Jack brings more than 25 years of experience across equity research, investor relations, corporate finance, and M&A. He currently serves as CFO of AI systems company TurboNext.ai. Previously, he was Vice President of Finance at Allgenesis Biotherapeutics, Head of Investor Relations at momo.com Inc., and Assistant Vice President of Finance at Test Rite Group.

Earlier in his career, Jack held equity research and research management roles at Yuanta Securities, ABN AMRO, CLSA, and Shenyin Wanguo Securities in Hong Kong. At Yuanta, he served as Head of Taiwan Non-Tech Research before relocating to Hong Kong as Head of Greater China Basic Materials Research. In 2008, he was the only Yuanta analyst to receive individual votes in annual broker rankings conducted by the firm’s top five foreign institutional clients.

Jack is also a Founding Member and Vice Chairman of the Taiwan Investor Relations Institute (TIRI), and was among the first professionals in Taiwan to obtain NIRI’s Investor Relations Charter (IRC) certification in 2020. He holds an MBA from Babson College and a B.A. from the University of California, Berkeley, with double majors in Psychology and Japanese.

His corporate career includes several notable strategic and transaction mandates. At Allgenesis Biotherapeutics, Jack led a Greater China licensing transaction for a novel retinal disease therapy with potential milestone payments exceeding US$200 million. At momo.com, he reshaped the company’s post-IPO capital markets positioning, connecting its equity story more closely with investments in automated logistics, pricing strategy, and rapid B2C growth. During his tenure, momo developed into Taiwan’s leading B2C e-commerce platform, while foreign institutional ownership increased more than threefold.

At Test Rite Group, Jack led negotiations for the divestiture of Tong Lung Metal Industry to Stanley Black & Decker and participated in the financial structuring and strategic planning behind the introduction of Crate & Barrel to Taiwan.

TruePulse Capital noted that Jack’s experience spanning sell-side research, corporate investor relations, corporate finance, and cross-border transactions closely aligns with the firm’s approach of connecting business strategy with capital markets positioning and institutional investor engagement. At TruePulse, he will advise on capital markets positioning, institutional investor engagement, cross-border transactions, and selected strategic projects, helping management teams develop a more integrated approach to corporate and capital markets strategy.

TruePulse Capital will continue to expand its network of senior professionals with deep industry, corporate, and capital markets experience as the firm broadens its advisory capabilities.

The post TruePulse Capital Announces Jack Chang as Senior Advisor, Expanding Capital Markets and Corporate Strategy Capabilities first appeared on 好脈資本 TruePulse｜創新資本市場顧問・專精外資與小型股.

Founded in 1966, Kwong Lung Enterprise (8916.TW) has evolved from a traditional down materials supplier into a diversified manufacturer spanning apparel, home textiles, and insulation materials. With a global production network and a focus on product innovation, the company serves a diverse global brand customers. Kwong Lung continues to enhance operational efficiency and expand its market presence while maintaining financial discipline. Over the years, it has sustained a stable dividend policy, reflecting its commitment to long-term financial stability and shareholder returns.

Key Points

August revenue confirms 3Q peak-season recovery momentum: Kwong Lung’s manufacturing business remained under pressure in 2Q26 due to customer inventory adjustments, higher raw material costs and lower utilization. However, disposal gains from the Kondo office building in Japan supported non-operating income and lifted 2Q26 EPS to NT$1.21. Recovery became more visible in 3Q, with August revenue up 42.4% YoY to NT$843mn and all three core businesses — apparel, down and home textiles — returning to growth. The 8M26 revenue decline narrowed to 1.6% from 6.9% in 7M26, providing early evidence of stronger customer pull-in and improving utilization.

Apparel remains the core driver of 2027 recovery: Apparel is Kwong Lung’s key earnings driver, accounting for around 60% of the three core businesses’ revenue and around 70% of operating profit in 2025. Order visibility has extended into 1Q27, while recent developments include a new US brand customer, larger mass-production orders from an existing US customer, and European sampling projects in knitwear, sportswear and everyday functional apparel. We believe the 2027 apparel recovery will be supported not only by end-demand normalization, but also by new customer wins, category expansion and order-transfer opportunities from capacity spillover in high-complexity outdoor functional apparel.

