TPK monthly growth inches up 0.62%

By Lisa Wang  /  Staff reporter

Thu, Sep 05, 2013 - Page 13

TPK Holding Co (宸鴻), a major touch panel supplier to Apple Inc, yesterday reported slight monthly growth of 0.62 percent in revenue for last month, but analysts expected growth momentum to strengthen this month on sales of new tablets from Apple and Amazon Inc.

Revenue inched up to NT$9.44 billion (US$317.2 million) last month from NT$9.38 billion in July. However, last month’s figure represented an annual decline of 27.32 percent from NT$12.99 billion.

TPK chief financial officer Freddie Liu (劉詩亮) told investors last month that revenue would increase slightly this month, helped by budding recovery in the demand for tablets.

He expected growth to magnify this month and next.

At that time, the company expected revenue for this quarter to drop by between 15 percent and 20 percent from last quarter’s NT$38.29 billion.

To reach its revenue goal, TPK has to generate 11.81 billion in revenue this month, which would be a 25 percent increase. The company made a total of NT$18.82 billion in revenue for July and last month.

A foreign securities analyst yesterday said the launch of new iPads and new Kindles from Amazon would give a much-needed boost to TPK’s revenue. The analyst did not want to be named.

Other analysts have expected TPK to supply 60 percent touch panels used in the iPad 5, while General Interface Solution Ltd (GIS, 英特盛), a touch panel manufacturing subsidiary of Hon Hai Group (鴻海集團), would have a 40 percent share.

The Chinese-language Economic Daily News reported yesterday that the unlisted GIS could receive an order to supply 50 percent of the new iPad’s touch panels.

Apple is expected to ship 72.1 million tablets this year, including 32.9 iPad units, local research house WitsView predicted.

Apple is TPK’s biggest client, contributing about 30 percent of the firm’s revenue last quarter, down from 45 percent in the first quarter. TPK has broadened its customer base to more than 40 clients.

Shares of TPK fell 1.82 percent to NT$323 yesterday.