Sinbon Electronics Co (信邦電子), which produces cables, connectors and modems, on Friday reported consolidated sales of NT$1.32 billion (US$43.85 million) for last month, up 14.23 percent year-on-year, but down 4.11 percent month-on-month.
Sinbon attributed the monthly decrease to customers digesting inventory before the end of last year and front loading of orders in the third quarter of last year to avoid higher tariffs amid the US-China trade dispute.
Cable assemblies contributed 74.02 percent of the company’s total sales last month, while connectors and other components and accessories made up 25.98 percent, Sinbon said in a statement.
The company’s product shipment breakdown showed that industrial control devices accounted for 28.22 percent of overall shipments, communications and electronic peripheral components contributed 27.4 percent, and green energy-related components made up 26.34 percent, while medical and care devices took up 9.22 percent and automotive items 8.82 percent.
Sales last quarter decreased 19.65 percent from the previous quarter to NT$4.11 billion due to seasonal factors and a US customer putting off orders, but last quarter’s sales still increased 6.29 percent from the same period in 2018, Sinbon said.
For the whole of last year, accumulated sales rose 14.9 percent annually to NT$18.172 billion, an all-time record for the company.
“Even though the world economy in 2019 was in an unstable status due to the US-China trade war, Sinbon has generated a good record for the year,” the company said.
Last year’s sales figure was comparable to Yuanta Securities Investment and Consulting Co’s (元大投顧) forecast of a 15 percent increase to NT$18 billion and Jih Sun Securities Investment Consulting Co’s (日盛投顧) estimate of a 14.44 percent rise to NT$17.9 billion.
At a meeting with analysts last month, the company said that the fourth quarter would be a low point and sales this year would rise by a double-digit percentage to set a new record.
Sinbon’s order visibility has extended to 2022-2023, with major growth drivers including potential demand from logistics and EU-based electric vehicle clients, sensor modules and gateway products for Internet of Things applications, as well as special cables used in firefighting and defense, it said.
“Thanks to long-term relationships, Sinbon has greater access to clients versus peers when products are at the research and development stage, and can often ship as a preferred supplier ... and generally see stable orders,” said Yuanta Securities Investment Consulting Co (元大投顧) analyst Wang Deng-cheng (王登城), who attended the briefing, on Dec. 18.
About 70 percent of the company’s production capacity is in China, but Sinbon has built manufacturing sites in Taiwan, Hungary and the US.
As there is little possibility that Washington will lower its 25 percent tariffs on electronics imported from China before the US presidential election on Nov. 3, Sinbon is aggressively expanding its capacity in Taiwan, with its third Miaoli plant to start mass production early this year, the company said.
The trade dispute is likely to last for another five or six years, it said.
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