Metal materials supplier XinKe (3663) reported revenues of NT$456,378 thousand in March 2025, representing a 25% month-on-month increase and a 178% year-on-year increase. Starting from June, the revenue surged by 164.51% compared to the same period last year, primarily due to the consolidation of revenue from the acquisition of Chung Hung Precision Materials, with precious metal sales accounting for 35% of the consolidated revenue in June. Revenues for the second quarter amounted to NT$1,194,020 thousand, significantly higher than the NT$547,895 thousand in the first quarter, marking a quarterly growth of 117.9%.

Following a peak stock price of NT$113.5 on August 20, 2024, the stock corrected and fell to a low of NT$40.30 due to a slowdown in revenue in the fourth quarter, but rebounded thereafter. With ongoing revenue and profit growth, the stock price is expected to reflect this positive trend.

Founded in March 2000, XinKe was directly invested by Zhongying Company in October of the same year, becoming part of the China Steel Group. The company's revenue grew by 53.9% in the first half of the year, with an earnings per share of NT$0.14 in the first quarter, slightly above the same period last year. Starting from the second quarter, the operational performance improved significantly, driven by two main factors: the acquisition of 70% of Chung Hung Precision Materials and becoming a supply chain partner for the AB-BNCT equipment of the Hsinchu branch of China Medical University Hospital. XinKe is the only supplier recognized by the technology transfer party for panel-level fan-out packaging (FOPLP) metal substrates.

Second quarter earnings per share were NT$0.13, dropping to NT$0.03 in the third quarter before rebounding to NT$0.22 in the fourth quarter. The revenue breakthrough mainly came from the consolidation of Chung Hung Precision Materials, which was officially included in the financial statements starting in May. In the precious metals business, XinKe also experienced growth in orders, with order visibility extending beyond one quarter, outperforming previous years. The revenue from XinKe's precision metal products stands over 60%, and the company is actively expanding its semiconductor business, with its FOPLP metal substrates successfully entering the supply chains of top-tier manufacturers.

Industry sources predict that XinKe shipped approximately 300 panels in the first half of last year, expecting to increase shipments to 900-1,200 panels in the second half. The total for the year is projected to reach 2,400 panels, indicating significant growth potential. As demand continues to rise, revenues from XinKe's semiconductor business may exceed 30%. With an optimized product mix and higher margins, profitability is expected to grow alongside revenue, while the stock price continues to rise. Shareholders should monitor for the best entry points and consider low-cost acquisitions during this consolidation phase.