Tue, Jun 25, 2019 - Page 12 News List

Engley forecasting small growth in annual sales

By Kwan Shin-han  /  Staff reporter

Cayman Engley Industrial Co Ltd (開曼英利) yesterday said that it expects mild growth in sales for this year despite a downturn in the Chinese automotive market.

At its annual shareholders’ meeting in Changhua, the auto parts manufacturer reported sales in the first five months of the year dropped 2.33 percent annually to NT$8.45 billion (US$271.62 million) from NT$8.65 billion a year earlier.

“Sales growth for this year might be lower than 5 percent, which is below last year’s forecast of growth between 10 and 15 percent,” an Engley official, who declined to be named, told the Taipei Times by telephone.

The official said he is not sure when the market would bottom out this year, as the Chinese market remains sluggish and the US-China trade dispute has reduced consumer spending and made its clients more conservative on capital spending.

“We expect sales to rebound in the fourth quarter as new fossil-fuel and alternative-fuel vehicles are to hit the market,” he said.

Engley said it is considering expanding capacity to meet demand for components for high-end and alternative-fuel vehicles.

It has been making battery compartment covers under a six-year contract with FAW-Volkswagen Automotive Co Ltd (一汽大眾), which plans to release a new electric vehicle in the second half of the year, the official said.

It also plans to add production lines to meet new orders from Mercedes-Benz, he said.

Although electric vehicles only account for a small portion of its sales, orders for light-weight auto parts from FAW-Volkswagen and Volvo Cars Group have increased steadily, Engley said.

“Sales of alternative-fuel vehicles in the Chinese market will surpass 1 million units this year, but its annual growth rate for this year will be less than last year’s 88.9 percent,” the official said.

To expand its market share in China, over the past two years the firm has invested 800 million yuan (US$116.32 million at the current exchange rate) on expanding its Qingdao and Tianjin units, he said.

“One of every eight vehicles in China uses our products,” he said.

Shareholders yesterday approved the distribution of a cash dividend of NT$4.5 per common share, implying a payout ratio of 45.5 percent based on last year’s earnings per share of NT$9.89.

That was a dividend yield of 4.25 percent based on the stock’s closing price of NT$106 yesterday in Taipei trading.

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