Wonderful Hi-tech Co. is targeting annual revenue growth of up to 25% over the next five years by pivoting toward high-speed cables for AI servers, the company announced at an investor conference.
The Taiwan-based cable manufacturer reported NT$8.14 billion ($257 million) in 2023 consolidated revenue, up 24.9% year-on-year, with net income rising 59.6% to NT$358 million ($11.3 million). The company declared a cash dividend of NT$2 per share, representing an 87.7% payout ratio.
Wonderful Hi-tech Chairman Ming-Lieh Chang cited growing demand for data transmission in AI server markets, where copper cables remain the backbone of AI applications due to lower total cost of ownership. The company launched specialized high-speed cables for AI servers in the first quarter and estimates each AI server rack requires more than 10,000 high-speed cables.
According to President Cheng-Ya Chang, Wonderful Hi-tech is prioritizing high-margin customized cables to enhance long-term profitability. AI server cables manufactured in Thailand will reach initial production capacity of 2 million meters in April, contributing about 3% of revenue, with plans to expand to 10 million meters by year-end, doubling revenue contribution to 6%.
The company operates factories in Thailand, Vietnam, Taiwan and China, with capital expenditure of NT$800-900 million ($25-28 million) planned for 2024. Ventec aims to increase high-margin products from 15% of revenue to 30% by 2030 while expanding its North American market share to 40% from the current 35%.
