Da Hui Ltd (達輝國際), a Cayman islands-based company that manufactures motorcycle parts and baby products, yesterday said it would invest US$2 million in Malaysia and 30 million yuan (US$4.81 million) in China this year and next year for capacity expansion to meet growing demand.
The company will build a new factory in China’s Shangdong Province to double its baby product manufacturing capacity. The factory will mainly supply Canada-based Dorel Industries Inc, the second-largest producer of baby products in the US, general manager Vincent Lee (李湘龍) said.
In Malaysia, the company plans to purchase a new factory and increase its motorcycle parts production capacity by 30 to 40 percent, said Huang Chin-chuan (黃金川), another general manager.
The two projects are expected to be completed in the second or third quarter next year.
Da Hui plans to fund the expansions by issuing 4.05 million shares at between NT$35 and NT$40 per share, with the company hoping to start trading its shares on the GRETAI Securities Market next month.
For this year, the company expects a 10 percent increase in revenue on the back of rising orders, with baby products likely registering higher growth compared with motorcycle parts sales.
The company expects its share of Malaysia’s auto lamps market to rise to 25 percent to 30 percent this year from 15 percent to 20 percent last year because of a new order for 10,000 units from Hong Leong Yamaha Motor Sdn Bhd, Huang said, adding that its market share could further rise to near 40 percent next year.
The company also makes electrical wires and meters for motorcycles, accounting for about 70 percent of both markets in Malaysia, Huang said.
The company posted a revenue of NT$1 billion (US$33.19 million) last year, down 4 percent from the previous year as its client, Honda Motor Co’s Malaysia branch, reduced production. Net income was NT$107.4 million, or NT$3.07 per share, last year, down from NT$166.4 million, or NT$4.76 per share in 2012.
Da Hui expects its net income to grow by 10 percent this year.
MAJOR BENEFICIARY: The company benefits from TSMC’s advanced packaging scarcity, given robust demand for Nvidia AI chips, analysts said ASE Technology Holding Co (ASE, 日月光投控), the world’s biggest chip packaging and testing service provider, yesterday said it is raising its equipment capital expenditure budget by 10 percent this year to expand leading-edge and advanced packing and testing capacity amid strong artificial intelligence (AI) and high-performance computing chip demand. This is on top of the 40 to 50 percent annual increase in its capital spending budget to more than the US$1.7 billion to announced in February. About half of the equipment capital expenditure would be spent on leading-edge and advanced packaging and testing technology, the company said. ASE is considered by analysts
TRANSFORMATION: Taiwan is now home to the largest Google hardware research and development center outside of the US, thanks to the nation’s economic policies President Tsai Ing-wen (蔡英文) yesterday attended an event marking the opening of Google’s second hardware research and development (R&D) office in Taiwan, which was held at New Taipei City’s Banciao District (板橋). This signals Taiwan’s transformation into the world’s largest Google hardware research and development center outside of the US, validating the nation’s economic policy in the past eight years, she said. The “five plus two” innovative industries policy, “six core strategic industries” initiative and infrastructure projects have grown the national industry and established resilient supply chains that withstood the COVID-19 pandemic, Tsai said. Taiwan has improved investment conditions of the domestic economy
Huawei Technologies Co’s (華為) latest smartphones carry a version of the advanced made-in-China processor it revealed last year, results from an independent analysis showed. This underscored the Chinese company’s ability to sustain production of the controversial chip. The Pura 70 series unveiled last week sports the Kirin 9010 processor, research firm TechInsights found during a teardown of the device. This is a newer version of the Kirin 9000s, made by Semiconductor Manufacturing International Corp (SMIC, 中芯) for the Mate 60 Pro, which had alarmed officials in Washington who thought a 7-nanometer chip was beyond China’s capabilities. Huawei has enjoyed a resurgence since
purpose: Tesla’s CEO sought to meet senior Chinese officials to discuss the rollout of its ‘full self-driving’ software in China and approval to transfer data they had collected Tesla Inc CEO Elon Musk arrived in Beijing yesterday on an unannounced visit, where he is expected to meet senior officials to discuss the rollout of "full self-driving" (FSD) software and permission to transfer data overseas, according to a person with knowledge of the matter. Chinese state media reported that he met Premier Li Qiang (李強) in Beijing, during which Li told Musk that Tesla's development in China could be regarded as a successful example of US-China economic and trade cooperation. Musk confirmed his meeting with the premier yesterday with a post on social media platform X. "Honored to meet with Premier Li