Rongcheng Electric: Military-Industrial Revenue to Reach 50% This Year, Plans Thailand Factory Investment

AI Summary (NQ-processed)

Industrial computer manufacturer Rongcheng Electric announced at an investor conference that its military-industrial business is projected to exceed 50% of total revenue this year, driven by increased global defense budgets. The company plans to invest in a factory in Thailand to produce low-end, high-volume products. Rongcheng Electric also reported record-high consolidated revenues for March (NT$352 million, +13.7% YoY) and Q1 (NT$947 million, +18.2% YoY). The company aims to enter the low-earth orbit satellite application market through a joint venture. Despite an anticipated Q1 gross margin dip to 37% due to memory price hikes, it expects a rebound from Q2, targeting a full-year gross margin of 39.85%.