While the global automotive market remains weak, Tong Yang Industry Co (東陽) saw its shipments for the aftermarket (AM) business grow in the first nine months of this year, implying a strong competitiveness in the sector, Capital Investment Management Corp (群益投顧) said last week.
Tong Yang supplies bumpers, grilles and fenders to global brands through the AM channel or as an original equipment manufacturer (OEM).
Its development of more than 100 modules per year and its persistent launch of products to secure long-term competitiveness have supported growth momentum in the AM business in particular, the consultancy said.
In the first nine month of the year, AM revenue rose 4.87 percent year-on-year to NT$11.66 billion (US$381.12 million), corporate data released earlier this month showed.
“Tong Yang’s shipments of AM parts still grew, due to higher shipments to North America, higher revenues derived from the Middle East and Africa on higher purchasing power, as well as the company’s adjustment of product strategies,” Capital Investment said in a research note on Wednesday.
“AM revenue will continue to grow as the number of vehicles in use continues to rise globally, boosting the demand for auto parts, while there is a persistent trend of AM parts replacing OES [original equipment supplier] parts in North America,” it said.
SinoPac Securities Investment Service Corp (永豐投顧) said it expected Tong Yang to see continued sales growth in the AM business from this quarter to next quarter in light of robust demand in North America and Europe.
“The AM business momentum looks sustainable now that the company’s new product development is finished, which should fuel its gross margin expansion,” SinoPac said in a note on Thursday.
Taiwan’s and China’s lackluster markets hurt the firm’s OEM revenue, which declined 35.03 percent year-on-year to NT$4.11 billion in the first nine months.
However, major brands’ new model launches this quarter ‘should help improve its OEM business momentum in China, SinoPac said.
“The utilization rate of Tong Yang’s OEM production lines is likely to rebound and reinvigorate overall sales and earnings growth, thanks to favorable government policies in China,” it said.
Tong Yang said pretax profit last month fell 14.18 percent year-on-year to NT$121 million due to foreign exchange losses of NT$40.11 million.
Third-quarter pretax profit grew 17.5 percent annually to NT$523 million, with earnings per share (EPS) of NT$0.94, while revenue fell to NT$5.18 billion, down from NT$5.39 billion a year earlier, the company’s data showed.
“The third-quarter pretax income was shy of our expectations owing to non-operating items,” such as foreign exchange losses and a one-off adjustment from a reinvestment business unit, Yuanta Securities Investment Consulting Co (元大投顧) said on Tuesday.
“September’s operating margin of 9.8 percent was better than expected, which in our view is due to management’s better operating expense control,” Yuanta Securities added
Tong Yang reported pretax profit of NT$1.78 billion for the first three quarters, with EPS of NT$3.18, compared with EPS of NT$3 for the same period last year, while cumulative revenue dropped 9.61 percent year-on-year to NT$15.77 billion.
Taiwan Transport and Storage Corp (TTS, 台灣通運倉儲) yesterday unveiled its first electric tractor unit — manufactured by Volvo Trucks — in a ceremony in Taipei, and said the unit would soon be used to transport cement produced by Taiwan Cement Corp (TCC, 台灣水泥). Both TTS and TCC belong to TCC International Holdings Ltd (台泥國際集團). With the electric tractor unit, the Taipei-based cement firm would become the first in Taiwan to use electric vehicles to transport construction materials. TTS chairman Koo Kung-yi (辜公怡), Volvo Trucks vice president of sales and marketing Johan Selven, TCC president Roman Cheng (程耀輝) and Taikoo Motors Group
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
RECORD-BREAKING: TSMC’s net profit last quarter beat market expectations by expanding 8.9% and it was the best first-quarter profit in the chipmaker’s history Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which counts Nvidia Corp as a key customer, yesterday said that artificial intelligence (AI) server chip revenue is set to more than double this year from last year amid rising demand. The chipmaker expects the growth momentum to continue in the next five years with an annual compound growth rate of 50 percent, TSMC chief executive officer C.C. Wei (魏哲家) told investors yesterday. By 2028, AI chips’ contribution to revenue would climb to about 20 percent from a percentage in the low teens, Wei said. “Almost all the AI innovators are working with TSMC to address the
Malaysia’s leader yesterday announced plans to build a massive semiconductor design park, aiming to boost the Southeast Asian nation’s role in the global chip industry. A prominent player in the semiconductor industry for decades, Malaysia accounts for an estimated 13 percent of global back-end manufacturing, according to German tech giant Bosch. Now it wants to go beyond production and emerge as a chip design powerhouse too, Malaysian Prime Minister Anwar Ibrahim said. “I am pleased to announce the largest IC (integrated circuit) Design Park in Southeast Asia, that will house world-class anchor tenants and collaborate with global companies such as Arm [Holdings PLC],”