Shengda Technology's November operations explode, EPS jumps by 1.3 yuan, Low Earth Orbit satellite business takes on a major role

Leading Satellite Components Manufacturer Shengda Technology (3491) announced an impressive December performance. Monthly revenue rose to NT$285 million, hitting a new record high, a significant increase of 48% compared to the same period last year; after-tax net profit for the month reached NT$86 million, with earnings per share (EPS) of NT$1.3, up 13% year-over-year. Compared to the third quarter revenue of NT$484 million, November’s single-month performance clearly warmed up.

Cumulative revenue for the first 11 months reached NT$2.132 billion, a 1.34% increase year-over-year, reaching a high level not seen in previous years. Although after-tax net profit for the first three quarters was NT$303 million, with EPS of NT$4.6, slightly lower than the same period last year, it still maintained a second-highest level in history for the same period. Supported by strong fundamentals, Shengda Technology’s stock price has recently performed strongly. After breaking the NT$600 mark last week, it closed today at NT$628, with continued market buying momentum.

Low Earth Orbit Satellite Orders Booming, Revenue Share Surges to 65%

The core driver of Shengda Technology’s growth comes from the booming development of its low earth orbit satellite business. The company has deep roots in satellite applications for many years, with current product lines covering satellite components (about 65% of revenue) and ground station systems (about 35%), successfully penetrating key segments of satellite payloads.

Specific products include communication payloads, telemetry, tracking and command systems (TT&C), inter-satellite links (ISL), and direct-to-device (D2C) systems. Among these, TT&C and ISL new products have started shipping in the fourth quarter and are entering a phase of gradual volume increase.

The low earth orbit satellite business has become the company’s growth engine. In September, this business contributed 58% of revenue; in October, it approached 70%; and in November, the share further increased to 64.5%. Cumulative revenue from low earth orbit satellites for the first 11 months was about NT$1.2 billion, demonstrating strong growth compared to NT$1 billion for the entire previous year. Analysts expect December shipments to outperform the previous two months, driving the fourth quarter’s low earth orbit satellite revenue to significantly surpass the performance of the first three quarters.

Orders Full, New Customers Flourishing

The company’s on-hand orders for low earth orbit satellites have reached NT$1 billion, making the business outlook from the fourth quarter through 2026 quite optimistic. It is expected that by 2026, revenue contribution from low earth orbit satellites will at least double from current levels.

In addition to its two major satellite operators, the company is actively expanding into small and medium-sized satellite providers, with about five potential high-potential partners. One has officially become a customer, planning to launch satellites next year; another is expected to start trading and enter sample testing stages next year, helping to add new momentum to mid- and long-term performance.

Furthermore, the company maintains a long-term pulse on industry trends, actively focusing on emerging fields such as space AI centers and space solar power, and has begun collaborations with startups to seize future business opportunities.

Stock Price Gains Momentum, P/E Ratio Reflects Growth Potential

Driven by solid financial fundamentals and broad business prospects, market funds continue to flow in. Shengda Technology’s stock price has repeatedly hit new highs, recently reaching NT$628, demonstrating market confidence.

From the perspective of reasonable P/E ratio comparison, Shengda Technology’s current P/E level is relatively reasonable, reflecting market expectations of explosive growth in its low earth orbit satellite business. As revenue from this segment is expected to double by 2026, the potential for future EPS growth is promising, further supporting valuation upward momentum. Investors are advised to use the P/E ratio as an evaluation anchor and closely monitor the company’s subsequent quarterly performance and order progress.