<Hot Stock> Xinxin's Q2 Profits Double, Earning Over Half Its Equity, Reclaims Monthly Line and Hits Limit Up

Circuit protection component manufacturer Xinxin (2428-TW) reported doubled profits in the second quarter, earning over half of its equity, with earnings per share (EPS) of NT$5.34, a record high for a single quarter. On August 12, its stock price rose sharply, reclaiming the monthly moving average, and hit the limit-up price of NT$254.5 at noon.

Xinxin's second-quarter revenue reached NT$2.698 billion, up 31.36% sequentially and 31.27% year-over-year. Gross margin was 37.52%, up 3.54 percentage points sequentially but down 4.26 percentage points year-over-year. Operating profit was NT$667 million, up 63.27% sequentially and 17.67% year-over-year. Operating margin was 24.73%, up 4.83 percentage points sequentially but down 2.86 percentage points year-over-year. Net profit after tax was NT$684 million, up 141% sequentially and 136% year-over-year.

For the first half of the year, Xinxin's revenue totaled NT$4.751 billion, up 20.26% year-over-year. Gross margin was 35.98%, down 4.54 percentage points year-over-year. Operating profit was NT$1.076 billion, up 5.97% year-over-year. Operating margin was 22.64%, down 3.05 percentage points year-over-year. Net profit after tax was NT$967 million, up 44.33% year-over-year, with EPS of NT$7.55.

Xinxin's revenue in July reached NT$979 million, a record high for any single month, up 0.6% month-over-month and 48.4% year-over-year. Cumulative revenue for the first seven months reached NT$5.74 billion, also a record high for the same period, up 24.4% year-over-year.

Currently, customer demand remains strong. Additionally, production halts by Japanese peers have led to order shifts. Not only is sequential growth expected in the second half, but order visibility is positive into next year. Analysts estimate that Xinxin's revenue could grow 15–20% in 2024, with profits likely reaching an all-time high.