Jiantop Technology Accelerates Fundraising, Plans to Raise Over NT$1.68 Billion via Unsecured CB and Cash Capital Increase

Amid robust AI demand, Jiantop Technology (8021-TW), a manufacturer of PCB drilling bits and drilling service provider, is aggressively expanding its production capacity to meet market demand. Simultaneously, the company has submitted an application to the Financial Supervisory Commission to raise over NT$1.68 billion through a combination of issuing unsecured convertible bonds (CB) and conducting a cash capital increase.

Jiantop plans to issue NT$480 million in face value of unsecured convertible bonds, along with 4,000 new shares through a cash capital increase, priced tentatively at NT$300 per share, raising NT$1.2 billion. Combined, the total fundraising target exceeds NT$1.68 billion. The lead underwriter for both transactions is Fubon Securities (6026-TW).

Jiantop’s PCB drilling bit capacity expansion is underway, with monthly output expected to reach 45 million units by the end of 2026, 70 million by 2027, and 90 million by 2028. The number of drilling machines used for contract drilling services will also increase annually. Jiantop’s capital expenditure for the first half of 2026 reached NT$1.38 billion. Lin Ruoping noted that the company’s full-year capital expenditure for 2026 is projected to reach NT$3 billion.

The capacity expansion plan aims for 45 million drilling bits per month by the end of 2026. If the target of 70 million units per month is achieved by the end of 2027, this represents a 55.56% increase over 2026’s capacity. By the end of 2028, monthly output is expected to double compared to 2026 levels.

Jiantop reported second-quarter 2026 revenue of NT$1.826 billion, with a gross margin of 41.78%, up 5.19 percentage points quarter-on-quarter and 12.34 percentage points year-on-year. Net profit after tax reached NT$302 million, up 78.87% quarter-on-quarter and 2.85 times year-on-year, resulting in earnings per share (EPS) of NT$2.08. For the first half of 2026, revenue totaled NT$3.166 billion, with a gross margin of 39.58%, up 11.84 percentage points year-on-year. Net profit after tax was NT$470 million, a 2.61-fold year-on-year increase, with EPS of NT$3.25.

Jiantop stated that in Q2 2026, strong demand for AI servers and high-performance computing, combined with product mix optimization, drove the proportion of high-end coated drilling bits to 56% in the first half, surpassing the original annual average target of 55%. Price adjustments in the first half helped offset rising raw material costs, including higher tungsten prices. However, the company currently has no plans to raise drilling bit prices in the second half of 2026.