Focus Stock: Da-A's First-Half Profit Surges 90% to NT$1.758 Billion, EPS Reaches NT$2.24, Price and Volume Rise

Cable manufacturer Da-A (1609-TW) benefited from Taipower's grid reinforcement project and rising international copper prices, achieving a first-half net profit of NT$1.758 billion, a 90% year-over-year increase. Earnings per share reached NT$2.24, setting a historic second-highest record. This strong performance led to a surge in Da-A's stock price and volume on July 7, recovering both the monthly and quarterly lines.

Da-A's second-quarter revenue was NT$9.423 billion, up 12.97% quarter-over-quarter and 17.6% year-over-year. Gross margin was 18.55%, down 0.36 percentage points quarter-over-quarter but up 3.64 percentage points year-over-year. Operating margin was 11.94%, down 2.14 percentage points quarter-over-quarter but up 2.34 percentage points year-over-year. Net profit was NT$1.24 billion, up 1.4 times quarter-over-quarter and 24.87% year-over-year, with EPS at NT$1.58.

First-half revenue was NT$17.764 billion, up 17.21% year-over-year. Gross margin was 18.72%, up 4.07 percentage points year-over-year. Operating margin was 12.94%, up 3.58 percentage points year-over-year. Net profit was NT$1.758 billion, up 89.6% year-over-year, with EPS at NT$2.24.

In addition to benefiting from Taipower's grid reinforcement project, Da-A is also seeing increased power demand from semiconductor and tech company expansions. Each new factory can contribute approximately NT$500-600 million. The company has entered the supply chain of major wafer manufacturers, with orders exceeding NT$1 billion, and expects related orders to double in growth.

Da-A's stock price opened at NT$37.25 in early trading, reaching a high of NT$38.8, surpassing half the circuit breaker limit. Although the gains later narrowed, by lunchtime, the stock was trading at NT$37.05, still up over 3%, with trading volume exceeding 7,000 shares.