Mon, Apr 08, 2019 - Page 15 News List

Makalot revenue boosted by brand orders, peak season

By Chen Cheng-hui  /  Staff reporter

Makalot Industrial Co (聚陽實業) on Wednesday last week reported consolidated revenue of NT$2.5 billion (US$81.1 million) for last month, up 34.89 percent from a year earlier.

Last month’s figure was the highest since September last year, when revenue reached NT$3.14 billion, company data showed.

The company’s monthly revenue has in the past few months remained above NT$2 billion thanks to increasing orders from brand clients and peak-season shipments of high-priced apparel.

The company’s revenue in the first quarter increased 30.96 percent annually and 10.1 percent quarterly to NT$6.72 billion, exceeding analysts’ estimates. Jih Sun Securities Investment Consulting Co (日盛投顧) had predicted a quarterly increase of 5.54 percent to NT$6.44 billion, while Taishin Securities Investment Advisory Co (台新投顧) had forecast a rise of 7.4 percent to NT$6.55 billion.

Makalot, a manufacturer of ready-to-wear apparel and functional clothing, counts GAP Inc, Fast Retailing Co’s GU sub-brand, Kohl’s Corp, Target Corp, Walmart Inc and Hanesbrands Inc among its major clients.

The company operates plants in Taiwan, China, Indonesia, Cambodia, Vietnam and the Philippines.

To avoid US tariffs on goods made in China and meet demand, the company this year plans to continue to expand capacities at its plants in Indonesia and Vietnam.

Expecting strong growth momentum to last until the end of the year, Taishin said full-year revenue might increase 17.4 percent annually to NT$28.07 billion, while Jih Sun forecast a 12.1 percent increase to NT$26.83 billion.

Makalot shares on Wednesday last week rose 1.2 percent to NT$210 on the Taiwan Stock Exchange. They have advanced 23.53 percent since the beginning of this year.

The textile sub-index has outperformed the broader market by 3.3 percent so far this year, as investors have taken note of potential growth momentum driven by order pull-in to meet demand for an upcoming peak season.

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