Supporting businesses and asset monetization provide a second pillar: Beyond apparel, down and home textiles also improved in August, with revenue up 91% YoY and 36.8% YoY, respectively, reflecting stronger customer pull-in and easing inventory adjustments. The military tender provides medium-term upside optionality, though we view it as an option rather than a core base-case driver at this stage. Asset monetization should also support cash flow and shareholder returns, following the Kondo office building disposal. Potential monetization of the EKS office building, Osaka MAKOTO hotel project, Taiwan property sales and rental income could provide further support, but the core valuation driver remains apparel recovery.

The post Kwong Lung Enterprise (8916 TT): Aug. Revenue Validates Peak-Season Recovery; Apparel Momentum Supports 2027 Outlook first appeared on 好脈資本 TruePulse｜創新資本市場顧問・專精外資與小型股.

Founded in 1978, Sakura (9911.TW) is Taiwan’s leading kitchen and bath appliances supplier, with a >50% market share across its three core categories (water heaters, range hoods, and gas stoves). Leveraging its strong brand equity, Sakura has evolved from a manufacturer into a home living integration platform, expanding into integrated kitchens, home interiors, and overseas markets. Backed by 3,500+ retail touchpoints, a robust service ecosystem and a 7mn household base, this model has driven a decade of steady growth, with FY25 revenue exceeding NT$10bn and record-high EPS. Sakura has maintained ROE above 20%, a 70–80% payout ratio, and a net-cash balance sheet.

Key Points

LTV emerges as core strategy, shifting from hardware sales to household lifecycle monetization: At the latest investor briefing, management stated that Sakura’s future growth should no longer be viewed solely through kitchen and bath appliance volume expansion. Instead, the company is shifting toward a Customer Lifetime Value (LTV) model, treating each household as a long-term engagement. AI Kitchen drives premium and smart suite upgrades, while HOME in O.N.E extends into integrated kitchens, unit bathrooms, and whole-home renovation. Developer partnerships support new customer acquisition, creating a dual-track flywheel of deepening existing customer value and broadening the customer base. Moreover, moving from standalone appliances to full-home solutions could increase household  wallet share by at least 30x.

A resilient replacement base provides downside protection and household value expansion: With ~70% of revenue derived from replacement demand by existing households, Sakura leverages its leading market share, large installed base, extensive distribution network and comprehensive service capabilities to precisely track product lifecycles and replacement timing, providing anti-cyclical resilience against housing market fluctuations. More importantly, this large customer base creates follow-on upgrades, consumable refills, and cross-selling, transforming defensive replacement demand into a powerful engine for long-term top-line growth and higher value per household.

Project market secures mid-term backlog and builds the long-term replacement pool: Management noted that Taiwan’s furnished new housing penetration remains below 10%. Driven by developers’ pursuit of differentiation and value-add, alongside buyers’ preference to reduce renovation costs and oversight burdens, furnished or semi-furnished offerings should continue to gain traction. Backed by brand equity, consumer trust, one-stop planning, supply chain integration, and large-scale delivery capabilities, Sakura is one of the few players in Taiwan able to serve developer demand at scale. With multi-year lags from signing to completion, rising contract wins enhance mid-term revenue visibility while funneling new homeowners into Sakura’s aftermarket ecosystem for future maintenance, filters, and replacements.

The post Taiwan Sakura (9911 TT): LTV Thesis Gains Traction; Growth Drivers and Medium-Term Visibility Strengthen first appeared on 好脈資本 TruePulse｜創新資本市場顧問・專精外資與小型股.

The investor narrative and communication framework for the briefing were developed with support from TruePulse Capital. Rather than focusing primarily on individual products, financial results, or business segments, the discussion was structured around a more fundamental investor question: With an established household customer base already in place, where does Taiwan Sakura’s next phase of growth come from?

