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Chenbro Reports Strong Nine-Month Earnings, Focuses on New Product Ramps and Global Capacity
Electronic Technology · Computer Peripherals · economic_daily · 2026-11-05
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Server chassis maker Chenbro posted a robust EPS of NT$29.89 for the first nine months, as the company ramps up global production to support long-term growth.
What Happened
Financial Performance: Chenbro reported an EPS of NT$8.06 for the third quarter, bringing the cumulative EPS for the first nine months to NT$29.89, significantly outperforming the NT$20.45 recorded in the same period last year. While third-quarter revenue and gross margins saw a sequential decline due to product mix shifts and inventory adjustments, the company's overall profitability remains solid.
Operational Challenges: Management attributed the 5.4% sequential revenue dip to customers adjusting inventory levels following aggressive procurement in the first half, compounded by supply constraints for key electronic components. Despite these short-term headwinds, the company successfully optimized its operating expense ratio to 7.4% through disciplined cost management.
Future Outlook: Looking ahead to the fourth quarter, Chenbro is prioritizing the stable delivery of existing projects and the smooth introduction of new ones. The company remains confident in the long-term growth prospects of the AI and cloud data center sectors, projecting that its full-year operational scale will exceed that of the previous year.
Global Expansion: Chenbro is aggressively executing its 'Glocalization' manufacturing strategy, with the Kunshan facility already operational and the new Malaysia plant entering the production ramp-up phase. Furthermore, the company is advancing construction on its Vietnam and Texas sites, which are expected to contribute to production by the first half of 2027 to support long-term scalability.