Chien Fu Enterprise Reports Record-High Revenue in First Half, Net Profit Reaches NT$300 Million with EPS at NT$2.66

Originally known as a water resource-related stock, Chien Fu Enterprise (8383-TW) released its latest financial performance today (14th). In the second quarter of 2026, the company achieved a post-tax net profit of NT$182 million, representing a 55.52% increase from the previous quarter and a 3.17-fold surge year-on-year, with earnings per share (EPS) reaching NT$1.62. For the first half of 2026, cumulative post-tax net profit amounted to NT$300 million, a 1.44-fold increase year-on-year, with EPS reaching NT$2.66.

In Q2 2026, revenue reached NT$1.409 billion, setting a new record high. Gross margin stood at 22.49%, down 3.68 percentage points from the prior quarter and 3.04 points lower than the same period last year. From January to June 2026, total revenue reached NT$2.414 billion, marking a record high for the comparable period. Gross margin was 24.03%, down 3.67 percentage points year-on-year.

Chien Fu Enterprise noted that global demand for AI, high-performance computing (HPC), and advanced process technologies continues to drive semiconductor capital expenditures, which is expected to positively impact Taiwan's major semiconductor manufacturers' facility construction and production line expansion. The investment benefits are gradually spreading from wafer fabrication to equipment, materials, and plant engineering supply chains—particularly in areas such as gas supply and chemical distribution pipeline systems—creating stable and long-term market demand for the company’s semiconductor plant engineering business.

In terms of semiconductor plant engineering, Chien Fu has traditionally focused on secondary piping as its core business but has recently expanded aggressively into primary piping projects. This allows the company to secure larger-scale engineering contracts, expand overall revenue, and create synergies with existing secondary piping services, on-site support, and proprietary high-end pipe products. Although primary piping projects have relatively lower gross margins, they involve higher contract values and larger project scales. As the proportion of primary piping increases, it may structurally pressure overall gross margins in the short term. However, in the long run, the company expects stable profit growth through increased revenue scale, improved absorption of fixed operating costs, and mutual reinforcement between primary and secondary piping operations.

Secondary piping refers to the installation of end-line pipelines that connect individual process tools or production equipment to main trunk lines, power panels, and exhaust outlets after the building’s foundational structure and primary systems (primary piping) are completed. It is the critical final step enabling equipment to receive power, gas, and water and begin formal operation.

Regarding subsidiary Chien Fu Precision (6829-TW), its operational performance remained solid in the first half of 2026, achieving revenue of NT$1.17 billion, post-tax net profit of NT$177 million, and EPS of NT$2.99. In terms of business development, the company successfully entered the quantum computing market. After delivering its first custom ultra-low-temperature vacuum chamber in Q1, the second unit is scheduled for delivery in August and will be recognized as revenue, becoming a new driver for high-value-added business.

Looking ahead to the second half and future operations, the global semiconductor capacity expansion trend driven by AI, HPC, and advanced processes remains unchanged. With major foundries continuing to increase capital spending, demand visibility in the plant engineering market remains high. The company plans to further expand its primary piping contracting capabilities and enhance synergy with existing customers through integration of primary and secondary piping, on-site services, and pipe product offerings.

Chien Fu Enterprise stated it will continue to leverage two major industry trends—AI-driven semiconductor expansion and high-end precision manufacturing—through three strategic pillars: 'scaling up engineering projects, upgrading product mix, and expanding into emerging applications,' aiming to grow both revenue and profitability simultaneously. The company maintains a positive and proactive outlook for the second half and medium-to-long-term operations.