Tue, Nov 14, 2017 - Page 12 News List

Entrerex shares gain on promise of new US client

By Kuo Chia-erh  /  Staff reporter

Shares of Enterex International Ltd (英瑞國際), a Cayman Islands-incorporated auto parts supplier, yesterday jumped 9.89 percent in Taipei trading after the firm announced that it had secured orders from a new US-based client.

The company’s stock closed at NT$33.9 yesterday, up from NT$30.85 in the previous trading day, market data showed.

The gains came after Enterex, which mainly supplies radiators and intercoolers, said its US subsidiary has inked a sales contract with a leading US car components retailer that has more than 6,000 outlets in North America, a company filing with the Taiwan Stock Exchange showed.

The Tainan-headquartered firm plans to start shipping its products to the new client in the first quarter of next year, the filing said.

The announcement follows the company’s recent strategy to mitigate the effect of losing major customers and to seek additional local business partners in overseas markets.

Enterex last month stopped distributing products to one of its major US clients, which contributed nearly 24 percent of its total sales, the firm said.

US customers generated more than 80 percent of the Taiwanese auto parts supplier’s revenue last year, data showed.

Apart from the US market, Enterex plans to expand its footprint in Europe in coming years, chairman and president Windsor Wong (翁文鍾) told an investors’ conference earlier this year.

In the long term, the company aims to lower the sales contribution from North America to 30 percent, while raising the contribution from Europe to 25 percent, compared with 7 percent last year.

In December last year, the company spent 6 million euros (US$698.54 million) on the takeover of the AVA Group — which exports its engine cooling and mobile air conditioning products to customers worldwide — from Kuhlerfabrik GmbH.

Enterex said it expects AVA to start making a significant revenue contribution this year without elaborating.

Enterex yesterday posted a net profit of NT$225.67 million (US$7.47 million) for the first three quarters of this year, representing a 38.8 percent plunge from NT$368.92 million in the same period last year, mainly because of higher operating expenses and non-operating losses.

Earnings per share were NT$2.28, down from NT$3.73 the previous year, the statement showed.

From January through September, sales edged down 0.49 percent to NT$4.29 billion from NT$4.31 billion on an annual basis, with operating income falling 29.9 percent to NT$371.84 million from NT$530.55 million.

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