Syncmold to Start Delivery of Medical Carts in 2nd Half of This Year

Taipei, Feb. 24, 2012 (CENS)--The Taiwan-based Syncmold Enterprise Corp., a publicly listed company engaged in plastic molds and hinge products, will start delivery of its newly developed medical carts in the second half of this year at the earliest to drive more growth for its revenue.

To diversify into high-margin medical instruments, the company's electronic business division has been dedicated to development of medical carts for a time, and has cooperated with Chinese agents and system integrators to tap the lucrative market in the country.

In fact, the market has actually shown considerable business potential worth players' efforts to explore, as the Chinese government has planned to establish 2,000 more hospitals nationwide in five years as part of its 12th five-year economic development project. Considering that a hospital accommodates about 800 patient beds and demands one medical cart for every 20 patient beds, market observers opine that more than 80,000 medical carts will be demanded by these newly established hospitals. This will grant Syncmold huge business opportunities in the years to come.

In the meantime, the company has also garnered a big order from an American PC vendor for hinges used in all-in-one PCs recently. Institutional investors pointed out that the hinges will be shipped at prices of between US$10 and US$20 per unit, regarded as one of the company's major revenue contributors this year.

Noteworthily, the company, in order to improve its gross profit rate, has also moved to automate in-house production. The company has installed an automated machine for making monitors at its factory, and will add another in the second quarter, when its ratio for self-manufactured electronic parts is expected to increase to 30% from 10% seen last year.

The company scored sales revenue of NT$8.42 billion in 2011, up 26.5% from a year ago, with EPS (earnings per share) estimated at NT$3.5-4.