Sat, Mar 23, 2019 - Page 12 News List

Apple orders boost Compal net profit

LOOKING AROUND:The firm plans to build a new fab in Chongqing this year, but is also seeking alterative production sites to circumvent US tariffs on Chinese goods

By Lisa Wang  /  Staff reporter

Compal Electronics Inc (仁寶電腦), the world’s biggest notebook computer maker, yesterday posted 55 percent annual growth in net profit for last year as it gained larger orders from Apple Inc for its iPad and Apple Watch series.

Net profits soared to NT$8.91 billion (US$289.23 million), compared with NT$5.75 billion in 2017, the firm’s financial statement showed.

That translated into earnings per share of NT$2.05, up from NT$1.31 the previous year.

Revenue rose 9 percent annually to NT$967.71 billion from NT$887.66 billion, with PCs constituting more than 60 percent of the total, the company said.

To cope with increasing orders, Compal said it plans to build a new fab in Chongqing later this year, after starting operations at a factory in the Chinese city last year.

Factory utilization at the Chongqing fab is “quite good,” Compal president Martin Wong (翁宗斌) told an earnings conference in Taipei.

Asked whether it was boosting capacity at the Chongqing fab in preparation for upcoming launches of new iPad and Apple Watch products, as it won a bigger portion of orders from Apple, Wong said that China would remain a major manufacturing base for the firm, but Compal is seeking alternative production sites to circumvent US tariffs on Chinese goods.

Compal plans to spend NT$5.5 billion on capacity expansions in Vietnam, Chongqing and Taoyuan’s Pingjhen District (平鎮) this year, it said.

The company said it expects shipments of non-PC products to grow by a double-digit percentage next quarter, after dipping by a quarterly rate of 30 to 40 percent in the current quarter, matching its pattern in slack seasons.

PC shipments are expected to grow by a mid-single-digit percentage next quarter after falling 10 to 15 percent this quarter, Compal said.

The company shipped 10.2 million laptops in the fourth quarter last year, it said.

“We expect that the impact of an Intel Corp CPU [central processing unit] drought will be smaller than [our peers], as we are shipping more gaming, ultra-slim and commercial” notebook computers, Wong said. “Intel prioritizes those high-end models in supplying CPUs.”

Compal expects supply constraints of Intel CPUs to ease in the third quarter, Wong said, adding that Compal still aims to grow its overall PC shipments and revenue this year.

The laptop supplier for Dell Inc and HP Inc last year shipped about 40 million units.

Compal also said that it has made progress in breaking into the server market, as it has received orders from several clients, which would help it more than double its revenue from new products that include servers, automotive components and Internet of Things devices.

This story has been viewed 1672 times.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top