BRIEF: Delton first-quarter profit surges about 60%

PCB maker Delton Technology (Guangzhou) Inc. (1989.HK; 001389.SZ) announced on Wednesday it expects to report a first-quarter net profit of 380 million yuan ($55 million) to 400 million yuan, representing a year-on-year increase of 58% to 66%.

Its net profit after deducting non-recurring items is expected to range between 378 million yuan and 398 million yuan, up 62% to 71% year-on-year. Basic earnings per share are expected to reach 0.90 yuan to 0.94 yuan, compared with 0.56 yuan per share a year earlier.

The company attributed the growth mainly to booming demand for AI and computing power, boosting sales of printed circuit board (PCB) products used in general and AI servers, switches and accelerators. At the same time, efficiency gains from technological upgrades and digitalization also contributed to the improvement.

The company said its Thailand factory has also completed customer certifications and begun ramping up production, becoming a new growth driver, while its Huangshi Delton subsidiary improved its profitability through cost controls and a better product mix.

Delton’s stock opened lower on Thursday in Hong Kong and traded at HK$119.9 by the midday break, down 0.91%. The stock has risen about 73% from its IPO price since its trading debut on March 20.

By Lee Shih Ta

To subscribe to Bamboo Works weekly free newsletter, click here