O-Ta Precision Industry Co Ltd (大田精密), the world’s third-largest maker of heads for golf clubs, expects profit for the second half of the year to grow on the back of increased shipments of high-margin products.
“Orders from our top five customers have increased annually so far this year,” an O-Ta public relations official told the Taipei Times by telephone on Friday.
The official declined to provide growth rates in orders from its top five clients, but said sales and profits this year would be better than expected.
“The growth momentum is expected to continue into the second half of the year,” said the official, who asked to remain anonymous.
The Pingtung County-based company, established in 1988, counts golf clubs as its top revenue source, contributing about 90 percent to overall sales in the first half of the year.
Bicycle frames and stainless steel faucets made up 10 percent of sales in the period, the company said.
O-Ta’s US and Japanese customers, each of which contributed half of the company’s annual sales, have been placing more orders for high-margin products this year, the official said, declining to specify its customers and their exact orders.
As next year’s Tokyo Olympics approaches, O-Ta’s Japanese customers plan to introduce new golf products in the first quarter of next year, which would boost sales next year, he said.
The company’s factory in Shenzhen, China, which makes mainly bicycle frames, is expected to relocate to Huizhou next quarter at the earliest, or early next year at the latest, the official said.
“The reason for the relocation is due to higher operation costs,” he said, adding that the new factory would start operations once it receives approval from the local government and gains certification from its customers.
O-Ta had combined profits for May and last month of NT$114 million (US$3.67 million), compared with net losses of NT$136 million in the same period last year, with earnings per share improving to NT$1.75 from NT$1.32 a year earlier, the company said in a regulatory filing on Wednesday.
The company attributed the improvement to better performance of its core business and higher foreign-exchange gains compared with a year earlier.
Revenue for the second quarter climbed 24.31 percent annually and 31.76 percent quarterly to NT$1.12 billion, the company said.
That saw cumulative revenue for the first half of this year rise 3.08 percent to NT$1.97 billion from NT$1.91 billion a year earlier, it said.
Jih Sun Securities Investment Consulting Co (日盛投顧) is positive about global demand for golf products as the Tokyo Olympics draw near and growth potential in China, expecting the golf industry’s output to grow by about 3.04 percent to US$13.3 billion this year.
Shares of O-Ta Precision rose 0.11 percent to close at NT$46.3 in Taipei trading on Friday. They have surged 151.63 percent since the beginning of the year.
SEMICONDUCTORS: The German laser and plasma generator company will expand its local services as its specialized offerings support Taiwan’s semiconductor industries Trumpf SE + Co KG, a global leader in supplying laser technology and plasma generators used in chip production, is expanding its investments in Taiwan in an effort to deeply integrate into the global semiconductor supply chain in the pursuit of growth. The company, headquartered in Ditzingen, Germany, has invested significantly in a newly inaugurated regional technical center for plasma generators in Taoyuan, its latest expansion in Taiwan after being engaged in various industries for more than 25 years. The center, the first of its kind Trumpf built outside Germany, aims to serve customers from Taiwan, Japan, Southeast Asia and South Korea,
Gasoline and diesel prices at domestic fuel stations are to fall NT$0.2 per liter this week, down for a second consecutive week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) announced yesterday. Effective today, gasoline prices at CPC and Formosa stations are to drop to NT$26.4, NT$27.9 and NT$29.9 per liter for 92, 95 and 98-octane unleaded gasoline respectively, the companies said in separate statements. The price of premium diesel is to fall to NT$24.8 per liter at CPC stations and NT$24.6 at Formosa pumps, they said. The price adjustments came even as international crude oil prices rose last week, as traders
POWERING UP: PSUs for AI servers made up about 50% of Delta’s total server PSU revenue during the first three quarters of last year, the company said Power supply and electronic components maker Delta Electronics Inc (台達電) reported record-high revenue of NT$161.61 billion (US$5.11 billion) for last quarter and said it remains positive about this quarter. Last quarter’s figure was up 7.6 percent from the previous quarter and 41.51 percent higher than a year earlier, and largely in line with Yuanta Securities Investment Consulting Co’s (元大投顧) forecast of NT$160 billion. Delta’s annual revenue last year rose 31.76 percent year-on-year to NT$554.89 billion, also a record high for the company. Its strong performance reflected continued demand for high-performance power solutions and advanced liquid-cooling products used in artificial intelligence (AI) data centers,
SIZE MATTERS: TSMC started phasing out 8-inch wafer production last year, while Samsung is more aggressively retiring 8-inch capacity, TrendForce said Chipmakers are expected to raise prices of 8-inch wafers by up to 20 percent this year on concern over supply constraints as major contract chipmakers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Samsung Electronics Co gradually retire less advanced wafer capacity, TrendForce Corp (集邦科技) said yesterday. It is the first significant across-the-board price hike since a global semiconductor correction in 2023, the Taipei-based market researcher said in a report. Global 8-inch wafer capacity slid 0.3 percent year-on-year last year, although 8-inch wafer prices still hovered at relatively stable levels throughout the year, TrendForce said. The downward trend is expected to continue this year,
RSS