Screw manufacturer Sheh Fung Screws Co (世豐螺絲) last week reported that first-quarter net income soared 44.6 percent year-on-year to NT$54.03 million (US$1.93 million) from NT$37.4 billion a year earlier, thanks to strong demand from overseas markets, particularly the US.
The results translated into earnings per share of NT$1.19, a 25.26 percent increase from NT$0.95 in the same period last year, the company said after a board meeting on Wednesday last week.
Revenue was NT$742.16 million in the first quarter, up 54.71 percent from NT$479.7 million a year earlier, Sheh Fung said.
Net income and revenue for the first quarter reached a quarterly high, it said.
The COVID-19 pandemic lent support to do-it-yourself home improvement projects, especially in the US, generating 74 percent of the company’s revenue during the January-to-March period, the Kaohsiung-based company said.
Asia contributed 10 percent to the company’s revenue, while Australia and Europe accounted for 6 percent each, it said.
Sheh Fung, which makes various screws on-demand for customers, said its order visibility remains clear for up to five months ahead.
The company would have to raise selling prices to reflect production cost increases linked to more expensive raw materials, lingering shipping issues and unfavorable foreign-exchange rates, it said.
The New Taiwan dollar’s 3.19 percent appreciation against the US dollar in the first quarter eroded Sheh Fung’s profit margin by 2.91 percentage points, but gross margin was 16.42 percent, compared with 16.36 percent a year earlier.
Operating margin improved to 9.77 percent, from 8.23 percent, thanks to better expense control, the company said.
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