Pneumatic components supplier Airtac International Group (亞德客) on Wednesday reported record-high revenue of NT$1.5 billion (US$49.97 million) for last month, up 6 percent from a month earlier and 24 percent year-on-year, driven by robust demand from the electronics, battery and packaging industries.
Consolidated revenue for the whole of last year totaled NT$15.9 billion, a 2 percent increase from 2018 and better than analysts’ expectations.
Jih Sun Securities Investment Consulting Co (日盛投顧) had forecast that full-year revenue would decline 0.4 percent to NT$15.54 billion, while Yuanta Securities Investment Consulting Co (元大投顧) predicted an increase of 1.6 percent to NT$15.63 billion.
Market demand has improved slightly due to customers increasing automation and demand for 5G-related products, Airtac said in a statement.
“In addition, Airtac continues to increase market share to support revenue growth by developing new products and approaching new customers,” it said.
The company also said it believes this year will be better than last year.
Airtac’s products are used in the manufacture of electronic equipment, general machinery, packaging, automotive devices, batteries, construction equipment and machine tools.
The company should continue to report growth this year, driven by an expected recovery in the industrial automation sector and its new linear guide product, as well as demand for 5G components and smartphone specification upgrades, analysts said.
Airtac is expected to be a key beneficiary of the upcoming smartphone capital expenditure cycle, demand for electric vehicle batteries and a recovery in machinery orders, Credit Suisse Group AG analyst Jerry Su (蘇厚合) said in a note on Thursday.
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