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K.S. Terminals Reports Decline in Net Profit Amid Shift to Automotive and Green Energy

Despite Reduced Earnings, K.S. Terminals Focuses on Electric Vehicle and Energy Storage Markets for Future Growth
Taiwan
k 3003.TW Mid and Small Cap 2000
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K.S. Terminals, a key player in the technology sector, has reported a noticeable decrease in its financial performance for December and the entire year of 2023. The company’s net profit after tax in December stood at 39.84 million yuan, marking a 13.35% year-on-year decline. The annual figures were also down, with the net profit after tax for 2023 reaching 549.1 million yuan, a significant 39.11% decrease from the previous year.

Despite these challenges, K.S. Terminals is not standing still. The company’s spokesperson, Zeng Yuqing, highlighted a strategic pivot in their recent conference. He emphasized the ongoing expansion in the global markets for charging piles, electric vehicles, and energy storage. In line with these developments, K.S. Terminals has been gradually shifting its focus from connectors to automotive applications, components, and related areas, expecting these sectors to fuel future operational growth.

The automotive and green energy products, according to Zeng Yuqing, are poised to become the primary growth drivers for Jianhexing’s revenue in 2024. The company has been actively laying out its automotive components division, focusing on charging gun products with various specifications. These include water-cooled charging guns and production lines in the United States and Thailand for energy storage. Revenue contributions from these lines are anticipated to begin in the second quarter of the year. Moreover, the company foresees an increase in the performance of its energy storage-related products, projecting a single-digit percentage growth year-on-year.

To support these ambitious plans, K.S. Terminals has allocated a capital expenditure ranging between 150 million yuan to 250 million yuan for the current year. This budget will cover the establishment of overseas subsidiaries, equipment automation, and other necessary expenses, with sufficient funds available for these initiatives.

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