Yageo's first-half EPS NT$8.48, sees Q3 capacity utilization exceeding 90%

Yageo, a leading passive component manufacturer in Taiwan, announced robust first-half earnings per share of NT$8.48, largely fueled by sustained strong demand from artificial intelligence (AI) applications.

The company's financial performance in the second quarter saw its revenue climb to a record NT$44.456 billion, marking a significant 16.5% increase from the previous quarter and a 35.7% rise year-over-year. For the first half of the year, cumulative revenue reached NT$82.622 billion, up 29.35% compared to the same period last year.

Yageo highlighted that the growth in the first half was primarily driven by the strong momentum in AI-related applications, alongside steady growth in both standard and specialty products. The company also noted the ongoing increase in raw material prices, stating its strategy to address this through enhanced operational efficiency and appropriate cost pass-throughs.

Looking ahead, Yageo expressed optimism for the third quarter, forecasting continued growth in revenue, gross profit margin, and operating profit margin. The company expects its production capacity utilization rate to surpass 90%, indicating tight supply conditions. Yageo currently has no plans to implement a share buyback program.

The electronic component industry is undergoing a structural transformation due to AI demand, and Yageo stated it will continue to monitor these developments closely. The company remains cautiously optimistic about market trends, aligning with previous forecasts.