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New plant + order Career Groups should flourish until the year-end

 

Date: 2018-09-25

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Career Groups has benefited from the demand for mobile phones in mainland-China, in addition to urgent orders from Apple, resulting in its turnover in the second quarter reaching NT$ 3.075, a gain in profit of NT$114 million, which fares much better than market expectations. As for the newly established Guanyin factory, not only has it received funding but equipment assistance from American clients as well, while revenue contributions have also been pouring in.

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At present, the FPC antenna yield for LCP exceeds 80%, greatly assisting the revenue for the second half of the year. In addition, Career Groups has already obtained 30% of the FPC order for Apple LCP, while there is still a lot of room for growth. Its factory expansion should help increase the order volume and enhance its market share. As estimated by foreign investment institutes, Career Groups’ shipments for August and September are expected to be rushing to meet maximum customer demands.

 

To cope with demands from customers, Career Groups has been aggressively expanding its new Guanyin plant. At present, the construction size has reached about 30,000 pings, which is 2.5 times that of the Shulin factory. In addition, the company is planning to install all the machines in August with being put into production first. It is scheduled that in September it will be able to cope with the new Apple LCD model and begin shipment. In terms of environmental protection, Career Groups has had successive charges filed against it for a violation of environmental protection in its factories in Suzhou and Kunshan in the mainland. To reduce the impact of its operation from the mainland's environmental protection policy, the weight of turnover is likely to be increased with factories in Taiwan along with the initiation of mass production at the new Guanyin plant.

For the rest of the capacity, its factory in Taipei will be is responsible for the higher-tech front-end process, while the Kunshan and Suzhou plants should be responsible for the mid and rear-end processes. The production capacity of the company for a single-sided PCB is about 75,000 square meters per month, while that of the double-sided PCB reaches 190,000 square meters per month, with multi-sided PCB as well as rigid-flex PCB as a whole amounting to 85,000 square meters per month. (Source of information: Commercial Times)

 

 

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