Cable and connector maker Wonderful Hi-Tech Co (萬泰科技) yesterday said revenue is expected to grow sequentially each quarter this year, with full-year revenue likely to surpass the company’s target of NT$10 billion (NT$312.7 million).
The company reported revenue last year grew 6.1 percent year-on-year to NT$8.63 billion. Net profit gained 4.8 percent to NT$375 million, or earnings per share of NT$2.19.
The optimism underscores the company’s confidence in securing orders for high-speed cables for artificial intelligence (AI) servers, low Earth orbit (LEO) satellite-related products, and other higher-margin, customized cables, Wonderful Hi-Tech chairman Ringo Chang (張銘烈) told an earnings conference in Taipei.
Photo: Meryl Kao, Taipei Times
The company’s core business focuses on copper-based wire and cable manufacturing, with applications spanning network transmission, power, control and sensing, as well as specialized environments.
As demand rises from AI data centers, edge computing, LEO satellites and advanced building cabling, the company has been shifting its product mix toward higher value-added offerings, it said.
Demand for satellite-related cables remains robust, given steady shipment growth among its US-based satellite customers, Wonderful Hi-Tech president Steve Chang (張程雅) said.
The company supplies AC power cables and network cables used in the ground equipment for LEO satellites, with shipments expected to ramp up as new customers enter mass production, he said.
Revenue contribution from satellite cables this year is expected to double from last year, he said.
To support growth, the company has budgeted capital expenditure of about NT$400 million for this year, with about NT$250 million for the third-phase expansion of high-speed cable production at its plant in Thailand, Steve Chang said.
Its plant in Vietnam has also expanded capacity for electron beam irradiated cables, with trial production beginning in January and mass production slated for the end of the second quarter, he said.
The company aims to expand its presence in AI server applications and further tap into the global satellite communications market as part of its mid-term growth strategy, he added.
Wonderful Hi-Tech targets a compound annual growth rate of 20 percent to 25 percent in revenue over the next five years, while aiming to increase the share of higher-margin, customized products, especially those supplied to AI data centers, from about 18 percent to 30 percent by 2030, he said.
That strategy is expected to drive growth in profit by lifting gross margin from about 18 percent now toward 20 percent by then, he said.
The company has expanded its global manufacturing footprint across Taiwan, the US, China, Thailand and Vietnam, and would continue to expand capacity in Southeast Asia to address rising geopolitical and supply chain risks, Steve Chang said.
It aims to increase North America’s revenue contribution to 40 percent, from 36 percent last year, in the coming years, he said.
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