Fri, Oct 18, 2019 - Page 11 News List

Fulgent expects growth to continue

By Kwan Shin-han  /  Staff reporter

Shoemaker Fulgent Sun International Holding Co (鈺齊國際) expects growth to continue through the first quarter of next year on the back of increased shipments to new clients and steady growth in market demand, after posting strong financial results last quarter.

“Shipments to new clients are to increase this quarter, which will lead to annual growth in sales and profit,” Fulgent Sun executive vice president Sunny Liao (廖志誠) told an investors’ conference in Taipei yesterday.

In addition to three brands it signed in the first half of this year, Fulgent Sun has in the second half added Wolverine World Wide Inc, which owns hiking boots brand Merrell; VF Corp; W-D Apparel Co LLC, owner of the Terra and Kodiak brands; and bootmaker TCX Srl, Liao said.

The company’s 10 major clients accounted for about 85 percent of its total revenue in the first nine months of the year, with the top three making up 30 percent, Liao said, adding that Fulgent Sun has order visibility through February next year.

However, there are some uncertainties ahead, such as fewer working days in January and volatile foreign exchange rates, he said.

Overall, the company expects growth from this quarter to the first quarter of next year, Liao said, adding that it is also confident about achieving 10 to 15 percent growth in capacity this year.

The Yunlin County-based company operates three plants in China, two in Vietnam and one in Cambodia.

Shipments from its Vietnamese and Cambodian plants would continue to grow this quarter on improved management and production efficiency, along with low business income taxes, while shipments from its Chinese plants are this year expected to be slightly higher than last year, Liao said.

In the third quarter, net income jumped 92.38 percent annually and 36.75 percent quarterly to a record NT$405.76 million (US$13.23 million), or earnings per share of NT$2.44, the company said in a statement on Tuesday.

Gross margin last quarter improved to 19.5 percent, up from 17.1 percent a year earlier and 15.93 percent in the previous quarter, thanks to improved production efficiency, it said.

Revenue last quarter reached a record-high NT$3.45 billion, up 33.16 percent annually and 2.84 percent quarterly, with Europe remaining the largest market with a contribution of 45 percent of the total, it added.

Revenue generated from the US market accounted for about 35 percent of total revenue, while sales in China made up 7 percent and other Asian markets 10 percent, the company said.

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