Co-Tech Development Corp (金居), which produces copper foil products for printed circuit boards (PCBs), yesterday reported a 137 percent year-on-year surge in net profit last month to NT$109 million (US$3.47 million), with earnings per share jumping by 138.9 percent to NT$0.43.
Consolidated revenue last month also increased 34 percent year-on-year to NT$701 million, on the back of rising shipments of high-end products, the company said in a regulatory filing.
Co-Tech’s products include copper foil for lithium batteries and electronic circuits, with the former mainly used in electric vehicles and the latter used in PCBs for end applications such as handsets, networking devices, PC peripherals, home appliances, industrial control applications and medical devices.
Photo: Vanessa Cho, Taipei Times
The increasing demand for artificial intelligence (AI) applications and a persistent migration of PCB specifications have driven a significant rise in shipments of the company’s high-end products, such as hyper-very-low-profile (HVLP) copper foil, resulting in a substantial growth in revenue and profit this year.
Cumulated revenue in the first 10 months of this year rose by 13.76 percent annually to NT$6.41 billion, while total net profit from January to last month was NT$794 million, or earnings per share of NT$3.14, the company said.
However, due to supply constraints on high-end copper foils, Co-Tech’s shares have become volatile over the past few sessions.
Yesterday, the company saw 88 million shares change hands, the largest one-day trading volume since Sept. 12, prompting the stock exchange regulator to require the company to release last month’s financial results for investors’ reference, it said.
Shares closed up 0.43 percent at NT$234 yesterday in Taipei trading, off from an intra-day high of NT$255.5.
Co-Tech shares have soared 301.72 percent so far this year, exchange data showed.
With the rapid growth in demand for AI servers and high-end PCBs, advanced copper foil products have become mainstream, the company said, adding that after exiting low-end products and optimizing its product mix, Co-Tech has turned its focus to HVLP3 and HVLP4 products.
To address supply constrains, Co-Tech said it is accelerating the construction of its third plant, aiming to start production in the fourth quarter of next year to significantly expand capacity for HVLP3 and HVLP4 products.
HVLP3 and HVLP4 together account for 10 percent to 15 percent of the company’s revenue, and the ratio is expected to reach 15 percent to 20 percent next year, lifting average selling prices and profit margins, the company said.
Driven by strong customer demand, the fourth quarter is expected to be the peak of the Co-Tech’s operations this year, the company said, adding that it expects further growth next year and in 2027 after the new plant comes online.
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