TPK Holding Co (宸鴻), a major supplier of touch modules for Apple Inc’s iPhone smartphones and iPad tablet computers, yesterday saw its shares rise by the daily limit following a new deal signed with Intel Corp on Tuesday.
Shares rose 6.9 percent to NT$441.5 on the Taiwan Stock Exchange. So far this year, TPK shares have risen 11.91 percent, versus a 0.23 percent fall on the TAIEX over the same period.
On Tuesday, Intel said it had signed agreements with TPK, Cando Corp (達鴻), HannsTouch Solution Inc (和鑫) and Wintek Corp (勝華) to ensure adequate capacity to meet the expected demand for touch-enabled Ultrabooks in the upcoming years.
“Intel’s comment that is has secured touch panel capacity from TPK, Cando, Wintek and HannsTouch could further boost touch-enabled Ultrabook proliferation,” Credit Suisse analyst Jerry Su (蘇厚合) said yesterday in a note.
Su said TPK would benefit from a diversification of its product mix by teaming up with the US chip giant, while at the same time lowering its dependence on Apple.
“Our checks at the [Computex] exhibition suggests TPK is the biggest winner from touch-enabled Ultrabooks,” he wrote in the note, adding that the company is also expected to benefit from the launch of Microsoft’s upcoming Windows 8 operating system.
Last month, TPK said it was aiming to raise its customer base from 30 to 40 companies to reduce risk.
Apple contributed about 76 percent of the company’s revenue of NT$40.48 billion (US$1.35 billion) in the first quarter of the year. In April, the company told investors that it expected Apple to account for less than 40 percent of its revenue next year.
TPK yesterday said its consolidated revenue increased 3.9 percent to NT$12.324 billion last month from April, and the figures represented an increase of 10.3 percent from the same period last year, according to a company statement.
In the first five months of the year, TPK’s accumulated revenue totaled NT$64.63 billion, up 37.96 percent from a year earlier, the company’s data showed.
Separately, local electronics retailer Synnex Corp (聯強國際) on Tuesday said revenue rose 14 percent to NT$24.19 billion last month from a year ago, with consumer electronics sales expanding the fastest. Sales of consumer electronics increased 43 percent to NT$3.32 billion, according to a company statement.
That was followed by an annual increase of 27 percent in information technology sales to NT$12.91 billion.
In the first five months of the year, Synnex’s combined revenue totaled NT$120.9 billion, slightly lower than the NT$121.3 billion posted last year, according to the statement.