Focus Stock: Thunderbolt Surges Despite Special Trading Designation Amid Defense Budget News

Drone manufacturer Thunderbolt (8033) defied its designation for special trading procedures, experiencing a significant stock price increase. The company's shares opened higher and continued to climb, reaching NT$204 by 10:05 AM, marking a 9.68% rise and trading nearly 6,000 shares.

The surge in Thunderbolt's stock is closely linked to the government's push for defense modernization. The Executive Yuan's draft "Special Regulations for Procurement of National Defense Unmanned Vehicles" is expected to be reviewed by committees. This draft allocates a maximum budget of NT$210 billion for unmanned systems, including 1,320 small suicide unmanned boats, with an implementation period from August 1, 2024, to December 31, 2031.

Thunderbolt's financial performance shows resilience. In May, the company reported NT$117 million in revenue, a 10% decrease year-on-year, and a net loss of NT$9 million. However, its first-quarter results were stronger, with revenue up 12% year-on-year to NT$375 million and net profit increasing by 41% to NT$52 million, resulting in earnings per share of NT$0.34.

Legislative proposals from other parties also aim to bolster drone procurement. The Kuomintang caucus proposed authorizing the Ministry of National Defense to procure drones through regular budgets, allocating NT$240 billion over six years, with reporting requirements for procurement cases exceeding NT$100 million to the Legislative Yuan. The Taiwan People's Party version suggests returning procurement to annual budgets without specific spending limits.