Weihong-KY Reports Highest Net Profit in Five Quarters for Q2 2026; EPS Reaches NT$1.38 in First Half

Professional sports equipment and premium bag manufacturer Weihong-KY (8442-TW) today (20th) released its latest financial results. In the second quarter of 2026, post-tax net profit reached NT$94.6 million, the highest level in the past five quarters, representing a 43.64-fold increase quarter-on-quarter and a 37.5-fold surge year-on-year, with earnings per share (EPS) of NT$1.35. For the first half of 2026 (January–June), cumulative post-tax net profit was also NT$94.6 million, down 42.97% year-on-year, with EPS of NT$1.38.

Weihong-KY achieved revenue of NT$2.347 billion in Q2 2026, with a gross margin of 17.79%, up 2.18 percentage points from the previous quarter but down 1.32 percentage points year-on-year. The quarterly net profit of NT$94.6 million marked the highest in five quarters, reflecting strong operational improvements despite challenging comparisons.

For the first six months of 2026, total revenue reached NT$4.331 billion, with gross margin at 16.79%, down 3.43 percentage points year-on-year. Post-tax net profit stood at NT$94.6 million, down 42.97% year-on-year, with EPS of NT$1.38.

The company stated that its product mix for the first half of 2026 consisted of: sports and golf bags (24%), sports gloves, protective gear, and accessories (14%), nylon bags, genuine leather bags, and related accessories (45%), and luggage and travel bags (17%). The first-half gross margin of 16.79% was primarily affected by production inefficiencies at the Weibao Cambodia facility, which remains on a steep learning curve. However, the company has implemented multiple management optimization measures to continuously improve production efficiency and strengthen overall operational resilience.

With the traditional holiday season and department store promotional peak approaching in the fourth quarter across Europe and North America, end-market consumer demand is showing positive signals. Orders from existing brand clients remain stable and ongoing. To effectively meet robust order demand, manufacturing sites in Hongsheng (Cambodia), TWT (Thailand), and Deyu (Vietnam) have actively initiated overtime operations. Additionally, Guangtai Factory in Cambodia is planning a phased expansion of production lines to fully address the growing orders for men's business bags.

Weihong-KY will continue to leverage its multinational manufacturing advantages, flexibly adjusting capacity allocation and production models to enhance the group’s overall competitiveness in securing new orders. As production efficiency improves along the learning curve, economies of scale are expected to gradually emerge. Under this trajectory, profitability growth is anticipated to outpace revenue growth, driven by optimized profit structure and improved gross margins, demonstrating the group’s strong operational resilience and long-term potential.