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Shin Zu Shing Q2 EPS Hits NT$0.32; Analysts Project Growth Driven by Foldable Phone Hinge Orders
Electronic Technology · Electronic Components · economic_daily · 2026-09-05
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Hinge manufacturer Shin Zu Shing reported Q2 EPS of NT$0.32, with analysts forecasting full-year earnings to reach NT$5.50 on the back of new foldable phone contracts.
What Happened
Q2 Financial Results: Shin Zu Shing reported a second-quarter gross margin of 9.8% and an operating margin of -3.1%, resulting in a net profit of NT$62 million and EPS of NT$0.32. Non-operating income of NT$125 million played a crucial role in supporting the company's bottom line during the period.
Foldable Growth Catalyst: Analysts highlight that the company's long-term collaboration with a major US client on foldable phone hinges is set to pay off. With the client's first foldable device launching in Q3, this segment is expected to drive growth through 2026 and 2027, with revenue contribution projected to rise significantly.
Notebook and Wearables Outlook: The company faces headwinds in its traditional notebook hinge business due to market saturation and a shift in client reliance, with 2026 revenue expected to remain flat compared to 2025. Similarly, the wearables segment is projected to see revenue declines in 2025 and 2026 due to high base effects and softening consumer demand.
Full-Year Earnings Forecast: Despite the challenges in legacy segments, analysts remain optimistic about the company's pivot toward foldable technology. The firm is actively diversifying its client base to mitigate risks, with current projections placing full-year EPS at approximately NT$5.50.