Thu, Sep 05, 2019 - Page 11 News List

Hiwin Mikrosystem sees flat Q3, but more SK orders

By Kwan Shin-han  /  Staff reporter

Hiwin Group chairman Eric Chuo, third left, and other executives bang on a drum to celebrate the debut of the company’s shares on the Taiwan Stock Exchange yesterday in Taipei.

Photo courtesy of Hiwin Mikrosystem Corp

Motor manufacturer Hiwin Mikrosystem Corp (大銀微系統) expects sales this quarter to be flat from last quarter, but new orders from South Korea would boost sales next quarter, Hiwin Group (上銀集團) chairman Eric Chuo (卓永財) told a news conference in Taipei yesterday.

The company is expected to benefit from the Japan-South Korea trade spat, as South Korean semiconductor and consumer electronic companies seek alternative suppliers, Chuo said.

The maker of linear motor stages, linear motors and torque motors last month shipped alternating current (AC) servo motors to South Korean clients, and would ship linear guideways and stages early next month, while new products, such as E1-series drives, would begin to be shipped next quarter, he said.

Overall, the company has order visibility of about one-and-a-half months, Chuo said.

It is building a new plant in Yunlin County’s Technology-based Industrial Park (雲林科技工業園區), largely for AC servo motors, which is expected to be completed in November, executive vice president Yu Kai-sheng (游凱勝) said.

The company said it is optimistic about the outlook for nano-positioning linear motors, which are expected to become more important and gradually replace ball screws in automation.

In the first half of the year, net income plunged 68.65 percent year-on-year to NT$43.04 million (US$1.37 million), with earnings per share dropping from NT$1.44 a year earlier to NT$0.4, as the machine tool business remained sluggish due to the ongoing US-China trade dispute, it said.

Gross margin fell by 4.15 percentage points to 32.71 percent over the period, it added.

Asia remains its largest market, accounting for 35 percent in the first half, while Europe and the US each contributed 20 percent, with Taiwan making up 20 percent, it said.

The company expects sales to Southeast Asia to increase 50 percent from a year earlier, thanks to higher demand for automation equipment from companies relocating there to avoid tariff risks.

The company’s shares yesterday skyrocketed 60.71 percent to NT$90 on their debut on the Taiwan Stock Exchange, compared with an initial public offering price of NT$56.

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