COMPEQ Thailand's new PCB factory injects revenue next year

HDI PCB leader COMPEQ paid a net profit pershare (EPS) of 3.31 yuan in the first three quarters of 2024. The company's AIserver PCB has started shipping, and the initial plan for the new factory inThailand is about 300000 square feet of production capacity. The equipmentinstallation was completed in the third quarter of this year and entered theequipment testing and customer certification stage in the fourth quarter. Itwill prioritize the production of Rigid PCBs for satellite products and isexpected to start injecting revenue in 2025.

COMPEQ's revenue for the first threequarters of 2024 reached NT $52.6 billion, with a double rate increase in grossprofit margin and profit margin compared to the same period in the previousyear. The cumulative net profit after tax for the first three quarters was NT$3.94 billion, an increase of 49.24% year-on-year, and is approaching the fullyear profit of 2023, with an EPS of NT $3.31.

The production base of COMPEQ is mainlylocated in Taoyuan, Taiwan, Huizhou, and Chongqing in Chinese Mainland. Itsproducts include HDI PCBs, Rigid-flex PCBs, Rigid PCBs, Flexible PCBs, and SMT.Its terminal applications cover communication, computers, consumer products,vehicles, and aerospace. At present, it is the world's largest HDI PCBmanufacturer. COMPEQ's new factory in Thailand has an initial plannedproduction capacity of approximately 300000 square feet. It completed equipmentinstallation in the third quarter of this year and entered the equipmenttesting and customer certification stage in the fourth quarter. It willprioritize the production of satellite products and is expected to contributeto revenue next year.

The industry believes that although thehalo of consumer products has disappeared in the past two years, COMPEQ hasfully utilized its pioneering advantage in the low orbit satellite industry,continuously expanded the performance and customer base of the satelliteindustry, and improved its existing product structure. In addition, in areaswhere COMPEQ has previously focused less on systematic products such asDatacenter, AI Sever, Switch, CPO, and optical modules, there is a trendtowards upgrading PCBs to advanced HDI processes due to the demand forhigh-speed computing and transmission specifications. This allows the companyto leverage the advantage of reducing trial and error costs for latecomers andnarrow the gap with peers by observing the strategies of pioneers.

It is reported that COMPEQ has recentlyofficially shipped AI Server related PCBs and received opportunities for trialproduction of 400G, 800G, 1.6T and other related products from opticalcommunication customers. This will become an opportunity for the company'sgrowth in the future.