Spotlight Stock: Dongten Turns Profitable in H1, Shares Surge Over Half-Stop Limit During Session

Dongten Photonics (6588-TW), an optical filter manufacturer, opened higher on the 21st and continued to climb. Early in the morning session, backed by strong capital inflows, the stock surged over 8%, maintaining a gain of more than 5% during trading. This rally reflects market expectations for sustained growth in optical communication and data center-related demand, coupled with Dongten’s year-on-year shift from loss to profit in the first half. Earnings per share reached NT$0.27, supported by optimized product mix, improved production capacity utilization, and recovering demand in optical communications.

From a technical perspective, Dongten’s stock has shown strong momentum since July. After consolidating around the NT$80 level, prices gradually climbed upward. Recent short-term moving averages have converged, indicating a period of high-level consolidation and chip adjustment. This week, with trading volume exceeding 10,000 lots, the stock reclaimed the NT$100 threshold, achieving a gain of over 20% since early July.

Dongten Photonics returned to profitability in the first half, with post-tax net profit turning positive compared to the same period last year. Gross margin shifted from negative to positive, significantly improving to 29.94%. Operating margin reached 4.9% and net margin hit 5.01%, both turning positive compared to the same period in 2025.

Analysts point out that in the second half, demand for high-speed optical transmission driven by AI and cloud computing will continue to grow. Customer inventory adjustments have largely concluded, and overall market momentum is steadily recovering. The company plans to further strengthen its product portfolio and technological capabilities to capture growth opportunities in the high-speed optical communications market and develop advanced optical components. Products such as 800G and 1.6T long-haul, high-speed modules are undergoing customer validation and are being progressively introduced into mass production.