Lianmao's May Earnings Beat Q1; Stock Jumps to Limit

Taiwanese copper clad substrate (CCL) manufacturer Lianmao (6213) saw its stock price surge to its daily limit of NT$309 on Tuesday, following a strong May earnings report. The company's single-month profit in May exceeded its entire first-quarter earnings, driven by a higher proportion of high-end CCL shipments and price increases.

Lianmao announced its May financial results, reporting consolidated revenue of NT$3.803 billion, up 29.31% year-on-year. Pre-tax net profit soared by 235.90% to NT$655 million, with net profit attributable to the parent company reaching NT$438 million, a 265.00% increase. Earnings per share (EPS) for May stood at NT$1.21, significantly higher than the NT$0.87 EPS recorded in the first quarter.

The company is strategically positioning itself in the high-end electronics materials sector, particularly for AI servers. Lianmao is developing solutions for next-generation technologies such as AI servers requiring doubled computing power, 800G/1.6T high-speed switches, and PCIe Gen6/Gen7 ultra-high-speed transmission. They are also creating materials with low dielectric loss and high signal integrity, addressing challenges in multi-layer boards for high-density interconnects.

Lianmao is also collaborating with top global clients to prepare for emerging applications in edge computing, 6G communication, smart vehicles, low-orbit satellites, and robotics. This proactive approach aims to ensure the company maintains its competitive edge amidst rapid advancements in high-speed computing architectures.