MiTAC International Corp (
"We aim to boost our shipment this year by several times from last year," said MiTAC president Billy Ho (
"We believe the growth momentum will carry into the current quarter. For the full year of 2005, Europe will continue to be a market with the strongest growth," Ho said on the sidelines of a press conference to launch the company's new products.
Last year, MiTAC shipped around 1 million portable GPS units, including pocket computers enabled with GPS functions. Of those, 70 percent were sold to Europe.
MiTAC branched into the high-margin market in November 2003, unveiling its first product under the "Mio" brand as it searched for new growth areas.
Gross margin for the GPS products is around a double-digit percent, Ho said.
This is much better than the 6 percent gross margin earned by local contract computer makers led by Quanta Computer Inc (
In addition to its brand-name business, MiTAC also makes GPS products for other device vendors, including German GPS giant Medion AG. Contract manufacturing was a strong driver of sales last year.
A bulky 65 percent of sales in the GPS division came from contract manufacturing services last year, Ho said, adding that this would remain unchanged this year.
MiTAC's new GPS business, which made up 15 percent of the company's total revenue of NT$50.5 billion last year, has attracted investor interest.
"Surging GPS volume is bringing MiTAC better margins," said Vincent Chen (
The Hong Kong-based research house initially added MiTAC into its list of covered companies in May. It rates the company a "buy," with a 12-month target price of NT$43.1, which represents about 41 percent upside from the closing price of NT$30.5 yesterday.
The global automotive GPS market is expected to expand rapidly, at an annual pace of 38.2 percent for new cars and 30 percent for the aftermarket during the five-year period from 2003 to 2007, Chen said, citing market researcher Gartner Inc's statistics.
Boosted by the resilient demand, MiTAC's shipment are expected to nearly triple to 2.7 million this year, which would boost the company's market position in the aftermarket to 14 percent this year, from 6 percent last year, Chen said.
NOT ALL GOOD: Analysts warned that other data for last month might be less rosy due to the virus and analysts expect the PMI to contract again next month Chinese factory activity saw surprise growth last month as businesses went back to work following a lengthy shutdown, but analysts said that the economy faces a challenging recovery as external demand has been devastated by the COVID-19 pandemic, while the World Bank said that growth could screech to a halt. China is slowly returning to life after months of tough restrictions aimed at containing the virus, which put millions of people into virtual house arrest and brought economic activity to a near standstill. The strict measures saw a closely watched gauge of manufacturing plunge to its lowest level on record in February,
The output of the global smartphone industry this year is to contract by 7.8 percent on an annual basis as the COVID-19 pandemic ushers in a global recession, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report on Monday. The global production of smartphones is expected to fall to 1.29 billion units, as the pandemic dampens demand for consumer electronics, leading to a decline in shipments across Europe and North America, TrendForce said. With consumers delaying smartphone purchases and thereby lengthening the device replacement cycle, overall prices would suffer a setback that is expected to negatively affect the profitability of smartphone
ELECTRONICS Lite-On delays sale of unit Lite-On Technology Corp (光寶科技) yesterday said it would postpone the sale of its solid-state drives (SSD) business to Kioxia Holdings Corp, formerly known as Toshiba Memory Holdings Corp, due to disruptions amid the COVID-19 pandemic. Last year, the Taiwan-based electronics components supplier struck the deal with the Japanese firm, agreeing to sell the unit for US$165 million. Citing unfinished integration work due to the pandemic, Lite-On has deferred today’s closing date until further notice, adding that the delay would not have a negative effect on the unit’s operations. AUTO PARTS Hiroca approves dividend Automotive interior parts supplier Hiroca
ALL ABOUT STRATEGY: The company is optimistic, saying that its gross margin should increase year-on-year, but it is scaling back on its plans to expand capacity Quang Viet Enterprise Co (QVE, 廣越), which makes down jackets and garments for sportswear and outdoor brands including Adidas AG, yesterday said that revenue might drop 5 to 10 percent annually this year as some customers trimmed orders in response to the COVID-19 pandemic. That would mark its first revenue decline since 2016. Quang Viet posted record-high revenue of NT$16.26 billion (US$537.45 million) last year, up 22 percent from 2018. Down jackets made up 40 percent of it revenue last year. North Face Inc and Patagonia Inc are this year likely to reduce orders by 20 to 30 percent from a