Through the Household LTV framework, Taiwan Sakura highlighted how its growth opportunity extends beyond increasing unit sales. The company is seeking to deepen its relationship with existing households through product upgrades, recurring consumables, cross-category penetration, and broader home-space solutions, thereby increasing the long-term value generated from each customer relationship.

Unlike a conventional investor conference held in a hotel or meeting venue, the event was hosted at Taiwan Sakura’s Taipei Brand Center. Following the presentation, participating institutional investors joined a guided product tour led by the company, gaining first-hand exposure to AI Kitchen, water purification, kitchen appliances, and integrated home solutions. The format allowed investors to connect the strategic narrative presented during the briefing with the company’s actual products, applications, and consumer use cases.

TruePulse Capital noted that the gap between a company’s underlying business value and capital-market perception is often not simply a matter of information availability, but of whether corporate strategy can be translated into a growth framework that investors can clearly understand. By combining capital-markets narrative design, direct management engagement, and an on-site product experience, the event was designed to help investors not only hear Taiwan Sakura’s strategy, but also see how its next phase of growth is being put into practice.

The post Taiwan Sakura Unveils New Capital-Markets Narrative Centered on Household Lifetime Value first appeared on 好脈資本 TruePulse｜創新資本市場顧問・專精外資與小型股.

XALLOY Advanced Materials Corporation (7918 TT) is a semiconductor advanced materials platform spun off from Solar Applied Materials in 2025. The company focuses on front-end advanced processes, advanced packaging, specialty process materials, and circular economy services, with products including CuP anode, NiPt target, Cu alloy sputtering targets, Ta coil, Ru target, and spent target recycling solutions. Supported by major foundry customer qualifications, XALLOY is positioning itself as a higher-value semiconductor materials and services platform.

Key Points

Revenue Scale-Up, Timing-Driven Margin Pressure: XALLOY reported 2Q26 revenue of NT$1.76bn, up 29% QoQ, driven mainly by advanced packaging-related precious metal materials. Precious metal materials revenue rose 41% QoQ, while non-precious metals and others revenue grew 12% QoQ, showing continued scale-up across both materials sales and processing-related activities. Reported gross margin declined to 18% from 29% in 1Q26, mainly due to IFRS 15 revenue recognition timing and an inventory valuation loss of approximately NT$141mn. Excluding this impact, adjusted gross margin would have been 26.4%. We view 2Q26 as a timing-driven transition quarter rather than structural margin deterioration.

H2 Shipments to Drive Recognition Normalization: For the new advanced packaging business, XALLOY adopted a customer prepayment model for precious-metal procurement, with gold prices locked in at purchase. Part of April–June invoiced revenue had not yet been physically delivered and was deferred under IFRS 15, but these orders remain valid and are expected to ship progressively in H2. The inventory valuation loss was also mainly related to priced or prepaid precious metal positions not yet shipped. We believe H2 shipment execution, workforce ramp-up and fading valuation impacts will be key to reported margin normalization.

VAS Provides a Cleaner Earnings Lens: XALLOY’s revenue structure should be analyzed beyond headline precious metal materials revenue, which is more sensitive to metal prices, shipment timing and transaction structures. The non-precious metals and others revenue bucket, including non-precious metal materials, materials processing VAS and other related revenue, provides a clearer read-through on processing capability, materials service value and advanced process penetration. We believe growth in non-precious metals and VAS revenue, VAS penetration and circular economy adoption will increasingly define XALLOY’s economics as a high-value semiconductor materials and services platform.

Qualifications and Capacity Support Medium-Term Growth: XALLOY has obtained qualifications from major foundry customers which collectively represent nearly 80% of the global foundry market. These qualifications are lengthy and closely tied to yield, reliability, contamination control and supply stability, creating meaningful customer stickiness. XALLOY plans to invest NT$0.7–1.5bn over the next three to five years to expand capabilities in ultra-clean melting, high-purity refining, recycled raw materials, forming, precision machining and high-purity cleaning. We believe medium-term growth will depend on qualified product ramp-up, VAS growth and capacity execution.

