Tue, Jun 11, 2019 - Page 11 News List

Strong H eyeing higher H2 sales

By Kwan Shin-han  /  Staff reporter

Sewing machine and component maker Strong H Machinery Technology (Cayman) Inc (強信機械科技) yesterday said that its sales would climb in the second half of the year, as the company has yet to see significant orders diverted from China, while inventory adjustments continue.

Revenue for last month dropped 8.78 percent year-on-year and 13.17 percent month-on-month to NT$147.63 million (US$4.7 million), with cumulative revenue in the first five months decreasing 1.42 percent to NT$747.53 million from NT$758.26 million a year earlier.

Strong H said the inventory adjustments would be a short-term phenomenon and the company still expects sales momentum to emerge in the second half of the year on the back of strong demand from its downstream clients in the US and a steady Chinese market.

“As next year’s Tokyo Olympics draw near, American clients have increased their clothing and footwear shipments, which drove up the demand for sewing machines at [midstream] textile companies,” a company public relations official told the Taipei Times by telephone.

“We expect sales to climb in the fourth quarter as we meet our clients and sign deals at the China International Sewing Machinery & Accessories Show [from Sept. 25],” said the official, who declined to be named.

Strong H’s product lineup ranges from industrial sewing machine knives to auto thread trimmers, and from belt cutter devices, needle plates to other components.

The company reported that net income increased 0.17 percent year-on-year to NT$500.18 million in the first quarter, or earnings per share of NT$0.85.

Gross margin was 24.37 percent.

China accounted for 75 percent of the company’s revenue in the first quarter, while Vietnam, India, Indonesia and other Asian nations contributed 20 percent, the company said.

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