Patec Group (百達), a Singapore-based automotive components supplier, yesterday gave a positive revenue outlook for the second half of the year, supported by a booming car market in China.
About 90 percent of the group’s revenue comes from its automotive components business, such as components for transmissions, exhaust systems, brakes and safety systems, company data showed.
PEAK SEASON
Revenue is expected to grow in the remainder of the year, especially in the fourth quarter, which is considered the peak season for automobile and related industries, Patec executives told an investors’ conference in Taipei.
The company attributed its optimism to increasing opportunities in the Chinese market — the company’s largest market.
Last quarter, sales contribution from China accounted for 70 percent of Patec’s total revenue, while the Indonesian market, the company’s second-largest market, accounted for 23 percent, the executives said.
KEEP IMPROVING
Patec said it will continue improving the quality of its products to maintain its competitive edge.
The group is to upgrade its engine stabilizers with the latest cold-forging technology to shorten manufacturing time.
The group said it will also tap into the medical instrument business, which is seen as another sales catalyst by the company.
The company said that its medical instrument branch is to begin production in the third quarter of next year, with a gross margin of up to 50 percent.
Patec plans to supply medical instruments for Germany’s B. Braun Melsungen AG, one of the leading providers of healthcare solutions.
“By 2020, we hope to raise the sales contribution from the medical instrument business to 50 percent,” Patec officials said.
EXPANSION
The group started with high-precision mechanical press machine production, but now provides metal-forming engineering solutions and metal-formed components to global automotive and electronics companies.
Patec has manufacturing bases in China, Indonesia and Hungary, shipping products to global customers its Web site shows.
SURGING PROFITS
The group saw its net profit reach NT$70.26 million (US$2.22 million) in the first half of this year, surging significantly from NT$10.03 million in the same period last year.
Earnings per share was NT$2.07 in the first half, compared with last year’s NT$0.33 in the same period last year, company data showed.
Patec shares gained NT$2.3 to close at NT$61.1 yesterday, Taiwan Stock Exchange data showed.
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