Ju Heng Q2 Profits Double, EPS at NT$1.16, Backlog Exceeds NT$5 Billion

Ju Heng (4582-TW) released its first-half financial results today (11th), benefiting from large-scale engineering projects entering peak revenue recognition. The company posted a quarterly net profit of NT$80 million, a 118.57% increase quarter-on-quarter and a 789.07% surge year-on-year, with earnings per share (EPS) at NT$1.16. Looking ahead, Ju Heng's operational momentum will be driven by three major projects in Yunlin and Tainan, with total contract value exceeding NT$5 billion. These projects are expected to be finalized this year and recognized from Q4 2026 through 2027, painting an optimistic outlook.

In the first half, Ju Heng achieved revenue of NT$967 million, a 178.53% year-on-year increase, with a gross margin of 21.88% and an operating margin of 8.74%. Net profit reached NT$80 million, up 789.07% year-on-year, with EPS at NT$1.16. First-half revenue already accounts for nearly 80% of the company’s full-year 2025 revenue of NT$1.227 billion. Q2 revenue alone reached NT$724 million, nearly tripling from the previous quarter, as large engineering projects officially entered peak recognition.

Revenue growth in the first half was primarily driven by progress on large EPC construction and development projects. The Pingtung floating solar project has reached 90% completion, while major projects such as the Tainan Hsuehchia substation have achieved 25% progress, collectively contributing nearly 70% of first-half revenue.

On the energy storage front, Ju Heng’s E-dReg front-of-meter storage projects in Nantou and Taoyuan have been 100% completed and are expected to undergo acceptance by the end of August, after which revenue recognition will commence, boosting second-half performance. The overseas Palau project is approximately 95% complete and scheduled for completion and acceptance by the end of August, further solidifying the company’s international project track record.

Ju Heng continues to invest in operations and maintenance (O&M) services, with first-half O&M revenue surpassing NT$10 million. This reflects the transition of early EPC projects from free warranty periods into paid maintenance, accelerating high-margin recurring income.

Additionally, the Ministry of the Interior and Ministry of Economic Affairs’ new regulation, 'Standards for Installing Solar PV Systems on Buildings,' took effect on August 1. It mandates that new, expanded, or renovated buildings with a floor area of 1,000 square meters or more must install solar PV systems at a rate of 1 kW per 20 square meters of roof space. Authorities estimate this will generate approximately 660,000 kW (660 MW) of new installed capacity annually.

Chairman Chou Heng-Hao stated that the new regulation is expected to expand the rooftop solar EPC market and further stimulate long-term O&M service demand for up to 20 years. Unlike small contractors offering only initial construction, Ju Heng provides remote monitoring, regular inspections, equipment upgrades and repairs, and anomaly handling. Leveraging its self-developed 'H-ELink Ju Neng Wang' energy management system, the company integrates solar, storage, power consumption monitoring, and optimal dispatching to offer clients a one-stop solution from installation to long-term operations.

Ju Heng is the first company in Taiwan and the second in Asia to obtain TÜV Rheinland O&M certification. It currently manages nearly 200 solar power plants with a cumulative capacity of nearly 270 MW. Operational performance is strong, with the flagship Qigu Zhiguang fishery-solar co-location Phase I project achieving an average power generation performance rate exceeding 120% in the first half of this year.

Additionally, Ju Heng manages over five energy storage sites with a total capacity exceeding 12 MW. As early large-scale projects such as the Hsuehchia Xinzhong project exit free warranty periods and transition into paid O&M starting in 2026, the company’s total O&M capacity is expected to surpass 400 MW by 2030. This shift will transform Ju Heng’s business model from one-time engineering revenue to a sustainable energy integration service provider with long-term cash flows.