News / Taiwan / cnyes
Song Chuan Precision Hits Record High on Surging AI-Driven Demand
Electronic Technology · Electronic Components · cnyes · 2026-09-05
7788
Relay manufacturer Song Chuan Precision sees shares hit a record high of 335 TWD as AI-related demand for data centers and power supplies drives massive profit growth.
What Happened
AI Demand Surge: Song Chuan Precision is benefiting significantly from robust demand for high-voltage, high-current products used in data center inverters, server power supplies, and UPS systems. The company expects these product lines to see a substantial increase in shipment volume starting in the second half of 2025.
Explosive Profit Growth: The company reported a net profit of 440 million TWD for the first half of 2026, marking an 8.33-fold year-on-year increase with an EPS of 5.52 TWD. Monthly performance remains strong, with July net profit reaching 122 million TWD, a 1.96-fold increase, while maintaining a gross margin above 30%.
Record-Breaking Stock Performance: Driven by stellar financial results, Song Chuan's stock price reached a new intraday high of 347 TWD this week, closing at a record 335 TWD on the 4th. The stock is currently in a bullish trend, trading above all major moving averages with strong volume support.
Consistent Revenue Growth: Song Chuan has achieved record-breaking revenue for three consecutive quarters, with cumulative revenue for the first seven months of 2026 reaching 5.103 billion TWD, up 36.88% year-on-year. Market sentiment remains positive, with the 5-day moving average at 320 TWD serving as a key short-term support level.