Focus Stocks: Protection Component Sector Strengthens – Judy Hits Limit Up, Hsin Chuen and Fu Zhi Rally

Amid positive outlooks for the protection component sector, stocks rallied collectively today (20th) despite overall market volatility. Judy (6224-TW) hit the daily trading limit, Hsin Chuen (2428-TW) nearly reached limit-up and reclaimed its quarterly moving average, while Fu Zhi (6642-TW) surged over half a stop during intraday trading.

Judy is benefiting from consumer electronics such as smartphones entering their traditional shipment peak season, leading to expectations of stronger second-half performance compared to the first half. The company is also actively pursuing AI-related business opportunities—its PPTC components have already been adopted into AI server power protection systems. Another product, CLM, is seeing rapidly rising demand from battery backup unit (BBU) applications, with order visibility extending through year-end.

Hsin Chuen is experiencing strong customer demand and has gained order shifts due to a Japanese peer ceasing production. The company anticipates sequential quarterly growth in the second half, with positive order momentum expected to continue into next year. Hsin Chuen forecasts full-year revenue growth of 15–20%, with profits potentially reaching a record high.

Fu Zhi is benefiting from demand driven by industrial control and automotive applications, expecting second-half revenues to remain at high levels and surpass the first half. The company aims to maintain gross margins above 50% for the full year. Institutional estimates suggest Fu Zhi’s revenue will grow by at least 20% this year, with profits approaching nearly half of its net worth.