Power management solutions provider Phihong Technology Co (飛宏科技) yesterday said it is optimistic about its operating performance next year, as rising demand for charging piles is expected to boost its electric vehicle (EV)-related business.
Phihong — which also produces power supply products used in machine tools, networking equipment, low Earth orbit satellites, consumer electronics and smart appliances — reported that revenue in the first three quarters of this year decreased 5.8 percent year-on-year to NT$7.45 billion (US$238.72 million).
Power supply products accounted for 68.2 percent of its total sales, EV-related products made up 31.7 percent and other product made up 0.1 percent, the company said.
Photo courtesy of Phihong Technology Co
Phihong reported a net loss of NT$414 million in the first three quarters, with losses per share of NT$0.97, compared with net income of NT$217 million for the same period last year, or earnings per share of NT$0.5.
The company’s gross margin decreased to 21 percent in the first three quarters, from 28 percent a year earlier, dented by large orders of low-margin power supply items for smartphones, Phihong president Vincent Lin (林冠宏) said, adding that the company aims to focus on higher-margin, high-power items in the product mix next year.
The company is a core supplier to a major US customer in the low Earth orbit satellite sector, with related products accounting for 5 percent of its total revenue this year, a figure that is expected to rise to 10 percent next year, he said.
The company is still in the development stage of power supply products for artificial intelligence (AI) servers and has been in contact with potential customers, Lin said.
The company might consider raising prices next year, given the rising prices of raw materials such as copper, gold and tin, he added.
However, increasing prices could raise costs for many consumer electronics, potentially affecting end-market demand and creating uncertainty for the company’s operations next year, Lin said.
Phihong operates its EV charging business through its subsidiary Zerova Technologies Taiwan Ltd (馳諾瓦科技), which expects sales to grow about 25 percent next year on customers’ renewed investment in charging-pile installations and by replacement needs for equipment that has been in use for four to five years, Zerova chief executive officer Jay Yang (楊維絜) said.
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