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๐Ÿ‡น๐Ÿ‡ผ Taiwan /Economy & Trade

Nan Ya's June Revenue Hits 3.5-Year High Amidst Stock Correction

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • IC substrate manufacturer Nan Ya Printed Circuit Board (8046) reported June consolidated revenue of NT$4.68 billion, a 50% year-on-year increase, reaching a 3.5-year high.
  • The company's stock surged to a historical high of NT$1,285 last week after reporting strong first-quarter earnings, but experienced a significant correction today.
  • Analysts predict continued revenue and profit growth for Nan Ya, driven by increased demand for high-end AI application boards and rising material costs, with potential for further price increases in ABF and BT substrates.

Nan Ya Printed Circuit Board (8046), an IC substrate manufacturer, announced its June consolidated revenue reached NT$4.68 billion, marking a 5.5% increase month-on-month and a substantial 50% rise year-on-year. This figure represents the highest revenue in three and a half years, boosted by rising prices for ABF substrates.

The company's stock had previously reached a historic peak of NT$1,285 last week, following the disclosure that its single-month profit for May accounted for nearly 60% of its first-quarter earnings. However, after this significant rally, market sentiment shifted, leading to a withdrawal of funds from the PCB sector. Consequently, Nan Ya experienced heavy selling pressure today, with its stock price plunging over 8% in early trading, falling below the 5-day moving average and testing the 10-day moving average.

Industry analysts attribute the current market conditions and future prospects to a tightening supply of AI substrates and increasing raw material costs. This is expected to trigger a new upward cycle for substrate prices. Nan Ya's product mix is improving, with a higher proportion of high-end AI application products, including those for high-end switches, ASICs, and memory boards, contributing to anticipated sequential growth in revenue and profits starting in the second quarter.

Further growth is projected for the third quarter, driven by the initial ramp-up of new-generation 1.6T switches from a US-based network equipment provider. This includes increased core layers, overall board thickness, and larger dimensions, leading to aๅ€ๅขž in material consumption. With tight supply of copper-clad laminates (CCL) and near-full capacity utilization across various manufacturing sites, price increases for ABF and BT substrates are expected to range between 18% and 20%, potentially pushing the company's performance to a near three-year high.

AI substrate supply is tight and raw material costs are rising, which will drive substrates into a new round of upward cycle.

โ€” AnalystExplaining the market dynamics influencing Nan Ya's performance.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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