DAH SHIN Engineering: Demand for Domestic Tech Factory Construction Remains Strong for Next 3-4 Years

DAH SHIN Engineering and Construction (2535) anticipates robust demand for technology factory construction in Taiwan for the next three to four years, driven by the semiconductor and AI industries. The company, a key contractor for these high-tech facilities, reported that factory construction accounted for 75% of its revenue in the first half of the year, a figure that has been steadily increasing.

As of the end of July, DAH SHIN had NT$39.3 billion in unfinished projects. The company plans to focus on high-tech factory construction for new contracts, expecting continued growth in order volume. This strategic focus is projected to enhance profit margins, as these projects typically yield higher profitability compared to commercial or public works.

While DAH SHIN's first-quarter earnings were boosted by the recognition of its real estate development project "DAH SHIN Dong Hui," no new property development projects are scheduled for recognition until 2028. The company holds 785 shares of TSMC (2330) and will recognize quarterly financial asset valuation gains and losses based on market prices, with no immediate plans for disposal.