Taiwan-based copper foil producer Co-Tech Development Corp. (8358.TWO) reported on November 24 that its October net profit jumped 137% year-on-year to TWD 109 million (USD 3.47 million / CNY 24.57 million), with earnings per share rising 138.9% to TWD 0.43 (USD 0.0137 / CNY 0.097).

Monthly revenue climbed 34% to TWD 701 million (USD 22.36 million / CNY 158.15 million), driven by robust shipments of high-end copper foil. Co-Tech supplies materials used in lithium batteries and a wide range of PCB applications, including handsets, networking devices, PC peripherals, home appliances, industrial systems, and medical equipment.

Rapid growth in AI server demand and ongoing upgrades in PCB specifications have significantly boosted shipments of the company’s advanced hyper-very-low-profile (HVLP) copper foil.

From January to October, consolidated revenue reached TWD 6.41 billion (USD 204.46 million / CNY 1.45 billion), up 13.76% from a year earlier. Cumulative net profit for the period totaled TWD 794 million (USD 25.32 million / CNY 179.31 million), equivalent to TWD 3.14 per share (USD 0.10 / CNY 0.71).

Regulator Flags Trading Volatility

Co-Tech's shares have experienced sharp swings due to tight supplies of high-end copper foil. On November 21, trading volume surged to 88 million shares — the highest since mid-September — prompting Taiwan's stock regulator to request early disclosure of October results.

The stock closed at TWD 234 (USD 7.46 / CNY 52.83) after reaching an intraday high of TWD 255.5 (USD 8.15 / CNY 57.66). Co-Tech shares have risen more than 300% this year.

HVLP3 and HVLP4 Become Core Growth Drivers

Co-Tech said advanced HVLP3 and HVLP4 copper foil products have become mainstream as AI-related demand accelerates. These products currently account for 10 to 15 percent of revenue and are expected to rise to 15 to 20 percent next year, boosting overall margins.

To address supply constraints, the company is fast-tracking construction of its third plant, scheduled to begin production in the fourth quarter of next year, significantly expanding HVLP capacity.

Outlook: Q4 Seen as Peak, Growth Expected in 2025 and 2027

The company expects the fourth quarter to be its peak operating period this year, driven by strong AI server and high-end PCB demand.

Co-Tech forecasts further growth next year and a major expansion in 2027 when new production lines start contributing.