Shares of Lu Hai Holding Corp (六暉), a tire valve stem maker, rose 118.07 percent on the company’s debut on the main board yesterday as it expects revenue to grow 15 percent next year.
Lu Hai’s shares closed at NT$51.9 yesterday, up from the initial public offering price of NT$23.8, after the China-based Taiwanese company said it expects higher sales to clients in South Korea and Indonesia next year.
Sales to South Korea’s Samick THK Co Ltd are expected to rise to between US$1.2 million and US$1.5 million next year, up from US$20,000 to US$30,000 this year, according to Liu Hai.
General manager Simon Hsu (許廉凱) said the company had also secured orders from PT Industri Karet Deli, the largest tire maker in Indonesia, and PT Suryaraya Rubberindo Industries, boosting its sales outlook for next year.
Suryaraya Rubberindo Industries is a subsidiary of PT Astra Honda Motor, which makes Honda motorcycles in Indonesia.
Hsu said orders from Suyaraya Rubberindo Industries are likely rise 10 percent from this year, while orders to Industri Karet Deli are likely increase 20 percent to 25 percent from this year.
During the first half of this year, sales to Suyaraya Rubberindo Industries were NT$40.43 million (US$1.35 million), while those to Industri Karet Deli were NT$72.55 million, the company said.
“On average, a motorcycle rider in Indonesia will change two inner tubes and one tire a year because of the condition of its roads,” company chairman Wu Chin-lu (吳金鹿) said.
From January through last month, the company’s revenue totaled NT$2.16 billion, up 8.43 percent from NT$1.99 billion the previous year, according to the company’s filing to the Taiwan Stock Exchange.