Tariff Clouds Lift: Dong Yang Reports 137% YoY Profit Surge in July, Second-Highest for the Period

Auto parts manufacturer Dong Yang (1319-TW) announced today (13th) its consolidated pre-tax profit for July reached NT$397 million, with earnings per share (EPS) at NT$0.67, representing a 137% year-on-year increase and the second-highest level for the same period in history, reflecting a gradual recovery in customer procurement demand.

For the first seven months of the year, Dong Yang’s cumulative pre-tax profit totaled NT$2.575 billion, with cumulative EPS at NT$4.36, also the second-highest for the period.

Dong Yang explained that despite being in the traditional off-season, the reduction of U.S. tariffs on Taiwanese auto parts from 27.5% to 15% starting in May has led to a steady rebound in customer orders and shipment demand, driving operational and profit growth.

The company expressed optimism that the tariff reduction creates a fairer competitive environment between Taiwan and major automotive manufacturing nations, benefiting competitive enterprises. Dong Yang is advancing new factory construction as planned and actively investing in talent, R&D for new products, and AI integration, aiming to meet rising seasonal demand and future growth.

Analysts noted that previously, uncertain U.S.-Taiwan tariff policies caused North American clients to adopt cautious procurement strategies to avoid potential cost risks. However, with the U.S. reducing Section 232 tariffs on Taiwanese auto parts to 15%, end markets have begun replenishing inventories, boosting Dong Yang’s profit performance.