The post XALLOY Advanced Materials (7918 TT): Advanced Materials Ramp Accelerates; VAS Growth Supports Earnings Quality first appeared on 好脈資本 TruePulse｜創新資本市場顧問・專精外資與小型股.

Founded in 1978, Sakura (9911.TW) is Taiwan’s leading kitchen and bath appliances supplier, with a >50% market share across its three core categories (water heaters, range hoods, and gas stoves). Leveraging its strong brand equity, Sakura has evolved from a manufacturer into a home living integration platform, expanding into integrated kitchens, home interiors, and overseas markets. Backed by 3,500+ retail touchpoints and a robust service ecosystem, this model has driven a decade of steady growth, with FY25 revenue exceeding NT$10bn and record-high EPS. Sakura has maintained ROE above 20%, a 70–80% payout ratio, and a net-cash balance sheet.

Key Points

Valuation Understates the Resilience of Replacement Demand: The market discounts Sakura as a mature hardware stock, overlooking that its growth is less dependent on new-housing cycles. Kitchen and bath appliances are non-discretionary; aging or malfunctioning units require immediate repair or replacement. With ~70% of revenue driven by this resilient demand, Sakura has a relatively predictable revenue base. Leveraging its brand leadership, 3,500+ touchpoints, and 7mn customer database, the company captures recurring revenue across the product lifecycle—sustaining long-term cash flow while driving product upgrades, consumable adoption, and repeat sales across its installed base.

Product Extension to Full-Home Solutions Expands Revenue per Household: With Taiwan’s kitchen appliance market maturing at 1.5–1.6mn units annually, Sakura’s growth shifts from volume to value creation. The company is scaling from standalone appliances to AI Kitchens, water purifiers, integrated kitchens, and full-home design. AI Kitchens boost ASP through premium upgrades and package sales, while water purifiers generate high-margin recurring revenue. Integrated kitchens and space planning further scale ticket size. Transitioning toward unified suites, consumables, and home space solutions, Sakura is well-positioned to steadily raise value per household in a stable market.

Developer Channel Supports Mid-Term Growth and Expands Future Replacement Base: The 2B developer channel serves as a key customer-acquisition channel for Sakura to acquire new households. Amid low penetration of decorated new homes in Taiwan, Sakura is among the few players with end-to-end capabilities—spanning branding, design, supply chain, installation, and after-sales service—to capture scalable renovation demand. Entering homes at delivery drives mid-term new-sales growth more efficiently than retail. As appliances age, these new cohorts will transition into repeat maintenance, consumable, and upgrade demands, supporting an “acquisition → installed base → replacement” cycle.

Valuation Re-rating Toward a Lifetime Value Platform: Sakura’s current valuation reflects a mature hardware stock, with limited recognition of its high-market-share installed base, replacement cycles, new category penetration, long-tail consumable revenue, 2B customer onboarding, and home integration potential. We project an 11.4% revenue CAGR (2025–2028E), supporting our forecast for revenue to reach NT$15bn+ by 2030E.  As smart kitchens, water purification, and 2B interior revenue scale, we believe the valuation framework could gradually shift to a household Lifetime Value (LTV) platform—anchored by recurring replacement cash flows, installed-base monetization, and home-space expansion capabilities.

The post Taiwan Sakura (9911 TT): From Hardware to Household LTV: Unlocking Sakura’s 7mn-Customer Base first appeared on 好脈資本 TruePulse｜創新資本市場顧問・專精外資與小型股.

Founded in 1969, Grape King Bio (1707.TW) is a leading Taiwan health-supplement company built on vertically integrated fermentation, branded products, and a fast-growing OEM/ODM platform. Its four business units—Taiwan own-brand, OEM/ODM, UVACO, and Shangh1ai—are supported by in-house R&D and decades of fermentation expertise. With a portfolio grounded in functional mushrooms, probiotics, and clinically supported actives, the company serves both domestic consumers and global brands. Backed by a solid balance sheet and steady cash flow, Grape King is focused on product innovation and international expansion to support long-term growth.

