Shares of auto part supplier Sumeeko Industries Co Ltd (世德工業) rocketed 66.67 percent after its debut on the GRETAI Securities Market yesterday as the company gave a positive outlook.
The company’s shares closed at NT$120 yesterday, up from its listing price of NT$72.
Sumeeko supplies fasteners to major car makers such as Toyota and General Motors.
“Because of continuous improvements to our product mix, our gross margin next year will rise to exceed 27.8 percent of gross margin in the first half of this year,” company president Alex Chen (陳光裕) said after the debut ceremony at the over-the-counter market.
“Revenue will hit a new high this year and will grow by another 10 percent next year,” he said.
From January through last month, the company’s revenue rose 6.03 percent to NT$686.82 million (US$23.23 million), from NT$647.76 million a year ago, according to the company’s filing to the Taiwan Stock Exchange.
Chen said the company’s revenue this month would rise about 7 percent from NT$92.07 million the previous year, adding that the fourth quarter is peak season for the company as automakers work on their new car models.
Sales to major car makers accounted for 71.75 percent of its revenue in the first half of this year, while sales to farming machine suppliers accounted for 19.38 percent, the company said.
Fastener orders from Toyota’s US division increased to 120,000 units for next year from 80,000 units for this year, Chen said.
He also expected Telsa Motors to have a bigger revenue contribution, increasing from 3 percent this year to 10 percent next year.
Sumeeko also planned to compete for orders from Chinese car brands, he said.
While new car sales in the US are between 10 million units and 14 million units a year, car sales in Europe are about 10 million units a year, and car sales in Asia are about 30 million units a year, Chen said.