Mon, Aug 15, 2011 - Page 12 News List

Sales growth forecast for advanced battery makers

Staff Writer, with CNA

Strong demand for advanced lithium polymer batteries is expected to lift sales of Simplo Technology Co Ltd (新普科技) and Dynapack International Technology Corp (順達科技), two of Taiwan’s leading battery makers, market analysts said on Saturday.

As ultra-thin notebook computers and Apple Inc’s MacBook Air and iPad have been well received by consumers, demand for lithium polymer batteries, one of the key components for these devices, is on the rise, they said.

Battery prices in the second quarter of this year rose by between 5 percent and 8 percent from the first quarter on the back of increasing sales in high-end notebooks, according to sources in the local battery sector. The favorable market conditions defied conventional wisdom that the second quarter is a slow period for the global high-tech sector, the sources said.

Because of rising sales of ultra-thin notebook computers and the iPad, the supply of lithium polymer batteries remains “tight,” indicating that selling prices are expected rise further, they added.

Because Simplo and Dynapack are major battery suppliers for Apple products, the two companies are expected to benefit from the upswing and report higher sales in the third quarter after they posted record high sales last month, according to market analysts.

Last month, Simplo recorded NT$4.47 billion (US$154.5 million) in sales, up 5.9 percent from June. It was the fifth consecutive month that the company broke its sales records.

In the same month, Dynapack posted NT$1.99 billion in sales, up 10.7 percent from a month earlier.

In the first seven months of this year, Simplo posted NT$26.07 billion in revenues, up 22.61 percent from a year earlier, while Dynapack’s sales rose 20.22 percent to NT$11.84 billion.

Analysts said sales for the two companies were expected to continue to climb in the second half of this year because of the popularity of Apple products.

Simplo chairman Sung Fu-hsang (宋福祥) agreed, saying the company has been benefiting from large orders from the US consumer electronics giant and its sales in the second half are expected to rise 20 percent from the first half.

Market analysts said Dynapack is expected to post a two-digit increase in sales for the third quarter, as it did in the second quarter.

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