Chicony Power's first-quarter performance signals supply-chain resilience and potential upside for global notebook, server, and satellite power markets, as the company forecasts second-quarter revenue growth driven by inventory pull-ins, rising average selling prices, and expanding satellite and AI power-supply businesses serving international customers.
Steady earnings amid a softer top line
Chicony Power reported consolidated revenue of NT$7.784 billion (US$246.17 million) for the first quarter of 2026, a 7.8% year-on-year decline, while earnings per share held steady at NT$1.01, unchanged from the same period in 2025. April revenue came in at NT$2.636 billion, down 11.9% year on year, bringing cumulative revenue from January to April to NT$10.42 billion, down 8.9% from the prior year.
Pull-ins cloud the comparison
Quarterly revenue was flat compared with the previous quarter, supported by demand for server power supplies, high-wattage notebook power adapters, and low Earth orbit satellite applications. Year-on-year revenue softened because some brand customers had pulled in shipments earlier amid concerns over potential US tariffs on notebook products, creating a higher comparison base. Operating profit fell versus the year-ago period as a stronger renminbi and lower revenue scale weighed on results, while net profit matched the prior period thanks to non-operating gains.
Second quarter poised for a rebound
Looking ahead, Chicony Power expects second-quarter revenue to outperform the first as notebook inventory pull-in trends continue and communications power-supply demand rises. The company anticipates a moderate rise in average selling prices, driven by price adjustments and an improving product mix, which should help support profitability. It cautioned, however, that semiconductor shortages at customer sites limit visibility for the notebook market beyond June.
Costs rise, but new growth engines fire up
Chicony Power flagged cost pressures from rising metal prices and higher energy and petrochemical costs, in part tied to the US-Iran war. It said it is in discussions with customers to reflect these changes through reasonable price adjustments. The company also reported renewed momentum in its satellite communications power business, with new high-wattage models ramping in April and revenue expected to return to year-on-year growth in the second quarter. Telecom power supplies and AI server products are set to enter new production and testing phases in the second quarter, with AI-related momentum expected to strengthen in the second half of the year.
Article translated by Jingyue Hsiao and edited by Jerry Chen
