A tight supply of glass fiber fabric, a key upstream material tied to AI server buildouts and faster transmission demand, has lifted Fulltech Co. (1815) as its product mix shifts toward higher-end shipments. The company posted a record profit for the second quarter, and first-half earnings per share came in at NT$2.24, surpassing its full-year 2025 EPS of NT$1.64.
Strong fundamentals and continued foreign buying also supported the stock. According to the report, foreign investors bought 15,890 lots over six consecutive trading sessions. In early trading today, buying pushed the shares higher at the open, and the stock at one point hit limit-up, returning to the NT$100 mark.
Higher-end Low-Dk shipments lifted margins in the second quarter
Analyst Wang Rongxu said the scramble for AI-related components has moved upstream from GPU chips and cooling modules to ABF substrates, copper clad laminate, and glass fiber fabric. The report described Fulltech as the supplier with the highest glass fabric purity in the market.
In the second quarter, stronger shipments of next-generation high-end Low-Dk glass fiber fabric and higher product pricing pushed gross margin to 39.9%, up from 24.5% a year earlier. The change points to a clear improvement in the company’s earnings structure.
Fulltech said advanced-process products are expected to account for 70% of its capacity this year. The company is still expanding Low DK1 and Low DK2 production, and said the impact should appear gradually in revenue and earnings over the coming quarters.
July revenue set another high as second-half supply gap remains wide
The company said July revenue reached another record, rising more than 24% from the previous month. The report added that the supply-demand gap in the high-end glass fiber fabric market in the second half of the year is estimated at as much as 60%.
Fulltech also pointed to several other business drivers. Output growth for Low DK1 and Low DK2 remains in place, while penetration of Low CTE materials in advanced packaging is climbing steadily. At the same time, shipment volume and pricing for E-grade glass fiber fabric used in low-earth-orbit satellites are both rising. Combined with a marked improvement in subsidiary operations, the company described its second-half outlook as “cautiously optimistic.”
Thailand plant phase one already fully booked before completion
To meet customer demand and strengthen supply-chain resilience, Fulltech is pushing ahead with its overseas expansion. The first phase of its new Thailand plant has already broken ground, and the company said all capacity from that first phase has already been fully reserved by customers before completion.
The plant will use Fulltech’s advanced manufacturing process and focus on high-end glass fiber fabric for AI servers, low-earth-orbit satellites, and IC substrates. Mass production is scheduled for the third quarter of 2027. The company said the site will also help it serve Southeast Asian customers more closely by drawing on regional supply-chain advantages, with revenue and profit contributions expected from the second half of 2027.
Institutional estimates put full-year EPS at NT$4.5 to NT$5, with higher targets next year
The report said institutional analysts expect Fulltech’s full-year EPS to challenge NT$4.5 to NT$5 or more after first-half EPS reached NT$2.24. For next year, the same analysis put earnings potential at NT$7.5 to NT$8.
ABMedia said the market is continuing to watch Fulltech’s operating performance and share price based on its current earnings growth trajectory and price-to-earnings valuation.