Tue, Jun 25, 2019 - Page 12 News List

Chaun-Choung optimistic about second half of year

By Natasha Li  /  Staff reporter

Chaun-Choung Technology Corp (CCI, 超眾科技) yesterday said it was optimistic about the second half of the year, citing the arrival of the electronics industry’s high season.

Client orders have remained stable amid the US-China trade dispute, and “New [South] Korean smartphone models are entering the market in the third quarter,” CCI deputy chief executive officer and spokesman Allen Lin (林志仁) told the Taipei Times by telephone.

“We are setting high expectations for the coming months,” Lin said.

The supplier of heat-dissipation modules for PCs and networking equipment is 48 percent held by Nidec Corp, a Japanese maker of micromotors used in electronic devices, following a tender offer completed in December last year.

Headquartered in New Taipei City’s Sanchong District (三重), the company has had a flourishing year so far, with cumulative revenue from January to last month growing 14.16 percent to NT$3.24 billion (US$104.15 million) from NT$2.84 billion for the same period last year.

Net income in the first quarter surged by 327 percent annually to NT$140 million, with earnings per share (EPS) of NT$1.63.

About 44 percent of the first-quarter’s sales came from its PC business and up to 25 percent from the server business, while networking equipment was up to 16 percent and the smartphone segment 10 percent, Lin said.

The remaining 5 percent was from heat dissipation products for home appliances and gaming consoles, he said.

The company has expanded its product lines to include heat dissipation parts related to high-performance computing, artificial intelligence applications and data centers, which are expected to boost sales, Lin said, quoting remarks made by chief executive Kuo Ta-chi (郭大祺) at the firm’s shareholders’ meeting in New Taipei City earlier in the day.

While Taiwan remains home to a small percentage of CCI’s overall production, the company has completed expanding production capacity of its plants in Taipei, which specialize in vapor chambers for servers and networking communication products, Lin said.

“We are currently looking to develop heat dissipation products for automated and electric vehicles,” Lin quoted Kuo as saying.

The development process is a long one, so results would only be available in three to five years, Lin said.

CCI is contemplating providing after-sales service through its partners to servers and data centers clients, he said, adding that the decision would depend on long-time partners such as Intel Corp and Quanta Computer Inc (廣達電腦).

At the meeting, shareholders agreed to a dividend distribution of NT$4.7 per share, with a payout ratio of 68.12 percent based on last year’s EPS of NT$6.9.

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