Spotlight Stock: Rubin Ultra Timeline May Advance, Jian Ce Surges Despite Market Downturn

Jian Ce (3653-TW) continues to benefit from rising shipments of B300-series Rubin, driving strong operational performance. In the first half of 2024, post-tax net profit reached NT$3.717 billion, with earnings per share (EPS) at NT$25.33. Market expectations that the mass production timeline for Rubin Ultra could be advanced have further boosted investor sentiment, prompting Jian Ce’s stock to rise逆势 on the 19th, surging over half a limit-up, peaking at NT$5,540 during trading.

Jian Ce opened at NT$4,895 in early trading, below the previous close, but quickly turned positive and climbed. The share price reached a high of NT$5,540, up over 7%. As of 11 a.m., shares were trading at NT$5,435, up more than half a limit-up, ranking 7th among Taiwan’s 'thousand-dollar stocks,' supported by all moving averages with trading volume exceeding 1,000 lots.

The company’s strong performance is driven by an increasing proportion of heat spreaders in its product mix. This contributed to a record-high gross margin of 46.8% in Q2. Analysts indicate that Rubin shipment momentum will continue into Q3, with gross margins expected to rise further.

Additionally, analysts suggest that mass production of Rubin Ultra heat spreaders could be brought forward to Q2 2027. With higher product pricing and NVIDIA (NVDA-US) maintaining a positive outlook on Rubin Ultra, Jian Ce is expected to see both higher shipment volumes and unit prices. Rubin Ultra is therefore anticipated to become a key growth driver for Jian Ce in 2027.

Jian Ce’s Q2 revenue reached NT$7.275 billion, up 37.13% quarter-on-quarter and 40.42% year-on-year. Gross margin rose to 46.8%, up 5.01 percentage points QoQ and 5.33 YoY. Operating margin reached 37.79%, up 5.8 points QoQ and 4.99 YoY. Net profit hit NT$2.318 billion, up 65.81% QoQ and 107% YoY, with EPS at NT$15.80.

Cumulative revenue for H1 2024 reached NT$12.579 billion, up 26.63% YoY. Gross margin was 44.69%, up 1.57 points YoY. Operating margin was 35.34%, up 1.47 points YoY. Net profit was NT$3.717 billion, up 49.2% YoY, with EPS at NT$25.33.