King Slide Technology, a major supplier of server rails, opened limit down on Oct. 7 after its September revenue dropped about 31% from August, as the rush-order effect seen over the prior two months faded.
The company had recently disclosed self-reported financial data at the request of regulators, following strong demand for AI server rail products.
August profit remained strong
According to King Slide’s filing, August consolidated revenue reached NT$6.466 billion. Pretax profit was NT$4.826 billion, after-tax profit came to NT$3.819 billion, and earnings per share stood at NT$40.07. The company said that figure represented year-over-year growth of more than 212%.
Compared with second-quarter EPS of NT$74.38 for the full quarter, August alone accounted for more than 53% of that level, reflecting the margin profile and pricing power of its higher-end products.
Even so, August EPS was lower than July’s NT$50.24. The company said the difference was mainly tied to exchange-rate moves. In July, a weaker Taiwan dollar contributed more than NT$5 per share in foreign-exchange gains. In August, a stronger Taiwan dollar led to about NT$9 per share in FX losses. Excluding non-operating currency effects, the company said its core earnings structure remained solid.
September revenue returned to a more normal level
King Slide reported September revenue of NT$4.464 billion, down about 31% from August. That also ended a run of six straight months of record highs.
The company attributed the pullback to the end of the rush-order effect from cloud service providers, or CSPs, and AI startups that had concentrated purchases in July and August. With that demand wave easing, September revenue returned to a level closer to the roughly NT$4.4 billion seen in June, though year-over-year growth still approached twofold.
Despite the monthly decline, September revenue was still up 196.22% from a year earlier and ranked as the company’s third-highest monthly result on record. Cumulative revenue for the year reached NT$33.617 billion, with cumulative growth of 167.84%.
Market focus shifts to fourth-quarter shipments
Backed by the AI theme and strong fundamentals, King Slide’s share price had climbed from about NT$3,300 at the start of the year to above NT$15,000 in late August. After the release of its self-reported earnings figures and September revenue, the stock entered a period of high-level volatility. On Oct. 7, it opened limit down at NT$11,790.
ABMedia reported that market participants viewed the September normalization as an expected order fluctuation, with attention now shifting to the fourth quarter. Whether King Slide can sustain shipment momentum for high-end AI server rail products is now the key point being watched.