Hiwin Technologies Co (上銀科技), the nation’s leading machinery maker, yesterday said it was positive about its sales outlook in the second half of this year, citing strong demand for “smart” equipment and industrial robots.
“Despite China’s economic slowdown, we expect the demand for smart automation systems and robots to continue increasing due to the Chinese government’s new plan for industries, ‘Made in China 2025,’” Hiwin chairman Eric Chuo (卓永財) told investors at an earnings conference.
The company said demand from its Chinese clients might recover this quarter, thanks to the new policy initiative, which was designed to further the transformation and upgrading of local industries in China.
The plan includes launching automated production lines and robots to enhance efficiency.
“Hiwin’s sales in the third quarter are expected to outpace the second quarter. Performance in the second half will also be better than in the first half,” Chuo said, adding that the company’s industrial robot segment might start to make a profit in the fourth quarter.
In cooperation with some equipment leasing companies, the company plans to rent industrial robots to some Taiwanese companies, which would help boost the sales contribution from the robot segment, he said.
As for the firm’s oversea operation plans, Chuo said Hiwin’s expansion in Italy has progressed rapidly.
The company’s sales contribution from Italy, which is one of the world’s largest machine tool suppliers, might grow 200 percent from last year, Chuo added.
Hiwin reported sales of NT$1.49 billion (US$47.72 million) for last month, up by 12.39 percent from the same period last year.
In the first seven months of this year, Hiwin’s combined sales totaled NT$8.82 billion, down by 4.94 percent from the same period last year, company data showed.
The company’s net profit in the second quarter soared 175 percent to NT$397 million quarter-on-quarter, or earnings per share of NT$1.47, while sales increased 46 percent to NT$4.35 billion on a quarterly basis, with a gross margin of 34.2 percent.
Sales contribution from Asia increased to 61 percent in the April-to-June quarter, up by 16 percent on a quarterly basis.
The growth could be attributed to rising orders from China, Hiwin said.
Among its products, linear guideways contributed more than 60 percent of total revenue in the second quarter, company data showed.
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