Disrupted by the Sino-US trade war, unexpected poor sales of new models of flagship mobile phones containing PCBs, and other factors have resulted in the earlier arrival of the off-season and a general decline in revenues. However, the legal person pointed out that due to multiple favorable factors, Zhen Ding Tech, Tripod Technology, and Apex International still managed to achieve good sales results despite the turmoil in the market. Although they have yet to disclose their December revenues, based on the sales performance of the past 11 months of last year they are almost certain to challenge and surpass previous year’s sales.

 

In 2017, Zhen Ding Tech’s revenue broke through the NT$100 billion mark, propelling them to become the global leader in PCBs. The legal person said that Zhen Ding Tech is a key partner in Apple’s supply chain. Although Apple’s new product sales are not as good as expected, component production for old mobile phone models is ongoing. Also, peripheral accessories such as wireless headphones, wireless charging PCBs and other components are expected to be launched this year, and the forecasted growth momentum for follow-up demand is still positive.

 

Zhen Ding Tech noted that the company is supported by a strong customer base and does not solely rely on orders from a single customer. Even if the environment contains many hidden, unstable factors, the company is least worried about the loss of orders that would affect its operation. The key solutions are to build up strong self-capability, manage a sound international infrastructure, and maintain good relationships with customers and suppliers. It is also vital to expand the company’s manufacturing process, technology, and part numbers.

 

Since April last year, Tripod Technology’s monthly revenue has successfully exceeded NT$4 billion. To date, its outstanding sales results have surpassed the total from 2017, and the accumulated earnings per share for the first 3 Quarters of 2018 are as high as $6.60. Even if the Q3 quiet season operation is similar to the previous year, there is a high possibility of improving on historical high record sales. Looking forward to its operation in the off-season, Tripod Technology’s outlook is also relatively conservative. Due to the saturation of the mobile phone market, extended mobile phone replacement period, and a decline in the consumer electronics market in the past year, it expects its operating performance to remain the same as the previous year, with no significant changes.

 

Apex International has benefited from the strategy producing medium and low-end rigid PCBs and keeping strict control on its production costs. Its last year’s Q3 revenue, after-tax net profit, and earnings per share have all hit record highs. The legal person remarked that the focus on production in the automobile sector has assisted the company to maximize the factory’s utilization rate. Coupled with promising orders until Q1 of this year, the company expects to surpass its previous sales records in 2018. Apex International said that the concept of profitability is to produce quality products, and that there is still an enormous demand in the market for medium and low-end products. Unit prices are not so attractive though, but the opportunity to stand out from the crowd is naturally greater because of their willingness to do what other people do not wish to do. (News Source: Commercial Times)