Pneumatic components supplier Airtac International Group (亞德客國際集團) is likely to post double-digit annual growth in profit this year, supported by continued capacity expansion and strong customer demand, First Capital Management Inc (第一金投顧) said.
Earnings per share (EPS) are forecast to rise to NT$21.48 from NT$18.07 last year, while revenue is predicted to climb 27 percent year-on-year to NT$17.5 billion (US$589.1 million) from NT$13.72 billion, thanks to growing customer demand for automated manufacturing, First Capital said in a research note on Wednesday.
Airtac, which last year boosted capacity by between 30 and 40 percent, would continue to build capacity at its production base in Tree Valley Park (樹谷園區), Tainan, to cope with rising demand, the investment consultancy said.
Airtac in January announced a plan to allocate NT$1.1 billion in capital expenditure to build two plants in Tainan this year, with a focus on the production of linear guideways and ball screws.
The company, which is capable of providing about 80,000 types of pneumatic components, aims to develop more high-end products to ensure a better gross margin, the report said.
It has inked contracts with local lenders for a NT$6 billion syndicated loan to fund the project.
Airtac, the second-largest pneumatic component supplier in China, on Tuesday reported that its unaudited profit last quarter soared to NT$878.6 million, up 40 percent from a year ago.
First-quarter sales jumped 28 percent to NT$3.61 billion from NT$2.81 billion, with EPS rising to NT$4.65 from NT$3.5, data showed.
The company’s sales growth momentum is likely to extend into this quarter, as the industry is entering a peak season, First Capital said, predicting that revenue would increase 24 percent year-on-year to NT$4.47 billion.
First Capital set its target price for Airtac at NT$579, a premium of 11.35 percent from the stock’s closing price of NT$520 in Taipei trading yesterday.
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