Chuanhu Surges to Record Q2 Profit of NT$7.09 Billion, EPS Hits NT$74.38

Chuanhu (2059-TW), a manufacturer of server rails, announced its second-quarter financial results today. The company achieved record-high gross and operating profit margins, with net profit after tax reaching NT$7.09 billion, representing a 103.3% increase quarter-on-quarter and a 1,054.2% surge year-on-year. Earnings per share (EPS) stood at NT$74.38, setting a new historical high. Chuanhu's stock price surged today, closing at NT$10,100, up approximately 6.6%, making it the third 'million-dollar' stock in the Taiwan stock market, with a trading volume of 644 shares.

Second-quarter revenue reached NT$10.83 billion, up 98.7% quarter-on-quarter and 156.1% year-on-year. Gross margin was 87.4%, up 9.7 percentage points from the previous quarter and 9.9 percentage points year-on-year. Operating profit was NT$8.89 billion, up 143.3% quarter-on-quarter and 199.7% year-on-year. Operating margin reached 82.1%, up 15 percentage points from the previous quarter and 11.9 percentage points year-on-year. Net profit after tax was NT$7.09 billion, up 103.3% quarter-on-quarter and 1,054.2% year-on-year, with EPS at NT$74.38.

Cumulative revenue for the first half of the year reached NT$16.28 billion, up 98.9% year-on-year. Gross margin was 84.2%, up 7.4 percentage points year-on-year. Operating profit was NT$12.54 billion, up 120.5% year-on-year. Operating margin was 77.1%, up 7.5 percentage points year-on-year. Net profit after tax was NT$10.57 billion, up 238.3% year-on-year, with EPS at NT$110.96.

Chuanhu is actively expanding its production capacity. Its U.S. factory is scheduled to begin mass production in the second half of 2024, while the Kaohsiung plant is expected to commence operations in the second half of 2027. The company is also actively developing AI-powered automated rails and optimizing factory management systems.