Shuen Da stock hits limit on strong BBU market prospects

Shuen Da, a Taiwanese manufacturer, experienced a significant surge in its stock price, hitting the daily limit and closing at 426.5 NT dollars. This rally is largely fueled by the company's strategic positioning in the burgeoning Battery Backup Unit (BBU) market, a sector experiencing heightened demand due to the proliferation of Artificial Intelligence (AI) technologies.

The company's financial performance reflects this positive market trend. In the first quarter, Shuen Da reported a net profit of 313 million NT dollars, marking a substantial 92% increase compared to the previous year. Earnings per share stood at 2.05 NT dollars. Cumulatively, revenue for the first four months of the year reached 4.4 billion NT dollars, a 35% year-on-year rise.

Shuen Da has outlined ambitious plans to capitalize on the BBU opportunity. In its business report, the company stated its intention to enhance its BBU research and development capabilities and scale of operations. By collaborating with power supply manufacturers, Shuen Da aims to become a major supplier in the industry. The company is also expanding its non-IT production capacity at its plants in Taiwan and Thailand, targeting double-digit revenue growth for the entire year, with non-IT revenue expected to exceed 50% of the total.

Recent trading activity shows significant institutional interest, though caution is advised regarding potential stock price volatility. Last Friday, foreign investors sold 1,106 shares, while investment trusts sold 481 shares. Proprietary traders bought 442 shares. Despite these movements, the net position among the three major institutional groups showed a net purchase of 1,067 shares. Day trading volume accounted for 29.4% of the total turnover.