Thu, Oct 26, 2017 - Page 12 News List

Koge Micro Tech to debut on the emerging market

By Kuo Chia-erh  /  Staff reporter

Pump manufacturer Koge Micro Tech Co Ltd (科際精密), which has paid-in capital of NT$27 million (US$892,090), is today to make its debut on the emerging market with an initial public offering (IPO) price of NT$75.

Headquartered in New Taipei City, the firm operates a plant in China’s Xiamen to manufacture a wide range of precision pumps and valves, with a daily production capacity of about 70,000 units.

The company on Tuesday told investors at a pre-IPO presentation that it expects growth momentum in its automotive pumps segment, as it has seen some Chinese automakers install massage seats and back support devices as standard in their vehicles.

Company data showed that car-related products remain the company’s main revenue source, making up about 40 percent of its sales, while pumps used in medical equipment and home appliances make up 36 percent and 19 percent respectively.

Koge’s major customers in the automotive industry include tier-one car component suppliers, such as Faurecia Group, Alfmeier Corp and Continental AG.

The company also secured orders from the supply chains of Chinese automakers, including Geely Automobile Holdings Ltd (吉利汽車) and Great Wall Motor Co Ltd (長城汽車).

By geographic breakdown, revenue generated by Chinese customers took up nearly 84.48 percent of its total sales in the first half of this year, while European clients contributed 5.26 percent.

The company did not disclose its capital expenditure for this year, but said it would allocate more research and development resources to products that have greater market potential, referring to diaphragm, centrifugal and piezoelectric micro pumps installed in portable devices.

Koge spent about NT$79.88 million on research and development last year, higher than the NT$23.37 million spent in the previous year, the company’s prospectus showed.

The company is also working on several capacity expansion projects in China, with two new production lines in Xiamen expected to begin manufacturing by the end of the year, boosting its daily capacity to between 80,000 and 85,000 units.

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