Walsin Lihwa reported improved financial results for the second quarter, driven by strong performance in its resources, stainless steel, and wires and cables segments. The company announced a gross profit margin of 8.6%, marking a rebound from the previous quarter. General Manager Pan Wenhu provided an outlook for the third quarter, highlighting the robust performance of the wire and cable segments, which are expected to outperform the first half of the year.
The second quarter saw a rebound in both the price and volume of stainless steel, with shipments of wires and cables returning to normal levels after the Spring Festival, aided by rising copper prices. The resources segment also benefited from low-priced inventory held in the first quarter. Overall, first-half revenue reached NT$88.863 billion (US$2.88 billion), with an operating gross profit of NT$6.825 billion (US$221 million) and an after-tax net profit of NT$3.117 billion (US$101 million), translating to a net profit per share of NT$0.77.
Looking forward, Walsin Lihwa anticipates challenges in the stainless steel sector due to the traditional summer off-season in Europe and the United States. While Taiwan’s brine plant operations were impacted by floods, shipment delays are expected until September or October. The market outlook remains uncertain due to weak demand in China and the bankruptcy of Jiangsu Delong, which has reduced overall supply.
In the resources industry, nickel prices weakened at the beginning of Q3, influenced by early rainy season disruptions in Indonesia and government restrictions on nickel mining. Despite these challenges, Pan Wenhu expressed optimism for the wire and cable business, driven by Taiwan Power’s grid strengthening initiatives and growing demand for construction and industrial projects.
Additionally, Walsin Lihwa is preparing for future carbon tax implications by focusing on scrap stainless steel, which accounts for 70% of its material use, minimizing carbon emissions compared to nickel pig iron. This strategic shift aligns with global sustainability trends and positions the company for future growth.
