News / Taiwan / cnyes
Cheng Loong Expects Strong H2 Growth Driven by Vietnam Expansion
Process Industries · Containers/Packaging · cnyes · 2026-08-21
1904
Paper manufacturer Cheng Loong forecasts a stronger second half of the year, supported by increased production capacity in Vietnam and stable profit margins.
What Happened
Operational Outlook: Cheng Loong General Manager Chang Ching-piao stated that with growing demand in Vietnam and the launch of new production lines, the company expects second-half performance to outperform the first half, aiming to maintain a full-year gross margin of 20.5%.
Vietnam Expansion: The company is deepening its footprint in Vietnam, with the third phase of the Binh Duong paper mill now operational, reaching an annual capacity of one million tons. A new packaging plant in Ninh Binh, North Vietnam, is scheduled for completion in 2027 to strengthen its regional supply chain.
Financial Performance: Driven by successful overseas expansion and efficient production management, Cheng Loong reported a first-half net profit of NT$1.608 billion, a year-over-year increase of over 50 times, with an EPS of NT$1.45.
Diversified Revenue: Beyond its core paper business, Cheng Loong is expanding into real estate and green energy. The company expects potential profit contributions from its Hangzhou South Road construction project and steady revenue streams from its solar power operations at the Dayuan and Houli plants.