TSE-listed Auto-parts Makers Tong Yang and MacAuto Report Record Revenues in 2013

Two auto-parts makers listed on the Taiwan Stock Exchange (TSE) registered record revenues for both December and 2013, including Tong Yang Industrial Co., Ltd. and Macauto Industrial Co., Ltd., and they are optimistic about increasing new-car sales in Taiwan and global markets, also expecting record sales.

In December 2013, Tong Yang, a major maker of aftermarket (AM) plastic body-parts and  OE parts supplier to many  domestic and international automakers, reported self-audited consolidated revenue of NT$1.86 billion (US$62.1 million), up 24.9% year on year (YoY), and a new record high in company history. The maker's 2013 consolidated revenue totaled NT$19.62 billion (US$654 million), a 15.4% increase YoY and also a record high.

MacAuto, an OE sun-curtain supplier to Mercedes-Benz, BMW etc., had consolidated revenue of NT$216 million (US$7.2 million) in December 2013, up 22% YoY; and NT$2.69 billion (US$89.7 million) in 2013, a 26.4% increase from the previous year. Both were record highs in company history.

The automotive curtain maker pointed out that global new-car sales exceeded 80 million units in 2013, leading to very strong demand for MacAuto's products. The company began production of different new products for BMW 3- and X5-series, and new Hyundai, Toyota and Nissan models last year. In 2014, MacAuto will continue introducing several new products for mass production, and the firm's revenue is expected to rise further, but the revenue growth rate might not be as high as seen in 2013 due to high comparison base.

Crispin Wu, Tong Yang's president, pointed out that the fourth and first quarters are traditional peak seasons for AM replacement parts. The blizzards in North America in late 2013 have further ramped up demand for collision replacement items.

Tong Yang's AM auto-parts revenue in last December was NT$1.08 billion (US$36.1 million), up 10% YoY, and  NT$12.5 billion (US$416.7 million) in 2013, up 11% YoY. Both figures were record highs. The firm's plastic and cooling products enjoyed 10% to 50% sales growth last year.

Tong Yang plans to build a new plastic-parts factory in Taiwan in 2014, with eight plastic-injection machines initially, to create total annual production capacity of about 1.54 million automotive plastic bumpers to meet rising demand.

The company's OE-parts business in Taiwan registered revenue of NT$151 million (US$5 million) last December, up 44% YoY; and NT$1.87 billion (US$62.4 million) in 2013, a 9% annual growth. The firm has been expanding sales of Taiwan-made OE-parts to overseas customers, so the revenue ratio of OE business has risen to 53% in 2013 from 46%. The firm also plans to install more new electro-plating production lines this year to upgrade added-value for products.

Tong Yang's reinvested Chinese operation reported revenue of NT$1.91 billion (US$63.5 million) in December 2013, up 65% YoY, and NT$15.27 billion (US$508.97 million) in 2013, a 21% increase. Some new factories in China have kicked off production in recent months, and Tong Yang anticipates increasing revenue from across the Taiwan Strait.