to Reclaim 300 TWD Threshold

Upstream gallium arsenide (GaAs) epitaxial wafer manufacturer Quinext (2455-TW) experienced a significant stock price rally fueled by robust AI demand. Additionally, following China's decision to open exports of indium phosphide (InP) substrate materials, the company surged 18.09% last week amid a rebound in the optical communications sector. Not only did it reclaim its monthly moving average, but its share price also climbed above 333 TWD, with weekly trading volume expanding to 51,000 lots.

Due to recent extreme stock price volatility, Quinext, in compliance with regulatory requirements, disclosed its trading alert criteria on Friday (24th). The company reported a self-estimated post-tax net profit of NT$57.24 million for May, representing a 10.35-fold year-on-year increase, with earnings per share (EPS) reaching NT$0.31 for the month.

Furthermore, Quinext's revenue for June reached NT$325 million, up 23.55% year-on-year, marking ten consecutive months of double-digit revenue growth. The company is scheduled to hold a board meeting this Thursday (30th) to announce its Q2 financial results.

With expectations that the tight supply of InP substrates will gradually ease, Quinext's long-term profitability outlook is being repriced, attracting short-term capital inflows. Analysts point out that the massive deployment of AI data centers is driving demand for optical communications, leading to an explosive opportunity for optical transceiver modules. As a key upstream material supplier for these modules, Quinext is well-positioned to benefit.

As one of the world's top three GaAs epitaxial wafer manufacturers, Quinext's business spans electronic component manufacturing and electronic materials wholesale, holding a leading position in optoelectronic and RF-related epitaxial foundry services. Its monthly revenue has achieved double-digit year-on-year growth for ten consecutive months. Analysts note that the increasing proportion of optoelectronic products is helping optimize Quinext's overall profitability.

According to analysts, Quinext obtained substrate export permits in early June and has already begun shipping to customers. While current approvals are still being released in batches, the likelihood of securing further permits remains high, offering hope for alleviating material shortages.