Appliance maker Airmate soars on main bourse debut

By Helen Ku  /  Staff reporter

Fri, Mar 22, 2013 - Page 14

Cayman Islands-registered home appliance maker Airmate International Co (艾美特) saw its shares rise 16.13 percent after its initial public offering (IPO) on the main bourse yesterday.

The stock closed at NT$72 in Taipei trading after climbing to an intraday high of NT$75, up 20.9 percent from its IPO price of NT$62.

Before yesterday, the company traded its shares on the smaller Emerging Stock Market, closing at NT$62 on Wednesday.

Known in China as a manufacturer of fans and heaters, Airmate’s consolidated sales last year grew 11.7 percent to NT$11.58 billion (US$388.5 million), and its net profit expanded 140 percent from a year ago to NT$496 million, or earnings per share of NT$4.63.

Fubon Securities Investment Services Co (富邦投顧) was upbeat on Airmate and forecast earnings per share of NT$6 this year.

“We are positive on Airmate’s long-term growth prospects and expect further upside to its share price amid China’s consumer boom,” Fubon Securities analyst Elliot Chung (鍾慶宇) said in a note yesterday.

Given low market entry barriers, Airmate’s fans and heaters are sold in more than 60 countries, including Japan, South Korea, the US and many European countries.

Collectively, fans and heaters accounted for up to 87 percent of Airmate’s total sales last year, the company said.

Supported by strong demand in China for heaters ahead of the Lunar New Year holiday, Airmate’s sales during the first two months of the year hit NT$957 million, up 40 percent from the same period last year.

The company told a pre-IPO conference earlier this month that it plans to expand its product portfolio and start selling dehumidifiers, humidifiers and juice machines this year.

Based on positive response from its sales channels, Airmate is optimistic that sales of its fans this year would grow by more than 20 percent and that total sales would increase by 10 to 20 percent, Airmate CEO Yang Yu-fu (楊浴復) said.