Leading frequency component manufacturer TXC (3042-TW) is seeing not only rising revenues — projecting record highs in 2026 — but also a clear rebound in gross margins, thanks to a favorable product mix. Today (20th), TXC’s share price opened sharply higher and briefly touched NT$200, with over 20,000 traded lots within the first hour — exceeding yesterday’s full-day volume.
TXC stated that automotive revenue will account for 26% in 2025 and is expected to rise to 28% in 2026, becoming its largest revenue source. AI-related revenue has increased from 11% last year to the current 16%, with the combined share of automotive and AI reaching 44%. By year-end, AI alone could peak at 20% in a single quarter, and by 2027, the combined contribution from automotive and AI applications is expected to exceed 50% of TXC’s total revenue.
For the first half of 2026, TXC reported revenue of NT$7.038 billion, gross margin of 32.74% (down 1.73 percentage points year-on-year), net profit of NT$1.006 billion, and earnings per share (EPS) of NT$2.96.
TXC’s operations entered their typical peak season in Q3. In July, shipments of 5G and automotive application products performed well, generating revenue of NT$1.366 billion. The company self-reported pre-tax profit for July 2026 at NT$292 million, up 49.4% year-on-year, with pre-tax EPS of NT$0.86. Cumulative pre-tax profit for January to July 2026 reached NT$1.512 billion, up 28.1% year-on-year, with cumulative pre-tax EPS of NT$4.45.
Although TXC issued price increase notices to customers in Q2 due to rising costs of precious metals and other materials, Lin Wan-Hsing noted today that TXC values long-term partnership relationships with clients, and price adjustments are implemented only after existing supply contracts conclude. He added that the July gross margin rebounded to 36%, primarily driven by an improved product mix fueled by growth in AI and automotive applications.
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- Source: PR Times
- Category: News