Taimide Tech. Inc. (Taimide), a Polyimide Film (PI) manufacturer, enjoyed an increase in gross profit in Q3, reaching 34.6% and expects growth in Q4. With the need for graphite in the PI market, revenue in Q4 is expected to remain flat. Due to the limited increase in supply, PI may be out of stock next year, leading to a price increase.

 

  Due to the increasing consumption of flexible boards, Taimide’s revenue hit a record high in Q3 with a gross profit margin of 34.6%. The growth in gross profit was due to the increase in the utilization rate and the optimized product portfolio. Looking at Q4, the overall revenue remains stable regardless of a decline of 4.5% in October due to National Day holidays. Revenue in November remains flat due to a high utilization rate of flexible boards and the need for insulation and graphite. The utilization rate in Q4 remains 80%~90% of that in Q3.

 

  Taimide develops graphite through PI sintering. Graphite is the new choice of cooling materials. With an increasing demand for the cooling of smart phones, the need for graphite rises. Taimide has started shipments of graphite and expects a more comprehensive need next year. For Taimide, the need for graphite can reduce issues such as fluctuations in revenue of flexible boards and capacity deployment.

 

  While the need for PI rises due to the development of graphite, Taimide has no intention of expansion for now. In addition, it takes some time to adjust the yield of a PI production line up to a high standard. The increased capacity of other manufacturers will start to affect demand and supply in 2019. With an increasing need and insignificant increase in supply, PI may be out of stock next year. As the prices of raw materials of PI increased this year and raw materials imported from China, under a strict Chinese environmental protection policy, were needed, costs rose, leading to a possible price increase in the future depending on demand and supply.

  

  In terms of new technology development, there is a need of lighter and softer materials due to IoT. When the thickness is reduced, traditional PI will cause a significant increase in the non-performing rate of production and coating and lamination. In view of this, Taimide has developed a new type of ultra-thin PI (1-5µm thick) that can be applied to ultra-thin CVL and FCCL, while maintaining the original process and proper control of cost-effectiveness. In response to the inevitable trend of high-frequency circuits and high speed, Taimide develops LKL with low Df to offer customers the best solution for high frequency/speed. (Source: Money DJ)