Tongyoda to List on GreTai at Reference Price of NT$150 on August 6, AI and Semiconductor Dual Engines Driving Double-Digit Revenue Growth for the Year

Tongyoda (7492-TW) will list on the GreTai market on August 6 at a reference price of NT$150. Chairman Lin Tsung-Te stated on the 30th that due to increasing demand for AI infrastructure, semiconductor equipment, and high-end manufacturing automation, the company's revenue for the first half of 2024 reached NT$1.443 billion, a 41% year-on-year increase. The company aims to maintain performance at the same level in the second half, expecting full-year revenue to grow by a double-digit percentage.

Lin Tsung-Te noted that thanks to strong growth in the semiconductor industry, revenue from semiconductor-related products now accounts for over 50% of total sales. Among these, 80% of customers are from Taiwan and 20% from China, with an 80% market coverage rate among equipment suppliers in Taiwan. Currently, semiconductor equipment primarily focuses on sub-systems such as AOI and laser technologies. The company has also planned to expand into full-system solutions, focusing on CPO applications, with new products expected to launch in the second half of 2024.

Regarding humanoid robotics, Tongyoda is dedicated to developing joint modules, including rotary joints and muscle-type actuators. The company has completed the development of three specifications and is currently engaging with customers in Europe, the United States, and Japan, focusing on non-red supply chains. However, due to customized requirements, the validation period is longer, with revenue contribution expected to begin in the second half of 2027.

In overseas markets, Tongyoda has already begun small-volume shipments to Japan and expects to secure new orders in the second half of 2024, anticipating significant performance growth. The South Korean market is also benefiting from strong demand in semiconductors and advanced packaging, with second-half performance expected to surpass the first half.

Regarding overseas production expansion, Tongyoda stated that due to major customers like Apple (AAPL-US) actively expanding into India, factory expansion in India is the top priority, followed by Vietnam. Overseas factories will primarily produce linear drive modules, adopting a production model where key components are manufactured in Taiwan and final assembly and quality inspection are completed overseas, meeting customer delivery timelines.

Tongyoda's gross margin was 27% in 2025, but improved to 32.6% in the first half of 2024. Lin explained that the increase in semiconductor customer revenue share has driven shipments of high-margin products requiring higher quality standards. Additionally, compared to the past when core components were mostly outsourced, 80% are now self-developed, and higher in-house production rates have contributed to improved margins.

Tongyoda currently has six months of visibility on AI-related orders and over one year for semiconductor equipment orders. Lin expects double-digit revenue growth for 2024. The company's earnings per share for the first half of 2024 were NT$7.46. Financial institutions also anticipate that Tongyoda will exceed NT$10 per share for full-year 2024 earnings.

Additionally, Tongyoda plans to submit its application after the first-quarter 2025 financial report, aiming to transition to the TPEx market before the third quarter of 2025.