BizLink Holding Inc (貿聯控股) on Friday reported its consolidated sales increased 10.11 percent last month to US$65.08 million, from US$59.11 million a year earlier.
“Some customers replenished their inventories, resulting in a slight increase in sales with minor changes across product segments,” Silicon Valley-headquartered BizLink, the sole supplier of wiring harnesses for battery management systems in Tesla Inc’s electric vehicles (EVs), said in a statement.
The company’s product portfolio includes components for information technology, consumer electronics and electrical appliances, as well as industrial, medical, solar and telecom equipment.
Wire harness shipments for information technology and consumer electronics (IT/CE) rose last month due to inventory buildup at its customers, while those for electrical appliances, vehicles and industrial applications remained stable, BizLink said.
Second-quarter sales reached US$193.64 million, the highest quarterly level in the company’s history, while combined sales in the first six months of the year increased 9.91 percent year-on-year to NT$371.09 million, the company’s data showed.
BizLink’s wire harness orders for the IT/CE segment would be lower this quarter than last due to weaker-than-expected end-market demand amid the US-China trade dispute.
However, it has already relocated IT production lines in China to Taiwan and Malaysia, Capital Investment Management Corp (群益投顧) said in a note last week.
As for automotive harnesses, which BizLink mostly provides to Tesla’s Model 3, Model S and Model X, it will greatly depend on the US electric car manufacturer’s output growth in the second half of the year and if the cheaper Model 3 will be cannibalizing the company’s more lucrative models, Capital Investment said.
Tesla on Wednesday reported Model 3 output of 72,530 units in the second quarter, which was in line with Capital Investment’s forecast, but the output of the higher-margin Model S and Model X totaled 14,517 vehicles, 27 percent lower than the consultancy’s estimate and 21 percent less than the 22,319 units Tesla produced a year earlier.
“Model S/X demand may remain capped going forward due to other automakers’ penetrating into the luxury EV market and consumers’ switching to lower-priced Model 3,” Capital Investment said.
It also said that it has lowered its Model S/X output forecast for this year and does not expect Tesla’s Shanghai plant to start production of Model 3 vehicles smoothly later this year.
BizLink, which trades its shares on the Taiwan Stock Exchange, closed 1.68 percent lower at NT$234.5 on Friday. The stock has risen 4.69 percent so far this year.
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