Walsin Technology Corp (華新科技) yesterday said that a rise in online learning and remote working is stimulating demand for laptops and Wi-Fi devices, increasing sales of its passive components.
“The growing telecommuting and virtual classroom trends are propelling demand for notebook computers and Wi-Fi cards,” Walsin said in an online presentation posted on the company’s Web site. “Demand for gaming consoles and related devices is also increasing due to a growing stay-at-home economy.”
The presentation had been prepared for an investors’ conference, which was not open to the media.
The company said that 5G base stations and Wi-Fi Certified 6 products are showing strong growth momentum, undeterred by the COVID-19 pandemic.
Sales of passive components for use in computers and peripherals accounted for 17.4 percent of the company’s revenue of NT$30.13 billion (US$1 billion) last year, down from 23 percent in 2018, the presentation showed.
Networking products accounted for 32.9 percent, up from 30 percent a year earlier, making them the largest contributor of revenue, followed by industrial devices at 28.2 percent, little changed from 29 percent in 2018, the company said.
The supplier of multilayer ceramic capacitors (MLCCs) said that up to 90 percent of its production capacity in China has been restored, an improvement of 50 to 60 percent over last quarter thanks to lockdowns being relaxed.
Walsin’s production capacity in Malaysia has been partially restored, while semi-finished goods are being transported to Taiwan and prepared for shipment, it said.
Walsin is optimistic about demand in the second half of this year, it said, adding that demand would be driven by the US presidential elections in November, coronavirus stimulus projects of central banks, 5G deployment and electric vehicles.
The company reported that revenue last quarter rebounded, 24 percent quarter-on-quarter to NT$8.32 billion — the strongest first quarter in the company’s history — which represented an annual uptick of 0.36 percent.
Full-year net profit last year plunged 66 percent to NT$6.65 billion, from NT$49.76 billion 2018, after net profit in the fourth quarter contracted for a fourth consecutive quarter amid slumping prices and weakening demand. Earnings per share fell from NT$40.75 a year earlier to NT$13.72, and gross margin fell from 60.41 percent to 34.35 percent.
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