Wed, Aug 14, 2019 - Page 12 News List

Quang Viet sees double-digit growth

ALL DRESSED UP:Increasing orders from major clients Adidas and Nike, along with new customers like New Balance, are keeping the garment maker’s plants busy

By Kwan Shin-han  /  Staff reporter

Leading down jacket and garment manufacturer Quang Viet Enterprise Co (廣越企業) yesterday said that total shipments for this year would post a double-digit increase to 14 million pieces.

“Growth this year will mainly from increasing orders for outdoor clothing, while sportswear is expected to be the main growth driver next year. [Sportwear] offers higher margins and orders are usually huge,” Quang Viet president Charles Wu (吳朝筆) told an investors’ conference in Taipei.

Adidas AG and Nike Inc count among its major customers, with orders from Adidas growing 5 percent annually so far this year and expected to grow 30 percent next year, while orders from Nike have climbed 15 percent this year and are to increase by about 20 percent next year, Wu said.

As for outdoor clothing, orders from Patagonia have increased 30 percent this year and are forecast to be flat next year, he said.

Orders from The North Face have declined this year, but should increase 10 percent next year, he added.

The company expects significant growth in orders next year from other new customers, such as New Balance Inc, Montbell Co, Helly Hansen Group and Under Armour Inc, Wu said.

The average selling prices for Quang Viet’s products are expected to grow between 3 and 5 percent this year and between 5 and 7 percent next year as shipments of heavy down jackets grow gradually, he said.

As its overseas plants are running at full capacity, the company plans to double its capital expenditure to about US$20 million next year and may open new plants in Indonesia, he said.

First-half net income surged 143.86 percent year-on-year to NT$319.03 million (US$10.13 million), or earnings per share of NT$3.09.

Revenue in the first seven months soared 45.5 percent year-on-year to NT$8.45 billion, company data showed.

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