Reported 8 months ago
Chuanyu (2059) is expected to have better-than-expected first half-year earnings due to the recovery in general server demand and a 55% utilization rate, coupled with the recent depreciation of the New Taiwan Dollar. Analysts have upgraded the stock to a 'buy' rating and raised the target price. Chuanyu has shown monthly revenue growth this year, with May revenue reaching 868 million New Taiwan Dollars, a 93.61% increase year-on-year, surpassing expectations. Analysts believe that inventory adjustments have ended, leading to normal product shipments and a decent second quarter with a stronger performance expected in the second half of the year. The demand for general servers is on the rise, and Chuanyu is also benefiting from the potential strong demand for AI servers.
Source: YAHOO