Sinbon Electronics’ consolidated sales up 51.5% annually

By Chen Cheng-hui  /  Staff reporter

Mon, Jan 07, 2019 - Page 15

Sinbon Electronics Co (信邦電子), which produces cables, connectors and modems, on Friday reported consolidated sales of NT$1.15 billion (US$37.3 million) for last month, up 51.5 percent year-on-year, but down 11.92 percent month-on-month.

The monthly decrease was due to clients’ inventory adjustments before the end of last year and was also because some clients front-loaded orders in the previous quarter to avoid higher tariffs amid the US-China trade dispute, Sinbon said in a statement.

Cable assemblies contributed 71.46 percent to the company’s total sales last month, while connectors, components and other accessories made up 28.54 percent, the company said.

Sinbon’s sales for the October-to-December quarter dropped 11.9 percent from the previous quarter to NT$3.97 billion due to seasonal factors. The quarterly setback still beat Yuanta Securities Investment and Consulting Co’s (元大投顧) forecast of a 13 percent decline and Jih Sun Securities Investment Consulting Co’s (日盛投顧) estimate of a 12 percent fall.

The company’s consolidated sales for the whole of last year rose 18.8 percent to NT$15.82 billion, Sinbon said.

At a meeting with analysts last month, the company’s management said it remained positive about the company’s outlook for this year and believed the impact of US-China trade tensions should be controllable.

“Thanks to its long-term relationship with clients, Sinbon Electronics has greater access to clients than the company’s peers when client products are at the research-and-development stage, therefore it can ship products as a preferred supplier once they are released,” Wang Deng-cheng (王登城), who tracks the electronic components industry at Yuanta Securities, said in a client note on Dec. 27.

“In addition, its products are mostly used in non-consumer sectors such as industrial, green energy, automotive and medical, generally with stable orders,” Wang said.

Yuanta said Sinbon’s sales for this quarter would likely be flat from last quarter due to a high comparison base last year.

It said that Sinbon should achieve record-high sales again this year.