Sat, May 18, 2019 - Page 12 News List

Concraft has rare loss, vows to bounce back this year

By Natasha Li  /  Staff reporter

Concraft Holdings Co (康控), a molding components maker that supplies acoustic components for Apple Inc’s iPhones, yesterday said that it aims to swing to profit in the second half, despite incurring losses in the first quarter.

The company on Wednesday posted first-quarter losses of NT$156.14 million (US$4.99 million), its first such loss since listing on the local bourse in 2016.

Revenue was NT$591.35 million, down 36.54 percent from a year earlier, translating to losses of NT$0.24 per share.

Concraft said that the decline was mainly due to poor iPhone sales, price cuts and inventory adjustments amid a traditionally weak sales season.

The company aims to recover from its losses by driving up sales in the second half of the year, despite an ongoing trade conflict between the US and China, chief financial officer Joe Huang (黃翹生) told an investors’ conference.

It is to release new products in the third quarter, in time for peak sales season, Huang said.

Concraft is expanding the applications of its products by reaching out to more diverse clients, in addition to lowering the share of acoustic components in its product portfolio to cut dependence on the sector, Huang said.

Acoustic components are expected to make up half of overall sales this year, while automotive components would take up to 8 to 10 percent and new precision parts would contribute 20 to 24 percent, he said.

The proportion of acoustic components next year would be lowered to 30 to 40 percent of sales, while automotive components would rise to 15 to 20 percent and new precision parts would take up 40 percent, he added.

The company is also setting up factories in Thailand to lower production costs and would start production by the first quarter of next year in response to demand from its clients for acoustic and automotive components, Huang said.

Concraft plans to eventually set up production sites in India, he added.

Shares of the company edged down 0.75 percent yesterday to close at NT$132.

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