Auto parts supplier Tsang Yow Industrial Co (倉佑實業) yesterday said that it expects its revenue this quarter to grow more than 20 percent year-on-year, fueled by the fast-growing vehicle market in China.
The company, which mainly makes automotive powertrain components, posted record-high sales of NT$813.8 million (US$26.93 million) in the first quarter, a surge of 29.11 percent from the same period last year, a company filing with the Taiwan Stock Exchange showed.
Tsang Yow’s sales growth momentum is likely to extend into this quarter, thanks to optimistic sentiment in China’s auto market, a company official said by telephone yesterday.
In the first quarter, vehicle sales in China grew 7 percent on an annual basis to 7 million units, the China Association of Automobile Manufacturers said.
Driven by robust demand in China’s car market, the automotive parts maker said that since the fourth quarter of last year it has seen rising orders from its largest customer, Belgium-based Punch Powertrain NV.
Punch Powertrain, a first-tier automotive components supplier, provides continuously variable transmissions for major Chinese companies including Geely Automobile Holdings Ltd (吉利汽車) and BAIC Automotive Group (北京汽車).
The official, who declined to be named, said that revenue generated by the company’s Chinese subsidiary is expected to contribute 60 percent of total sales by the end of the year, and a monthly sales target of US$5 million has been set for its sales in China.
“Last quarter was the first time that revenue from the Chinese subsidiary surpassed sales from our Chiayi plant,” he said.
The revenue contribution of its China-based plants was nearly 55 percent last quarter, while the Chiayi plant accounted for 45 percent over the period, company data showed.
Apart from its core business of transmission components, Tsang Yow expects its compressors for automotive air-conditioning systems to be its next sales catalyst, saying that it began producing related parts for some Chinese customers at the beginning of the year.
In related news, Tsang Yow’s local peer, Laster Tech Corp Ltd (麗清科技), also reported record-high revenue for the first three months on the back of the booming China auto market.
In the January-to-March period, Laster saw its sales skyrocket 50.4 percent year-on-year to NT$1.02 billion, benefiting from strong demand in China’s automotive LED lighting sector.
Based in New Taipei City, Laster is the largest supplier of LED automotive lights in China.
The company’s Chinese customers include Great Wall Motor Co (長城汽車), the largest sports utility vehicle brand in the Chinese market.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) last week recorded an increase in the number of shareholders to the highest in almost eight months, despite its share price falling 3.38 percent from the previous week, Taiwan Stock Exchange data released on Saturday showed. As of Friday, TSMC had 1.88 million shareholders, the most since the week of April 25 and an increase of 31,870 from the previous week, the data showed. The number of shareholders jumped despite a drop of NT$50 (US$1.59), or 3.38 percent, in TSMC’s share price from a week earlier to NT$1,430, as investors took profits from their earlier gains
In a high-security Shenzhen laboratory, Chinese scientists have built what Washington has spent years trying to prevent: a prototype of a machine capable of producing the cutting-edge semiconductor chips that power artificial intelligence (AI), smartphones and weapons central to Western military dominance, Reuters has learned. Completed early this year and undergoing testing, the prototype fills nearly an entire factory floor. It was built by a team of former engineers from Dutch semiconductor giant ASML who reverse-engineered the company’s extreme ultraviolet lithography (EUV) machines, according to two people with knowledge of the project. EUV machines sit at the heart of a technological Cold
Taiwan’s long-term economic competitiveness will hinge not only on national champions like Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) but also on the widespread adoption of artificial intelligence (AI) and other emerging technologies, a US-based scholar has said. At a lecture in Taipei on Tuesday, Jeffrey Ding, assistant professor of political science at the George Washington University and author of "Technology and the Rise of Great Powers," argued that historical experience shows that general-purpose technologies (GPTs) — such as electricity, computers and now AI — shape long-term economic advantages through their diffusion across the broader economy. "What really matters is not who pioneers
TAIWAN VALUE CHAIN: Foxtron is to fully own Luxgen following the transaction and it plans to launch a new electric model, the Foxtron Bria, in Taiwan next year Yulon Motor Co (裕隆汽車) yesterday said that its board of directors approved the disposal of its electric vehicle (EV) unit, Luxgen Motor Co (納智捷汽車), to Foxtron Vehicle Technologies Co (鴻華先進) for NT$787.6 million (US$24.98 million). Foxtron, a half-half joint venture between Yulon affiliate Hua-Chuang Automobile Information Technical Center Co (華創車電) and Hon Hai Precision Industry Co (鴻海精密), expects to wrap up the deal in the first quarter of next year. Foxtron would fully own Luxgen following the transaction, including five car distributing companies, outlets and all employees. The deal is subject to the approval of the Fair Trade Commission, Foxtron said. “Foxtron will be
RSS