Metal casing supplier Catcher Technology Co (可成科技) yesterday said it expects to see meaningful revenue contribution from products used in artificial intelligence (AI) servers in the second half of this year.
The company started small-volume shipments of AI-related products in the fourth quarter of last year.
Catcher supplies mechanical and external parts for servers, as well as power supply products and switches.
Photo: Meryl Kao, Taipei Times
Products used in AI servers are expected to contribute 20 percent of the company’s total revenue this year, with the momentum likely to extend to next year, Catcher chairman Allen Hung (洪水樹) said after the company’s annual general meeting in Tainan.
The longer-term outlook remains positive as the company plans to supply chassis components for next-generation servers, Hung said.
Overall, the company expects revenue from the AI server business to outperform that of the laptop casing business over the next three years, he said.
Computer chassis and metal casing products account for about 80 percent of Catcher’s total revenue, but the company said it aims to lift the proportion of components for non-notebook computer products to more than 30 percent of revenue this year.
Catcher also said it expects more shipments of AI-related products to help lift gross margin to 30 percent this year after reaching about 28.8 percent last quarter.
The company has continued to diversify its business from the computer segment to other areas, such as components for medical equipment and for front-end semiconductor equipment, and precision components for aviation engines and drones, Hung said.
Catcher has obtained AS9100 certification for the aerospace industry and plans to target the aircraft engine market, he said.
The company’s drone-related products have passed certification and it has secured orders from international customers as well, he added.
Catcher is also eyeing AI robotics and has been cooperating with a US start-up, Hung said, without elaborating.
Catcher’s primary manufacturing bases are in Taiwan and China.
The company is building facilities in Thailand and Vietnam, and is evaluating expansion in other Southeast Asian countries to meet client demand, Hung said.
The initial investment in Thailand is worth US$50 million, with production of components for consumer electronics set to begin this year or next year, he said.
Catcher aims to maintain a dividend policy targeting a payout ratio of at least 60 percent, he added.
Shareholders yesterday approved the company’s proposal to distribute a cash dividend of NT$10.15 per share, representing a payout ratio of 89.59 percent based on the company’s earnings per share of NT$11.33 last year.
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