Chenbro Micom Co (勤誠興業) on Wednesday reported record earnings per share of NT$8.1 for the third quarter as the company benefits from continued shipments of artificial intelligence (AI) server chassis.
Net profit in the July-to-September quarter was NT$990 million (US$31.99 million), up 19 percent from the previous quarter and 53.7 percent from a year earlier, the company said in a statement.
Third-quarter revenue was NT$5.66 billion, up 4 percent from the second quarter and 32.6 percent from the same quarter last year, it said.
Photo: Chenbro Micom Co
Chenbro provides chassis products for barebone, rack mount and tower servers as well as storage kits.
The chassis and rack products it has designed and developed are increasingly gaining favor with customers, ranging from cloud service providers (CSPs) and system integrators to brand vendors and channel partners.
The company in the statement said its third-quarter operations benefited from the continued upgrading of AI servers requested by CSPs, coupled with the gradual recovery of demand for general-purpose servers, driving steady growth in the overall market.
The US accounted for 43 percent of its shipments in the third quarter, China accounted for 21 percent and Europe shared 3 percent across its countries, while other regions made up the remaining 33 percent, it said.
Chenbro said its foray into the server rack business this year has contributed to better-than-anticipated operating performance in the first three quarters compared with the same period last year.
Net profit in the first three quarters totaled NT$2.49 billion, up 70 percent from the same period last year, or earnings per share of NT$20.45, Chenbro said.
Cumulative revenue in the first 10 months grew 47.5 percent year-on-year to NT$17.25 billion, it said.
The company maintains a cautiously optimistic outlook for its fourth-quarter operations, after several CSPs’ earnings calls showed the momentum of AI and cloud computing remains strong, along with diverse needs for servers from end users, including servers developed with Nvidia Corp’s graphics processing units and those powered by application-specific ICs.
The company will continue to closely monitor US tariff policy, end-market demand and geopolitical developments, while accelerating the localization of its global operations to meet customer needs and supply chain deployment, it said.
Chenbro, which has manufacturing facilities in Chiayi County’s Lucao Township (鹿草) and New Taipei City’s Shulin District (樹林), as well as the Chinese cities of Dongguan and Kunshan, is constructing new plants in Malaysia and the US, the company said.
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