Yageo Corp (國巨), the nation’s biggest passive component supplier, yesterday reported record-high revenues for last month, as demand continued to outpace supply.
Based on its order visibility over the next few quarters, the company expects the market to remain tight, it said in a press release.
Suppliers are unable to meet demand by boosting capacity due to short supply of raw materials and manufacturing equipment, Yageo said.
“Currently, the company’s book-to-bill ratio stands at 3, indicating that demand is three times higher than supply,” Yageo said. “We are cautiously optimistic about business prospects.”
Revenue rose 22 percent month-on-month to NT$9.81 billion (US$319.7 million) last month, Yageo said.
The figure includes revenue of NT$231 million from newly acquired Brightking Holdings Ltd (君耀控股), it said.
On an annual basis, revenue more than tripled from NT$2.74 billion, while cumulative revenue in the first seven months of the year totaled NT$40.08 billion, up 138.5 percent from a year earlier.
Yageo shares fell 9.94 percent to NT$716 in Taipei trading yesterday, marking the lowest in about three months in a sign that the company failed to shore up its stock price via a share buyback plan.
The company on July 17 announced that it would repurchase 4.5 million shares at a price range of NT$632.8 to NT$1,616.8 until Sept. 18.
As of Wednesday, it had bought back 1.81 million shares for NT$1.58 billion.
Yageo by the numbers
‧ The company’s book-to-bill ratio stands at 3.
‧ Revenue rose 22 percent month-on-month.
‧ Shares fell to NT$716 yesterday.
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