Shengtai Reports Self-Compiled H1 Net Profit of NT$561 Million, EPS at NT$8.15, Surpassing Historical Full-Year Earnings

Low Earth Orbit (LEO) satellite and microwave communication component manufacturer Shengtai (3491-TW) announced today (27) its latest self-compiled financial results. For Q2 2026, the company achieved a net profit of NT$308 million, with H1 2026 net profit reaching NT$561 million—surpassing its historical full-year earnings—representing a 1.61x year-on-year increase, and earnings per share (EPS) reaching NT$8.15.

Shengtai reported Q2 2026 revenue of NT$902 million, with a gross margin of 55.6%, down 2.38 percentage points quarter-on-quarter but up 12.25 percentage points year-on-year. The quarterly net profit of NT$308 million marked a 21.61% increase quarter-on-quarter and a 3.3x year-on-year surge, with EPS at NT$4.47.

For the first half of 2026 (January–June), Shengtai recorded revenue of NT$1.922 billion, with a gross margin of 56.9%, up 9.61 percentage points year-on-year. The H1 2026 net profit of NT$561 million surpassed all previous full-year profits, up 1.61x year-on-year, with EPS reaching NT$8.15.

Shengtai stated that it has benefited from the growing global demand for LEO satellite-related communication products. H1 2026 revenue reached NT$1.92 billion, up 70% year-on-year, setting a new historical high for the same period. LEO product revenue grew 1.47x, making a significant contribution. Due to continued capacity expansion requests from key LEO customers and multiple new LEO customers launching design and development projects, the company, after investing approximately NT$800 million in capacity expansion in 2025, plans to invest over NT$1 billion in capital expenditures in 2026 to meet the growing demand across its LEO product lines.

Looking ahead, Shengtai noted that the LEO satellite industry is transitioning from a niche market dominated by a few players to one of scaled deployment and diversified applications, becoming a critical infrastructure for bridging terrestrial communication blind spots, enhancing network resilience, and expanding global connectivity coverage. Applications are expanding beyond broadband communication to include device-to-device (D2D) connectivity, non-terrestrial networks (NTN), inter-satellite optical links (OISL), and future space edge computing. As major satellite operators continue to expand their constellations, accelerate next-generation satellite deployment, and extend service regions, global demand for satellite communication equipment is expected to rise in tandem, driving high-frequency communication components for payloads, gateways, and user terminals into a new growth phase.

Shengtai also highlighted that as AI data center computing scales continue to expand, system demands for high-speed transmission, ultra-high bandwidth, low latency, and high-density interconnects are rapidly increasing, extending from existing microwave and millimeter-wave bands to higher frequencies. This is expected to significantly boost demand for terahertz-related components, modules, and test applications. Whether it is high-speed interconnects within terrestrial AI data centers, space edge computing, massive data exchange between satellites, or upgrades to LEO satellite communication architectures, the demand for high-frequency connectivity and transmission technologies will rise, opening new growth opportunities for the millimeter-wave/terahertz communication supply chain and further increasing the value of communication equipment per system and per satellite.

Shengtai has successfully penetrated multiple international leading LEO satellite customers, with its products having been deployed in orbit for years, accumulating substantial flight heritage. Leveraging its long-standing expertise in microwave, millimeter-wave, and terahertz communication design, development, and mass production, the company is continuously expanding its product portfolio. In addition to existing millimeter-wave antenna transceiver modules, new products will include high-frequency high-speed transmission solutions, millimeter-wave amplifier modules, and terahertz transmission modules.

The continuous expansion of product breadth will increase the range of offerings to existing LEO customers, gradually enhancing growth momentum. As Shengtai’s new production capacity comes online, the company will be better positioned to align with customer constellation deployment and AI-related application development, capturing opportunities arising from the sustained growth of the terahertz, high-frequency high-speed transmission, and LEO satellite markets.