Wed, Nov 20, 2019 - Page 12 News List

Molding component maker Concraft upbeat on outlook until end of year

By Natasha Li  /  Staff reporter

Concraft Holdings Co (康控), which supplies acoustic components for Apple Inc’s iPhones, yesterday gave an upbeat outlook for this quarter and the next, after reporting that net profit surged 76.92 percent on a quarterly basis to NT$238.81 million (US$7.83 million) last quarter, which translated into earnings per share of NT$1.85.

Thanks to strong sales of the iPhone 11 series, the molding component maker posted revenue of NT$1.52 billion, up from NT$1.22 billion the previous quarter.

“We have high order visibility stretching to June next year,” chief financial officer Joe Huang (黃翹生) told an investors’ conference in Taipei.

Concraft should continue to see growth this quarter due to a delayed launch until last month of true wireless stereo (TWS) earphones by its US client, Huang said, adding that gross margin would improve to 40 percent from 37.08 percent last quarter.

Apple launched its AirPods Pro late last month.

Due to the strong demand for the TWS earphones, the company is running at full capacity, Huang said.

Acoustic components made up 77 percent of Concraft’s overall revenue last quarter, Huang said.

While sales from acoustic components used in smartphones is expected to decrease next year, those from acoustic components used in TWS earphones are expected to increase and offset the decline, he said.

Molding components and automated equipment made up 14 percent of total revenue, automotive and optical components another 6 percent, while connectors contributed 3 percent, the company said.

Revenue for this year is likely to decline 4 to 5 percent from last year due to a poor start this year, but should increase to NT$6 billion next year, Huang said.

Shipments of optical components focusing on applications such as micro injections are to start by March next year, contributing 10 to 15 percent of the company’s overall revenue next year, he added.

Net profit in the first three quarters of this year sank to NT$217.66 million from NT$712.63 million in the same period a year earlier.

As a result, earnings per share declined from NT$5.76 to NT$1.73.

Revenue during the same period declined 24.62 percent annually to NT$3.33 billion.

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