Tsang Yow Industrial Co (倉佑實業), which makes automotive powertrain components, said yesterday that it aims to post 20 percent to 30 percent revenue growth this year on the back of the growing vehicle market in China.
Rising orders are expected to drive revenue for the company’s Wuxi, Jiangsu Province, subsidiary to grow by 40 to 50 percent this year, the company said.
As a result, sales in China are forecast to rise to about 40 percent of the company’s total revenue this year, up from 30 percent last year, Tsang Yow president Su Chi-tse (蘇祈澤) told reporters yesterday. North America accounts for about 60 percent of its overall revenue, he added.
Photo: Camaron Kao, Taipei Times
The Wuxi subsidiary is to start distributing 20,000 impeller hubs per month from this year to drivetrain systems manufacturer Exedy Corp’s Shanghai business to make powertrains for Hyundai, Su said.
Orders of continuously variable transmissions from China-based Chery Automobile Co (奇瑞汽車) will rise to 90,000 units this year, from 24,000 units a year ago, as Chery is optimistic about sales of its automatic transmission cars, Su said.
The Wuxi subsidiary would swing to the black this year after posting losses of about 1 million yuan (US$160.8 million) last year, the company said.
In addition to the growing Chinese car market, Tsang Yow is banking on the recoveries of US and European automakers to help drive revenue and earnings growth from last year, company vice president Lin Ming-lung (林銘龍) said.
Last year, Tsang Yow reported revenues of NT$1.82 billion (US$60.29 million), down 8.79 percent from NT$1.99 billion the previous year, while net profit profit saw a 23.8 percent decline to NT$85.44 million, or NT$0.92 per share, down from NT$112.12 million, or NT$1.21 per share, a year ago, company data showed.
Su said the decrease stemmed from to a decline in sales for Punch Powertrain NV, one of the company’s largest clients, which grew out of lower sales among Chinese automakers last year.
Last quarter, the company’s revenue grew 19.9 percent to a record NT$524.23 million from NT$437.23 million a year ago.
Tsang Yow expects its profit last quarter to be higher than NT$36.96 million, or NT$0.4 per share, a quarter ago, as its gross margin would post sequential growth from 18.55 percent the previous quarter.
As for this year, Tsang Yow aims to report profit of NT$1.5 per share.
Tsang Yow’s shares rose 4.25 percent to NT$31.39 yesterday in Taipei trading, outperforming the over-the-counter benchmark index, which was up 0.75 percent. The company is set to shift its listing to the main board on May 14.
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