Yageo (2327) Chairman Chen Tai-Ming expressed optimism for the second half of the year during the shareholders meeting held yesterday (27). He noted that the current book-to-bill ratio (B/B ratio) is stronger than previously anticipated, with some product lines achieving B/B ratios of 1.2 to 1.3. CEO Wang Dan-Ru pointed out that AI applications have led to full production capacity utilization. Chen mentioned that while different companies face various challenges, Yageo stands out as a comprehensive component solutions provider, maintaining competitive advantages in pricing and service.

Wang emphasized that the key metric to monitor is the B/B ratio, which remains stable above 1 overall, with AI application metrics reaching between 1.2 and 1.3, indicating strong growth momentum ahead. He revealed that production utilization rates for standard products have increased to 70% and for special products to over 80%, with some AI-related products experiencing shortages due to high demand. Yageo reported a revenue of NT$11.503 billion in April, marking a monthly increase of 3.6% and a yearly increase of 7.5%, achieving a new monthly high. Regarding exchange rate impacts, Wang analyzed that since Yageo's revenue is mainly denominated in US dollars, the appreciation of the New Taiwan Dollar does place pressure on revenue figures, but the company's business structure has two buffering mechanisms to mitigate the effects of exchange rate fluctuations.

Addressing tariff issues, Wang noted that Yageo's direct shipments to the US account for only about 10% of total revenue, resulting in a manageable impact. On the topics of energy and nuclear power, Chen stated that the continued industrial development will lead to increased electricity demand, and the Taiwanese government’s proactive measures to increase renewable energy generation are commendable, indicating that nuclear energy could be a future discussion option.