Shoemaker Fulgent Sun International Holding Co (鈺齊國際) on Thursday said it expects revenue in the second half to improve from the first half on the back of rising output from its plants in Southeast Asia and increased orders.
“We are optimistic about the second half, as we have four months of order visibility,” Fulgent Sun executive vice president Sunny Liao (廖志誠) told an investors’ conference in Taipei.
Revenue this quarter would exceed last quarter’s NT$3.35 billion (US$106.65 million) due to more working days and higher shipments, he said, adding that revenue for all of this year is expected to surpass last year’s.
Fulgent Sun has expanded its production capacity at its two plants in northern Vietnam and lowered capacity at its Chinese plants to lessen the effects of US tariffs on Chinese-made goods, Liao said.
Vietnamese plants accounted for 41.4 percent of the company’s overall capacity in the first half, Liao said.
The company also boosted capacity at its Cambodia plant, which contributes 25.6 percent of capacity, he said.
Fulgent Sun ships most products made in Camdodia to Europe.
Its Southeast Asian plants would help reduce operating expenditure, as wages in Vietnam are 30 percent lower than in China, while Cambodia’s are only half of China’s, Liao said.
The company has about 40 clients so far this year and each year adds three to five new ones, Fulgent Sun chief financial officer Fan Zhen-xiang (范振祥) said, adding that most of this year’s additions are from the US.
Non-Gore-Tex outdoor footwear remained its major product line, accounting for 62.5 percent of revenue in the first half, while certified Gore-Tex outdoor footwear contributed 25.9 percent, with sports footwear making up 11.6 percent, company data showed.
Net income in the first half soared 48.13 percent year-on-year to a record NT$502.01 million from NT$338.9 million in the same period a year earlier on increased output and robust demand.
Earnings per share improved from NT$2.33 to NT$3.21, it said.
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