During its November 6 earnings call, Cheng Shin, a server chassis manufacturer, reported October revenue of TWD 23.1 billion, down 6.8% month over month but up 15.8% year over year. This was its lowest level in six months and 15.2% below consensus estimates. The company attributed the shortfall to customer inventory adjustments and delays in ramping up new projects, noting that existing projects were unaffected.
Third-quarter gross margin was 25.83%, compared with 26.65% in the second quarter, due to changes in product mix and component supply constraints. Looking ahead, Cheng Shin aims to increase the share of its cabinet manufacturing business to 20% of revenue by 2027 by diversifying its offerings beyond chassis for NVIDIA, AMD, and custom ASIC platforms.
$NVDA
$AMD
$ERA
Third-quarter gross margin was 25.83%, compared with 26.65% in the second quarter, due to changes in product mix and component supply constraints. Looking ahead, Cheng Shin aims to increase the share of its cabinet manufacturing business to 20% of revenue by 2027 by diversifying its offerings beyond chassis for NVIDIA, AMD, and custom ASIC platforms.
$NVDA
$AMD
$ERA