Taiwanese power supply maker Liang Te Electric is counting on Starlink orders to turn its business around in the second half of the year — a broadly positive signal for investors, though the company itself admits the first half was difficult.

• Shipments of low-Earth-orbit satellite products came in below expectations in the first half, accounting for less than 5% of the total, and the company is pinning its hopes on the second half.
• Testing of the DC products supplied to Starlink was completed in the third quarter, while the AC products are still undergoing certification.
• Another US customer awarded most of its orders to Luxshare, dealing a significant blow to Liang Te Electric.
• Copper prices have stayed stuck at high levels throughout the past six months, and copper accounts for roughly half the cost of power supply products, leaving the company to cut costs through automation and by shrinking product size.
• The pickup in orders for computers and laptops in the first half was really manufacturers stocking up early for fear of rising raw material prices, rather than a genuine improvement in demand, and the second-half peak season may prove quieter than in previous years.

Outlook: If low-Earth-orbit satellite shipments do ramp up in the second half, they could fill the gap left by weakening computer and laptop demand, but as long as copper prices stay high, margins will remain limited.