Focus Stock: Shi Yang Expands Production Capacity Amid Strong Demand for Silicone Hydrogel Products

Contact lens manufacturer Shi Yang (6782-TW) is benefiting from robust demand for silicone hydrogel products, with positive outlooks in both the Chinese and Japanese markets. To meet this strong demand, Shi Yang is continuously expanding its production capacity, aiming to raise monthly output to 63 million lenses by the fourth quarter of this year. This has led financial analysts to project steady profit growth, contributing to a rise in Shi Yang's share price today (24), which remains above all moving averages.

Demand from customers in China and Japan remains strong, especially for high-value colored lens series, with order visibility extending approximately three months. Product planning with certain clients extends as far as 2027. Currently, overall utilization rates stand at 95%, with colored lens production lines operating near full capacity. In response, Shi Yang is primarily expanding colored lens capacity, increasing monthly output from 55 million to 63 million units by Q4.

Analysts indicate that once new capacity comes online, it will not only serve the Chinese and Japanese markets but may also help revive sales in Europe. Overall, double-digit year-on-year growth in both revenue and profitability is expected for both the third and fourth quarters of 2024.

Shi Yang opened higher this morning at NT$205, peaking at NT$212—a gain exceeding 4%. As of midday trading, the stock was trading at NT$210, up approximately 3.96%, with a volume of around 300 shares.