Synergy Reports H1 Profit of NT$585 Million, EPS NT$7.57; LY2 Accelerates Deployment, Full-Year Performance Expected to Reach New Highs

Synergy (6561-TW) announced its first-half financial results today (29), with consolidated revenue of NT$2.026 billion and net profit of NT$585 million, EPS of NT$7.57. Although year-on-year declines were recorded, Synergy stated that with the LY2 Lianyun Smart Data Center accelerating customer deployment, full-year operations are expected to reach new highs.

Synergy's Q2 revenue reached NT$1.044 billion, up 6.31% quarter-on-quarter but down 7.36% year-on-year. Gross margin was 48.18%, down 0.8 percentage points QoQ and 7.28 points YoY. Operating margin was 37.16%, down 0.11 points QoQ and 5.69 points YoY. Net profit was NT$298 million, up 3.83% QoQ but down 17.91% YoY, with EPS at NT$3.88.

For the first half of the year, consolidated revenue totaled NT$2.026 billion, down 2.64% YoY. Gross margin was 48.57%, down 6.5 percentage points YoY. Operating margin was 37.22%, down 3.77 points YoY. Net profit was NT$585 million, down 8.9% YoY, with EPS at NT$7.57. Synergy explained that the financial performance was affected by the full monthly depreciation of LY2 data center equipment starting January this year, as well as higher base effects from one-time revenues in the same period last year.

By product line in the first half, cloud application services generated NT$351 million in revenue, up 10.5% YoY, while IDC facility services generated NT$895 million, forming the two main growth engines for Synergy.

Looking ahead to the second half, Chairman Shao Hong-Jia noted that with new customers accelerating onboarding at the LY2 data center and the proportion of high-margin services increasing, operations are expected to grow sequentially, with H2 outperforming H1. Full-year gross margin is expected to maintain a level of around 50%, and the company is optimistic about achieving new highs in revenue and profitability this year.

General Manager Liu Yao-Yuan stated that the delay in customer onboarding at the LY2 smart data center has been resolved, with occupancy rates clearly recovering since June and beginning to contribute to monthly revenue. The occupancy rate is expected to reach 80% by the end of this year, with further improvements expected in the following years.

Additionally, the new data center in the Hsinchu Science Park Huben area is scheduled to break ground in mid-October this year, with commercial operations planned for the second half of 2028. Synergy noted that customer leasing letters of intent for the Hsinchu data center have already exceeded 50%, reflecting strong demand for AI computing power.