Shengda Satellite Business Booms, November Revenue Approaches 300 Million Yuan, Setting a New Record

Communications satellite component supplier Shengda Technology (3491) delivered an impressive performance. In November, self-reported revenue reached NT$285 million, setting a new record high, with a year-over-year increase of 48%. After-tax net profit was NT$86 million, with earnings per share of NT$1.3, representing a 13% annual profit growth. Compared to the third quarter’s revenue of NT$484 million and after-tax net profit of NT$88 million, the operational momentum in November clearly accelerated, indicating the company is entering a new growth phase.

As of the first 11 months, Shengda Technology’s cumulative revenue reached NT$2.132 billion, a 1.34% year-over-year growth, breaking the historical same-period record. Cumulative after-tax net profit was NT$303 million, with earnings per share of NT$4.6, slightly below the same period last year but still the second-best performance ever.

Low Earth Orbit Satellite Orders Booming, Monthly Revenue Contribution Nears 70%

The main driver of Shengda Technology’s explosive performance is the strong growth in its low earth orbit satellite business. The company’s years of technical accumulation in satellite applications have borne fruit. Currently, satellite component revenue accounts for about 65%, while ground station equipment contributes approximately 35%. The product portfolio includes core modules such as payload, TT&C (Telemetry, Tracking & Command), ISL (Inter-Satellite Link), and D2C (Device-to-Device). Among these, TT&C and ISL new products started shipping in Q4 and continue to increase in volume.

The low earth orbit satellite business has become Shengda Technology’s core growth engine. In September, this business contributed about 58% of revenue; in October, it jumped to nearly 70%; and in November, it further rose to 64.5%. The cumulative revenue from low earth orbit satellites in the first 11 months was about NT$1.2 billion, significantly surpassing the NT$1 billion scale of the entire previous year. Shipments in December are expected to continue the strong momentum, likely leading to a substantial increase in satellite business revenue in Q4, surpassing the levels of the first three quarters, and extending the subsequent momentum into January.

Full Orders Support Future Growth, Market Recognition Continues to Rise

The order backlog has reached NT$1 billion, laying a solid foundation for Shengda Technology’s future operations. The company is optimistic about its performance outlook from Q4 2023 to 2026, expecting revenue contribution from the low earth orbit satellite business to at least double by 2026 compared to current levels.

In addition to its two major existing low earth orbit satellite operators, Shengda Technology is actively exploring cooperation opportunities with small and medium-sized satellite companies. Currently, about five potential partners with higher collaboration potential have been identified. One has already signed a contract to become a formal customer, planning satellite launches next year; another is expected to initiate transactions and enter the sample testing phase next year, which will help support medium- to long-term revenue momentum.

Furthermore, the company is closely monitoring emerging application trends such as space AI centers and space solar power, and has begun cooperation discussions with startups, actively positioning for the next wave of industry opportunities.

Fundamentals Drive Stock Prices to New Highs, Market Buying Continues to Gather

Strong financial results and optimistic growth expectations continue to attract market buying. Shengda Technology’s stock price has repeatedly hit new historical highs recently. After successfully breaking the NT$600 mark last Friday (12th), it continued to rise to NT$628 this week, reflecting high investor confidence in the company’s medium- to long-term prospects. The strengthening revenue momentum also confirms the market’s confidence is well-founded.