Auto parts suppliers last week reported mixed sales performances for last month, as shipments of gasoline-powered and electric vehicles continued to be affected by tight auto chip supply for tier-one parts suppliers and automakers.
The primary situation to keep an eye on would be the production recovery of major automakers amid a potential increase in auto chip supplies in the fourth quarter, as well as the COVID-19 situation in Malaysia, which is a major center for chip testing and packaging, Yuanta Securities Investment Consulting Co (元大投顧) said in a research note on Friday.
Cheng Shin Rubber Industry Co (正新橡膠), which sells its tire products under the Maxxis brand, saw its sales drop 18.3 percent from a year earlier to NT$7.68 billion (US$277.16 million); sunshade supplier Macauto Industrial Co (皇田工業) posted a decline of 15.51 percent to NT$338.88 million; and Chian Hsing Forging Industrial Co’s (江興鍛壓) sales were 5.26 percent lower at NT$197.69 million, the companies’ regulatory filings showed.
Photo: CNA
However, Tsang Yow Industrial Co (倉佑實業), which makes powertrain components, saw sales rise 2.08 percent year-on-year to NT$161.99 million; metal sheet and bumper manufacturer Tong Yang Industry Co’s (東陽實業) sales gained 4.04 percent to NT$1.49 billion; and Hiroca Holdings Ltd (廣華控股), which focuses on interior trim, posted an 8.41 percent increase to NT$554.08 million.
Kian Shen Corp (江申工業), a supplier of body frames, beams and suspension parts, reported that sales rose 12.33 percent to NT$91.64 million, and Hota Industrial Manufacturing Co (和大工業), which makes gears and shafts for transmissions, posted an increase of 48.56 percent to NT$625.08 million.
Meanwhile, Global PMX Co Ltd (智伸科), a provider of dual-clutch transmissions and direct-injection parts for gasoline motors, reported revenue growth of 3.95 percent year-on-year to NT$713.68 million, while Hu Lane Associate Inc (胡連精密), which makes electrical terminal components for cars and motorcycles, saw revenue increase 25.59 percent to NT$375.49 million.
Wire harness maker BizLink Holding Inc’s (貿聯控股) revenue rose 23.57 percent to NT$2.48 billion; diode maker Pan Jit International Inc (強茂) increased 34.47 percent to NT$1.23 billion; and electrical terminal supplier K.S. Terminals Inc (健和興端子) grew 32.09 percent to NT$383.42 million.
“Generally, electric vehicle and electrification-related supply chain firms saw sales grow in August,” Yuanta analysts said in the note.
The auto chip shortage has forced automakers worldwide to trim production, pushing passenger vehicle sales in China to fall 15 percent year-on-year to 1.45 million units last month, while sales of light vehicles in the US dropped 17 percent to 1.09 million units, Yuanta said, citing industry tallies.
“Given tighter than expected auto chip supply in the third quarter of this year, we cut our forecast for global light vehicle production to 74.9 million units for 2021, implying growth of 6 percent year-on-year compared with our estimate of 9 percent growth previously,” Yuanta analysts said. “Amid low car inventory levels in the US and China and with high used car prices, we believe slower-than-expected car sales are mainly owing to supply chain disruptions rather than a car demand decline,” they said.
Overall, Yuanta remains positive on the outlook of Taiwanese companies in the electric vehicle and electrification-related businesses, such as BizLink, KST and Pan Jit, as well as those benefiting from a recovery in demand for cars, such as Global PMX and Hu Lane, the note said.
In Italy’s storied gold-making hubs, jewelers are reworking their designs to trim gold content as they race to blunt the effect of record prices and appeal to shoppers watching their budgets. Gold prices hit a record high on Thursday, surging near US$5,600 an ounce, more than double a year ago as geopolitical concerns and jitters over trade pushed investors toward the safe-haven asset. The rally is putting undue pressure on small artisans as they face mounting demands from customers, including international brands, to produce cheaper items, from signature pieces to wedding rings, according to interviews with four independent jewelers in Italy’s main
Japanese Prime Minister Sanae Takaichi has talked up the benefits of a weaker yen in a campaign speech, adopting a tone at odds with her finance ministry, which has refused to rule out any options to counter excessive foreign exchange volatility. Takaichi later softened her stance, saying she did not have a preference for the yen’s direction. “People say the weak yen is bad right now, but for export industries, it’s a major opportunity,” Takaichi said on Saturday at a rally for Liberal Democratic Party candidate Daishiro Yamagiwa in Kanagawa Prefecture ahead of a snap election on Sunday. “Whether it’s selling food or
CONCERNS: Tech companies investing in AI businesses that purchase their products have raised questions among investors that they are artificially propping up demand Nvidia Corp chief executive officer Jensen Huang (黃仁勳) on Saturday said that the company would be participating in OpenAI’s latest funding round, describing it as potentially “the largest investment we’ve ever made.” “We will invest a great deal of money,” Huang told reporters while visiting Taipei. “I believe in OpenAI. The work that they do is incredible. They’re one of the most consequential companies of our time.” Huang did not say exactly how much Nvidia might contribute, but described the investment as “huge.” “Let Sam announce how much he’s going to raise — it’s for him to decide,” Huang said, referring to OpenAI
The global server market is expected to grow 12.8 percent annually this year, with artificial intelligence (AI) servers projected to account for 16.5 percent, driven by continued investment in AI infrastructure by major cloud service providers (CSPs), market researcher TrendForce Corp (集邦科技) said yesterday. Global AI server shipments this year are expected to increase 28 percent year-on-year to more than 2.7 million units, driven by sustained demand from CSPs and government sovereign cloud projects, TrendForce analyst Frank Kung (龔明德) told the Taipei Times. Demand for GPU-based AI servers, including Nvidia Corp’s GB and Vera Rubin rack systems, is expected to remain high,
RSS