Key Points

2Q26E margin recovery points to improving earnings quality: We forecast 2Q26 revenue of NT$2.41bn, down 6.0% YoY, with EPS of NT$1.56, down 14% YoY but up 32% QoQ. More importantly, gross margin is expected to rebound to 73.5% from 69.7% in 1Q26, while operating margin should recover to 18.0%. Although higher raw-material and packaging costs remain a headwind, we believe the 1Q profitability trough has passed. With a more favorable business mix and part of the annual incentive-related expenses already recognized in 1H, earnings should continue to improve into 2H26.

2026–27E forecasts revised; 2028E highlights a stronger medium-term growth profile: We cut our 2026–27E revenue forecasts by approximately 5–9% to NT$10.40bn and NT$11.41bn, respectively, and lower EPS by 11–16% to NT$7.83 and NT$9.00, mainly reflecting weaker-than-expected UVACO Taiwan performance. We also introduce 2028E estimates, with revenue of NT$13.16bn, up 15.3% YoY, and EPS of NT$10.9, up 21.1% YoY. Our assumptions incorporate continued OEM/ODM expansion, improving capacity flexibility, further build-out of Malaysia, a gradual recovery in Taiwan consumption, and incremental contributions from new products.

UVACO Taiwan remains in adjustment, while Malaysia builds early operating momentum: UVACO Taiwan continues to face softer demand, with new-member additions down approximately 20–30% YoY, reflecting cautious consumer spending, more difficult member recruitment, and organizational resources being redirected to support Malaysia. Malaysia, however, is showing encouraging early progress. By end-July, UVACO had conducted 42 training sessions with more than 3,000 cumulative participants and recruited nearly 1,000 members despite having only six products approved for sale. We believe the next phase will be defined less by headline recruitment and more by member activity, product expansion, and spending contribution.

OEM/ODM remains a key growth pillar; longer-term upside is not fully reflected in valuation: OEM/ODM revenue grew 18.4% YoY in 1H26, while its first major Asian industry exhibition generated engagement with approximately 253 prospective customer groups from 13 countries. Although conversion cycles have lengthened due to softer global demand, tariffs, supply-chain adjustments and ongoing production-line upgrades, customer and product pipelines continue to expand. We believe the current valuation more fully reflects near-term UVACO Taiwan weakness than Grape King’s longer-term international growth potential.

The post Grape King Bio (1707 TT): Margin Recovery Underway, International Growth Engines Continue to Build first appeared on 好脈資本 TruePulse｜創新資本市場顧問・專精外資與小型股.

Established in 1962, Ta Tun Electric Wire & Cable (TEWC) has over 60 years of industry experience. The company provides services covering cable supply, installation, testing and maintenance. Its portfolio includes 345kV, 161kV and 69kV power cables, and is one of five Taipower-qualified suppliers of 345kV extra-high-voltage cables. Taipower-related projects account for around half of revenue and form its core business. TEWC is also expanding into high-tech facilities, energy storage and renewable energy projects. The company completed its second 345kV production line in 2025 and is advancing North American product certifications and cable solutions for AI data centers.

Key Points

Rising EHV product mix drove earnings growth well ahead of revenue: TEWC reported 1Q26 revenue of NT$1.86bn, up 12.4% YoY. Supported by a higher shipment mix of 345kV and other extra-high-voltage (EHV) cables, gross margin increased from 17.71% a year earlier to 21.93%, while operating margin reached 19.75%. EHV products accounted for 54.9% of revenue, rising to 67.8% when medium- and high-voltage products were included, supporting better pricing and a more profitable sales mix. Net profit increased 52.2% YoY to NT$280mn, indicating that growth is shifting from revenue expansion toward earnings quality driven by higher-specification products. A sustained EHV mix would support a structurally higher earnings base.

NT$10bn Backlog Supports Medium-Term Visibility; 2H26 Deliveries Key: TEWC’s backlog remains above NT$10bn, with over half comprising 69kV, 161kV and 345kV products. From 2023 to February 2026, it secured 16 Taipower cable contracts worth NT$15.85bn, including five 345kV contracts totaling NT$5.91bn, providing two to three years of revenue visibility. However, project timing remains a source of quarterly volatility. Its self-reported 2Q26 revenue fell 22.9% QoQ, making deferred deliveries and the 161kV/345kV product mix key to full-year revenue and margins.

