Heng-Chun Control Reports NT$5.1 Billion Net Profit in Q2, More Than Tripling YoY EPS at NT$1.55

Heng-Chun Control (3704-TW) announced its second-quarter financial report today, reporting a net profit of NT$5.1 billion, more than tripling its quarterly growth and turning losses into profits compared to the same period last year. The cumulative net profit for the first half of the year was NT$6.3 billion, turning profitable compared to the same period last year, with earnings per share (EPS) at NT$1.55. In addition to operating telecommunications business customers, Heng-Chun Control is actively expanding into fields such as cybersecurity and defense.

Heng-Chun Control's second-quarter revenue was NT$87.5 billion, up 38.7% quarter-over-quarter and 41.4% year-over-year. Gross margin was 23.7%, down 0.3 percentage points quarter-over-quarter and 0.6 percentage points year-over-year. Operating income was NT$7.07 billion, up 513.3% quarter-over-quarter and 393.2% year-over-year. Operating margin was 8.1%, up 6.3 percentage points quarter-over-quarter and 5.8 percentage points year-over-year. Net profit was NT$5.1 billion, up 338.6% quarter-over-quarter, turning profitable compared to the same period last year, with EPS at NT$1.26.

Heng-Chun Control's cumulative revenue for the first half of 2026 was NT$150.6 billion, up 13.9% year-over-year. Gross margin was 23.8%, up 0.4 percentage points year-over-year. Operating income was NT$8.22 billion, up 177.4% year-over-year. Operating margin was 5.5%, up 3.2 percentage points year-over-year. Net profit was NT$6.3 billion, turning profitable compared to the same period last year, with EPS at NT$1.55.

In the first quarter, Heng-Chun Control's profitability was eroded by rising memory prices. However, in the second quarter, with the contribution of 10GPON and Wi-Fi7 businesses, along with the company's active expansion into AI cybersecurity and defense communications, it successfully built a multi-faceted growth engine, driving stronger operations.