Hiroca Holdings Ltd (廣華控股), a Taiwanese automobile parts maker based in China, yesterday said it plans to spend between NT$400 million and NT$700 million (US$12.3 million and US$21.5 million) on capital expenditure this year to upgrade its production facilities.
The company, which provides cubic printing, spray printing for interior trim parts, and fabric and leather decorating, said it aims to further explore the North American market, adding that it is to complete construction of a new Mexican plant by the end of this year.
Meanwhile, two new plants in China — one in Hubei Province’s Wuhan and another in Hunan Province’s Liuyang — had turned profitable in the first quarter of this year, after reaching the break-even point in the final quarter of last year, Hiroca chairman Yu Tse-min (余澤民) said.
Regarding the government’s “southbound policy,” Yu said the company is eyeing Malaysia, India, Indonesia and the Philippines.
Hiroca reported net income of NT$188 million in the first quarter, up 3.26 percent annually due to an improved product mix and production automation, with earnings per share of NT$2.25.
Gross margin and operating margin continued to hit record levels in the first quarter at 28.43 percent and 10.01 percent respectively on the back of product mix optimization, while revenue fell 2 percent year-on-year to NT$1.88 billion because of fewer sales of low-margin products and Japanese clients’ inventory adjustments.
While revenue remained weak last month, the company said outlook for this year remains positive, citing stable growth in both the Chinese and US markets and better interior design for new cars.
Shareholders of Hiroca yesterday approved the distribution of a cash dividend of NT$4.5 per share on last year’s record profit of NT$758 million, or earnings per share of NT$9.04.
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