Second 345kV Line Strengthens Execution: The 345kV cable market has high entry barriers due to lengthy certification, demanding manufacturing standards and substantial capital requirements. Only five suppliers in Taiwan are qualified by Taipower. TEWC’s advantage lies in its established production, installation and contract execution record. The company completed its second 345kV line in 2025, with core CDCC equipment costing approximately NT$300mn. As equipment installation and certification take around three years, new supply cannot enter quickly. Management expects the two lines to support demand for the next five years, with future growth dependent on utilization, production efficiency and backlog conversion.

North America and AI DCs offer long-term upside; CB adds flexibility: TEWC has established an Arizona presence for business development, technical services and warehousing. Initial efforts will target medium- and low-voltage products and Taiwanese customers expanding in the US, with certifications and first shipments targeted by year-end. Longer term, the company plans to develop cables for AI data centers, energy storage and HVDC transmission. As these initiatives remain at an early stage, they are excluded from near-term base case. Commercial success could reposition TEWC as a higher-specification power infrastructure and AI energy supplier, supporting a potential re-rating. Full conversion of its NT$2.0bn convertible bond (CB) would result in estimated static EPS dilution of 11.6%.

The post Ta Tun Electric (1623 TT): EHV Mix Drives Earnings; North America and AI DCs Unlock Re-rating Potential first appeared on 好脈資本 TruePulse｜創新資本市場顧問・專精外資與小型股.

Addcn Technology is one of Taiwan’s leading online vertical marketplace operators, with platforms spanning housing (“591”), online game item trading (“8591”), auto classifieds (“8891”), recruitment (“518”), part-time jobs (“ChickPT”), freelance services (“Tasker”), home repair and interior design. Revenue is primarily generated from listing fees, transaction commissions, advertising and value-added services. With registered members reaching 17mn, Addcn is gradually evolving from a mature classifieds operator into a broader vertical life-services marketplace, supported by intent-rich traffic, platform data, AI tools and multi-platform commercialization capabilities.

Key Points

1Q26 earnings resilient despite headwinds:  Addcn reported 1Q26 revenue of NT$551mn, up 1% YoY, while gross profit and net income both increased 3% YoY to NT$375mn and NT$178mn, respectively. EPS rose to NT$2.97 from NT$2.87 a year earlier. Although 591 was pressured by a weak housing market and 8891 faced softer auto demand, Addcn still delivered earnings growth, supported by its multi-platform portfolio, disciplined cost control and platform-based operating model. We believe 1Q26 highlights the cash flow quality and operating resilience of its mature platforms. More importantly, the quarter shows that Addcn’s earnings base remains stable even when its two largest cyclical verticals are under pressure.

8591 and ChickPT restore growth optionality: Group revenue growth remained modest, but segment performance showed clear divergence. In 1Q26, 591 revenue declined 7% YoY and 8891 fell 5% YoY, reflecting housing and auto market headwinds. In contrast, 8591 grew 36% YoY, driven by stronger mobile and PC game trading activity, lifting its revenue contribution to roughly 20%. Meanwhile, ChickPT has reached 3.9mn members, and management indicated its monetization progress has exceeded expectations. We believe this demonstrates Addcn’s ability to extend its traffic, technology and matching know-how into new vertical use cases.

591 remains the key monetization lever: 591 remains Addcn’s largest revenue contributor, accounting for roughly 65% of 1Q26 revenue, but near-term growth was weighed down by weak housing activity. Nevertheless, 591 continues to be a core entry point in Taiwan’s rental and housing information market, with 26.5mn monthly site views, 9.1mn rental-related views, 5.3mn members and around 500k online listings. We believe its medium-term value should not be assessed solely through the housing cycle, as AI-assisted listings, merchant tools, lead-generation services and data-driven products could support ARPU expansion over time.

