Tue, Jun 20, 2017 - Page 12 News List

Catcher forecasts revenue rebound in second half

FORESEEABLE DEMAND:The company expects glass and metal casings to be key to smartphone designs, as glass allows for easier and faster wireless charging

By Lauly Li  /  Staff reporter

Metal casings supplier Catcher Technology Co (可成) expects a significant rebound in revenue in the second half of the year from last year on the back of increasing orders from existing and new clients, company chairman Allen Horng (洪水樹) said yesterday.

“The business outlook this year is better than last year. Shareholders will not be disappointed by Catcher’s performance,” Horng told a news conference after the company’s annual general meeting in Tainan.

The firm is a supplier for Apple Inc’s iPhones and MacBooks.

Catcher’s three main product lines — casings for notebook computers, tablets and smartphones — are to all expected to see growth this year, Horng said, citing order forecasts provided by clients.

Catcher on Friday last week announced it would spend NT$1.53 billion (US$50.39 million) to expand production capacity of its plant in Taizhou, China, its eighth capacity expansion plan this year.

Horng said that the company’s accumulative capital expenditure has reached NT$6.79 billion, and the total capital expenditure this year is likely to exceed last year’s NT$8.5 billion.

Catcher’s investment in production capacity is to prepare for the foreseeable rise in demand over next two years, he said.

“We invested in building plants and buying equipment as industry demand is quite clear,” he added.

Horng said he forecasts that glass and metal casings are to become the mainstream design in the smartphone industry, as a large international brand is adopting the materials for its handsets, prompting other brands to follow suit.

Glass makes wireless charging easier and faster, which would also attract more smartphone brands to use it, he added.

The production procedure for glass-backed metal casings has more steps than that for an all-metal casing, Horng said, adding that it is more challenging to assemble the casing with high production yield.

However, the complicated procedure also helps increase selling prices and benefits Catcher’s revenue performance, he said.

Although Horng did not specify which international brand is using the glass-backed metal casings, it is widely believed that at least one of Apple’s iPhone models this year is to adopt glass for its front and back covers.

Catcher shareholders yesterday approved distribution of a cash dividend of NT$10 per share based on the firm’s earnings of NT$28.58 per share, translating into a payout ratio of 35.08 percent.

This suggests a yield of 2.79 percent based on its closing price of NT$358 in Taipei trading yesterday.

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