Dongyouda to list Aug. 6, eyes record revenue and NT$10 earnings per share

Industrial automation equipment manufacturer Dongyouda is set to list on the Taiwan Stock Exchange on August 6, with a reference price of NT$150 per share. The company held an investor briefing on July 31, highlighting strong demand for AI infrastructure, semiconductor equipment, and high-end manufacturing automation.

Dongyouda's chairman, Lin Tsung-te, attributed the significant growth in the first half of the year to a substantial increase in revenue from high-margin semiconductor clients. Additionally, the company has boosted its self-production rate for core components like screws, slides, motors, and controllers to over 80%. This strategic shift not only reduces costs but also alleviates pressure from material shortages.

The company's semiconductor equipment coverage has reached 80%, serving prominent clients such as TSMC, Kyocera, and Intel. Dongyouda's products are widely used in wafer handling, chip sorting, packaging, and semiconductor cleaning equipment. While semiconductor and packaging testing currently represent 46% of revenue, the company is also active in electric vehicles, smartphones, and advanced PCB manufacturing.

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The company's semiconductor equipment coverage has reached 80%.

To meet customer demand, Dongyouda has increased production efficiency and capacity utilization, implementing price adjustments of 5% to 10% on some products since May. The company anticipates that the effects of these price increases, coupled with a higher proportion of self-produced goods and economies of scale, will continue to improve its gross margins and profitability. Dongyouda projects that second-half performance will be similar to the first half, with no immediate plans for further price hikes. Analysts forecast that Dongyouda's full-year revenue could surpass NT$3 billion, setting a new historical record and potentially reaching NT$10 per share.

Dongyouda is also expanding its global footprint. With five factories in South Korea, Japan, and Taiwan, and branches in Thailand, Japan, the United States, and Vietnam, the company is evaluating future manufacturing sites in India and Mexico. Its strategy is to follow major clients like Apple in their global supply chain shifts, prioritizing India and then Vietnam for new factory investments. This approach, combining Taiwanese production of key components with overseas assembly, aims to shorten delivery times and control costs.

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We are following the global supply chain shifts of major clients like Apple.