Taiwan Paiho Ltd (台灣百和) yesterday said its new factory in Vietnam would start mass production next month, which is expected to raise its Vietnamese output by 20 percent later this year.
“Production lines at our factory in the Le Minh Xuan 3 Industrial Park recently started pilot runs and are to begin mass production next month to meet growing demand in the region,” a Paiho public relations official, who declined to be named, said by telephone.
“We expect the second half of the year to outpace the first half as the Tokyo Olympics draw near, and orders for shoelaces are likely to grow as our clients release new shoe designs,” she said.
In the first half of the year, net profit attributable to the parent company, which makes shoelaces, touch fasteners and elastics for shoes and clothes, climbed 16.81 percent year-on-year to NT$798.26 million (US$25.72 million), Paiho reported last week.
Earnings per share increased from NT$2.29 a year earlier to NT$2.68, but gross margin decreased 2.13 percentage points to 35.1 percent due to low utilization rates for four-way elastics products, it said.
Revenue rose 34.27 percent to NT$7.91 billion, but would have only increased 12.7 percent if real-estate sales were omitted, it said.
“The increase in sales and profits are due to contribution from our top 10 clients, which climbed 5 percentage points to 63 percent in the first half of the year,” the official said.
The company’s major customers include Adidas AG, Nike Inc, Under Armour Inc, New Balance Athletic Shoe Inc, Reebok International Ltd and Puma AG, analysts said.
Paiho has factories in Taiwan, Vietnam, Indonesia and Dongguan, Wuxi and Jiading in China.
The Indonesian operations turned profitable in January, the company said.
Shoelaces accounted for 54 percent of total sales in the first six months, touch fasteners made up 15.9 percent, elastics contributed 13 percent and molded hooks came in at 9 percent, it said.
The official said new four-way stretchable elastic and woven jacquard fabric products have higher average selling prices and a good margin outlook, although they only accounted for 2 percent of total sales in the first half of the year.
Paiho has been expanding its customer base by reaching out to the aviation and virtual reality sectors, she said.
The company also expects several real-estate development projects and the sale of some parking lots to contribute to sales later this year or in the second quarter of next year, she added.
Paiho shares yesterday closed up 4.11 percent at NT$96.3 in Taipei trading. They have skyrocketed 95.33 percent so far this year.
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said second-quarter revenue is expected to surpass the first quarter, which rose 30 percent year-on-year to NT$118.92 billion (US$3.71 billion). Revenue this quarter is likely to grow, as US clients have front-loaded orders ahead of US President Donald Trump’s planned tariffs on Taiwanese goods, Delta chairman Ping Cheng (鄭平) said at an earnings conference in Taipei, referring to the 90-day pause in tariff implementation Trump announced on April 9. While situations in the third and fourth quarters remain unclear, “We will not halt our long-term deployments and do not plan to
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
RSS