High Power's June EPS at NT$0.64, profits up 20% year-on-year

Heat treatment manufacturer High Power (8996) announced robust financial results for June, with a significant 20% year-on-year increase in profit. The company reported a pre-tax net profit of NT$92 million and a post-tax net profit of NT$60 million for the month, translating to an earnings per share (EPS) of NT$0.64. This positive performance comes after a period of stock decline, with the company's share price having fallen over 40% since July.

High Power's strategic diversification into water-cooling systems has proven successful, with these products, along with plate heat exchangers and fuel cells, forming the company's three main pillars. General Manager Wu Jun-ying recently highlighted strong order intake across all three sectors. Cooling products, particularly Cooling Distribution Units (CDUs), currently account for 40% of shipments and are expected to see continued growth. Plate heat exchangers are also projected to maintain their growth trajectory in the second half of the year, while the fuel cell division boasts a year-long order backlog, ensuring that the latter half of 2024 will outperform the first.

To meet increasing demand, High Power is actively expanding its production capabilities. The company anticipates a 30% to 50% increase in plate heat exchanger capacity this year, with another 30% to 50% expansion planned for next year. Significant investments have also been made in water-cooling system production, with a focus on streamlining production lines this year. The first phase of a new plant in Kaohsiung's Qiaoke Science Park is slated for completion by mid-2027, with the entire facility expected to be fully operational by 2028.

“

The three major businesses have strong order intake. Among cooling products, CDU shipments account for 40%, and this proportion will continue to increase this year. Plate heat exchangers will maintain growth in the second half of the year, and fuel cells have a one-year backlog of orders, so the second half of the year will be better than the first half.