Actron Technology Corp (ATC, 朋程科技), the world’s No. 1 automotive electronic diode supplier, yesterday reported a record gross margin of 35 percent in the first quarter due to the New Taiwan dollar’s depreciation in the first two months of this year.
Lower prices of copper and silicon, two main materials for the company’s products, also helped boost the company’s margin last quarter, Actron spokesperson and director of finance C.C. Chen (陳俊吉) said at an investors’ conference in Taipei.
The Taoyuan-based company specializes in automotive diodes, alternators, regulators, and anti-lock braking system (ABS) controls, with products mostly selling to China, Europe and the US.
In the first quarter, diodes for automotive alternators made up 88 percent of the company’s total revenue of NT$910.77 million (US$27.99 million), while regulators and coils for ABS took up 6 percent each respectively.
Net income grew 1.54 percent annually to NT$144.25 million, with earnings per share rising from NT$1.88 to NT$1.93.
Actron said gross margin for this quarter would reach between 32 and 33 percent, if the NT dollar can stabilize at between NT$32.2 and NT$32.5 against the US dollar.
With a stable market share of 51 percent in its major diode products, company president George Wu (吳憲忠) said that new businesses such as regulator ICs are likely to become ATC’s growth momentum in the second half of this year, after almost 10 years of development.
The company has received orders for the regulator IC this month and will begin shipping to Chinese and Russian clients next month, as well as to another client in July, Wu said.
In addition, high-performance diodes for “new energy” vehicles are expected to begin shipping in the second quarter next year, he said.
Wu said that the company’s progress in new product development follows the global trend of carbon reduction and new regulations on vehicle emissions in regions like the EU.
The new businesses are expected to make significant contributions in 2018, he added.
For this year, ATC expects its revenue growth to follow the general automobile market, citing expected growth of car sales in China of 5 percent this year from last year’s 1.9 percent, Wu said.
ATC announced a cash dividend of NT$6.5 per share, based on its earnings per share of NT$8.13 last year. That translates into a payout ratio of 79.95 percent, higher than last year’s 75.85 percent.
ATC shares yesterday declined 0.42 percent to close at NT$118 in Taipei trading.
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