Zhen Ding stock: AI products drive 208.5% profit growth

Zhen Ding Technology's first-half 2026 profit rose 208.5 percent year over year to NT$3.817 billion, according to a report published by Biggo Finance on October 14. The result came as the Taiwanese PCB maker expanded its exposure to servers, optical modules and IC substrates.

AI Lines Lift Growth Profile

First-half revenue increased 13.9 percent to NT$89.2 billion. Gross margin widened to 22.4 percent from 16.5 percent a year earlier, while revenue from servers, optical modules and IC substrates grew 113 percent and accounted for 21.6 percent of the total product mix.

Management said the high-end businesses could represent 25 percent of revenue in 2026, rising to 30 percent in 2027 and 45 percent to 50 percent by 2030. Optical modules, IC substrates and server products are positioned as the main growth engines as consumer electronics becomes a smaller part of the mix.

Capacity Plans Raise Execution Stakes

Zhen Ding said order visibility extends to 2028, with many orders supported by three- to five-year agreements and prepayment contracts. Planned capital expenditure has risen above NT$80 billion, with 22 plants under construction and nine more in planning.

The expansion increases the company's exposure to execution, equipment lead times and supply availability. Management said equipment can require 12 to 18 months to arrive and that demand remains strong enough to support the additional capacity. The ABF substrate business was profitable in the first quarter, while capacity is expected to double in 2027 from 2026.

What Zhen Ding Makes

Zhen Ding Technology manufactures printed circuit boards for mobile communications, computing and consumer electronics, servers, optical modules and IC substrates. Its portfolio spans established consumer applications and newer AI infrastructure products, with the latter gaining weight in the current expansion cycle.

The company's stated strategy is to add capacity for high-end applications rather than shift existing consumer capacity to new customers. That mix change could support profitability if demand and utilization remain strong, but it also leaves investors watching capital spending, supply bottlenecks and the pace of new-plant commissioning.

The TAIEX provides the relevant Taiwan market context for investors: Current Taiwan market reports.

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