Global PMX Co Ltd (智伸科), a provider of precision machinery processing services, yesterday said it is confident that the company’s gross margin will continue to rise due to an increasing product portfolio.
The positive sentiment came after the company reported a record-high gross margin last quarter of 28.83 percent, while net income surged 111.89 percent annually to NT$103.81 million (US$3.17 million), with earnings per share increasing from NT$0.65 last year to NT$1.27 this year, company data showed.
Consolidated revenue hit NT$844.66 million last quarter, up 9.59 percent from the same period a year earlier, driven by strong automotive product sales, in particular in the segment’s high-end key components, as focus shifted away from low-margin offerings, the company said.
Sales contributions from the automotive segment last quarter increased to 62.32 percent from 59.88 percent in last year, while the electronics storage segment decreased to 19.62 percent from 22.2 percent, the company said.
“We intend to raise the automotive business’ gross margin by adding new key products and adjusting other businesses,” company spokesperson Maggie Lin (林慈青) said yesterday at an investors’ conference in Taipei, adding that the automation segment gross margin last quarter rose to more than 30 percent from about 25 percent last year.
The company’s main products, including high-pressure pumps, anti-lock braking systems, electronic stability control systems, and gasoline direct-injection, have been benefiting from an international awareness of carbon reduction and safe driving auxiliary technologies.
Global PMX has partnerships with automotive suppliers worldwide, such as Continental AG, Bosch Co and BorgWarner Inc, with which the company collaborates in design, research and authentication initiatives.
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