Local electronics component maker Lite-On Technology Corp (光寶科技) said yesterday it aims to increase revenue by 20 percent this year as demand for electronics, such as notebook computers, is expected to improve amid the global economic recovery.
Building on consensus optimism about IT demand, the company expects monthly revenues to grow beyond their peak in the fourth quarter last year, Lite-On chief executive Terng Kuang-chung (滕光中) told reporters on the sidelines of the company’s year-end party.
“Demand looks a bit better than we imagined in terms of volume,” Terng said. “Power supply, light-emitting diodes [LED] and keyboards used in notebook computers will be the main growth areas.”
PHOTO: LEE I-JU, TAIPEI TIMES
Lite-On said previously that monthly revenues hit their highest point last year at NT$9.66 billion (US$30.29 million) last month.
The company could make revenues of NT$120 billion this year, the company said.
That would represent about 19 percent growth over last year’s NT$97.2 billion.
Power supplies are the company’s primary source of revenue, making up about 30 percent of total sales, while LED backlights for notebooks and PC monitors is its fast-growing business, the company said. Lite-On has a 20 percent share of the global LED backlight market, it said.
Making NT$3.60 per share this year, up from last year’s NT$3 per share, as some foreign analysts forecast, would be a feasible achievement, Terng said.
“We will make progress in earnings this year,” Lite-On Group chairman Raymond Soong (宋恭源) told reporters.
Tight supplies of a wide range of key components such as LED chips, however, will be a concern, the company said. Supply of certain components has been tight since July, Lite-On said.
“There will be no problems with business this year. The biggest issue will be a labor shortage, which will lead to component supply constraints,” Terng said.
Better management of key component supplies will be crucial for the company to grow as planned, he said.
To cope with potentially tight component supplies, the company has prepared more inventory for some components, Terng said.
Separately, Terng said one of Lite-On’s priorities this year would be to boost its return on equity to 20 percent as soon as possible, from last year’s 11.67 percent.
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