Catcher Technology Co (可成科技), the nation’s leading supplier of light-metal casings and enclosures for mobile devices, is considering expanding production into Southeast Asia and expecting growth in the second half of this year.
If the need arises because of a US-China trade dispute, the company would follow its clients’ demands by moving production lines to nations such as Taiwan and Vietnam, a company official told the Taipei Times by telephone yesterday, quoting remarks by Catcher chairman Allen Hung (洪水樹) at the firm’s annual general meeting in Tainan on Wednesday.
Hung told shareholders that Catcher could expand its plants in Tainan, which have reached their limits.
The company would also look to set up large-scale production plants in Southeast Asia due to the amount of available land, an abundance of workers and the flexibility of local labor laws, he said.
Hung has emphasized that numerous companies are part of the industry’s supply chain and that Catcher would not act alone, the official said.
Catcher’s revenue and gross margin have slipped in the past few months, but the official said that Hung predicted improvements in the third quarter due to the amelioration of the company’s internal organizational structure, production lines and techniques.
Revenue is forecast to peak in the fourth quarter, the official quoted Hung as saying.
Catcher reported a 21.38 percent annual decline in revenue for last month to NT$5.47 billion (US$173.58 million).
Cumulative revenue in the first five months of the year totaled NT$25.59 billion, down 24.64 percent from NT$33.96 billion in the same period last year, company data showed.
While demand in the smartphone industry might fall this year, the company plans to work with highly competitive clients to maintain its profitability, the official quoted Hung as saying.
The firm said that it is also optimistic that Intel Corp would solve a central processing unit shortage within the next few months, which would benefit Catcher’s laptop casing business.
Catcher is developing products related to wearables, some of which have gone into production on a large scale, Hung told shareholders.
The wearable device segment makes up only a small percentage of the company’s revenue, Hung was quoted as saying by the official, adding that US start-up Magic Leap Inc is a client in the area.
Shareholders approved the company’s plan to distribute a cash dividend of NT$12 per share, representing a payout ratio of 33.05 percent based on last year’s earnings per share of NT$36.31.
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