Data Image’s New Products Ramp Up in Q4; Nautical Peak Season to Lift Second-Half Operations — BigGo Finance

Data Image (3160.TW), a rugged display manufacturer under Qisda (2352.TW), held an investor conference on the 25th. The company said that second-half revenue and operational performance are expected to outperform the first half, benefiting from nautical products entering their traditional peak shipping season, solid order intake, and the sequential mass production of multiple new products across industrial control, medical, and specialty vehicle segments.

Data Image noted that among its product lines in the second half, the recreational marine business is expected to post the largest shipment volume, with recent order intake remaining positive. Industrial control follows closely behind, as the 27-inch large-format display for U.S. fuel pumps — a flagship model — has already begun volume shipments. Given the product’s large size and higher unit price, it will serve as one of the revenue drivers for 2026.

In terms of new industrial control products, 43-inch to 65-inch Open Frame platform information displays are expected to begin batch shipments in the fourth quarter. Displays ranging from 15 inches to 32 inches for electric vehicle fast-charging stations have already begun shipping in small volumes, providing human-machine interface functions, advertising playback, and device status monitoring capabilities.

The specialty vehicle segment also has new products in the pipeline. All-terrain vehicle instrument panel products have passed customer certification and are expected to enter mass production in the fourth quarter of this year. The company’s smart instrument panels for specialty vehicles, developed under the Industrial Upgradation and Innovation Platform program, are currently in the sample validation stage. Specialty vehicle revenue in the first half reached NT$356 million (approximately $11.2 million), with its share of total revenue rising from 13% in the same period last year to 19%. Revenue growth approached 60%, making it one of the primary growth drivers for 2026.

In the professional medical segment, 27-inch OLED ultrasound displays have entered mass production and are shipping, with volumes gradually ramping up. The 55-inch and 65-inch operating room display flagship models are also scaling up simultaneously, with full-year shipments projected to double compared to last year. Additionally, next-generation ultrasound displays are being co-developed with customers. If projects are successfully secured in the second half, revenue contributions are expected to begin in 2027.

Beyond the peak season effect in the nautical business, Data Image’s newly developed FPD-Link integrated solution is currently undergoing sample validation with customers. The company explained that FPD-Link is a high-speed serial streaming solution with a certain technical barrier to entry. It helps customers simplify wiring on the manufacturing side and reduce costs. For Data Image, incorporating specialized features can raise product unit prices and gross margins, while also helping expand the scope of business it can take on in the future. In addition, the sonar fish finder developed in collaboration with the group has begun shipping, and the next-generation AI sonar fish finder project has been initiated.

First-Half Operations and Product Mix

Data Image posted first-half consolidated revenue of NT$1.89 billion (approximately $59.3 million), up 11% year-over-year. Gross margin came in at 23%, down approximately 2 percentage points from the same period last year. Net profit after tax was NT$107 million (approximately $3.4 million), up 19% year-over-year, with earnings per share of NT$1.43.

By product mix, industrial control generated first-half revenue of NT$596 million (approximately $18.7 million), accounting for 32% of total revenue and making it the largest product line. Recreational marine and professional maritime revenue was NT$479 million (approximately $15.0 million), representing 25%. Professional medical revenue was NT$357 million (approximately $11.2 million), or 19%. Specialty vehicle revenue was NT$356 million (approximately $11.2 million), also 19%. The remaining businesses accounted for approximately 5%.

Note: Consolidated revenue was NT$1.89 billion; percentages may not sum to 100% due to rounding.

AI Crowding-Out Effect Emerges; Proactive Inventory Build-Up in Response

Another topic that drew attention at the investor conference was the crowding-out effect on the supply chain caused by strong AI demand. Data Image said that due to AI-related demand consuming significant semiconductor capacity, certain ICs and passive components are currently experiencing shortages and extended lead times. Among these, lead times for some industrial control-related components have stretched to as long as one year.

To ensure supply and revenue growth next year, the company has proactively made long-term arrangements for materials needed in the first half of 2027, adopting a more aggressive policy-driven inventory build-up strategy. As of the end of June, inventory turnover days increased from 78 days in the same period last year to 97 days, primarily driven by order production requirements and policy-driven stockpiling. Accounts payable turnover days rose from 64 days to 70 days, as the company moderately extended payment cycles to ease the pressure on working capital from increased inventory build-up.

Data Image emphasized that overall inventory remains within a manageable range, and the focus for second-half management will continue to be on accounts receivable and inventory control to improve capital efficiency.

Gross Margin Improvement Strategy

Addressing the year-over-year decline in first-half gross margin, Data Image said it is working on improvements from both the raw materials and production line fronts. On the raw materials side, the company continues to push for cost savings. Despite encountering shortages and price increases for certain components, it has successfully reduced procurement costs for some materials. On the production side, it continues to manage manufacturing expenses, focusing on the cost required per unit of product.

Looking ahead to 2027, Data Image said it will continue to increase the proportion of high-value-added and differentiated products. Through product mix optimization and production efficiency improvements, the company aims to further expand its business scale and enhance overall profitability, with full-year profit performance expected to improve further next year.