Rugged PC vendor Getac Technology Corp (神基) has budgeted capital expenditure of between NT$1 billion and NT$1.2 billion (US$34.31 million and US$41.17 million) for this year, up from between NT$800 million and NT$1 billion last year.
The firm plans to spend most of the funds expanding production lines and increasing automation in its automotive parts business, Getac chairman James Hwang (黃明漢) said at an investors’ conference in Taipei on Monday last week.
Hwang said the company would devote its new plant in Kunshan, China, to the production of advanced driver-assistance systems (ADAS), mass production of which it is to start in the fourth quarter of this year.
The company’s mechanical components for auto parts, such as seat belt spindles and spools, could make up 20 percent of its revenue this year, up from last year’s 15 percent, Hwang said.
Getac, based in Hsinchu County’s Baoshan Township (寶山), manufactures rugged notebook, tablet and handheld computers. The company has also been developing components for use in ADAS and new-energy vehicles over the past few years, in view of the growing prominence of artificial intelligence and autonomous driving.
Rugged computers, which are used in difficult environments for military, medical and transportation purposes, accounted for 46 percent of Getac’s sales last year, followed by general mechanical components for consumer electronics, which made up 31 percent.
Mechanical components for automobiles contributed 15 percent of the company’s sales and aerospace fasteners 8 percent, company data showed.
The company posted record-high consolidated revenue of NT$22.197 billion last year, up 8.77 percent from 2016.
Hwang said he expects revenue this year to rise further, driven by strong demand for rugged notebooks and ADAS-related products.
Revenue from rugged computers and automotive electronics could surge by a double-digit percentage this year, which would push the company’s business momentum to peak levels in the fourth quarter, he added.
Getac in November last year announced that it would acquire WHP Workflow Solutions Inc in North Charleston, South Carolina, as the company attempts to branch into the video recording and software businesses.
Hwang said the wholly-owned subsidiary would generate a substantial revenue contribution in the second half of next year and would be one of Getac’s major growth drivers over the next three to five years.
Getac reported a net income of NT$1.91 billion last year, making for earnings per share of NT$3.38. That was down from NT$2.08 billion in 2016, or NT$3.68 per share.
US demand for rugged PCs is expected to remain strong this year amid an economic recovery and as Washington plans to expand domestic demand, and Getac’s first-quarter revenue is forecast to grow 5.62 percent year-on-year to NT$5.49 billion, with earnings per share of NT$0.76, Capital Investment Management Corp (群益投顧) said in a note on Tuesday.
Getac’s board has approved the distribution of a cash dividend of NT$2.5 per share, which represents a payout ratio of 73.96 percent, down from 81.52 percent last year.
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