Focus Stock: Chi Li Turns Profitable, Hits Limit-Up; Earns NT$0.69 Per Share in First Half

Chi Li (4555-TW), a manufacturer of pneumatic and electro-control automation components, has shown a clear turnaround in operations. In the second quarter of 2026, the company reported a net profit of NT$45.49 million, representing a 16.91-fold increase from the previous quarter and a year-on-year shift from loss to profit, with earnings per share (EPS) reaching NT$0.65. For the first half of the year, cumulative net profit amounted to NT$48.03 million, turning profitable compared to the same period last year, with EPS at NT$0.69. On June 6, the stock opened higher and closed at the daily limit-up price of NT$47.05.

The improvement in Chi Li's performance is driven by strong demand for industrial automation equipment. Orders at its Pinghu plant are fully booked, significantly boosting profitability. Additionally, the company’s Thailand plant began full-scale operations in 2026, contributing meaningfully to group revenue and supporting overall growth in the first half.

Financially, Chi Li achieved second-quarter revenue of NT$492 million, with a gross margin of 32.95%, up 2.82 percentage points quarter-on-quarter and 0.87 percentage points year-on-year. This margin expansion further strengthened earnings quality. The first-half net profit of NT$48.03 million marks a significant reversal from last year’s losses, indicating solid progress in operational recovery and financial stabilization.