MS-Gold Circuit Electronics Ltd. Preliminary July profit announcement；Stay OW-20250813

What's new? GCE announced preliminary July profit per TWSE regulatoryrequirement.

• July revenue was NT$5,646mn (+22% m/m, +60% y/y), 33%/34% of MSe/Street's 3Q revenue estimates.

• Pre-tax profit was NT$1,308mn (+38% y/y), 31%/34% of MSe/Street's 3Qpretax profit estimate, for pre-tax profit margin of 23.2%, vs. MSe/Street's3Q pre-tax profit margin at 24.6%/23.3%.

• Net profit was NT$866mn (+44% y/y), 30%/33% of MSe/Street's 3Q netprofit, for NpM of 15.3% and EPS of NT$1.78, vs. MSe/Street's 3Q NpM at16.8%/15.8%.

Stay OW: GCE's July preliminary profit appears to be tracking in line with ourexpectations for 3Q, as we believe continued yield improvements for ASIC serverPCB and high-end networking PCB, as well as growing AI mix, will drive continuedmargin expansion for GCE in 3Q. Phase 1 of its Thailand plant 1 had limited revenuecontribution in July, but this should ramp up more meaningfully from Augustonwards. Stay OW.