Dynapack International Technology Corp (順達科技) and Simplo Technology Co (新普科技), the nation’s leading lithium battery makers, yesterday forecast their sales would improve significantly during the second half of the year as clients’ launch new products.
“Dynapack is expanding its customer base and seeking to obtain more orders from clients other than Apple Inc,” the Chinese-language newspaper the United Daily News cited Dynapack as saying yesterday.
“The company is not only increasing sales generated from batteries used in Asustek Computer Inc’s (華碩) new PC products, but also aiming to expand sales by developing batteries used in tablets or for other needs,” the newspaper quoted Dynapack executives telling a shareholders’ meeting in Taoyuan County yesterday.
The company said it expected to see capacity fully utilized during the July-to-December period, with clients placing additional orders for their new products in the traditional peak seasons for the technology industry.
Due to huge pricing pressure in the competitive lithium battery market, average selling prices of the batteries have continued to drop since last year, dragging down each player’s gross margin, Dynapack said.
As a result, the company’s net profits last year remained flat at NT$1.52 billion (US$51.02 million), with earnings per share of NT$10.26, even though its clients rolled out several Ultrabooks over the past two years, Dynapack said.
Shareholders approved the company’s proposal to distribute NT$6.5 in cash dividend per common share on earnings generated last year.
Meanwhile, Simplo’s shareholders approved the company’s plan to distribute NT$6.5 in cash dividend per common share on earnings made last year.
The company, which supplies battery packs for Apple Inc’s iPad tablets, last year saw its net profits drop 10.32 percent to NT$3.3 billion from NT$3.68 billion in 2011, with earnings per share of NT$10.71.
Executives at the Hsinchu County-based company told shareholders that second-quarter sales are expected to remain flat from the first quarter at between NT$11.3 billion and NT$11.7 billion.
However, its sales curve in the financial charts is forecast to extend “upward at a 30-degree angle,” with clients starting to ship new products later this year, Simplo chairman and chief executive officer Raymond Sung (宋福祥) said.
“The company’s management aims to achieve a goal for shareholders: to generate another NT$10 of earnings per share this year,” online news site MoneyDJ.com cited Sung as saying.
“Simplo, with its technologies, can manufacture tailor-made battery products for each client, whether they are used in tablets or Ultrabooks,” Sung said.
“We are confident that the company will achieve its goal this year again,” he added.