High ROE base supports re-rating potential: Addcn’s net income increased from NT$612mn in 2021 to NT$836mn in 2025, with a five-year average ROE of 34%. The company has also maintained an average dividend payout ratio above 80% over the past five years, supporting stable shareholder returns. We believe the market still largely values Addcn as a low-growth, high-dividend platform. However, if ChickPT monetization scales, 591 and 8891 merchant tools gain traction, and AI-enabled value-added features become monetizable, Addcn could gradually shift toward a multi-vertical life-services marketplace with stronger re-rating potential. In our view, the downside remains supported by ROE and dividends, while upside depends on whether Addcn can turn its high-intent traffic into new monetization layers.

The post Addcn Technology (5287 TT): High-ROE Base Intact; Segment Growth and AI Upside Open Re-rating Potential first appeared on 好脈資本 TruePulse｜創新資本市場顧問・專精外資與小型股.

Founded in 1974, Fu Chun Shin Machinery Manufacture Co., Ltd. (FCS) is a Taiwan-based provider of injection molding equipment and smart manufacturing solutions. The company serves automotive, ICT/semiconductor, sports and consumer goods, infrastructure, and lightweight material applications through five production bases across Taiwan, China, and India, supported by 36 direct sales/service locations and 21 agents globally. With growing demand for precision molding, low-carbon materials, automation, and regionalized supply chains, FCS is gradually repositioning from a traditional machinery supplier toward a smart manufacturing platform.

Key Points

Record revenue, improving margins: FCS delivered record-high revenue of NT$5.08bn in 2025, up 12.2% YoY, followed by 1Q26 revenue of NT$1.05bn, up 2.8% YoY despite a higher base. Gross margin, operating margin, and net margin all improved YoY, suggesting early margin stabilization. However, earnings leverage remains limited, as the equipment business carries a certain fixed-cost and expense base. We believe the key focus is whether revenue scale, high-end equipment, smart manufacturing, and regional supply-chain opportunities can further improve earnings conversion.

Automotive remains the core base, while ICT/semiconductor and multi-component molding drive upgrades: Automotive components remained FCS’s largest application market in 1Q26, accounting for 50.0% of revenue and growing 1.7% YoY. ICT/semiconductor-related applications contributed 23.5% and grew 4.9% YoY, outpacing overall revenue growth, while sports and consumer goods contributed 20.9% and grew 5.4%. Multi-component machines accounted for 60% of revenue, underscoring FCS’s strength in higher-end multi-color and multi-material molding. Demand from automotive lightweighting, lighting, AI hardware, wafer boxes, IC trays, networking devices, notebooks, and servers should support continued product mix upgrade.

Vietnam drives regional opportunity: China remained FCS’s largest market in 1Q26, accounting for 54.7% of revenue and growing 4.0% YoY, while Taiwan contributed 18.6% and grew 5.3%. Vietnam was the standout market, with revenue rising 110.9% in 2025 and another 20.7% YoY in 1Q26, lifting its contribution to 11.2%. India declined 41.1% YoY and remained in transition. As geopolitics, tariff risks, and dual-supply-chain strategies accelerate regional manufacturing, FCS’s production footprint and service network should help capture cross-region replication and equipment replacement demand.

iMF 4.0, low-carbon molding, and UAV-related themes expand solution value: FCS continues to develop iMF 4.0, AI-enabled molding, the SA Series, and MuCell physical foaming to help customers improve utilization, yield, energy efficiency, and material usage. The SA Series targets wafer boxes, IC trays, networking devices, notebooks, and servers, while MuCell and carbon-fiber molding can extend into T2T footwear, aerospace, UAVs, and other lightweight applications. As the market begins to look beyond FCS’s traditional machinery identity, higher-end equipment, smart manufacturing, low-carbon molding, and aerospace/UAV-related applications could support a broader valuation framework. The key will be whether these technologies can translate into more visible orders, stronger product mix, and better earnings contribution over time.

The post Fu Chun Shin (6603 TT): Smart Manufacturing Upgrade Opens Re-Rating Potential first appeared on 好脈資本 TruePulse｜創新資本市場顧問・專精外資與小型股.