Compeq Manufacturing Co. Ltd. (Compeq), a PCB manufacturer, enjoyed a better than expected profit in Q3. Looking at Q4, a traditional high season, production remains fully-loaded and shipping momentum is expected to continue until the first half of 2018. Compeq’s revenue in Q4 is estimated to grow 10%, with substrate-like PCBs (SLPs) and rigid-flex boards expected to be the momentum for this growth. Taking advantage of its strong technology and customer base, Compeq will expand production of rigid-flex boards and HDI.

 

   In terms of Compeq’s production in Q3, cell phones accounted for 30%, PCs for 21%, flexible/rigid-flex boards/SMT for 38%, Netcom and base stations for 4%, and consumer electronics 7%. Compeq performed excellently in Q3 with consolidated revenue hitting a record high, resulting in a gross profit margin of 17.03%, an increase of 4% compared to Q2. This excellent performance in Q3 was mainly due to the high-end capacity utilization of each product line and the stable improvement in their yield.

 

  The operation of Compeq in Q4 remains up to the standards of a high season. Revenue in Q4 is expected to grow depending on the supply chain of the new model. The capacity utilization of SLPs, HDIs, and rigid-flex boards remains high, while the yield of SLP, which is new this year, is continuously optimized. Revenue this quarter is expected to grow by 10%. Due to the continuous sales momentum of new American models, the shipping momentum remains strong until the first half of 2018.

 

  Compeq’s SLP, which is new this year, has performed excellently. As the world’s largest HDI manufacturer, Compeq introduced SLPs and the modified-semi-additive process (MSAP) this year and took advantage of its HDI experience to expand the technical gap from other manufacturers in the short term. It secured its position in thin circuit boards, which reflected in the gross profit margin in Q3. In addition to SLPs, rigid-flex boards will be the main momentum next year. According to Compeq, in addition to the increasing demand for battery management modules of American customers, Chinese customers also show an increasing demand for fast charging of battery management modules and smartphone camera modules. Besides a stable market share of American customers, Compeq will benefit from the stable growth of Chinese smart phones in terms of rigid-flex board applications. (Source: Money DJ)