Electronic components supplier Lite-On Technology Corp (光寶科技) yesterday reported record profit for the previous quarter, and said it expects growth to extend into this quarter.
Net profit soared 38 percent to NT$4.24 billion (US$132.06 million), compared with NT$3.08 billion in the third quarter last year. On a quarterly basis, net profit expanded 7 percent from NT$3.96 billion.
Earnings per share expanded to NT$1.86, from NT$1.33 per share a year earlier and NT$1.74 in the second quarter.
Photo: CNA
Revenue should continue to grow this quarter after hitting its highest mark in three years at NT$46.17 billion last quarter, Lite-On president Anson Chiu (邱森彬) told an online investors’ conference.
Growth is to be driven by robust demand for higher-margin power management units used in cloud-based data centers, automotive electronics and 5G small-cell stations, Chiu said.
The company’s power management unit for cloud-based data centers is expected to experience its best growth, at about 30 percent annually this quarter, thanks to a broader customer base and market share gains, Chiu said.
Lite-On has gradually expanded its market share to more than 30 percent of the world’s server power supply market this year, he said, adding that the company expects 40 percent next year.
Lite-On has made strides in the electric vehicle (EV) charger market, Chiu said.
The company is scheduled to ship new 3,000-watt charger piles for customers in the US and Europe this quarter, tapping into the high-end commercial vehicle fleet market, he said.
To cope with strong demand for EV chargers and new-generation power supply units used in data centers, Lite-On plans to spend NT$2 billion on new manufacturing capacity at a leased facility in Dallas, Texas, Chiu said.
The expanded manufacturing capacity should contribute NT$10 billion in revenue in 2025, after starting operations in the second quarter of next year, he said.
Lite-On expects automotive electronics to contribute about 10 percent to its revenue next year, up from about 7 percent this year.
With new overseas capacity expansions, Lite-On expects capital spending next year to exceed this year’s budget of NT$5 billion to NT$6 billion.
The company plans to boost capacity in its US and Mexico factories, Chiu said, adding that the capital budget would also be invested on manufacturing equipment automation.
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