118.57 dollars in quarterly earnings per share, why Taiwan's record figures come from two very different sources

The short version

• Phison Electronics lifted quarterly profit by 3,419 percent to 26.217 billion Taiwan dollars, with earnings per share of 118.57 dollars.
• Taishin Shinkong Financial Holding reported a 281 percent profit rise over seven months, but that largely reflects a merger.
• Both figures are correct and both say less than their size suggests.

The memory specialist's figures

Phison Electronics reported second quarter 2026 revenue of 67.888 billion Taiwan dollars, up 65.71 percent on the previous quarter and 279.47 percent on the year.

The gross margin reached 65.31 percent, a gain of 36.25 percentage points year on year. The operating margin was 38.84 percent after a rise of 25.73 points. Net profit came to 26.217 billion dollars, up 3,419 percent on the year. Earnings per share were 118.57 dollars.

For the first half, revenue adds up to 108.855 billion dollars, up 243.08 percent. Half year profit reached 41.391 billion dollars, a rise of 2,095.8 percent, with earnings per share of 187.43 dollars. A cash dividend of 60 dollars per share was proposed.

Why these figures are cyclical

A profit rise of 3,419 percent mainly describes a price move. At makers of memory products, the purchased memory chip accounts for much of the cost. When selling prices rise faster than purchase prices, the spread widens. There is also an inventory effect, when stock bought at old low prices is sold at new high ones.

The memory market has followed the same pattern for decades. Scarcity drives prices, high prices produce high margins, high margins lead to capacity building, and new capacity pushes prices down. Because a plant takes years, the new supply often arrives just as demand is easing.

The financial group's figures

Taishin Shinkong Financial Holding, formed through a merger, published its self-calculated July 2026 figures on 13 August. Monthly after-tax profit was 8.94 billion dollars, up 147 percent. The first seven months came to 52.78 billion dollars, a rise of 281 percent, with earnings per share of 2.04 dollars.

Among the subsidiaries, Taishin Bank made 14.91 billion dollars over seven months, up 29 percent. Shinkong Bank made 6.07 billion dollars, up 159 percent. Group half year profit was 43.83 billion dollars, a rise of 329 percent. The group's life insurer lifted half year profit by 1,630.7 percent to 22.5 billion dollars.

Caution is needed here. A comparison with the prior year period compares units of different sizes, because depending on the merger date the prior year figure contains only one of the two houses. Another number makes this visible. May 2026 revenue was 14.843 billion dollars, up 317.18 percent. Growth rates of that size do not arise at a bank from better business.

The subsidiaries are more informative, since they continue as separate units. There growth runs at 29 and 159 percent. The group's securities arm even posted a 30 million dollar loss for July, because the market fell that month.

The market backdrop

Both announcements landed in an exceptional market phase. Taiwan's benchmark index has gained around 6,000 points from its low and passed the 46,000 mark. Since the start of the year it is up about 57 percent, putting Taiwan ahead of South Korea.

A Taiwanese investment strategist has pointed to two weaknesses in this recovery. Trading volume is insufficient, and the move is carried by too few stocks. A narrowly carried market is seen as fragile, because nothing supports the index if one of the few drivers falters.

Frequently asked questions

How can a gross margin jump by 36 points

Because with memory products the purchased chip makes up much of the cost. When selling prices rise faster than purchase prices, the spread widens. Add the inventory effect from stock bought cheaply and sold dearly. The same effect works in reverse when prices fall.

Why can record figures weigh on a share price

Because prices reflect expectations about the future, not results from the past. When a cyclical company reports peak revenue and margins, attention turns immediately to how long that level can hold. Very high margins are themselves a warning sign, since they invite competitors to add capacity.

Why are the 281 percent at Taishin Shinkong misleading

Because the group was formed through a merger. The new accounts contain both houses, while the prior year figure contains only one depending on timing. The growth rate then partly measures the merger rather than business performance. The subsidiaries, at 29 and 159 percent, are more informative.

Why do insurance profits swing so much

Because life insurers invest customer premiums over decades. Their reported result therefore depends heavily on how equity and bond markets moved in the period. A rise of more than 1,600 percent usually describes favourable capital markets or the absence of a prior year charge.

What is the most useful question about very high growth rates

Not by what percentage something rose, but from what base. Very high rates almost always arise because the comparison figure was small, whether from low prices, a prior year charge or a different corporate structure.

This text is not investment advice. It reports verifiable figures and puts them in context.

This analysis is for information only and is not investment advice.