Lu Hai Holding Corp (六暉), which makes valve stems for tires, yesterday said sales could rise 10 percent to 15 percent next year from this year as the company enhances its utilization rate in a new Indonesian factory to 60 percent from 25 percent.
“We have received approvals from our clients to ship products to them from our Indonesian factory this quarter, which will increase our revenue next year,” company chairman Wu Chin-lu (吳金鹿) said at an investors’ conference.
Lu Hai’s Indonesian factory can make 6 million valve stem units a year when operating at full capacity, while the company’s total capacity is 46 million units a year.
Shipments of tire pressure monitoring systems, which currently account for 2 percent of its annual revenue, will rise to 600,000 units a month from 300,000 this year, as most of the systems previously installed will need to be replaced, Lu Hai general manager Simon Hsu (許廉凱) said, adding that the systems are of higher gross margin than the company’s other products.
During the January-to-October period, Lu Hai reported revenue of NT$1.93 billion (US$651.59 million), up 7.53 percent from NT$1.79 billion a year ago, according to the company’s filing to the Taiwan Stock Exchange.
The company posted profit of NT$73.3 million, or NT$1.22 per share, in the first three quarters of the year, up 17.2 percent from NT$62.54 million, or NT$1.04 per share a year ago, the filing said.
However, Lu Hai booked losses of NT$11 million last quarter because of foreign exchange rate fluctuations.
The company expects to swing into profit this quarter as the exchange rate stabilizes and estimates a full-year profit of NT$115 million for this year.
The company is set to debut on the main bourse on Dec. 25 by issuing 75.4 million shares at around NT$25 per share.
The company said it would use the proceeds to repay debts and hedge against exchange rate changes.
Lu Hai is a China-based Taiwanese company. It has had production lines in the Chinese cities of Xiamen and Kunshan for more than 30 years, and opened a production base in Indonesia in 2011.
The Cayman Island-registered tire valve maker is capitalized at NT$601 million (US$20.03 million), according to a prospectus submitted to the Taiwan Stock Exchange.
It counts Taiwan’s Cheng Shin Rubber Industry Co (正新橡膠), Kenda Rubber Industrial Co (建大輪胎) and Hwa Fong Rubber Industry Co (華豐橡膠), as well as Indonesia’s PT Gajah Tunggal Tbk and South Korea’s Dong Ah & Rubber Co, among its major customers.
China’s economic planning agency yesterday outlined details of measures aimed at boosting the economy, but refrained from major spending initiatives. The piecemeal nature of the plans announced yesterday appeared to disappoint investors who were hoping for bolder moves, and the Shanghai Composite Index gave up a 10 percent initial gain as markets reopened after a weeklong holiday to end 4.59 percent higher, while Hong Kong’s Hang Seng Index dived 9.41 percent. Chinese National Development and Reform Commission Chairman Zheng Shanjie (鄭珊潔) said the government would frontload 100 billion yuan (US$14.2 billion) in spending from the government’s budget for next year in addition
Advanced Micro Devices Inc (AMD) suffered its biggest stock decline in more than a month after the company unveiled new artificial intelligence (AI) chips, but did not provide hoped-for information on customers or financial performance. The stock slid 4 percent to US$164.18 on Thursday, the biggest single-day drop since Sept. 3. Shares of the company remain up 11 percent this year. AMD has emerged as the biggest contender to Nvidia Corp in the lucrative market of AI processors. The company’s latest chips would exceed some capabilities of its rival, AMD chief executive officer Lisa Su (蘇姿丰) said at an event hosted by
Sales RecORD: Hon Hai’s consolidated sales rose by about 20 percent last quarter, while Largan, another Apple supplier, saw quarterly sales increase by 17 percent IPhone assembler Hon Hai Precision Industry Co (鴻海精密) on Saturday reported its highest-ever quarterly sales for the third quarter on the back of solid global demand for artificial intelligence (AI) servers. Hon Hai, also known as Foxconn Technology Group (富士康科技集團) globally, said it posted NT$1.85 trillion (US$57.93 billion) in consolidated sales in the July-to-September quarter, up 19.46 percent from the previous quarter and up 20.15 percent from a year earlier. The figure beat the previous third-quarter high of NT$1.74 trillion recorded in 2022, company data showed. Due to rising demand for AI, Hon Hai said its cloud and networking division enjoyed strong sales
TECH JUGGERNAUT: TSMC shares have more than doubled since ChatGPT’s launch in late 2022, as demand for cutting-edge artificial intelligence chips remains high Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday posted a better-than-expected 39 percent rise in quarterly revenue, assuaging concerns that artificial intelligence (AI) hardware spending is beginning to taper off. The main chipmaker for Nvidia Corp and Apple Inc reported third-quarter sales of NT$759.69 billion (US$23.6 billion), compared with the average analyst projection of NT$748 billion. For last month alone, TSMC reported revenue jumped 39.6 percent year-on-year to NT$251.87 billion. Taiwan’s largest company is to disclose its full third-quarter earnings on Thursday next week and update its outlook. Hsinchu-based TSMC produces the cutting-edge chips needed to train AI. The company now makes more
RSS