BizLink Holding Inc (貿聯), the sole supplier of wiring harnesses for battery management systems in Tesla Inc’s Model 3 sedans, yesterday said it is looking to grow revenue by a double-digit percentage this year on the back of vigorous demand for electric cars and home appliances.
BizLink’s expansion into Chinese electric vehicles, rising demand for home appliances and launches of new docking stations used in information technology (IT) devices should help it overcome economic headwinds this year, the company said.
“We are cautiously optimistic about this year. It is a challenging year,” Bizlink chairman Roger Liang (梁華哲) told reporters during a media gathering.
“The world economy is showing signs of flagging. Foundry companies saw factory utilization drop to 70 percent. Some automakers have cut their financial forecasts,” Liang said.
Nonetheless, BizLink still expects to grow its revenue by a double-digit percentage this year after surging 37 percent to a record NT$21.39 billion (US$693.22 million) last year, he said.
The electric vehicle sector is one of the bright spots that should continue to grow and buck the macroeconomic and conventional automobile downtrend, Liang said.
In addition to Tesla, BizLink has made progress in securing new orders and new clients from China, which are to roll out new models later this year, Bizlink chief executive officer Felix Teng (鄧劍華) said.
Shipments of wiring harnesses for affordable electric cars are to double this year from last year based on indications from customers, Teng said.
Cables and harnesses for electric vehicle (EV) battery management systems accounted for 15 percent of the company’s total revenue last year.
Components for information technology made up the biggest chunk, or 48 percent, while components for home appliances contributed 24 percent.
Information technology and home appliances should drive business this year, BizLink said, citing rising orders for docking stations used in IT devices and from brand customers, such as UK-based vacuum cleaner maker Dyson Ltd.
Industrial harnesses should also enjoy robust growth, the company said.
BizLink’s IT revenue is expected to increase 11 percent year-on-year, while automotive revenue should grow 25 percent, aided by more shipments of Model 3s, Cathay Futures Corp (國泰期貨) projected.
Commenting on US-China trade tensions, Teng said he expects the impact to be limited as the company had allocated part of its production of wiring harnesses for automobiles and industrials to Malaysia and Mexico last year.
The company plans to expand the capacities of its plants in Malaysia, Mexico, Serbia, Slovakia and China this year, Teng said.
In addition to organic growth, the company said it would keep scouting for merger and acquisition opportunities.
From the customer’s perspective, car rental is a straightforward business. The only uncertainty is whether the hire company will charge you for the scratch they discover when you hand back the vehicle. Hertz Global Holdings Inc’s bankruptcy protection filing on Friday last week was a reminder that today even the simplest business models are underpinned by a lot more financial complexity than meets the eye. The proximate cause of Hertz’s demise was of course the sudden collapse in bookings caused by COVID-19 travel restrictions. The company’s monthly revenue last month fell 73 percent year-on-year, a shortfall that even the most resilient
Uber Technologies Inc, Lyft Inc and Airbnb Inc have slashed thousands of jobs. Salesforce.com Inc and Visa Inc are letting employees work remotely for months; Twitter Inc and Square Inc are allowing them to do so for good. For the companies’ hometown of San Francisco, the moves are early signs of a dire blow. In a city with a long history of booms, busts and natural calamities, the COVID-19 pandemic has suddenly upended nearly a decade of prosperity. While municipalities across the US are grappling with economic fallout from the virus, San Francisco stands to take a deeper hit given its high
BULK PURCHASE: The French chain and Hong Kong-based Dairy Farm International reached a deal covering 224 stores, which is expected to be finalized by year’s end Carrefour SA yesterday announced it would acquire Wellcome Taiwan Co (惠康百貨) for 97 million euros (US$108.33 million), and bring all the Wellcome supermarkets (頂好超市) and Jasons Market Place stores nationwide under its banner within 12 months of the deal closing. The France-based hypermarket chain reached an agreement with Hong Kong-based Dairy Farm International Holdings (牛奶國際控股), the pan-Asian retailer that launched Wellcome Taiwan in 1987. The transaction involves 199 Wellcome supermarkets, which have average sales areas of 420m2 and 25 high-end Jasons Market Place stores, which have an average sales area of 820m2, as well as a warehouse in Taoyuan, Carrefour Taiwan (家樂福)
‘ONE-STOP SHOP’: A Miaoli official said that the factory in the Jhunan section of the Hsinchu Science Park would create more than 1,000 jobs and boost prosperity A new high-end IC packaging and testing plant planned by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in Miaoli County is expected to start operations in the middle of next year, Miaoli County Commissioner Hsu Yao-chang (徐耀昌) said. Hsu wrote on Facebook that TSMC, the world’s largest pure wafer foundry operator, would invest NT$303.2 billion (US$10.1 billion) to build the plant, the largest-ever single investment in Taiwan. However, TSMC declined to disclose the financial terms of the deal, while a company board meeting on May 12 approved a spending plan worth NT$168.2 billion as part of its investment plans. Construction of the