Koyokai (1785) hits the daily limit at 69.3 yuan: three key drivers behind the surge—gold price hitting new highs, AI hardware demand, and semiconductor localization

Koyo Tech (1785) today (23rd) demonstrated a remarkable technical breakthrough, with the stock price strongly hitting the daily limit-up during trading, closing at 69.3 yuan, setting a new high in over a year and a half. This rally is not without foundation but is the result of multiple positive factors working together. As of the close, there are still over ten thousand buy orders waiting at the limit-up, indicating market optimism for this Taiwan-based leader in advanced materials and precious metal recycling.

Safe-Haven Capital Flows In, Gold Prices Surge Ignite the First Catalyst

Currently, global geopolitical tensions are escalating, with central banks worldwide increasing gold purchases. International spot gold prices are approaching the historic peak of $4,500 per ounce, with year-to-date gains shocking the market. Amid this risk-averse wave, Koyo Tech, as the largest revenue contributor among Taiwan’s three major gold companies and a leader in recycling technology, has a market consensus on its positive correlation with gold prices.

From a fundamental perspective, high gold prices bring dual benefits to Koyo Tech. First, the company’s holdings of precious metals in circulation appreciate in value as gold prices rise, directly reflected in financial statements. Second, record-high gold prices stimulate recycling demand from both individuals and enterprises. Leveraging its leading refining and recycling technologies, Koyo Tech profits from higher buy-sell spreads and processing fees. Driven by risk-averse sentiment, capital preferentially targets companies with stable revenue structures and circular economy concepts like Koyo Tech, becoming the immediate catalyst for today’s limit-up surge.

Dual Fundamental Drivers: November Revenue Hits Record High & AI Server Hardware Opportunities

More convincing is Koyo Tech’s recent fundamental data. The company’s consolidated revenue for November reached 3.816 billion yuan, up 14% month-over-month and 26.39% year-over-year, not only setting a monthly record but also the highest in nearly a decade for the first 11 months. This performance reflects the success of Koyo Tech’s business transformation.

The company’s core competitiveness lies in its “Value-Added Services (VAS)” business, which refers to the actual technical service income after deducting precious metal costs. This type of business has much higher gross margins than simple metal trading, highlighting technological content. In a recent investor briefing, management revealed an important signal: Demand for 30TB+ high-capacity HDDs in AI data centers has entered an acceleration phase.

The reason is that AI model training and inference generate massive data flows, increasing the specifications required for storage devices. The introduction of new HAMR (Heat-Assisted Magnetic Recording) technology significantly increases the use of precise target materials, directly benefiting Koyo Tech’s position in the hard drive supply chain. The company’s order visibility in this area has extended beyond 12 months. As high-margin products’ proportion increases, the third-quarter EPS of 1.17 yuan already shows a clear profit rebound, with market expectations for continued strength into Q4 and early next year.

Breakthrough in Domestic Semiconductor Target Materials: Entering 3nm & 5nm Core Supply Chains

If the first two are short-term catalysts, then the layout of semiconductor front-end target materials is the long-term growth engine for Koyo Tech. Historically, Taiwan’s sputtering target materials in the semiconductor industry have been dominated by Japanese firms (like JX Metals) and American giants (like Honeywell). Under the dual push of geopolitical risks and TSMC’s leadership in promoting localized supply chains, Koyo Tech has successfully broken this oligopoly.

Currently, the company has obtained certification and stable shipments of some copper, aluminum, titanium, and tantalum target materials for the most advanced 3nm and 5nm process nodes in Taiwan. These “domestic substitution” opportunities have extremely high entry barriers; once certified, supply relationships typically last for several years, creating high stickiness. The semiconductor division’s split plan launched at the end of 2024 aims to create more flexible R&D and capital operation space for this sector. Market estimates suggest that as AI chip capacity continues to expand, revenue from Koyo Tech’s semiconductor front-end materials could double within the next two years, forming a solid long-term foundation for stock price growth.

Competitive Advantages Over Peers: Resilient, Versatile Applications, Unique Supply Chain

Within Taiwan’s semiconductor materials sector, Koyo Tech is often discussed alongside Zhongsha (1560). Zhongsha’s “diamond discs” in CMP (Chemical Mechanical Planarization) boast over 30% gross margin but have a smaller overall revenue scale compared to Koyo Tech. In contrast, Koyo Tech’s competitiveness lies in its broader “metallurgical science” application ecosystem.

Koyo Tech’s investment logic is more “resilient.” It benefits not only directly from the demand of advanced process manufacturers like TSMC but also from the rigid demand for AI server hardware and the circular economy trend of electronic waste recycling. Against the backdrop of global emphasis on green supply chains and ESG, Koyo Tech’s ability to recycle and refine electronic waste into semiconductor-grade target materials forms a “closed-loop supply chain,” creating a unique technological barrier and a differentiated competitive advantage internationally.

Technical & Chip-Flow Momentum: Bullish Pattern Nears Confirmation

From a technical perspective, Koyo Tech (1785) performed elegantly today. The stock price broke out with a volume gap from the consolidation zone of 60-64 yuan over the past half-year, forming a clear breakout gap. This pattern indicates that short-term trapped positions have been fully released, and the bullish momentum is unstoppable. KD and MACD indicators are both trending upward, with volume expanding to over 44,000 lots, showing genuine capital inflow rather than false rallying.

The chip-flow aspect provides the most convincing bullish signal. Post-market data shows that foreign institutional investors bought heavily today. Previously, foreign investors held relatively reserved positions in Koyo Tech, but with revenue hitting new highs and gold prices soaring, institutional funds have clearly flowed back. Meanwhile, major institutional holdings have increased their concentration. If margin debt remains low, it indicates a stable chip structure with strong resilience, making short-term fluctuations less likely to shake the bullish trend.

Future Outlook: Short- to Medium-Term Price Levels & Monitoring Focus

Mid- to Long-Term View: If the stock price can hold above 65-66 yuan, the bullish pattern will continue upward.

Short-Term Reminder: Since today’s rally already hit the limit-up, and the deviation from the 5-day moving average is large, caution is needed for chasing the high and taking profits.

Key Monitoring Indicators: Keep an eye on whether international gold prices remain strong and whether foreign and institutional investors continue their net buying trend. These two factors are critical for whether the wave can extend beyond the 75 yuan resistance zone.

Overall, Koyo Tech (1785)’s strong momentum results from the resonance of three major drivers: gold price safe-haven demand, AI hardware needs, and semiconductor domesticization. Looking ahead to 2026, as the semiconductor division’s performance gradually releases, Koyo Tech is expected to transform from a traditional precious metals recycler into a high-tech semiconductor materials and AI hardware component supplier, which will be the core logic supporting long-term stock price appreciation.