Automotive lighting products maker TYC Brother Industrial Co (堤維西) yesterday said it expects its Chinese subsidiary’s revenue to grow by more than 5 percent this year, buoyed by robust demand in China’s car market.
“We expect revenue [from China] to grow, thanks to new model launches by Changan Ford Automobile Co Ltd (長安福特),” TYC Brother chief financial officer Alex Weng (翁一峰) told reporters after an investors’ conference in Taipei.
Tainan-based TYC Brother sells its original equipment manufacturing (OEM) car lights in China via Varroc TYC Auto Lamps Co (大茂偉瑞柯), which is a joint venture between the Taiwanese company and Varroc group from India.
Based in Changzhou, Jiangsu Province, Varroc TYC also makes car lights for FAW-Volkswagen Automotive Co Ltd (一汽大眾) and the Chinese unit of General Motors Co.
TYC Brother is also expanding into Southeast Asia, hoping to grab a bigger share of the region’s auto parts market, the company said.
TYC Brother subsidiary Juoku Technology Co (儒億科技), which provides car lamp parts OEM, has a new plant in Thailand, with plans to branch out into Indonesia and Malaysia, Weng said, without giving a timeframe.
As for the auto components aftermarket, the company also gave a positive outlook, saying global demand has been steady since the beginning of the year.
Company data showed that auto parts were the largest revenue contributor last year, accounting for nearly 90 percent of total sales.
The company commands nearly 50 percent of the US’ auto parts aftermarket, company data showed.
Despite a positive sales outlook, Weng voiced concern over currency fluctuations, saying the sharp appreciation of the New Taiwan dollar against the greenback could erode the company’s profitability this year, he said.
In the first two months of the year, TYC Brother’s sales edged up 0.11 percent year-on-year to NT$2.56 billion (US$83.7 million).
Revenue last year reached NT$15.96 billion, up 6.08 percent from the previous year. Net profit soared 30.04 percent to NT$987 million on an annual basis, with gross margin up from 21.94 percent to 23.05 percent.
Earnings per share reached a 13-year high of NT$3.17, compared with NT$2.43 a year earlier, company data showed.
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