BizLink Holding Inc (貿聯), the sole supplier of wiring harnesses for battery management systems in Tesla Inc’s Model 3 sedans, yesterday said it is looking to grow revenue by a double-digit percentage this year on the back of vigorous demand for electric cars and home appliances.
BizLink’s expansion into Chinese electric vehicles, rising demand for home appliances and launches of new docking stations used in information technology (IT) devices should help it overcome economic headwinds this year, the company said.
“We are cautiously optimistic about this year. It is a challenging year,” Bizlink chairman Roger Liang (梁華哲) told reporters during a media gathering.
“The world economy is showing signs of flagging. Foundry companies saw factory utilization drop to 70 percent. Some automakers have cut their financial forecasts,” Liang said.
Nonetheless, BizLink still expects to grow its revenue by a double-digit percentage this year after surging 37 percent to a record NT$21.39 billion (US$693.22 million) last year, he said.
The electric vehicle sector is one of the bright spots that should continue to grow and buck the macroeconomic and conventional automobile downtrend, Liang said.
In addition to Tesla, BizLink has made progress in securing new orders and new clients from China, which are to roll out new models later this year, Bizlink chief executive officer Felix Teng (鄧劍華) said.
Shipments of wiring harnesses for affordable electric cars are to double this year from last year based on indications from customers, Teng said.
Cables and harnesses for electric vehicle (EV) battery management systems accounted for 15 percent of the company’s total revenue last year.
Components for information technology made up the biggest chunk, or 48 percent, while components for home appliances contributed 24 percent.
Information technology and home appliances should drive business this year, BizLink said, citing rising orders for docking stations used in IT devices and from brand customers, such as UK-based vacuum cleaner maker Dyson Ltd.
Industrial harnesses should also enjoy robust growth, the company said.
BizLink’s IT revenue is expected to increase 11 percent year-on-year, while automotive revenue should grow 25 percent, aided by more shipments of Model 3s, Cathay Futures Corp (國泰期貨) projected.
Commenting on US-China trade tensions, Teng said he expects the impact to be limited as the company had allocated part of its production of wiring harnesses for automobiles and industrials to Malaysia and Mexico last year.
The company plans to expand the capacities of its plants in Malaysia, Mexico, Serbia, Slovakia and China this year, Teng said.
In addition to organic growth, the company said it would keep scouting for merger and acquisition opportunities.
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