Industrial computer maker Ennoconn Corp (樺漢科技) yesterday said it is optimistic about the growing opportunities in the edge computing business and expects significant growth this year in the company’s three major units — design and manufacturing, systems integration and brand business.
With a book-to-bill ratio of about 1.1 percent to 1.15 percent, and an order backlog exceeding NT$180 billion (US$5.42 billion), Ennoconn said it holds clear order visibility and expects the company’s revenue, gross profit and net profit to show stable growth this year.
A book-to-bill ratio above 1 percent indicates increasing demand.
Photo: CNA
Ennoconn Corp, a subsidiary of electronics giant Hon Hai Precision Industry Co (鴻海精密), at an earnings conference in Taipei, said that it plans to set up a new factory in Tennessee to respond to US President Donald Trump’s tariff policy. The facility is expected to begin production in the third quarter of this year.
Revenue last year increased 20.3 percent to NT$146.38 billion from NT$121.64 billion in 2023, thanks to substantial sales contribution from the company’s high-margin cloud solution as a service (SaaS) business in light of the huge opportunities related to digital transformation, artificial intelligence, semiconductors, new energy installations and information security.
Europe remained Ennoconn’s largest market last year, accounting for 35.5 percent of its total revenue, followed by the US with 29.1 percent, China with 9.8 percent and other regions accounting for 24.5 percent.
Net profit rose 21.2 percent to NT$2.74 billion from NT$2.26 billion a year earlier, and earnings per share increased to NT$20.03 from NT$19.01, company data showed.
The company’s board of directors on Friday proposed a cash dividend of NT$12.2 per share, representing a payout ratio of 60.91 percent.
This year, the company expects its design and manufacturing business to benefit from contribution by its partner New York-listed NCR Voyix Corp, a maker of POS systems, ATMs and barcode readers, it said, adding that its branded business, supported by German subsidiary Kontron AG, aims to expand into the aerospace, electric vehicle charging and energy management markets.
Additionally, its system integration business is expected to benefit from increasing semiconductor investment by its automated supply system and turnkey engineering subsidiary, Marketech International Corp (帆宣), in the US, it said.
SMART MANUFACTURING: The company aims to have its production close to the market end, but attracting investment is still a challenge, the firm’s president said Delta Electronics Inc (台達電) yesterday said its long-term global production plan would stay unchanged amid geopolitical and tariff policy uncertainties, citing its diversified global deployment. With operations in Taiwan, Thailand, China, India, Europe and the US, Delta follows a “produce at the market end” strategy and bases its production on customer demand, with major site plans unchanged, Delta president Simon Chang (張訓海) said on the sidelines of a company event yesterday. Thailand would remain Delta’s second headquarters, as stated in its first-quarter earnings conference, with its plant there adopting a full smart manufacturing system, Chang said. Thailand is the firm’s second-largest overseas
‘REMARKABLE SHOWING’: The economy likely grew 5 percent in the first half of the year, although it would likely taper off significantly, TIER economist Gordon Sun said The Taiwan Institute of Economic Research (TIER) yesterday raised Taiwan’s GDP growth forecast for this year to 3.02 percent, citing robust export-driven expansion in the first half that is likely to give way to a notable slowdown later in the year as the front-loading of global shipments fades. The revised projection marks an upward adjustment of 0.11 percentage points from April’s estimate, driven by a surge in exports and corporate inventory buildup ahead of possible US tariff hikes, TIER economist Gordon Sun (孫明德) told a news conference in Taipei. Taiwan’s economy likely grew more than 5 percent in the first six months
SUPPLY RESILIENCE: The extra expense would be worth it, as the US firm is diversifying chip sourcing to avert disruptions similar to the one during the pandemic, the CEO said Advanced Micro Devices Inc (AMD) chief executive officer Lisa Su (蘇姿丰) on Wednesday said that the chips her company gets from supplier Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) would cost more when they are produced in TSMC’s Arizona facilities. Compared with similar parts from factories in Taiwan, the US chips would be “more than 5 percent, but less than 20 percent” in terms of higher costs, she said at an artificial intelligence (AI) event in Washington. AMD expects its first chips from TSMC’s Arizona facilities by the end of the year, Su said. The extra expense is worth it, because the company is
The seizure of one of the largest known mercury shipments in history, moving from mines in Mexico to illegal Amazon gold mining zones, exposes the wide use of the toxic metal in the rainforest, according to authorities. Peru’s customs agency, SUNAT, found 4 tonnes of illegal mercury in Lima’s port district of Callao, according to a report by the non-profit Environmental Investigations Agency (EIA). “This SUNAT intervention has prevented this chemical from having a serious impact on people’s health and the environment, as can be seen in several areas of the country devastated by the illegal use of mercury and illicit activities,”
RSS