Wed, Apr 24, 2019 - Page 12 News List

Ying Han reports 20 percent drop in first-quarter sales

By Kwan Shin-han  /  Staff reporter

Ying Han Technology Co (穎漢科技), which designs and manufactures machines for making metal pipes for cars, motorcycles and furniture under the Hannsa Precision brand, saw its revenue decline nearly 20 percent last quarter, but expects sales to regain growth momentum in the second half of the year.

First-quarter revenue fell 19.8 percent to NT$257.93 million (US$8.36 million) from NT$321.62 million a year earlier, the company said on Monday.

Chief financial officer Alan Huang (黃國章) attributed the poor showing to continued soft demand for tube benders and cutting machines.

Huang is conservative about the business outlook for this quarter, but added that prospects might improve in the second half if the US-China trade dispute is resolved.

The company’s new laser tube cutting machines should help boost revenue, Huang said, adding that it has received orders for the product.

The machine has a price tag of about 600,000 euros (US$673,305) and offers a high gross margin of 40 to 50 percent, Ying Han president Hu Chun-chia (胡峻嘉) said.

Ying Han posted a net income of NT$149.30 million, or earnings of NT$2.21 per share, for last year. Gross margin was 38.15 percent.

North America accounted for 35 percent of its revenue, up from 27 percent a year earlier, but Asia still made up the biggest chunk at 57 percent, company data showed.

Revenue from China fell 18.58 percent to NT$398.19 million, but almost doubled in India, the data showed.

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