Tongxin: Q3 EPS 2.06 yuan, additional capital expenditures to strengthen order-taking and supply capabilities

Tongxin expanded capital expenditure to enhance its order-taking capabilities. (Taken from the official website)

[Reporter Zhuo Yijun/Taipei Report] Optical communication filter manufacturer Tongxin (6426) announced its third quarter financial report and consolidated revenue in October. Tongxin's third quarter consolidated revenue was 216 million yuan, an increase of 60.58% over the same period last year.

Benefiting from the continued expansion of investment in AI infrastructure, which has driven strong growth in data center interconnect (DCI) demand and boosted the growth of product shipments. In addition, the expansion of operating scale has led to the emergence of economies of scale. In the third quarter, operating profit reached 81.212 million yuan, after-tax net profit attributable to the parent company was 79.357 million yuan, and after-tax earnings per share (EPS) was 2.06 yuan. The cumulative EPS in the first three quarters reached 5.02 yuan. The overall operation showed steady growth.

Tongxin's consolidated revenue in October was 78.746 million yuan, an annual increase of 60.70%, and the cumulative consolidated revenue in the first ten months increased by 65.74% annually. Looking forward to the fourth quarter, as the demand for high-speed optical communications in AI data centers continues to increase, customer order momentum remains strong, and the benefits of operational management optimization are gradually emerging, the company is optimistic about the operational growth prospects in the fourth quarter.

In response to customer order demand and mid- to long-term business growth, Tongxin will continue to expand production capacity, and the scale of capital expenditures is expected to further increase, mainly for adding new production lines and improving the efficiency of production equipment.

The company's board of directors has successively approved production equipment capital expenditure budgets in May, August and October this year. This plan will further increase the budget. The relevant new equipment purchases will be implemented one after another after the board of directors approves it in November. It is expected that some new production lines will be put in place starting from the first quarter of 2027, driving a gradual increase in monthly production capacity, further strengthening order-taking and supply capabilities, and laying the foundation for subsequent operational growth.