Mon, Jan 08, 2018 - Page 16 News List

TPK Holding sees biggest revenue surge since 2015

AGAINST SPECULATION:TPK won out against fears of potential order cuts by Apple and its own target for flat growth as quarterly revenue rose 7.7 percent quarter-on-quarter

By Lisa Wang  /  Staff reporter

TPK Holding Co Ltd (宸鴻), a touchpanel supplier to Apple Inc, on Thursday said revenue last month grew 0.6 percent to NT$11.43 billion (US$387.2 million), compared with NT$11.36 billion the previous month, hitting the highest monthly level since November 2015.

The company attributed the stronger revenue to an increase in tablet sales from customers, according to a filing with the Taiwan Stock Exchange.

TPK supplies glass-based projected capacitive touch solutions and acts as a full-service system integrator of touch solutions used in smartphones, tablet PCs and consumer electronic devices.

Last month’s revenue growth came against market speculation about a contraction that was to result from potential order cuts by Apple due to tepid sales of the latest iPhone series.

The company’s fourth quarter revenue increased from NT$30.51 billion in the third quarter to NT$32.87 billion, an increase of 7.7 percent, beating TPK’s previous estimate of flat revenue growth.

TPK told investors in November that its internal target was to keep fourth-quarter revenue consistent throughout the quarter, taking a cue from the company’s business pattern over the past few years, in which revenue usually peaked in October only to lose steam in the following two months.

The company’s revenue for the whole of last year jumped 20.17 percent to NT$107.21 billion, compared with NT$89.22 billion in 2016, TPK said.

First Capital Management Inc (第一金證券投顧) on Friday said TPK would probably report a gross margin of 7.65 percent for last year, with a net profit of NT$2.797 billion, or earnings per share of NT$6.88.

TPK said this quarter would pick up if customers’ new products quickly gain traction.

Separately, General Interface Solution Holding Ltd (GIS, 業成), a touchpanel manufacturing arm of Hon Hai Precision Industry Co (鴻海精密), on Friday reported that revenue declined 11.82 percent from November to last month, a second straight monthly decline amid inventory adjustments.

The company’s revenue last month was NT$13.29 billion, up 39.8 percent on an annual basis, bringing its revenue for the whole of last year to NT$130.82 billion, a year-on-year increase of 64.84 percent from 2016, said GIS, a film-based touch solution provider whose products are used in smartphones, tablets and notebook computers.

Revenue for last quarter totaled NT$46.21 billion, up 7.4 percent from the previous quarter, it said, adding that the figure met the company’s sales guidance.

TPK shares on Friday increased 1.63 percent to close at NT$87.2 in Taipei trading, while GIS shares rose 1.51 percent to close at NT$201.5.

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