Taiwan Glass (1802) tops today's trading! Stock price rebounds by 5.25%, high-end fiberglass cloth order visibility extends to 2027

Taiwan Glass (1802) stock price showed a strong rebound during today's trading, reaching a high of NT$37.7, with an increase of nearly 7%. It closed at NT$37.1, marking a daily increase of 5.25%. This follows a significant rise of 8.01% on November 28, and a stable position above the five-day moving average, indicating another notable short-term increase. Today's trading volume exceeded 270,000 shares, with a transaction value of NT$9.891 billion, ranking first in trading volume among individual stocks on the Taiwan Stock Exchange.

Taiwan Glass's recent stock price performance has been primarily driven by trends in artificial intelligence servers and fifth-generation communication high-speed computing, which have boosted the technical specifications of printed circuit boards, leading to a substantial increase in demand for core raw material electronic-grade fiberglass cloth. The company's high-end product lines are operating at full capacity, with current order visibility extending to 2027, attracting significant market capital inflow and becoming the main driving force behind the stock price increase.

The wife of Taiwan Glass's president reported to the stock exchange in mid-August this year, planning to transfer 400 shares through the open market, estimated at approximately NT$14.38 million based on the closing price at that time. Despite the news of major shareholders adjusting their holdings, the company's stock price continued to rise strongly, not only recovering to the level before the reported transfer but also increasing trading volume again, indicating strong market confidence in buying this stock.

Taiwan Glass Q3 Ends Six Consecutive Quarters of Losses, NT$2.25 Billion Investment in New TD Yarn Factory to Expand Capacity

In a recent earnings conference, the company clearly stated that under the drive of the AI wave, PCBs must use low dielectric (Low DK) materials to meet high-frequency and high-speed performance requirements, resulting in a supply shortage of Taiwan Glass's first and second generation Low DK fiberglass cloth, as well as special specifications of low coefficient of thermal expansion (Low CTE) fiberglass cloth. In the first three quarters of this year, the fiberglass business group's revenue reached NT$9.31 billion, accounting for 30% of total revenue, contributing approximately NT$1 billion in profit, a significant increase compared to the same period last year.

Thanks to the strong profitability of the fiberglass business, along with stable contributions from the glassware sector, Taiwan Glass's revenue for the third quarter of 2025 was NT$10.726 billion, a quarter-on-quarter increase of 3.91% and a year-on-year increase of 6.19%; net profit after tax reached NT$277 million, successfully reversing six consecutive quarters of losses, with cumulative losses in the first three quarters also significantly narrowing.

In response to strong market demand, Taiwan Glass's board of directors approved an investment of NT$2.25 billion to build a new TD yarn factory to expand capacity in November. The company expects the new capacity to gradually come online starting in 2026, at which point the supply of high-end fiberglass cloth is expected to increase significantly by 40% to 50% compared to this year. Taiwan Glass aims to increase its market share from the current approximately 20%-25% to 40%.

The outlook for the company's three major business divisions varies, but overall operations are trending positively.

In the fiberglass cloth sector, benefiting from 5G construction and electric vehicle development, demand is entering a rapid growth phase, serving as the current core growth engine.

In contrast, the flat glass sector, primarily focused on the mainland China market, faces challenges due to weak demand in the local real estate and building materials sectors. The company will continue to promote cost reduction and efficiency improvement, as well as develop high value-added products to explore new markets For the glassware division, the export market remains stable due to a focus on high-priced customized products, but the domestic market faces intensified competition. The company will actively develop new products and customers, and is optimistic about next year's operations.

Taiwan Glass's Target Price Gains Market Expectation, Short-term Momentum Strong

Overall, Taiwan Glass has successfully seized the opportunity brought by AI and 5G for PCB material upgrades, with the high-end fiberglass business becoming a major growth pillar for operations, driving the company's overall profitability from loss to profit. As future expansion plans are implemented, market share and revenue scale are expected to increase simultaneously, laying a growth foundation for mid to long-term operations.

Market analysts point out that with fundamental turning points, long order visibility, and clear expansion plans as positives, Taiwan Glass's stock price has strong short-term momentum. With domestic institutional investors actively positioning and the year-end accounting season starting, the stock price has the opportunity to challenge previous highs