TPK Holding Co Ltd (宸鴻), which counts Apple Inc as its biggest touch- panel customer, yesterday reported a 6.2 percent decline in revenue for last month, matching the company’s forecast for a decline due to seasonally weak demand for tablets.
Revenue dropped to NT$14.36 billion (US$478 million) last month, compared with NT$15.31 billion in April, according to a company statement.
On an annual basis, revenue grew 19.3 percent from NT$12.03 billion.
TPK’s sales fell to the low end of the company’s earlier guidance “largely due to the seasonal decline in the tablet business,” Deutsche Bank analyst Jessica Chang (張幸宜) said in a report.
“The notebook touch panel business is flat because of capacity constraints,” she added.
TPK told investors in April that revenue would contract between 10 percent and 15 percent sequentially this quarter from last quarter’s NT$42.43 billion.
With combined sales for April and last month reaching NT$29.67 billion, the touch-panel maker needs to make at least NT$12.35 billion to meet its quarterly revenue goal of between NT$42.02 billion and NT$44.49 billion this quarter.
Chang said TPK’s sales would pick up from August as it starts to ramp up production of panels for new tablet models and touchscreen notebooks.
Chang retained a “buy” rating on TPK, with a target price of NT$809.
“TPK is the best large-cap touch-panel stock to own in the foreseeable future considering it is the only major profitable touch panel company that has really benefited from the touch proliferation,” Chang said.
Wintek Corp (勝華), another touch-panel supplier to Apple, on Monday said that revenue fell 14.11 percent to NT$6.01 billion last month from NT$7 billion in April. That equaled a 23.45 percent annual decline from NT$7.86 billion.