Tue, Oct 22, 2013 - Page 13 News List

Career forecasts higher sales to Chinese clients

OVERLY OPTIMISTIC?The printed circuit board supplier said the new iPad would make this quarter its strongest this year, but HTC and BlackBerry woes may hurt the firm

By Helen Ku  /  Staff reporter, with CNA

Career Technology Co Ltd (嘉聯益), one of Apple Inc’s major flexible printed circuit board (PCB) suppliers for its iPad products, yesterday said it expects to see higher sales generated by Chinese clients this year on the back of strong demand for mobile devices.

The New Taipei City (新北市)-based company last year saw sales to its Chinese clients account for 10 percent of its total sales, Career Technology president Rick Wu (吳永輝) said yesterday.

The figure is forecast to increase to 15 percent this year as the company is adjusting its product mix and has decided not to take orders for white-label products, he added.

Wu made the remark on the sidelines of a press conference to introduce a PCB exhibition at Taipei World Trade Center Nangang Exhibition Hall from tomorrow through Friday.

Wu is the chairman of the Taiwan Printed Circuit Association, organizer of the annual event. He said that a total of 350 printed circuit makers will join the exhibition to showcase their products at the exhibition, which is expected to attract more than 30,000 visitors.

Through better risk management, Career Technology aims to continue exploring China’s mobile device market, with major clients including Huawei Technologies Co Ltd (華為) and Lenovo Group Ltd (聯想), Wu said.

As Apple is set to launch its new iPad products this week, Career Technology’s sales this quarter will reach a record high for the year, he added.

Yuanta Securities Co (元大證券) analyst Steve Huang (黃柏璁) said in a report on Friday last week that he was more pessimistic about Career Technology’s outlook, because the company’s top non-Apple customers, such as HTC Corp (宏達電) and BlackBerry, are facing drastic shipment contractions.

The company also faces competition in the iPad business from other flexible PCB suppliers, such as Flexium Interconnect Inc (台郡), he added.

Huang cut his estimate for Career Technology’s earnings per share this year to NT$2.01 from NT$2.21, citing the company’s weaker-than-expected sales momentum from non-Apple clients.

In the report, Huang retained his rating of “hold” and target price of NT$28.

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