Kinpo Electronics rebounds to NT$1,000 club amid strong demand and production expansion

Kinpo Electronics (2368), a printed circuit board (PCB) manufacturer, has staged a remarkable comeback, reclaiming its position in the NT$1,000 club with its stock price hitting the upper limit. This rebound occurred despite recent downturns in the broader Taiwanese stock market and persistent selling pressure from investment trusts.

Earlier in June, Kinpo Electronics reached a historical peak of NT$1,580. However, the stock underwent a severe correction, plummeting by over 55% to NT$705 by July. A significant factor contributing to this decline was the aggressive selling by the "00981A" ETF, a major holder of Kinpo Electronics shares, which offloaded 2,023 shares, representing a 26.7% reduction in its stake. This substantial sell-off sparked market discussion and contributed to the stock's sharp fall.

Despite the recent volatility, Kinpo Electronics is experiencing robust demand for its products. The company is actively expanding its production capacity to cater to a surge in orders from cloud service providers (CSPs) and manufacturers of high-end network switches. To accommodate this demand, Kinpo is leasing additional factory space. The company anticipates a 50% increase in its Taiwan production capacity in the second half of the year, with its Thailand operations set to expand five to sixfold year-on-year.

With production lines operating at full capacity and new capacity coming online, Kinpo Electronics is optimistic about its future performance. The company expects its operations to grow quarter by quarter, potentially setting new records throughout the year. The stock's rapid ascent back above NT$1,000 reflects investor confidence in its growth prospects and its strategic position in the expanding tech supply chain.