Guochan Building Materials' First-Half Profit Down 7%; AI Construction Demand Provides Support

Guochan Building Materials (2504) announced its second-quarter financial results, reporting a net profit of approximately 910 million yuan, an 11% decrease year-on-year but a 10% increase from the previous quarter. For the first half of 2026, the company's cumulative net profit stood at 1.733 billion yuan, marking a 7% decline compared to the same period last year, with earnings per share at 1.47 yuan.

Despite policy pressures on the real estate market, Guochan Building Materials maintained relatively high operational levels. This resilience is attributed to the company's continuous introduction of premium, niche products like high-elasticity modulus concrete. Furthermore, the burgeoning demand for construction materials driven by Taiwan's expanding AI technology sector provided a significant boost.

Looking ahead, Guochan anticipates continued growth fueled by the global demand for AI, leading major tech companies to expand their construction footprints across Taiwan. These globally connected technology supply chains are prioritizing the adoption of low-carbon concrete. Additionally, Taiwan's Executive Yuan has approved preliminary work for major public construction projects, allocating over 378.9 billion yuan through 2027, the highest in nearly a decade, which is expected to generate substantial construction business opportunities.

The company's new corporate headquarters, which recently completed its topping-out ceremony, is slated for completion around the end of 2027. Located in the core of Nangang's eastern gateway district, adjacent to the Nvidia R&D center, the headquarters is expected to have significant future development value, especially as Nangang's commercial office property prices continue to reach new highs.