The stock price of metal casing maker CaseTek Holdings Ltd (鎧勝控股) soared 52 percent fom its initial public offering (IPO) price on the stock’s debut trading day on the local bourse yesterday.
Shares of CaseTek, which counts Apple Inc as one of its customers, closed at NT$137, a spike from its IPO price of NT$90.
Established in the Cayman Islands in 2010, Casetek is a subsidiary of Taiwanese notebook computer contract maker Pegatron Technology Corp (和碩) and manufacturers metal cases used for notebooks, desktop computers and tablets.
Its major clients include well-known brands, such as Taiwan’s Acer Inc (宏碁) and Asustek Computer Inc (華碩電腦), US computer giants Dell Inc, Hewlett-Packard Co and Apple Inc, Japanese electronics maker Fujitsu Ltd and Toshiba Corp, and Chinese PC maker Lenovo Group Ltd (聯想).
CaseTek is targeting catching up with its major rivals Catcher Technology Co (可成科技) and Foxconn Technology Co (FTC, 鴻準), and the firm does not expect new Chinese rival BYD Co (比亞迪) to pose an immediate threat to its business, chairman Tung Tsu-hsien (童子賢) said, adding that he is optimistic about the company’s business prospects for this year. Tung also serves as chairman of Pegatron.
Andrew Chang (張家福), an equity analyst at Macquarie Capital Securities Ltd, forecast that CaseTek’s net profit would grow 42 percent to NT$4.25 billion (US$154.2 million) this year, earnings per share of NT$13.19, on the back of rising demand for Apple’s iPad Mini.
“We forecast that tablets should continue to see strong shipment growth this year, becoming the main driver of CaseTek’s sales growth,” Chang said in an e-mailed note.
Asked to comment on Apple’s disappointing fourth-quarter earnings, Tung said that CaseTek remained upbeat about Apple-branded products’ long-term outlook and was confident that the firm’s performance would soon be back on track.
CaseTek posted consolidated annual revenue of NT$7.09 billion, NT$14.24 billion and NT$18.02 billion respectively from 2009 to 2011.
Aided by strong sales of iPad tablets, CaseTek’s consolidated revenue reached NT$21.33 billion in the first three quarters of last year, up 18.4 percent compared with the same period the previous year, with gross margin of 21.08 percent, profit margin of 8.81 percent and earnings per share of NT$6.85.