Tong Yang Industry Co (東陽實業), which supplies automotive metal sheets and bumpers to global brands, reported pre-tax profit of NT$1.5 billion (US$46.9 million) for the first six months of the year, reaching the highest level in the firm’s history over the same period.
Earnings per share in the first half came to NT$2.43, which is also a record-breaking figure, company data showed.
The auto parts maker said in a statement this week that the success of its expansion in China is expected to boost sales in the second half.
Tong Yang said the company’s focus this year is to develop automated factories to enhance its capacity of products, including the ones established for electronic plating and plastics.
In addition to original equipment manufacturing business, the company said it also aims to launch new post-sales vehicle parts for the aftermarket business and has made great efforts to develop such products for Chinese market.
Tong Yang said it recently obtained certification for its post-sales car parts from China’s second-largest property insurance company, Ping An Insurance (Group) Co (平安產險), which would help the company expand further into China’s aftermarket sector, as the certification means more opportunities to get orders from insurance companies.
Tong Yang plans to build a new plant in Shandong Province’s Qingdao during the second half to expand its auto parts capacity, hoping to start operations there in 2018.
The company is also to build another electronic plating factory in Taiwan, targeting high added-value products, the company said in the statement.
The company’s profit-making capability is expected to be sustained in the following quarters, Daiwa Capital Markets Inc analyst Helen Chien (簡君穎) said in a report released this week.
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