Innolux temporarily hit the daily limit with a trading volume of 370,000 sheets! The positive factors from SpaceX order news and fundamentals are converging.

Innolux (3481) Today (29th), the stock opened sharply at the limit-up price of NT$14.85, briefly maintaining the limit-up during trading, and closed at the limit-up. The total trading volume surged to 370,000 shares, setting a new record for Taiwan stock market trading volume. This rally not only broke the previous oscillation pattern but also drove peers such as AU Optronics (2409) and CEC-Panda (6116) to move higher in unison, becoming the market focus before the market closes.

Behind the Volume Surge: Chip Rotation and Bullish Gathering

From a chip perspective, foreign investors, who were previously cautious about the panel industry, bought nearly 30,000 shares today, becoming the main driver pushing the stock price higher. Proprietary traders’ hedging buy orders, combined with a significant increase in margin financing, clearly indicate that short-term funds are accelerating into the market. The massive volume of 370,000 shares not only completed high-point chip rotation but also showed that there were still large buy orders at the closing limit-up price, reflecting strong bullish confidence before the market closes.

Breakthrough in Low-Orbit Satellite Supply Chain: FOPLP Technology Enters SpaceX Ecosystem

The core factor driving today’s stock price explosion stems from market rumors—Innolux successfully entered SpaceX’s supply chain using FOPLP technology, responsible for RF chip packaging in Starlink ground satellite modules. If true, this marks Innolux’s official transition from traditional panel manufacturing to advanced semiconductor packaging, with ‘space-grade’ technology certification. The order visibility is expected to extend into the first half of 2026.

This breakthrough not only challenges the market’s traditional perception of panel manufacturers’ dependence on cyclical demand but also positions Innolux alongside international giants like STMicroelectronics (STM), transforming it into a core supplier with capabilities in AI and satellite communications, opening a new chapter in high-margin advanced packaging.

Fundamental Bottoming Out: Revenue Hits New High, Gross Margin Structure Optimized

Positive news also comes from the fundamentals. Innolux’s consolidated revenue for December 2025 reached NT$16.83 billion, up 3.8% month-on-month and 6.5% year-on-year, hitting a 13-month high. Despite the traditional off-season, the fourth quarter still showed a rebound, indicating simultaneous recovery in display and non-display business segments.

Chairman Hong Jin-Yang confirmed that Q4 2025 is the industry cycle bottom. As panel prices stabilize after falling, and with the demand driven by large-size panels in 2026 increasing by about 6%, the company expects better-than-expected operations in the first quarter of next year. Especially with the increasing proportion of high-value products such as automotive applications and advanced packaging, the gross margin structure has substantially improved, significantly reducing the impact of TV panel price fluctuations on profitability.

Technical Turning Point: Gap Breakout and Bullish Momentum Initiation

On the technical side, Innolux’s stock price today broke through the monthly and quarterly moving averages with a gap, sharply surpassing the downward resistance line since October. Among short-term technical indicators, the KD has completed a golden cross at low levels and continues to diverge upward, indicating a clear strengthening of short-term buying momentum.

The long red candlestick with high volume today pierced through all short-term moving averages, forming a typical “volume-driven rally” bullish pattern. If the buying momentum can continue, allowing the stock to stay above NT$14.85 (limit-up price) for three consecutive trading days, the short-term upward target will point to the 2025 high of NT$16.45.

Market Outlook and Trading Strategy

Short-term: With only a few trading days remaining before the market closes, whether the volume can sustain above 200,000 shares will be a key observation. The stability of chip holdings will determine the potential for January’s market trend.

Mid-term: Close attention should be paid to whether panel prices in Q1 2026 rise as expected and when the orders from SpaceX will concretely contribute to EPS.

Trading suggestion: After today’s explosive volume and limit-up, it is not advisable to chase the stock blindly in the short term. Waiting for a pullback to test the gap created today, without breaking it, and then considering phased positions can help avoid the risk of chasing high at the top. Innolux’s valuation logic has quietly shifted from a cyclical stock to an advanced packaging/communications concept stock, and its future growth potential warrants close attention.