Cincon Electronics Q2 Net Profit Doubles Quarter-on-Quarter to NT$814M, EPS Rises to NT$2.03; H1 EPS Reaches NT$3.04

Cincon Electronics (6412-TW), a power supply manufacturer, released its second-quarter financial report today (4th). Although core business profitability declined, net profit after tax reached NT$814 million, up 101% quarter-on-quarter and 74.3% year-on-year, with earnings per share (EPS) at NT$2.03. For the first half of the year, net profit after tax totaled NT$1.219 billion, up 49% year-on-year, with EPS at NT$3.04.

Cincon's Q2 revenue was NT$8.443 billion, up 8.5% quarter-on-quarter but down 7.5% year-on-year. Gross margin was 13.1%, down 2.8 percentage points quarter-on-quarter and 3.4 percentage points year-on-year. Operating profit was NT$196 million, down 41.4% quarter-on-quarter and 65% year-on-year, with an operating margin of 2.3%, down 2.3 and 3.8 percentage points respectively.

For the first half of the year, revenue totaled NT$16.227 billion, down 7.7% year-on-year. Gross margin was 14.4% (down 2.4 percentage points year-on-year), operating profit was NT$530 million (down 53.3% year-on-year), and operating margin was 3.3% (down 3.2 percentage points year-on-year).

Regarding Q2 performance, Cincon noted that demand for communication and server power supplies continued to rise, and notebook brand customers maintained strong procurement momentum, supporting revenue growth. However, supply shortages of key semiconductor components among some customers led to shipment schedule adjustments for certain notebook power products, limiting the degree of product mix optimization.

On profitability, Cincon stated that although the product mix improved in Q2, rising raw material prices and a stronger RMB increased procurement costs, putting short-term pressure on gross margins. The company has actively negotiated price adjustments with customers, and most have agreed to revised pricing.

However, due to differing adjustment timelines across products and customers, there remains a time lag in cost pass-through. As price adjustments are gradually implemented, cost pressures are expected to ease. Going forward, the company will continue optimizing product mix, enhancing production efficiency, and strengthening cost management to improve overall profitability.