Auction Schedule and Underwriting Terms
Hongyu Electric (7869) is conducting a competitive auction of 1844 lots in connection with its pre-OTC public offering, with an auction floor price of 180.87, a maximum bid of 253 lots per bidder, and a tentative underwriting price of 208. The auction period is from November 11 to 13, with bid opening scheduled for November 17; public subscription will be held from November 16 to 18, the lottery drawing on November 20, and the listing is expected on November 26.
Revenue and Profit Climb Together
Hongyu has continued to expand its operating scale in recent years, with revenue growing from 1.205 billion in 2019 to 3.365 billion in 2025, at a CAGR of about 19%. Revenue for the past three years was 2.684 billion in 2023, 3.070 billion in 2024 and 3.365 billion in 2025; net profit after tax was 328 million, 232 million and 302 million respectively, with profit rebounding in 2025, up over 30% year-on-year. In 2025, gross profit reached 640 million, operating profit was 390 million, EPS was 12.24, up 22.8% year-on-year, and operating margin improved from 9.3% in 2024 to 11.6%.
First-Half Profitability Hits Record High
Operating momentum continued in H1 2026, with cumulative revenue of 1.774 billion, net profit after tax of 214 million, up 30.2% year-on-year, and EPS of 7.86, already equivalent to 64% of last year's full-year total; operating margin further rose to 15.28%, a record high. Chairman Zhan Jiarong said the company is pursuing digital and low-carbon transformation, combining AI intelligence, energy digitalization and low-carbon technologies to upgrade its smart switchgear products, and using its self-developed iPanel power cloud smart energy management system to enhance power safety, energy efficiency and smart operation and maintenance capabilities, while deepening technology integration with international electrical machinery makers and industry-academia cooperation, targeting AI computing center and new energy infrastructure opportunities, and extending from equipment sales to software subscriptions and long-term smart maintenance services.
Global Footprint Targets AI Power Opportunities
On global deployment, the company follows a strategy of R&D in Taiwan, manufacturing in Vietnam, and implementation in North America. The Taiwan plant handles technology R&D, high-end manufacturing and product certification, having obtained IEC new regulations and seismic intensity 7 certification, as the first in Taiwan with such certifications, and is positioned to capture Taipower's grid resilience program and high-tech plant expansion opportunities. The new Hung Yen plant in Vietnam began production in August 2026, with an area about 3 times that of the Taiwan plant, and can add 4 billion to 6 billion in capacity at full utilization. In North America, a subsidiary has been established in Kentucky under a light-asset operating model, expected to obtain UL certification in 2027, and will tap into the North American AI data center power infrastructure market through existing distribution partnerships and co-development of high-spec prefabricated container substations. Taipower's grid resilience program with total investment of 564.5 billion, along with semiconductor expansion demand, represents important market opportunities ahead.