CHT Security H1 EPS Hits Record High of NT$6.16 as AI Emerges as New Revenue Engine
CHT Security (TWSE: 7765) was invited to hold its Q2 2026 earnings call on August 5. For the first half of 2026, consolidated revenue reached NT$1.182 billion, up 21% year-over-year (YoY); net profit after tax reached NT$251 million, up 13% YoY; and earnings per share (EPS) stood at NT$6.16. Both revenue and net profit set new record highs for the same period. Continuing this momentum, the newly released July revenue reached NT$210 million, up 9% YoY, bringing cumulative revenue to NT$1.392 billion, representing a cumulative YoY growth of 19% and continuing to set new historical highs.
CHT Security stated that in the first half of the year, recurring revenue, including Network Security subscription and SOC/MDR Security Monitoring Services, grew by 8.7% YoY, accounting for 47% of total revenue, primarily driven by steady customer base expansion and high retention rates. Non-recurring project-based revenue accounted for 53% of total revenue, largely fueled by strong demand across sectors such as government, finance, healthcare, and high-tech manufacturing to fulfill cybersecurity risk management requirements. Among these, revenue from proprietary products grew by 54% YoY, accompanied by the launch of a new AI cybersecurity product, "AI Archway." In overseas markets, robust demand from semiconductor and financial sectors propelled overseas revenue up by 233% YoY.
Analyzing revenue drivers, Frontier AI Models now possess the capabilities to rapidly discover and exploit security vulnerabilities, compelling many enterprises to proactively address vulnerability assessment and remediation earlier than planned. This shift has driven a sharp increase in order volume for Red Teaming Exercises, Penetration Testing, and AI Application Security Testing. Another major AI-driven demand lies in AI Governance. Governments and enterprises face challenges in controlling how employees utilize AI tools, giving rise to risks such as sensitive data leakage, unexpected cost inflation, and content misuse. The rapid market recognition and strong response following the recent rollout of "AI Archway" validate that AI will serve as a key new catalyst driving cybersecurity revenue growth.
Looking ahead to the second half of 2026, recurring revenue is expected to maintain steady growth. Combined with non-recurring project contracts valued at NT$600 million to NT$700 million slated for H2, the overall annual revenue growth trajectory is well established. Furthermore, driven by emerging AI-powered demand, spanning AI Security Assessment, AI SOC, and the new AI Archway governance products and services, the company expects its operational growth momentum to remain strong throughout the entire year.
In addition to deepening its market presence, CHT Security actively contributes to public-interest anti-fraud initiatives. At the end of July, the company officially launched the " Scam-Fighter" App, available for free download by the public. Built on proprietary patented AI recognition technology, the App automatically analyzes content features of incoming messages to effectively identify potential risks. Once installed, it automatically detects suspicious messages without collecting any personal data during the detection process, delivering real-time anti-fraud protection while safeguarding user privacy and data security.