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Song Chuan Precision Hits Limit Up as AI and Energy Storage Demand Drive Revenue Growth
Electronic Technology · Electronic Components · cnyes · 2026-09-09
7788
Relay manufacturer Song Chuan Precision (7788) saw its stock hit the daily limit after reporting record-breaking revenue and strong growth in high-margin products.
What Happened
Operational Performance: Song Chuan Precision (7788) is experiencing a significant growth trajectory driven by robust demand in AI and energy storage sectors. After hitting a record revenue of NT$986 million in July 2026, the company posted NT$872 million in August, marking a 66.41% year-over-year increase, with further growth expected in Q3.
Profitability: The company reported a monthly net profit of NT$122 million, a 1.96-fold increase year-over-year, with gross margins consistently staying above 30%. For the first seven months of 2026, the company achieved a cumulative net profit of NT$593 million, resulting in an EPS of NT$7.05.
Product Mix: High-voltage and high-current products for data centers, server power supplies, and UPS systems have become key growth drivers. The revenue contribution from these high-end applications has increased by 5 percentage points to 17% compared to the previous year, reflecting a successful shift in product strategy.
Market Reaction: Driven by strong fundamentals, Song Chuan Precision's stock price surged to the daily limit of NT$320.5. The stock has successfully reclaimed all major moving averages, signaling strong investor confidence in the company's sustained growth momentum.