Songchuan Precision's June and Q2 Revenue Hits Record High, Monthly Revenue Surpasses 800 Million TWD for the First Time

Songchuan Precision (7788-TW), a relay supplier, continues on an upward operational trajectory, with monthly revenue hitting a new record and surpassing the 800 million TWD mark for the first time, boosted by the consolidated revenue from former Tai-Hsing Electronics. The company announced today (8th) that its revenue for June 2026 reached 828 million TWD, up 13.35% month-on-month and 65.66% year-on-year. This growth is attributed not only to Songchuan's active investment in expanding production capacity but also to the price adjustments for relay products notified to customers in April, with benefits gradually reflected in revenue and profitability starting from the second quarter.

Songchuan Precision reported its second-quarter revenue reached 2.26 billion TWD, another record high, up 21.68% quarter-on-quarter and 40.28% year-on-year. Revenue for the first half of 2026 totaled 4.116 billion TWD, up 27.32% year-on-year.

Regarding the impact of price adjustments, May 2026 revenue reached 731 million TWD, another record high, up 4% year-on-year. The company's self-calculated monthly after-tax net profit was 102 million TWD, a 2.61-fold year-on-year increase, with earnings per share (EPS) at 1.27 TWD, clearly demonstrating the benefits of expanded production economies of scale and cost pass-through. Starting in the second half, Songchuan expects further profitability from newly developed DC800V relay products and new part numbers targeting major AIDC power suppliers.

As passive components and frequency components have recently seen price hikes due to supply-demand shifts, Songchuan also notified customers in April of price increases for relay products, with varying adjustment ranges by product line, implemented progressively.

Songchuan Precision's Q1 2026 financial report showed both revenue and profit hitting record highs, with after-tax net profit at 178 million TWD and EPS reaching 2.22 TWD. With surging market demand for AI servers and related applications, Songchuan is accelerating investment in new production capacity, planning to invest over 400 million TWD in Mexico and Vietnam this year to establish new manufacturing sites.

In Q1 2026, revenue reached 1.857 billion TWD, a record high, with a gross margin of 26.94%, up 0.9 percentage points quarter-on-quarter and 1.54 percentage points year-on-year. After-tax net profit was 178 million TWD, up 59.83% quarter-on-quarter and 22.48% year-on-year, with EPS at 2.22 TWD.

In 2025, Songchuan Precision achieved record annual revenue of 6.433 billion TWD, with a gross margin of 27.04%, down 0.67 percentage points year-on-year. Full-year after-tax net profit was 264 million TWD, with EPS at 3.63 TWD. The dividend of 2 TWD per share will be ex-dividend on July 24, 2026.