Mon, Aug 29, 2022 page12

• BizLink profit surges on record sales

  • By Chen Cheng-hui / Staff reporter
  • • 
    • 
    • 

  BizLink Holding Inc’s (貿聯控股) second-quarter profit surged from a year earlier and the previous quarter as sales hit a record high driven by demand for factory automation, capital equipment, high-performance computing and electric vehicles, the interconnect solutions provider said in a statement on Friday.

  Net income last quarter grew 112.72 percent year-on-year and 109.58 percent quarter-on-quarter to NT$1.17 billion (US$38.72 million), or earnings per share (EPS) of NT$7.68, BizLink said.

  Consolidated revenue in the April-to-June period rose 99.02 percent annually and 19.68 percent quarterly to NT$13.96 billion, while gross margin and operating margin rose to 25.97 percent and 11.7 percent respectively, it said.

  

  The logo of BizLink Holding Inc is pictured at the company’s Taipei office in an undated photograph.

  Photo courtesy of BizLink Holding Inc

  “The COVID-19 lockdown in China affected our site in Kunshan, which was down for about three weeks in April, and impacted sales in the information technology, data communications and automotive segments, but we ramped up production in May and June to compensate for this situation,” BizLink chief executive officer Felix Teng (鄧劍華) said in a conference call.

  “The market has presented even more challenges in the past few months, from inflationary and recessionary fears to rising energy prices. However, BizLink’s ability to address customer needs quickly was key to our performance in the second quarter,” Teng said.

  If a steep drop in copper prices beginning in June continues, it would affect BizLink’s electrical appliance business and its new German business unit INBG in the second half of this year, he said.

  BizLink completed the acquisition of industrial solutions unit INBG from Leoni AG in January, he said, adding that the unit cannot meet all customer demand due to limited capacity and persistent supply chain issues.

  Silicon Valley-headquartered BizLink, the sole supplier of wiring harnesses for battery management systems in Tesla Inc’s electric vehicles, said sales generated by its industrial applications segment accounted for 38 percent of total sales last quarter, followed by the information technology and data communications business’ 26 percent, the automotive segment’s 21 percent and the electrical appliances segment’s 14 percent, while 1 percent came from other segmants, including telecom equipment and medical devices.

  The industrial applications segment continued to see rising orders from the company’s four major capital equipment customers last quarter, Teng said, adding that it had not seen order cuts or postponements in the past quarter.

  The information technology and data communications segment’s contribution to overall sales grew last quarter on the back of continued orders for high-performance computing components, which might surpass the contribution of docking stations toward the end of this year, the firm added.

  Teng said electric vehicle orders fell sequentially last quarter due to the lockdowns in China in April.

  However, the situation has fully recovered since then, and the company continued to ramp up production at its US and Mexican sites, he said.

  As for the electrical appliances business, customer forecasts had been adjusted downward given the ongoing Russia-Ukraine war, Teng said, adding that new projects remain in the pipeline albeit developing at a slower pace than before.

  In the first half of the year, net income was NT$1.73 billion, up 101 percent from a year earlier, or EPS of NT$11.46, while revenue rose 94.9 percent to NT$25.63 billion, BizLink said.

  “As we look into the second half of the year, we are watchful of constant changes in the macroenvironment and are taking action to reduce their impacts, but realize that some are beyond our control,” Teng said.

  BizLink would invest strategically to grow its business scale and gradually shift its focus to higher-margin, more value-added projects, he said, adding that it is planning to be more selective in terms of customers.
• Most Popular

  • 1

    Taiwan in Time: The breakfast that sparked Taiwan’s semiconductor revolution

  • 2

    Criticism to motivate Yamal: Barca assistant

  • 3

    Takaichi vows ‘golden age’ of ties with the US

  • 4

    Xi, Trump differ on outcome of talks

  • 5

    Trump says he would bring up Taiwan in Xi talk