BizLink Holding Inc (貿聯控股) on Friday posted lower-than-expected net profit for last quarter due to foreign exchange losses, although its operating profit was the highest for a single quarter in the wiring harness maker’s history.
Third-quarter profit declined 0.7 percent quarter-on-quarter and 5.4 percent year-on-year to NT$499.58 million (US$17.32 million), or earnings per share of NT$3.83, the company said in a statement.
Consolidated revenue in the July-to-September period rose 14.8 percent quarterly and 4.95 percent annually to NT$6.05 billion, while gross margin and operating margin stayed firm at 26.27 percent and 12.35 percent respectively, it said.
Photo: Chen Rou-chen, Taipei Times
“Global operations and supply chains reverted back to optimal levels [in the third quarter] as countries reopened, with shipment momentum in electrical appliance and motor vehicle segments especially strong, exiting the varied disruptions and shutdowns in the second quarter to stem the flow of [COVID-19] infections,” BizLink said in the statement.
Shipments of small electrical appliances rose noticeably as global populations continued to stay at home, the company said, adding that “shipments for US-based electric vehicle and off-road vehicle customers fully recovered from their production shutdowns.”
BizLink reported operating profit of NT$746.93 million for last quarter, up 26.5 percent from a year earlier, on the back of product mix improvement and better expense control.
However, foreign exchange losses of NT$198 million due to the appreciation of the New Taiwan dollar against the US dollar cut its earnings by NT$1.52 per share, it said.
BizLink, a supplier of wiring harnesses to Tesla Inc, also makes docking stations and dongles for information technology (IT) brand vendors, wiring harnesses for consumer electronics and electrical appliances, as well as for telecom devices, medical products and semiconductor equipment.
The company said that its data center high-current power cable shipments grew last quarter and shipments for medical devices were stable, while shipments of docking stations and dongles slowed.
Meanwhile, shipments to semiconductor equipment customers increased despite the rising trade tensions between the US and China, it added.
In the first three quarters of this year, net profit fell 8.29 percent annually to NT$1.24 billion, or earnings per share of NT$9.49, while revenue fell 5.62 percent to NT$16.27 billion. Gross margin improved to 25.56 percent, from 23.76 percent, and operating margin also rose to 10.57 percent, from 9.7 percent.
BizLink said that its shipments for data center high-current power cables and small electrical appliances, as well as shipments to its electric vehicle and off-road vehicle customers, are expected to continue growing in the next two quarters.
Yuanta Securities Investment Consulting Co (元大投顧) on Friday forecast that BizLink’s revenue for this quarter would be flat from last quarter, with shipment increases in electrical appliance and medical segments offset by a decrease in the IT segment, while automotive and industrial shipments would remain flat.
Due to increasing sales exposure to electric vehicle, data center and semiconductor equipment segments, gross margin and operating margin would improve to 26.7 percent and 12.8 percent this quarter respectively, Yuanta said in a note.
“We expect these segments to maintain a sales growth rate of more than 15 percent in the next one to two years,” it added.
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