Taiwan Stock Market Weekly Line Plunges, PCB Sector Weakens Together
Taiwan stocks fell further last week, with the weighted index closing at 39,701.64 points, down 5,510.19 points for the week, a drop of 12.19%. PCB concept stocks weakened together, with many falling more than 20% in a single week, and selling pressure across the sector was heavy. Among them, Shang Mao (8291) fell 36.58%, Lusheng (3354) fell 30.47%, Taiwan Union Technology (6274) fell 28.38%, Kinsus (3189) fell 28%, Iteq (6213) fell 27.8%. Unimicron (3037) fell 26.49%, Nan Ya PCB (8046) fell 26.47%, WUS Printed Circuit (2316) fell 26.2%, Jinju (8358) fell 25.19%, Compeq (2313) fell 21.29%, Gold Circuit Electronics (2368) fell 20.29%.
Compeq October Revenue Hits Record High for Two Consecutive Months
Compeq (2313) 3rd-quarter revenue was NT$22.585 billion, up 12.65% year-on-year, with a gross margin of 21.33%, up 2.82 percentage points from the previous quarter, net profit after tax of about NT$2.2 billion, EPS of NT$1.80, and cumulative EPS of NT$4.31 for the first 3 quarters, showing improved profitability. October revenue was NT$8.783 billion, up about 1.9% month-on-month and 24.74% year-on-year, setting a new single-month high for the 2nd consecutive month. Cumulative revenue for the first 10 months was NT$70.908 billion, up 14.33% year-on-year, also a record high for the same period in history. Recently, demand for low-orbit satellites, AI data centers and high-end electronic products has continued to increase, driving the product mix toward high-end PCBs, and also driving improved revenue and profitability.
High-End Capacity Expansion to Capture AI and Satellite Opportunities
To meet demand for high-end products, Compeq continues to expand capacity in Taiwan, China and Thailand, and plans to maintain a relatively high level of capital expenditure over the next several years, focusing on process upgrades and high-end PCB capacity. In addition to its existing low-orbit satellite business, mSAP will also benefit from specification upgrades in 800G and 1.6T optical modules and high-speed switches. As demand for AI data centers and satellite communications continues, the product mix is expected to continue moving toward the high end, becoming an important support for subsequent operating growth.
Jinju Focuses on High-End HVLP to Optimize Profit Structure
Jinju (8358) is actively expanding its high-end HVLP copper foil business, benefiting from strong demand for AI servers and high-speed switches, driving continued growth in high-end product orders and shipments. Looking to the 4th quarter, although the gradual discontinuation of low-margin HTE copper foil and the fact that new capacity has yet to come online have temporarily restrained revenue growth, the increased share of high-end HVLP products is driving improved average selling prices and gross margins, plus processing fees are expected to rise by about 10% in December, and lower winter electricity prices will help reduce production costs, so profits are still expected to rise against the trend. In the medium to long term, benefiting from increased demand for low-signal-loss materials from AI servers, PCIe Gen 6 and 800G and 1.6T high-speed switches, shipment momentum for high-end HVLP copper foil is expected to continue strengthening. It is estimated that in the 4th quarter of 2027, the HVLP series revenue share will rise to 35% to 40%, with high-margin HVLP4 expected to exceed 50% of total HVLP. In terms of capacity layout, the company continues to convert existing HTE production lines to RG series production, and is promoting expansion of its Malaysia new plant, which is expected to gradually add 20,000 tons per year of HVLP3 and HVLP4 capacity starting from the end of 2028, strengthening its competitiveness in the high-end market.