Focus Stock: Synergy's Operations in Second Half to Outperform First Half, Rising Despite Market Plunge

Synergy (6561-TW) benefited from the rapid development of AI, reporting June revenue of NT$360 million, marking a rebound to double-digit growth with an 8.05% month-on-month and 10.18% year-on-year increase. As IDC facilities begin contributing incrementally, the company is optimistic that its second-half operations will outperform the first half. Synergy is expected to earn over 1.5 times its share capital in 2025, and institutional investors anticipate record-high EPS in 2024, driving the stock to rise today (28) despite a sharp market downturn.

Synergy opened at NT$318.5 this morning, lower than the previous close, but turned positive during trading, reaching a high of NT$331. As of 11 a.m., the stock was trading at NT$329.5, up over 2%, reclaiming both the 5-day and monthly moving averages.

June revenue reached NT$360 million, up 8.05% month-on-month and 10.18% year-on-year, marking a return to double-digit growth. Cumulative revenue for the first half of the year reached NT$2.026 billion, down 2.63% year-on-year.

Occupancy at Synergy's Lianyun AI Smart Data Center (LY2) continues to rise, with sales performance exceeding expectations and nearing full capacity. The company expects occupancy to reach 95% by the end of next year. Additionally, the new AIDC in the Central Science Park is scheduled to break ground in October this year, with over 50% of letters of intent already signed—mostly long-term contracts of over five years. The facility is expected to become operational in 2028.

Synergy stated that as IDC facility contributions expand, it remains optimistic about full-year performance, expecting second-half revenue and profits to surpass the first half. The company forecasts annual revenue growth of 6% to 8% and profit growth of 10%. Synergy will announce its Q2 financial results tomorrow (29).