Machine tool manufacturer Hiwin Technologies Corp (上銀科技) yesterday reported sales had declined for the second consecutive month last month, reaching their lowest level in nine months.
Revenue was NT$812.52 million (US$27.92 million) last month, down 12.48 percent from the previous month and 40.58 percent less than the same month of last year, the company said in a filing with the Taiwan Stock Exchange (TWSE).
The decline in sales for last month came after Hiwin on Nov. 5 reported weaker sales of NT$928.39 million for October, down 10.97 percent month-on-month and 32.05 percent year-on-year, because of a rapid decline in orders at downstream machine tool makers.
Last month’s figure also represented the lowest level since February, when Hiwin — who mainly focuses on linear guideways, ball screws and industrial robots — reported NT$654.18 million in sales, company data showed.
For the first 11 months of the year, revenue totaled NT$10.15 billion, a decline of 22.38 percent from a year earlier.
Hiwin vice president and spokesman Evon Lin (林翊鳳) could not be reached for comment yesterday.
Other officials at the Greater Taichung-based company declined to comment on the sales results.
During an investors’ conference on Nov. 13, Hiwin maintained a conservative view for this quarter, adding that it was not immune from client inventory correction and weaker demand from China, while analysts have forecast the company would not see a solid recovery in sales until the second quarter of next year at the earliest.
Hiwin shares rose 0.23 percent to NT$215 in Taipei trading yesterday ahead of the release of its sales results, declining 12.6 percent so far this year, the TWSE’s data showed.
However, Daiwa-Cathay Capital Markets Co yesterday said Hiwin remained one of its top picks for Taiwanese equity investment this month, adding that the company’s recent negative run has been priced in and that it is likely to see higher industrial robot sales by the second quarter of next year.
Worldwide, Hiwin is also expected to see its makert share expand at the expense of Japan’s NSK or THK, Daiwa analyst Christine Wang (王琦清) said in a note. Wang set a six-month target price of NT$250 for Hiwin shares.
Other stocks included in the brokerage's top-10 picks are Largan Precision Co (大立光), Catcher Technology Co (可成), MediaTek Inc (聯發科), TPK Holding Co (宸鴻), Simplo Technology Co (新普), Delta Electronics Inc (台達電), Chailease Holding Co (中租控股), Mega Financial Holding Co (兆豐金控) and Fubon Financial Holding Co (富邦金控), Mark Chang (張靖坤), Daiwa's head of Taiwan research, said in the note.