Focus on Three Core Businesses, LEO Satellites as Revenue Pillar
Kuntong Technology Co., Ltd., founded in 1997, has nearly 30 years of precision machining experience, with core technologies covering forging, CNC 3-axis to 5-axis precision compound machining, friction welding and other processes, focusing on R&D and manufacturing of precision metal machined components. Its main businesses cover three areas: LEO satellites, bicycles, and AI server cooling. In the product revenue mix for the first three quarters of 2026, LEO satellites accounted for 67%, high-end bicycle components for 24%, AI server cooling for 6%, and others for about 3%, with sales mainly in the Americas at 56.4% and Asia at 43.4%. LEO satellite products cover communications payloads, power systems, propulsion and attitude control, as well as structural and thermal-control applications.
High Certification Barriers Deepen Long-term Cooperation with International Customers
Chairman Lin Chih-chung said Kuntong has vertically integrated capabilities in precision machining, collaborative development, surface treatment, and mass-production validation. The LEO satellite industry is characterized by high product validation barriers, frequent technology iterations and design changes, and high supplier switching costs. Kuntong participates in joint development with customers and design-for-manufacturability from the early product-design stage, integrating CNC precision machining, aerospace-grade surface treatment, ISO 7 cleanrooms, and micron-level measurement and validation capabilities to provide one-stop services from design and development to mass production. Once products are certified, suppliers are not easily replaced, and stable mass-production capabilities help deepen long-term cooperation with leading international LEO satellite manufacturers. Benefiting from growing LEO satellite business, Kuntong's consolidated revenue grew from 915 million to 1.902 billion from 2023 to 2025, EPS rose from 4.70 to 16.94, and consolidated revenue for the first three quarters of 2026 reached 1.526 billion, with gross margin of 45% and EPS of 11.99.
AI Liquid Cooling as Second Growth Curve, Taiwan-Thailand Dual-Base Expansion
The global LEO satellite market is moving from basic deployment toward scaled commercialization, as launch costs decline, satellite communications become more widespread, and space-computing demand heats up, with SpaceX's Starlink, Amazon's Amazon Leo and other operators continuing deployment. According to Goldman Sachs Research, the global LEO satellite market is expected to grow from 25 billion US dollars in 2025 to 457 billion US dollars in 2035, with a compound annual growth rate of 33.7%. In addition to LEO satellites, Kuntong entered the AI cooling supply chain in 2025, with products covering key components such as manifolds and cold plates, as rising AI server power consumption and heat density drive liquid-cooling demand. According to Promersion, the global liquid-cooling market is expected to grow at a compound annual growth rate of about 47% from 2024 to 2030, with market size expected to exceed 40 billion US dollars in 2030. To meet demand, Kuntong is expanding its Taiwan and Thailand dual bases, with the new 1,700-ping Sheng'an plant in Taiwan expected to open in 2029, and the 8,300-ping precision park in Thailand planned for phased construction and operation starting in 2027, pursuing a dual-core strategy of deepening LEO satellites and expanding AI liquid cooling, while developing high value-added applications such as semiconductor equipment.