Pegatron Corp (和碩) is expected to see revenue and earnings this quarter grow significantly from last quarter after the launches of new iPhones, Jih Sun Securities Investment Consulting Co (日盛投顧) said in a note on Friday.
“Apple is introducing three new iPhone products this time and we believe Pegatron is still one of the major assemblers of iPhone XS Max and XR models,” Jih Sun analyst Simon Lu (呂金源) said in a research note.
The market is speculating that Pegatron would this year receive 70 percent of Apple’s iPhone XR orders and 30 percent of the iPhone XS Max orders, Lu said.
As the price-performance ratio of the iPhone XR is relatively higher than the other two models, it is expected to become a major sales driver of the new iPhones and that would benefit Pegatron due to its higher order allocation from Apple, he said.
“Pegatron has achieved consecutive growth in quarterly revenue during the second half of the year after ramping up production of its major clients’ communication products,” Lu said.
“We expect the company’s operating profit would also improve from the low base in the second quarter on higher capacity utilization,” he said.
Pegatron also produces PlayStation game consoles for Sony Corp and makes Surface-series computers for Microsoft Corp.
Pegatron on Aug. 9 said its notebook shipments would rise 15 to 20 percent sequentially this quarter, while desktop computer and motherboard shipments would fall about 10 to 20 percent on a quarterly basis.
Its third-quarter revenue is expected to increase 30.16 percent on a quarterly basis, after declining 3.43 percent in the second quarter, Jih Sun’s note said.
Gross margin could reach 3.67 this quarter from 3.23 percent last quarter and operating margin was expected to increase from 0.6 percent to 1.65 percent, the note said.
Pegatron’s net profit is forecast to grow to NT$4.51 billion (US$146.62 million) this quarter from NT$2.93 billion last quarter, with earnings per share widening to NT$1.73 from NT$1.12, Jih Sun projected.
The company has increased inventories markedly in recent months to cope with the arrival of peak-season demand and believes it is better prepared to deal with component shortage problems than it was last year, Lu said.
Pegatron shares last week advanced 7.19 percent in Taipei trading to close on Friday at NT$65.6, outperforming the TAIEX, which rose 0.19 percent from the previous week.
Taiwan Transport and Storage Corp (TTS, 台灣通運倉儲) yesterday unveiled its first electric tractor unit — manufactured by Volvo Trucks — in a ceremony in Taipei, and said the unit would soon be used to transport cement produced by Taiwan Cement Corp (TCC, 台灣水泥). Both TTS and TCC belong to TCC International Holdings Ltd (台泥國際集團). With the electric tractor unit, the Taipei-based cement firm would become the first in Taiwan to use electric vehicles to transport construction materials. TTS chairman Koo Kung-yi (辜公怡), Volvo Trucks vice president of sales and marketing Johan Selven, TCC president Roman Cheng (程耀輝) and Taikoo Motors Group
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
RECORD-BREAKING: TSMC’s net profit last quarter beat market expectations by expanding 8.9% and it was the best first-quarter profit in the chipmaker’s history Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which counts Nvidia Corp as a key customer, yesterday said that artificial intelligence (AI) server chip revenue is set to more than double this year from last year amid rising demand. The chipmaker expects the growth momentum to continue in the next five years with an annual compound growth rate of 50 percent, TSMC chief executive officer C.C. Wei (魏哲家) told investors yesterday. By 2028, AI chips’ contribution to revenue would climb to about 20 percent from a percentage in the low teens, Wei said. “Almost all the AI innovators are working with TSMC to address the
Malaysia’s leader yesterday announced plans to build a massive semiconductor design park, aiming to boost the Southeast Asian nation’s role in the global chip industry. A prominent player in the semiconductor industry for decades, Malaysia accounts for an estimated 13 percent of global back-end manufacturing, according to German tech giant Bosch. Now it wants to go beyond production and emerge as a chip design powerhouse too, Malaysian Prime Minister Anwar Ibrahim said. “I am pleased to announce the largest IC (integrated circuit) Design Park in Southeast Asia, that will house world-class anchor tenants and collaborate with global companies such as Arm [Holdings PLC],”