Cayman Tung Ling Industrial Co Ltd (開曼東凌集團) expects its sales and profit to increase next quarter from this quarter, as the maker of baby clothes and related products opens more Chinese outlets and launches new products.
Tung Ling, which has two brands — Piyo Piyo and Abby Bear — currently operates about 370 outlets in Taiwan, China and the US.
The company said yesterday it plans to increase its number of Chinese outlets to between 360 and 380 by the end of this year, from 330 at the end of last year.
“The company expects to see revenue show an upturn next quarter, the traditional peak season, on the back of demand for new winter clothes,” compant president William Hsu (許復進) told the Taipei Times before the company’s annual shareholders’ meeting yesterday.
Despite the Chinese government’s move to ban the advertising of luxury goods on its state radio and television stations, Hsu said demand for baby products in China remains steady, as the country has 16 million to 18 million babies born every year.
“We will maintain the pace of our expansion in China over the next few years, by launching 30 to 50 new outlets a year,” Hsu said.
This year’s Chinese expansion plan is focused on second-tier and third-tier cities, where growth in consumption is stronger than in more developed cities, he said, adding that the company plans to launch the new outlets in shopping malls to attract more customers.
Tung Ling is also focusing on e-commerce and expects revenue contributed by that channel to account for 35 percent of the company’s overall sales in three years, he said.
The company posted NT$617.64 million (US$20.48 million) in consolidated sales in the first five months of this year, up 1.76 percent from the previous year, according to a stock exchange filing.
Shareholders yesterday approved the company’s plan to distribute a cash dividend of NT$3 per share, based on last year’s net income of NT$126.23 million, or earnings per share of NT$4.17.
Tung Ling shares declined 0.73 percent to close at NT$54.1 on the GRETAI Securities Market yesterday.