Hong Yu Electric Sets IPO Price at 280 NTD, Citing Bright AI Power Outlook

Hongyu Electric (stock code: ?) has officially announced that it will list on the OTC market in late November at an underwriting price of NT$280 per share. Chairman Chen Chia-rong stated at a press conference that the company currently holds a steady order book and maintains an optimistic outlook for its operational prospects over the next three to four years, particularly regarding business visibility through the end of 2028 and into 2029. Since its inception, Hongyu Electric has focused on smart power and energy system integration, accumulating extensive practical experience in domestic and international grid upgrades and renewable energy grid connection.

On the technical front, Hongyu Electric is actively promoting the application of AI in power infrastructure, embedding machine learning and big data analytics into grid monitoring and load forecasting to enhance operational efficiency and safety. As the Taiwan government accelerates its "energy transition" and "smart grid" initiatives, demand for high-performance, low-carbon power systems is rising. Hongyu Electric’s solutions not only assist power companies in reducing operational costs but also provide real-time energy flow information on energy management platforms, meeting international standards for smart grid requirements.

Financially, Chen stated that the company’s revenue has grown at an annual rate of over 10% in the past two years. The company boasts a diversified client base, including the Taiwan Power Company, local governments, and large industrial clients. Driven by signed long-term contracts and upcoming overseas projects, the company projects that its revenue will surpass several billion New Taiwan dollars by the end of 2028, with an operating profit margin maintained between 10% and 12%. The Chairman further noted that expansion into overseas markets will bring higher gross margins and technological barriers to entry, further strengthening the company’s competitive advantage.

Hongyu Electric’s upcoming listing is also viewed as a strong offensive into business opportunities related to AIDC (Advanced Industrial Design and Manufacturing). AIDC plays a significant role in Taiwan’s industrial chain; collaboration with Hongyu Electric on smart power platforms would combine advanced manufacturing technology with power system optimization to create more comprehensive energy solutions. This move is expected to bring technological upgrades and market expansion to Hongyu Electric, while providing AIDC with new business models and revenue streams.

Overall, Hongyu Electric’s listing plan and future outlook demonstrate its solid foundation and long-term growth potential in the fields of energy transition and smart grids in Taiwan. The company’s stable order structure, forward-looking application of AI technology, and overseas expansion strategy provide multiple pillars of support for its future operations. For investors focused on new energy, smart power, and related industrial chains, Hongyu Electric’s listing represents not only a new opportunity in the capital markets but also a significant step for Taiwan in the global competition in energy technology. (Source: Central News Agency)