Sat, Apr 14, 2018 - Page 11 News List

Hiwin reports record-high sales on supply shortages

PRICE RISE:Tight supply and demand conditions have prompted Hiwin to implement a prepayment system to reduce double orders for linear-motion components

By Chen Cheng-hui  /  Staff reporter

Machinery maker Hiwin Technologies Co (上銀科技) on Monday reported record-high sales for last month and last quarter, thanks to strong market demand that has caused a shortage of ball screws and linear guideways.

Consolidated sales increased 48.84 percent from the same period last year to NT$2.38 billion (US$81.2 million) and 24.75 percent from the previous month, the Taichung-based company said in a filing with the Taiwan Stock Exchange.

Cumulative sales from January to last month totaled NT$6.55 billion, an annual increase of 52.37 percent from NT$4.3 billion in the same period last year, Hiwin said.

Hiwin is a top three supplier of linear-motion components globally, including linear guideways and ball screws, which together account for more than 80 percent of its revenue.

By leveraging its strength in key components, the company has also ventured into industrial robotics over the past few years.

The company’s first-quarter sales rose 6.5 percent from the previous quarter’s NT$6.15 billion and grew for two consecutive quarters, mainly attributable to surging orders of semiconductors, machine tools, automobiles and optoelectronics, Taishin Securities Investment Advisory Co (台新投顧) said in a note on Tuesday.

Hiwin’s top-line growth performance also benefited from the contribution from its new factory in Chiayi Dapumei Precision Machinery Park (嘉義大埔美精密機械園區), which started mass production after the Lunar New Year holiday, Taishin said.

The market’s tight supply and demand conditions have prompted Hiwin to implement a prepayment policy to reduce the risk of double orders for linear-motion components by clients, KGI Securities Co (凱基證券) analyst Angus Chuang (莊政翰) said in a note on Monday last week, citing the brokerage’s recent check with downstream firms.

This indicates that strong order momentum could be sustained allowing the company to raise prices going forward, Chuang said.

KGI has revised its sales growth forecast for Hiwin, expecting the company to see sales increase 33.2 percent to NT$28.19 billion this year, while Taishin predicted full-year sales to grow 34.4 percent to NT$28.45 billion.

Separately, pneumatic components suppliers Airtac International Group (亞德客) and Taiwan Chelic Corp Ltd (氣立) also posted better-than-expected sales for the first quarter.

Airtac said first-quarter sales rose 28 percent annually to NT$3.61 billion in New Taiwan dollar terms, or 26 percent to 782.88 million yuan, benefiting from recovering market demand, as well as company efforts to launch new products and seek new clients, the company said in a stock exchange filing on Monday.

Taiwan Chelic’s first-quarter sales declined 1.3 percent quarter-on-quater, but increased 43.16 percent year-on-year to NT$379 million, which the company attributed to continued outlet expansion in China that helped drive its sales growth.

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